EX-99.2 4 press2.txt EXHIBIT 99.2 EXHIBIT 99.2 INVESTOR CONTACT: Tim Iris Phone: (631) 847-3169 tiris@gensemi.com MEDIA CONTACTS: George Sard/David Reno/Jonas Leddington Citigate Sard Verbinnen Phone: (212) 687-8080 FOR IMMEDIATE RELEASE GENERAL SEMICONDUCTOR REPORTS FIRST QUARTER RESULTS MELVILLE, NY, (APRIL 19, 2001) - GENERAL SEMICONDUCTOR, INC. (NYSE: SEM), a leading manufacturer of power management devices, today reported results in-line with the guidance it provided on March 12, 2001 for the quarter ended March 31, 2001. Sales for the quarter were $102.0 million, a decrease of 11.3% from the $115.0 million recorded in the first quarter of 2000. Sequentially, sales decreased 14.9% from the $119.9 million reported for the fourth quarter of 2000. Operating income for the quarter, excluding one-time pre-tax restructuring charges, was $10.2 million, a 46% decrease from $18.9 million for the same period a year ago. Diluted earnings per share, excluding one-time after-tax charges, were $0.12, compared to the $0.23 recorded in the first quarter of 2000. As announced on February 8, 2001, the Company implemented a restructuring program to improve its cost structure, resulting in one-time pre-tax restructuring and asset impairment charges of $12.9 million in the first quarter. New products represented 7% of sales in the quarter, compared to 4% in the same quarter a year ago, demonstrating the continued success of the Company's strategy. The Company has expanded its low voltage trench MOSFET offering to a total of 38 products and registered an additional 43 MOSFET design wins in the first quarter. Ronald A. Ostertag, Chairman and Chief Executive Officer, said, "While the broad-based economic slowdown has affected our near-term revenue growth, we have taken the necessary actions to ensure our cost structure remains competitive. Additionally, we recently announced significant developments by our MOSFET design group in our proprietary trench technology, and we have achieved first silicon for a low-dropout regulator by our Analog design engineers, demonstrating significant progress in our move to penetrate this higher technology market. New products, which are generating a growing percentage of sales, the breadth of our geographic reach and the diversity of our businesses combine to put us in an enviable competitive position to weather the current economic downturn." BUSINESS OUTLOOK Based on current market conditions, the Company expects that revenues in the second quarter of 2001 will be slightly down sequentially, with diluted earnings per share remaining approximately flat as the Company begins to benefit from its cost restructuring program. "We are cautiously optimistic about the second half of the year," stated Robert J. Gange, Sr. Vice President and Chief Financial Officer. "We believe the combination of successful new products and the continued reduction of inventories in the channel will lead to a return to sequential revenue growth in the third quarter." Mr. Ostertag concluded, "We remain committed to our power management strategy and continue to invest in new product development. We believe the Company is extremely well positioned to capitalize on growth opportunities as industry conditions improve." ABOUT GENERAL SEMICONDUCTOR General Semiconductor, Inc. is a market leader in the design, manufacture and distribution of power semiconductor components. The Company provides customers with a broad array of power management products including rectifiers, transient voltage suppressors, small signal transistors, diodes and MOSFETs. Its global customer base includes original equipment manufacturers, electronic distributors and contract equipment manufacturers. Key markets for its products include automotive, computers, consumer and telecommunications equipment. JOIN US FOR OUR CONFERENCE CALL TO BE BROADCAST LIVE AT 8:30 AM, THURSDAY, APRIL 19, 2001 BY VISITING OUR WEBSITE AT: www.gensemi.com The information set forth above includes "forward-looking" information and, accordingly, the cautionary statements contained in Exhibit 99 to the Company's Form 10-K filing with the Securities and Exchange Commission are incorporated herein by reference. General Semiconductor's actual results could differ materially from the "forward-looking" information in this press release. GENERAL SEMICONDUCTOR, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE INFORMATION) THREE MONTHS ENDED MARCH 31, --------------------------- 2001 2000 ----------- ----------- NET SALES $ 102,008 $ 114,970 Cost of sales 75,153 80,437 ----------- ----------- GROSS PROFIT 26,855 34,533 Selling, general and administrative 12,734 12,664 Research and Development 2,613 1,674 Amortization of excess of cost over fair value of net assets acquired 1,285 1,285 Restructuring 8,913 -- Asset write-off 4,035 -- ----------- ----------- Total operating costs and expenses 29,580 15,623 ----------- ----------- OPERATING (LOSS) INCOME (2,725) 18,910 ----------- ----------- Other income 118 15 Interest expense - net (3,974) (5,305) ----------- ----------- (LOSS) INCOME BEFORE INCOME TAXES (6,581) 13,620 Benefit from (provision for) income taxes 1,974 (4,086) ----------- ----------- NET (LOSS) INCOME $ (4,607) $ 9,534 =========== =========== WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 37,726 37,331 Diluted 37,726 49,612 (LOSS) EARNINGS PER SHARE: Basic $ (0.12) $ 0.26 Diluted $ (0.12) $ 0.23 EARNINGS PER SHARE BEFORE RESTRUCTURING AND ASSET WRITE-OFF CHARGES: Basic $ 0.12 $ 0.26 Diluted $ 0.12 $ 0.23 GENERAL SEMICONDUCTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (unaudited) March 31, December 31, 2001 2000 ----------- ----------- Cash $ 3,254 $ 4,913 Accounts receivable, less allowance for doubtful accounts 59,100 66,246 Inventories 54,879 53,698 Other current assets 23,108 25,151 ----------- ----------- Total current assets 140,341 150,008 Total non-current assets 446,723 445,281 ----------- ----------- TOTAL ASSETS $ 587,064 $ 595,289 =========== =========== Total current liabilities $ 90,452 $ 99,877 ----------- ----------- Long-term debt 222,500 216,500 Other liabilities 90,449 91,237 ----------- ----------- Total non-current liabilities 312,949 307,737 ----------- ----------- Total liabilities 403,401 407,614 Total stockholders' equity 183,663 187,675 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 587,064 $ 595,289 =========== =========== GENERAL SEMICONDUCTOR, INC. CONDENSED CONSOLIDATED CASH FLOW (UNAUDITED - IN THOUSANDS) THREE MONTHS ENDED MARCH 31, --------------------------- 2001 2000 ----------- ----------- Income (loss) from operations $ (4,607) $ 9,534 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 8,175 7,358 Asset write-off in conjunction with restructuring 4,035 -- Changes in assets and liabilities (3,566) (2,916) ----------- ----------- Net cash provided by operating activities 4,037 13,976 Capital expenditures (11,710) (6,750) Net cash provided by (used in) financing activities 6,014 (4,395) ----------- ----------- (Decrease) increase in cash (1,659) 2,831 Cash, beginning of period 4,913 2,586 ----------- ----------- Cash, end of period $ 3,254 $ 5,417 =========== ===========