EX-99.1 3 octexhnos.txt PRESS RELEASE NU HORIZONS ELECTRONICS CORP. 70 Maxess Road Melville, NY 11747 631-396-5000 Fax: 631-396-5060 Company Contact: Paul Durando Nu Horizons Electronics Corp. 631-396-5000 FOR IMMEDIATE RELEASE --------------------- NU HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER OF FISCAL YEAR 2004 MELVILLE, NY, October 2, 2003 --- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components today reported financial and operating results for the second quarter and six months ended August 31, 2003. Net sales for the quarter ended August 31, 2003 were $80.0 million compared to $80.3 million for the comparable period last year. Net loss for the quarter was $623,000 or $0.04 per share on 16,681,145 basic shares outstanding, compared with net income of $254,000 or $0.02 per share on 16,646,868 basic shares outstanding ($0.02 per share on 16,714,882 diluted shares) in the same period last year. For the six months ended August 31, 2003, net sales decreased to $152.8 million from $155.3 million in the comparable period last year. Net loss for the first half of fiscal 2004 was $1,454,000 or $0.09 per share on 16,678,093 basic shares outstanding, compared with net income of $262,000, or $0.02 per share on 16,641,658 basic shares outstanding ($0.02 per share on 16,783,837 diluted shares) in the year-earlier period. Arthur Nadata, president and chief executive officer of Nu Horizons, said, "Sales were flat for the three month period and down marginally for the six month period year over year. We are encouraged by the sequential quarterly improvement in our sales volume, which increased $7.2 million from $72.8 million to $80.0 million. Nadata continued, "This sequential sales growth came entirely from our Nu Horizons Asia Pacific and Titan Supply Chain Services operations, with our domestic core business remaining flat. Those operations generally yield lower gross margins than those available to our North American core business. As a result, our overall gross margin fell to 18.0% for the quarter from 19.3% in the sequential prior quarter with no reduction in domestic gross margin. (more) Nadata concluded, "Continuing slow demand in the component marketplace coupled with poor near term visibility makes it difficult to estimate our overall sales volume and earnings for the next several quarters. Nevertheless, we believe that through our continuing focus on our `design in' component sales strategies and continuing efforts to penetrate the Asian marketplace and expand our global capabilities, we will continue to move forward during this downturn and be well positioned to profit from an eventual market recovery." A conference call to further discuss earnings will be held today at 4:15 PM ET. The call can be accessed by dialing (800) 915-4836, (international, dial 1-973-317-5319). A rebroadcast of the call will be available after the call, beginning at 7:00 pm ET at (800)-428-6051 (international, dial 973-709-2089) confirmation code 307564 . A webcast of the call will also be available, online live, at WWW.NUHORIZONS.COM. A transcript of the webcast will remain available on the website for a period of twelve months, beginning one week after the call. In connection with the conference call, Nu Horizons has posted on its website certain information regarding its second quarter results. Nu Horizons is a national distributor of high technology electronic components, which provide innovative, total semiconductor solutions through products and technologies that are faster, smaller and lower powered. Nu Horizons was established in 1982 and currently has 35 branch and subsidiary offices located in the U.S., Asia and Europe. For more information, visit the Nu Horizons' home page at HTTP://WWW.NUHORIZONS.COM. Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending for electronic products, the amount of sales of the Company's products, the competitive environment within the electronics industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the semiconductor industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. (more) (Tables Follow) NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES ---------------------------------------------- CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS ----------------------------------------------- (unaudited)
For the Six Months Ended For the Three Months Ended August 31, 2003 August 31, 2002 August 31, 2003 August 31, 2002 NET SALES $ 152,768,252 $ 155,321,995 $ 79,965,110 $ 80,309,727 --------------- ----------------- ----------------- ----------------- COSTS AND EXPENSES: Cost of sales 124,341,742 126,296,049 65,570,341 65,748,059 Operating expenses 30,755,068 28,335,839 15,401,486 14,071,202 Interest expense 77,588 69,493 57,066 21,664 Interest income (101,217) - (92,313) - ------------------ ----------------- ------------------ ---------------- 155,073,181 154,701,381 80,936,580 79,840,925 ----------------- ----------------- ----------------- ----------------- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTERESTS (2,304,929) 620,614 (971,470) 468,802 Provision (credit) for income taxes (1,017,601) 213,091 (432,497) 167,826 ------------------ ----------------- ------------------ ----------------- INCOME (LOSS) BEFORE MINORITY INTERESTS (1,287,328) 407,523 (538,973) 300,976 Minority interest in earnings of subsidiaries 166,895 145,493 83,879 46,648 ----------------- ----------------- ----------------- ----------------- NET INCOME (LOSS) (1,454,223) 262,030 (622,852) 254,328 ------------------ ----------------- ------------------ ----------------- NET INCOME (LOSS) PER COMMON SHARE: Basic $ (.09) $ .02 $ (.04) $ .02 ================= ================ ================= ================ Diluted NA $ .02 NA $ .02 ================= ================ ================= ================ WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 16,678,093 16,641,658 16,681,145 16,646,868 Diluted 17,155,677 16,783,837 17,292,653 16,714,882
(MORE) NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES ---------------------------------------------- CONSOLIDATED CONDENSED BALANCE SHEETS -------------------------------------
August 31, February 28, ------------------- ------------------ 2003 2003 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 27,387,441 $ 31,345,616 Accounts receivable - net of allowance of doubtful accounts of $3,988,958 and $4,083,590 for August 31, 2003 and February 28, 2003, respectively 49,403,927 39,092,343 Inventories 63,642,144 66,073,022 Prepaid expenses and other current assets 2,010,921 2,952,665 -------------------- ------------------ -------------------- ------------------ TOTAL CURRENT ASSETS 142,444,433 139,463,646 PROPERTY, PLANT AND EQUIPMENT - NET (Note 2) 4,703,895 5,150,499 OTHER ASSETS: Subordinated note receivable (Note 3) 2,000,000 2,000,000 Other assets 1,502,084 1,485,044 -------------------- ------------------ -------------------- ------------------ $ 150,650,412 $ 148,099,189 ==================== ================== ==================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 22,094,077 $ 16,732,172 Accrued expenses 4,353,053 5,939,395 -------------------- ------------------ -------------------- ------------------ TOTAL CURRENT LIABILITIES 26,447,130 22,671,567 -------------------- ------------------ -------------------- ------------------ LONG TERM LIABILITIES: Deferred income taxes 258,278 252,832 -------------------- ------------------ TOTAL LONG-TERM LIABILITIES 258,278 252,832 -------------------- ------------------ -------------------- ------------------ MINORITY INTEREST IN SUBSIDIARIES 1,349,344 1,182,449 -------------------- ------------------ -------------------- ------------------ COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Preferred stock, $1 par value, 1,000,000 shares authorized; none issued or outstanding - - Common stock, $.0066 par value, 20,000,000 shares authorized; 16,681,145 and 16,663,817 shares issued and outstanding for August 31, 2003 and February 28, 2003, respectively 110,095 109,981 Additional paid-in capital 42,991,588 42,925,545 Retained earnings 80,044,536 81,498,759 Other accumulated comprehensive income (loss) (470,431) (541,944) -------------------- ------------------ -------------------- ------------------ 122,675,788 123,992,341 Less Loan to ESOP 80,128 - -------------------- ------------------ -------------------- ------------------ TOTAL SHAREHOLDERS' EQUITY 122,595,660 123,992,341 -------------------- ------------------ $ 150,650,412 $ 148,099,189 ==================== ==================
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