Vishay Intertechnology Reports First Quarter 2025 Results

May 07, 2025 07:15 ET | Source: Vishay Intertechnology, Inc. MALVERN, Pa., May 07, 2025 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal first quarter ended March 29, 2025. Highlights 1Q 2025 revenues of $715.2 millionGross margin was 19.0% and included the negative impact of approximately 200 basis points related to the addition of Newport1Q 2025 loss per share of ($0.03)1Q 2025 book-to-bill of 1.08 with book-to-bill of 1.12 for semiconductors and 1.04 for passive componentsBacklog at quarter end was 4.7 months “Market signals, which continued from the fourth quarter, indicate that much of the channel inventory that overhung the market has normalized. We executed well during the first quarter on our strategic levers to drive faster revenue growth and improve profitability. We are prepared to navigate evolving tariff policies and any demand uncertainties, staying in close contact with our customers to assure them of reliable supply and making adjustments to our spending as necessary,” said Joel Smejkal, president and CEO. “The investments we have made in capacity over the past two years better position Vishay for a market upturn and support our decision to guide for a sequential revenue increase of 6%.” 2Q 2025 OutlookFor the second quarter of 2025, management expects revenues in the range of $760 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport. Second quarter guidance includes the anticipated effect of tariffs. Conference CallA conference call to discuss Vishay’s first quarter financial results is scheduled for Wednesday, May 7, 2025 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI5b9245def09d4423aad8a7d7a5526751. Upon registering, you will be emailed a dial-in number, and unique PIN. A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com. There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days. About VishayVishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com. This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted gross margin; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted gross margin, adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q. Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, tariff effects, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as “guide,” “will,” “expect,” “indicate,” “anticipate,” “committed” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The DNA of tech® is a trademark of Vishay Intertechnology. Contact:Vishay Intertechnology, Inc.Peter HenriciExecutive Vice President, Corporate Development+1-610-644-1300 VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended March 29, 2025 December 31, 2024 March 30, 2024 Net revenues$715,236 $714,716 $746,279 Costs of products sold 579,682 572,584 575,872 Gross profit 135,554 142,132 170,407 Gross margin 19.0% 19.9% 22.8% Selling, general, and administrative expenses 134,739 132,330 127,736 Impairment of goodwill - 66,487 - Operating income (loss) 815 (56,685) 42,671 Operating margin 0.1% -7.9% 5.7% Other income (expense): Interest expense (8,790) (7,731) (6,496)Other 3,747 5,563 8,087 Total other income (expense) - net (5,043) (2,168) 1,591 Income (loss) before taxes (4,228) (58,853) 44,262 Income tax expense (benefit) (136) 7,232 12,819 Net earnings (loss) (4,092) (66,085) 31,443 Less: net earnings attributable to noncontrolling interests - 223 519 Net earnings (loss) attributable to Vishay stockholders$(4,092) $(66,308) $30,924 Basic earnings (loss) per share attributable to Vishay stockholders$(0.03) $(0.49) $0.22 Diluted earnings (loss) per share attributable to Vishay stockholders$(0.03) $(0.49) $0.22 Weighted average shares outstanding - basic 135,799 136,050 137,726 Weighted average shares outstanding - diluted 135,799 136,050 138,476 Cash dividends per share$0.10 $0.10 $0.10 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (Unaudited - In thousands) March 29, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents$609,402 $590,286 Short-term investments 10,197 16,130 Accounts receivable, net 427,634 401,901 Inventories: Finished goods 177,202 175,176 Work in process 314,752 296,393 Raw materials 220,484 217,812 Total inventories 712,438 689,381 Prepaid expenses and other current assets 215,891 217,809 Total current assets 1,975,562 1,915,507 Property and equipment, at cost: Land 84,827 84,124 Buildings and improvements 784,132 766,058 Machinery and equipment 3,336,823 3,259,213 Construction in progress 377,095 367,564 Allowance for depreciation (3,008,308) (2,931,221) 1,574,569 1,545,738 Right of use assets 117,445 117,953 Deferred income taxes 162,126 159,769 Goodwill 179,388 179,005 Other intangible assets, net 85,962 87,223 Other assets 105,190 105,501 Total assets$4,200,242 $4,110,696 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (Unaudited - In thousands) March 29, 2025 December 31, 2024 Liabilities and equity Current liabilities: Trade accounts payable$211,378 $216,313 Payroll and related expenses 153,201 137,101 Lease liabilities 26,179 25,901 Other accrued expenses 262,649 264,471 Income taxes 51,994 64,562 Total current liabilities 705,401 708,348 Long-term debt less current portion 988,235 905,019 Deferred income taxes 99,777 96,363 Long-term lease liabilities 93,150 94,218 Other liabilities 103,968 104,086 Accrued pension and other postretirement costs 177,579 173,700 Total liabilities 2,168,110 2,081,734 Equity: Common stock 13,411 13,361 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,308,366 1,306,245 Retained earnings 937,833 955,500 Treasury stock (at cost) (224,600) (212,062)Accumulated other comprehensive income (loss) (4,088) (35,292)Total equity 2,032,132 2,028,962 Total liabilities and equity$4,200,242 $4,110,696 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) Three fiscal months ended March 29, 2025 March 30, 2024 Operating activities Net earnings (loss)$(4,092) $31,443 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 53,773 49,527 (Gain)/loss on disposal of property and equipment 189 (625)Inventory write-offs for obsolescence 9,030 8,179 Stock compensation expense 6,051 5,344 Deferred income taxes 1,573 4,376 Other (1,380) 426 Changes in operating assets and liabilities, net of effects of business acquired (49,046) (18,459)Net cash provided by operating activities 16,098 80,211 Investing activities Capital expenditures (61,569) (53,084)Proceeds from sale of property and equipment 279 751 Purchase of businesses, net of cash acquired - (168,616)Purchase of short-term investments (21,899) (19,232)Maturity of short-term investments 27,832 17,611 Other investing activities (661) (1,219)Net cash used in investing activities (56,018) (223,789) Financing activities Net proceeds on revolving credit facility 82,000 - Dividends paid to common stockholders (12,352) (12,542)Dividends paid to Class B common stockholders (1,210) (1,210)Repurchase of common stock held in treasury (12,538) (12,538)Cash withholding taxes paid when shares withheld for vested equity awards (3,893) (4,053)Net cash provided by (used in) financing activities 52,007 (30,343)Effect of exchange rate changes on cash and cash equivalents 7,029 (2,257) Net increase (decrease) in cash and cash equivalents 19,116 (176,178) Cash and cash equivalents at beginning of period 590,286 972,719 Cash and cash equivalents at end of period$609,402 $796,541 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts) Fiscal quarters ended March 29, 2025 December 31, 2024 March 30, 2024 GAAP net earnings (loss) attributable to Vishay stockholders$(4,092) $(66,308) $30,924 Reconciling items affecting operating income: Impairment of goodwill$- $66,487 $- Adjusted net earnings (loss)$(4,092) $179 $30,924 Adjusted weighted average diluted shares outstanding 135,799 136,883 138,476 Adjusted earnings (loss) per diluted share$(0.03) $0.00 $0.22 VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended March 29, 2025 December 31, 2024 March 30, 2024Net cash provided by operating activities$16,098 $67,656 $80,211 Proceeds from sale of property and equipment 279 1,618 751 Less: Capital expenditures (61,569) (144,904) (53,084)Free cash$(45,192) $(75,630) $27,878 VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Fiscal quarters ended March 29, 2025 December 31, 2024 March 30, 2024 GAAP net earnings (loss) attributable to Vishay stockholders$(4,092) $(66,308) $30,924 Net earnings attributable to noncontrolling interests - 223 519 Net earnings (loss)$(4,092) $(66,085) $31,443 Interest expense$8,790 $7,731 $6,496 Interest income (3,877) (4,533) (9,053)Income taxes (136) 7,232 12,819 Depreciation and amortization 53,773 55,373 49,527 EBITDA$54,458 $(282) $91,232 Reconciling items Impairment of goodwill$- $66,487 $- Adjusted EBITDA$54,458 $66,205 $91,232 Adjusted EBITDA margin** 7.6% 9.3% 12.2% ** Adjusted EBITDA as a percentage of net revenues

Vishay Intertechnology Reports First Quarter 2025 Results

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