Discrete-IC specialty distributor Taitron Components Inc. reported a 7.4% increase in sales for its fourth quarter ended Dec. 31.
Net sales for the period reached $7.3 million, from $6.8 million a year ago. Net income for the same period was $231,000, or 4 cents per diluted share, compared with $221,000, or 3 cents per diluted share, last year.
Taitron said it is benefiting from the same components-market recovery as its broad-line brethren. "An increase in 1999 fourth-quarter results over the same period last year reflects an improving business environment, with demand for discrete semiconductors showing continued strength in the first quarter of year 2000," said Stewart Wang, Taitron's president and chief executive.
Recent shortages of discrete semiconductors and passive components have created significant price increases in the marketplace, Wang said.
Net sales for the year were $29.3 million, compared with $30.8 million a year ago. Net income for 1999 was $1 million, or 17 cents per diluted share, compared with $1.5 million, or 24 cents per diluted share, in 1998.
Wang indicated that results for the quarter and year were affected by an increase in selling, general, and administrative expenses related to the expansion of the company's direct sales force, operating costs related to newly opened offices, and additional overhead from the company's subsidiary in Mexico.
The Santa Clarita, Calif., distributor also expanded domestically during the fourth quarter. Taitron opened new sales offices in Arizona; Orange County, Calif.; and Florida. The expansion followed the opening of a New York sales office earlier in 1999.
Wang also noted that the company recently completed the purchase of a new 50,000-sq.-ft. warehouse and headquarters. Interior improvements to the new $3.3 million facility, located in Valencia, Calif., are expected to be completed in the second quarter.
Taitron distributes a wide variety of transistors, diodes, and other discrete semiconductors, optoelectronic devices, and passive components.