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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal year ended JANUARY 1, 1999 Commission File No. 0-4466
ARTESYN TECHNOLOGIES, INC.
--------------------------
(Exact name of registrant as specified in its charter)
FLORIDA 59-1205269
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(STATE OR OTHER (I.R.S. EMPLOYER
JURISDICTION OF IDENTIFICATION NO.)
INCORPORATION)
7900 GLADES ROAD, SUITE 500, BOCA RATON, FL 33434-4105
- ------------------------------------------- ----------
(Address of principal executive offices) (ZIP CODE)
(561) 451-1000
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(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
COMMON STOCK, $0.01 PAR VALUE
COMMON STOCK PURCHASE RIGHTS
----------------------------
(Title of each class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO __.
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K [ ].
The aggregate market value of the Common Stock held by non-affiliates of the
Registrant as of March 15, 1999 was approximately $340 million.
As of March 15, 1999, 36,912,885 shares of the Registrant's, $0.01 par value,
Common Stock were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Company's annual shareholders' report for the year ended January
1, 1999 (the "Annual Report") are incorporated by reference into Parts I and II
hereof.
Portions of the Company's proxy statement for the annual meeting of shareholders
to be held on May 6, 1999 are incorporated by reference into Part III hereof.
PART I
ITEM 1. BUSINESS
Artesyn Technologies, Inc. (formerly named Computer Products, Inc.) was
incorporated under the laws of the State of Florida in 1968. Unless the context
indicates otherwise, as used herein the term "Company" means Artesyn
Technologies, Inc. and its consolidated subsidiaries.
The Company received shareholder approval at its annual shareholders' meeting
held in May 1998 to legally change the Company's corporate name from Computer
Products, Inc. to Artesyn Technologies, Inc. Since that date, the Company's
Common Stock has been trading on The Nasdaq Stock MarketSM under the symbol
ATSN.
The Company operates in one industry segment encompassing the design,
development, manufacture, sale and service of electronic products and subsystems
targeted at the communications industry. The Company designs, develops,
manufactures and markets (i) power conversion products for electronic equipment
used in commercial and industrial applications requiring a precise and constant
voltage level for proper operation, (ii) high performance single-board
computers, systems and subsystems for real-time applications, and provides
repair services and logistics for a variety of products primarily for one
significant customer.
INDUSTRY OVERVIEW
The Company is one of the leading providers of power supplies, power converters
and distributed power systems to the communications industry. According to
independent industry sources, the Company ranks among the top ten worldwide
independent power supply manufacturers in sales volume. The Company also designs
and manufactures high performance board-level computers and communication
controllers, integrating them with real-time operating system and protocol
software to form complete subsystems for communications and other real-time
applications.
Power supplies, power converters and distributed power systems perform many
essential functions relating to the supply, regulation, and distribution of
electrical power within electronic equipment. Electronic systems require a
steady supply of electrical power at one or more voltage levels. AC-to-DC power
supplies convert alternating electric current ("AC") (the form in which
virtually all electric current is delivered by utility companies) from a primary
power source into the direct current ("DC") required to operate virtually all
solid state electronic equipment. DC-to-DC power supplies are used to convert a
particular direct current voltage into another (higher or lower) direct current
voltage that is required by the electronic device to which it is connected.
Power supplies can also be designed to perform diagnostic functions that prevent
electronic equipment from being damaged by such equipment's own malfunction, as
well as provide power through use of a short-term battery back-up system when
the electronic equipment's primary power source fails.
The prevalent technology now used in power supplies is switching technology.
Before the development of switching power supplies, power supply technology was
fairly simple, and power supplies consisted of a transformer and some related
components to rectify and control power surges. As the complexity of electronic
equipment has increased, power supplies and their underlying technology have
become more advanced. Switching power supplies, such as those manufactured by
the Company, have hundreds of components, provide advanced diagnostic and power
management functions, can be designed to provide battery back-up power, and are
smaller and more efficient than the older power supplies that used simpler
technology.
SWITCHING POWER SUPPLIES
[GRAPHIC SHOWING FROM AC WALL POWER IN TO AC TO DC POWER SUPPLY TO A DISK
DRIVE OR MEMORY OR INTEGRATED CIRCUITS OR MOTORS OR MONITORS]
A further enhancement of AC-to-DC power supplies emerging in the industry
utilizes a newer more flexible switching technology which the Company refers to
as "distributed power architecture" ("DPA"). Most electronic systems have a
number of subsystems, each of which may require a different operating voltage or
level of power. As a result, power supplies can be designed to have multiple
outputs that can provide varying voltage levels to subsystems within an
electronic system. In such power supplies, power is "distributed" throughout the
system so that in addition to the system's main AC-to-DC power supply, DC-to-DC
converters located on or near the subsystem or component being powered change
the DC voltage to the specific level of DC voltage needed for that particular
subsystem or component. Distributed power permits greater flexibility to meet
the power supply requirements of electronic systems if components or subsystems
are added or upgraded.
DISTRIBUTED POWER ARCHITECTURE
[GRAPHIC SHOWING FROM INPUT TO AC TO DC
FRONT END TO OUTPUT TO VARIOUS SUB SYSTEMS]
MARKET OVERVIEW
The overall market for power supplies can be classified as follows:
Merchant/Captive. Merchant power supply manufacturers, such as the Company,
design and manufacture power supplies for use by other third parties. Captive
power supply manufacturers design and manufacture power supplies for use within
their own products. Currently, the merchant portion of the power supply market
is believed to be approximately 55%. According to independent industry sources,
the merchant sector is projected to grow to 60% of the overall market in the
year 2000 as Original Equipment Manufacturers ("OEMs") demand product options
and features and high-quality levels that make power supplies increasingly more
difficult to design and manufacture in-house.
PowerRange. The power supply market is also classified by power supply
output range, as follows:
Typical Representative
Power Range Characteristics End Users Applications
- ---------------------------------------------------------------------------------------------------------------------------------
LOW o Less than 150 Watts o PC Companies o Personal Computers
o Lower Technology o Consumer Electronics o Consumer Electronics
o Higher Volume o Desk Top Printers
o Lower Margin
MID o 150-750 Watts o Internetwork Companies o Routers, Hubs
o High Technology o Computer Companies o Workstations, Fault
o Moderate Volume o Medical Companies o Tolerant Computers
o Higher Margin o Blood Analyzers
HIGH o More than 750 Watts o Computer Companies o Main-frame Computers
o High Technology o Industrial Companies o Industrial Process Control
o Lower Volume o Internetworking Companies o High-end Routers/Switches
o Higher Margin
Custom/Standard. Custom power supplies are designed and manufactured to meet
the form, fit, and functional requirements of an OEM's unique and specific
application. They are attractive to OEMs because they present increased design
flexibility, provide the lowest cost, and allow the use of special features.
Standard, "off-the-shelf" power supplies are not design-specific but also do not
require substantial up-front engineering design costs. Once a product has
reached the stage of development where the OEM is confident that there will be a
market demand for the product, it is typically cost-effective to custom design a
unique power supply to meet that product's specific requirements. The OEM is
then able to utilize a moderately high-volume, customized solution at the lowest
cost per watt of power without paying for unnecessary features or capabilities.
The Company believes a number of important trends currently affecting its
customers will continue to shape the power supply marketplace. The applications
markets that are growing rapidly, such as workstations and data communications
hardware (e.g., hubs, routers and file servers), need mid-range power supplies.
In addition, OEMs face pressure from end-users to improve the price and
performance of products, bring new products to market quickly, provide more
product options and features, reduce product size, and meet increasingly complex
safety and regulatory agency standards. The Company believes that these
pressures will support the need for and encourage a modest migration from
captive manufacturers to merchant-provided, custom-designed power supply
manufacturers, such as the Company, particularly in the mid-range sector of the
market.
The Company's products are manufactured in Redwood Falls, Minnesota; Broomfield,
Colorado; Madison, Wisconsin; Kindberg, Austria; Tatabanya, Hungary; Youghal,
Ireland; Oberhausen and Ensiedel, Germany; and in Hong Kong and Zhongshan,
China. Activities are also carried on in Vienna, Austria; Etten-Leur,
Netherlands; Eden Prairie, Minnesota; Framingham, Massachusetts; and Fremont,
California.
REPAIR AND LOGISTICS SERVICES
The Company provides repair services for a variety of products primarily
manufactured by Hewlett-Packard Company. The process to repair products that
fail in the field involves the logistics of arranging for return of products
and, when they have been repaired, arranging for delivery of products to their
customers. This function has traditionally been accomplished as part of the
OEM's business. In the 1980s and 1990s, as companies have focused their energies
on core competencies, electronics manufacturers have often outsourced many
activities that they do not consider essential to their business. The Company
was retained by Hewlett-Packard ("HP") in 1992 to manage inbound and outbound
logistics for some of HP's computer products and to repair certain products.
This business has grown rapidly since 1992 as HP has transferred repairs of more
products to the Company. Since 1992, the Company has taken over from HP the
repair of laserjet and deskjet printers, facsimile machines, and scanners and
the servicing of other products. Through 1998, nearly all of the Company's
revenue from repair and logistics services were from HP.
It is the Company's strategy to expand its facilities within the value chain of
manufacturer distribution and repair. For this purpose, the Company has
established a Foreign Trade Zone ("FTZ"), which allows reduced or delayed
customs duties on products returned from foreign locations for repair or on
component parts shipped to the United States and assembled in the FTZ. The FTZ,
together with existing repair processes, allows the Company to service both
domestic and foreign products and, in combination with its process design
capability, to perform assembly or light manufacturing operations. Another
expansion of the value chain involves network services operations, which plan to
target configuration and installation of hardware, as well as provide follow-on
maintenance.
The Company's repair and logistics services are centered in its Lincoln,
California, facility.
STRATEGY
The Company's objective is to be the supplier of choice to multinational OEM
customers who require sophisticated power supply solutions and who are likely to
have substantial volume requirements. To achieve this objective, the Company's
strategy is to differentiate itself from its competition through utilization of
new and advanced technology and design, fastest time-to-market and superior
product performance, quality, service and the lowest total cost of ownership.
The Company's primary target market for the last several years has been OEMs in
the communications, networking, computer and other electronic equipment
marketplaces. These OEMs manufacture hubs, routers, high availability file
servers and disk arrays which typically have complex technical needs, high
product reliability standards, short product development cycles and variable
production needs. The Company implements its strategy by combining the following
key elements:
Deliver High-Quality Products and Services
The Company believes that quality and responsiveness to the customer's needs are
of critical importance in its efforts to compete successfully. The Company
actively involves its employees in implementing techniques to measure, monitor
and improve performance and provides its employees with education and training,
including courses in statistical process control and related techniques. Also,
employees participate in the Company's planning sessions and monitor adherence
to their annual plans on a monthly basis. Through its commitment to customer
service and quality, the Company believes it is able to provide superior value
to its customers.
Provide Leading-Edge Engineering and Time-to-Market
The Company's target markets and customers are characterized by high growth
rates and continually evolving technology. As a result, its customers typically
require leading-edge technology designed in a relatively short period. The
Company has been working to reduce the time-to-market for its products through
two initiatives: concurrent engineering and design-ready platforms. Concurrent
engineering creates a process allowing all functional disciplines to take part
in a product's design from the very beginning. With design-ready platforms, the
Company can modify standard platforms to meet specific customers' needs for a
customized product, a fast fulfillment schedule and an affordable price. These
initiatives have contributed to a reduction of average time-to-market from 72
weeks in 1994 to 24 weeks in 1998.
Develop and Expand Collaborative Relationships
Through the development and expansion of collaborative relationships with its
customers, the Company attempts to satisfy their needs by offering a full range
of value-added services, including design expertise, process development and
control, testing, inventory management, and rapid response to volume and design
changes. Some custom-designed projects are priced based on agreed-to gross
margins and allow for a sharing of the costs, risks and rewards of the
manufacturing process with the customer. These relationships also provide the
Company with increased knowledge regarding the customer's products. The Company
focuses its efforts on customers with which it believes the opportunity exists
to develop long-term business collaborations.
Offer Customers the Lowest Total Cost of Ownership
The Company strives to create value for its customer by seeking to offer them
the lowest total cost of ownership. Through manufacturing flexibility, reduced
time-to-market, worldwide procurement, design for manufacturability, and
unmatched customer service, the Company is able to complement each customer's
unique set of needs. The Company has built long-standing relationships with
industry leaders by providing a high level of consultation at the earliest
stages of design development. This hands-on approach is intended to enable the
Company to design all its products to maximize quality and minimize unit cost.
Leverage Advanced Manufacturing and Management Techniques
The Company's strategy focuses on the quality of all elements of the production
process, rather than merely the quality of the end product. To implement this
strategy, the Company uses sophisticated design and manufacturing techniques
(such as computer integrated design and manufacture, computer aided design, and
automated testing and assembly of printed circuit boards), combined with
advanced management techniques, including just-in-time manufacturing,
statistical process control and total quality commitment. These techniques allow
the Company to decrease production costs by improving the efficiency of
production processes.
Expand Complementary Businesses
The Company believes that providing a wide range of services affords the Company
a competitive advantage, as it further addresses customer needs and, therefore,
increases the likelihood that the Company will make continuing sales to its
customers. For example, at a customer's request, the Company may build
assemblies by adding cables, harnesses, frames, and other components to its
power supply unit. In addition, it offers power supply repair services for power
supplies manufactured by others.
PRODUCTS AND SERVICES
The Company currently offers standard power products in over 1,000
configurations and accommodates a wide variety of customer applications. In
addition to its standard power supply products, the Company also pursues the
custom power supply business because it capitalizes on its strengths in the
areas of sophisticated design, volume manufacturing, and customer service. It
has been the Company's experience that competition among qualified design and
manufacturing outsourcing companies providing these customized solutions is
intense. The competition causes downward pressure on gross margins, which is
only partially offset by lower selling and distribution costs.
The Company's communications products are designed around and incorporate
industry standards, which permit easy portability to a variety of applications.
The technology relies on popular and powerful microprocessors from sources such
as Motorola, Intel and MIPS. The primary product line combines both the
worldwide industry standard VMEbus, which defines physical board size and signal
characteristics for the interconnection of microprocessors. Application
requirements for these products usually include environments requiring rapid
computer response time with high quality processing capabilities, such as
telecommunications or data communications.
For further information on sales, particularly with respect to foreign and
intercompany sales, refer to Note 18 of the Notes to Consolidated Financial
Statements in the Company's Annual Report, which is incorporated herein by
reference. The Company's business is not seasonal in nature.
MARKETING AND DISTRIBUTION
The Company's products are sold directly to OEMs, private-label customers and
distributors. In addition, the Company's sales and engineering personnel
supervise and provide technical assistance to independent domestic sales
representatives and to domestic and foreign distributors.
The Company's customers for communication products are primarily OEMs who use
the products for high-speed telecommunications applications. They are also used
in other areas such as medical instrumentation, airplane and weapons training
simulators, process control, industrial automation and traffic control systems.
Management believes that the market for VMEbus and real-time products will
expand as communications companies move from proprietary to open systems in
order to speed time to market and enhance upgrade capability.
The Company's communication products are marketed domestically through
independent sales representative organizations. Substantially all foreign sales
are made through independent foreign distributors and foreign trading companies.
Certain sales are made on a direct basis.
Sales representatives are responsible for marketing the Company's repair
business in North America.
Although the Company seeks to diversify both its customer and market application
base, sales to three customers amounted to 17%, 11%, and 10%, respectively, of
1998 sales.
The Company has derived a significant portion of its sales in recent years from
its international operations. Thus, the Company's future operations and
financial results could be significantly affected by international factors, such
as changes in foreign currency exchange rates or political instability. The
Company's operating strategy and pricing take into account changes in exchange
rates over time. However, the Company's future results of operations may be
significantly affected in the short term by fluctuations in foreign currency
exchange rates. See Note 17 of the Notes to Consolidated Financial Statements in
the Company's Annual Report, incorporated herein by reference, for additional
information.
MATERIALS AND COMPONENTS
The manufacture of the Company's products requires a wide variety of materials
and components. The Company has multiple external sources for most of the
materials and components used in its production processes, and it also
manufactures certain of these components. Although the Company has from time to
time experienced shortages of certain supplies, such shortages have not resulted
in any significant disruptions in production. The Company believes that there
are adequate alternative sources of supply to meet its requirements.
INTELLECTUAL PROPERTY MATTERS
The Company believes that its future success is primarily dependent upon the
technical competence and creative skills of its personnel, rather than upon any
patent or other proprietary rights. However, the Company has protected certain
of its products with patents where appropriate and has defended, and will
continue to defend, its rights under these patents.
BACKLOG
Sales are generally made pursuant to purchase orders rather than long-term
contracts. Backlog consists of purchase orders on hand generally having delivery
dates scheduled within the next six months. Order backlog from continuing
operations at January 1, 1999 was $98.3 million as compared to $103.1 million at
January 2, 1998. Historically, the effects of changes and cancellations have not
been significant to the Company's operations. The Company expects to ship
substantially all of its January 1, 1999 backlog in the first six months of
fiscal 1999.
COMPETITION
The industry in which the Company competes is highly competitive and
characterized by increasing customer demands for improved product performance,
shorter manufacturing cycles and lower prices. These trends result in frequent
introductions of new products with added capabilities and features and
continuous improvements in the relative price/performance of the products.
Increased competition could result in price reductions, reduced profit margins
and loss of market share, each of which could adversely affect the Company's
results of operations and financial condition. The Company's principal
competitors include Lucent Technologies, Delta Product and Astec (BSR) plc.
Certain of the Company's competitors have also been engaged in merger and
acquisition transactions. Such consolidations by competitors are likely to
create entities with increased market share, customer bases, technology and
marketing expertise, sales force size, and/or proprietary technology. These
developments may adversely affect the Company's ability to compete.
RESEARCH AND DEVELOPMENT
The Company maintains active research and development departments which are
engaged in the modification and improvement of existing products and the
development of new products. Expenditures for research and development during
fiscal years 1998, 1997, and 1996 were approximately $33.4 million, $30.0
million, and $23.6 million, respectively. As a percentage of total sales,
research and development accounted for 6.3%, 5.7%, and 5.4% in fiscal years
1998, 1997 and 1996, respectively. Research and development spending has
increased in each of the past three years as the Company invested in new product
platforms to service the communications industry. The Company believes that the
timely introduction of new technology and products is an important component of
its competitive strategy.
EMPLOYEES
The Company presently employs approximately 4,300 full-time people. In addition,
the Company presently has approximately 2,300 temporary employees and
contractors primarily in its China facility. The Company's ability to conduct
its present and proposed activities would be impaired if the Company lost the
services of a significant number of its engineers and technicians and could not
readily replace them with comparable personnel. Although there is demand for
qualified technical personnel, the Company has not, to date, experienced
difficulty in attracting and retaining sufficient engineering and technical
personnel to meet its needs.
None of the Company's domestic employees is covered by collective bargaining
agreements. The Company considers its relations with its employees to be
satisfactory.
ENVIRONMENTAL MATTERS
Compliance with federal, state and local laws and regulations regulating the
discharge of materials into the environment has not had, and, under present
conditions the Company does not anticipate that such laws and regulations will
have, a material effect on the results of operations, capital expenditures,
financial condition or competitive position of the Company.
ITEM 2. PROPERTIES
The Company currently occupies approximately 1,400,000 square feet of office and
manufacturing space worldwide. Approximately 38% of the space utilized by the
Company is owned while 62% is leased. The Company maintains the following
facilities:
APPROXIMATE OWNED VS.
FACILITY PRIMARY ACTIVITY SQUARE FOOTAGE LEASED
-------- ---------------- -------------- ------
Boca Raton, FL Corporate Headquarters 7,000 Leased
Broomfield, CO Manufacturing 81,000 Leased
Eden Prairie, MN Engineering, Administration 28,000 Leased
Ensiedel, Germany Manufacturing 28,400 Owned
Etten-Leur, Netherlands Administration 19,000 Leased
Framingham, MA Engineering, Administration 25,000 Leased
Fremont, CA Engineering, Administration 45,000 Leased
Hong Kong Manufacturing 144,900 Owned
Huntington Beach, CA Manufacturing 45,000 Leased
Kindberg, Austria Manufacturing 75,000 Leased
Lincoln, CA Repair, Logistics 438,000 Leased
Madison, WI Manufacturing 46,000 Owned
Oberhausen, Germany Manufacturing 62,500 Owned
Redwood Falls, MN Manufacturing 103,000 Owned
Redwood Falls, MN Manufacturing 87,000 Leased
Tatabanya, Hungary Manufacturing 62,000 Owned
Vienna, Austria Engineering, Administration 17,200 Leased
Youghal, Ireland Manufacturing 86,000 Owned
In addition to the above locations, the Company has leased sales offices located
in or near London, England; Paris, France; and Munich, Germany. The Company
considers the facilities described in this Item to be generally well maintained,
adequate for its current needs and capable of supporting a reasonably higher
level of demand for its products and services.
ITEM 3. LEGAL PROCEEDINGS
The Company is a party to various legal proceedings, which have arisen in the
ordinary course of business. While the results of these matters cannot be
predicted with certainty, the Company believes that losses, if any, resulting
from the ultimate resolution of these matters will not have a material adverse
effect on the Company's consolidated results of operations, cash flows or
financial position.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 4A. EXECUTIVE OFFICERS
Name Age Position(s) with the Company
- ---- --- ----------------------------
Robert J. Aebli 63 President - Communication Products
Louis R. DeBartelo 58 President - North America Commercial
Harvey Dewan 59 President -North America and Asia Manufacturing
Eoin Gilley 37 Managing Director - Europe
Thomas J. Kent 50 President - Solutions
Hartmut Liebel 36 Corporate Treasurer
Joseph J. Matz 59 Managing Director - Europe Commercial
Joseph M. O'Donnell 52 Co-Chairman of the Board of Directors,
President and Chief Executive Officer
John M. Steel 54 Vice President - Marketing and New
Product development, Director
Richard J. Thompson 49 Vice President - Finance, Chief Financial Officer
And Secretary
Robert J. Aebli has served as President of the Company's Communication Products
division since November 1993. From 1991 to 1993 Mr. Aebli served as Vice
President - Operations of Contraves, Inc., a manufacturer of testing and
simulation systems.
Louis R. DeBartelo was appointed President of the Company's North America
Commercial division in 1993. From 1992 to 1994 he served as the Company's
President - Power Conversion National Accounts Division.
Harvey Dewan was appointed President of North America and Asia Manufacturing in
December 1997. From February to December 1997, Mr. Dewan was Vice President of
Operations for the Company's Communication Products division. From 1969 to April
1996, Mr. Dewan held various positions with General Instrument Corporation, most
recently as Vice President of Quality and General Manager.
Eoin Gilley joined Artesyn on February 2, 1998 as General Manager, European
Operations and was appointed to the position of Managing Director - Europe in
August 1998. From 1995 to early 1998, Mr. Gilley served as Vice
President/General Manager Europe with Quarterdeck International Ltd. From 1981
to 1994, Mr. Gilley held various positions with Apple Computer, most recently as
Director of Operations in Supply Chain Re-Engineering.
Thomas J. Kent was appointed President of the Solutions division in December
1997. Mr. Kent had been General Manager of Zytec's Services and Logistics
operations since 1994 and was named Vice President of Services and Logistics as
well as a director of Zytec in 1996. From 1990 to 1994, Mr. Kent was employed by
US Windpower, most recently as its Director of Customer and Site Support.
Hartmut Liebel was appointed to the position of Corporate Treasurer in February
1998. Prior to joining the Company, Mr. Liebel had been employed by W.R. Grace &
Co., a global specialty chemical supplier, as Assistant Treasurer from 1995 to
1997 and as Director of Financial Risk Management during 1993 and 1994.
Joseph J. Matz was appointed to the position of Managing Director - Europe
Commercial in December 1997. Mr. Matz joined Zytec in November 1991 as Managing
Director of its Austrian division.
Joseph M. O'Donnell was appointed as Chairman of the Board of Directors in
February 1997 and as Co-Chairman of the Board following the merger with Zytec
Corporation ("Zytec") in December 1997. Mr. O'Donnell has served as President
and Chief Executive Officer of the Company since July 1994. Mr. O'Donnell served
as Managing Director of O'Donnell Associates, a consulting firm, from March 1994
to June 1994; and as Chief Executive Officer of Savin Corporation, an office
products distributor, from October 1993 to February 1994. He is a Director of
Boca Research, Inc., a manufacturer of data communications, multimedia and
networking products.
John M. Steel was appointed to the position of Vice President - Marketing and
New Product Development in December 1997 and was elected to the Board of
Directors at that time. Mr. Steel was a co-founder of Zytec and had been an
officer and a director of Zytec since 1984.
Richard J. Thompson has served as Vice President - Finance, Chief Financial
Officer, and Secretary of the Company since June 1990.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
The common stock of Artesyn Technologies, Inc. is traded on The Nasdaq National
Stock Marketsm under the symbol ATSN. High and low sales prices of such stock
and information pertaining to the number of record holders of the Company's
Common Stock appears on page 45 of the Annual Report for the fiscal year ended
January 1, 1999 and is incorporated herein by reference.
The Registrant has not paid cash dividends in the past and no change in such
policy is anticipated. Future cash dividends, if any, will be determined by the
Board of Directors in light of the circumstances then existing, including the
Company's earnings and financial requirements and general business conditions.
However, on July 22, 1998, the Company's Board of Directors authorized a share
repurchase program to purchase up to 4.0 million shares of the Company's common
stock in the open market or in privately-negotiated transactions, depending on
market conditions and other factors. As of January 1, 1999, the Company
repurchased and retired 1,211,500 shares of its common stock for a total of
approximately $19.4 million in cash. Currently, the Company maintains a $200
million revolving credit facility, which contains certain restrictive covenants
that, among other things, require the Company to maintain certain financial
ratios and may limit the purchase, transfer or distribution of the Company's
assets.
ITEM 6. SELECTED FINANCIAL DATA
The Consolidated Five-Year Financial History appearing on page 13 of the Annual
Report for the fiscal year ended January 1, 1999 is incorporated herein by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in the Annual Report for the fiscal year ended January 1,
1999 is incorporated herein by reference.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Quantitative and Qualitative Disclosures About Market Risk included in the
Annual Report for the fiscal year ended January 1, 1999 is incorporated herein
by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements of the Company (including Note 19,
Selected Consolidated Quarterly Data- Unaudited) and the independent certified
public accountants' report thereon contained in the Annual Report for the fiscal
year ended January 1, 1999 are incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEMS 10, 11, 12 AND 13.
The information called for by that portion of Item 10 which relates to the
Directors of the Company, by Item 11 (Executive Compensation), Item 12 (Security
Ownership of Certain Beneficial Owners and Management) and Item 13 (Certain
Relationships and Related Transactions) is incorporated herein by reference to
the Company's definitive proxy statement for the 1999 Annual Meeting of
Shareholders to be filed with the Securities and Exchange Commission not later
than 120 days after the close of the fiscal year ended January 1, 1999. That
portion of Item 10 which relates to Executive Officers of the Company appears as
Item 4A of Part I of this Report.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8K
(A) FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULES AND EXHIBITS
(1) FINANCIAL STATEMENTS
The following consolidated financial statements of Artesyn Technologies, Inc.
and subsidiaries included in the Company's Annual Report for the fiscal year
ended January 1, 1999 are incorporated herein by reference in Item 8 hereof:
Consolidated Statements of Operations -- Years Ended on the Friday nearest
December 31, 1998, 1997, and 1996
Consolidated Statements of Financial Condition -- as of the Friday
nearest December 31, 1998 and 1997
Consolidated Statements of Cash Flows -- Years Ended on the Friday nearest
December 31, 1998, 1997 and 1996
Consolidated Statements of Shareholders' Equity and Comprehensive
Income-Years Ended on the Friday nearest December 31, 1998, 1997 and 1996
Notes to Consolidated Financial Statements
Report of Independent Certified Public Accountants
(2) FINANCIAL STATEMENT SCHEDULE
The following information is filed as part of this Form 10-K and should be read
in conjunction with the financial statements contained in the Company's Annual
Report for the fiscal year ended January 1, 1999.
Report of Independent Certified Public Accountants On Schedule
Report of Independent Accountants
Schedule for Artesyn Technologies, Inc. and Subsidiaries:
Schedule II - Valuation and Qualifying Accounts
Schedules other than that listed above have been omitted because they are either
not required or not applicable, or because the required information has been
included in the consolidated financial statements or notes thereto incorporated
herein by reference.
(3) EXHIBITS
EXHIBIT # DESCRIPTION
- --------- -----------
2.1 Agreement and Plan of Merger by and between Zytec Corporation, Computer
Products Inc. and CPI Acquisition Corp. dated as of September 2, 1997
incorporated by reference to Exhibit 2.1 of Registrant's Registration
Statement on Form S-4 filed on September 25, 1997.
2.2 Agreement on the Sale, Purchase and Transfer of Shares dated as of July 22,
1997 - incorporated by reference to Exhibit 2 of Registrant's Registration
Statement on Form 8-K filed on August 6, 1997.
2.3 Agreement and Plan of Merger, dated August 23, 1996, by and among Computer
Products, Inc., JPS Acquisition Corp, Jeta Power Systems Inc. and Jagdish
C. Chopra - incorporated by reference to Exhibit 10.50 of Registrant's
Quarterly Report on Form 10-Q for the quarterly period ended September 27,
1996.
2.4 Asset Purchase Agreement among RT Acquisition Florida Corp., RTP Corp. and
Computer Products Inc. dated as of July 5, 1997 - incorporated by reference
to Exhibit 10.33 of Registrant's Quarterly Report on Form 10-Q for the
quarterly period ended July 4, 1997.
3.1 Articles of Incorporation of the Company, as amended, on May 15, 1989
incorporated by reference to Exhibit 3.1 of Registrant's Annual Report on
Form 10-K for the fiscal year ended December 28, 1989.
3.2 By-laws of the Company, as amended, effective October 16, 1990
incorporated by reference to Exhibit 3.2 of Registrant's Registration
Statement on Form S-4, filed with the Commission on September 25, 1997, as
amended.
3.3 Articles of amendment to articles of incorporation of the Company
incorporated by reference to Exhibit 3.1 of Registrant's Current Report on
Form 8-K filed on May 6, 1998.
3.4 Articles of amendment to articles of Incorporation of the Company, as
amended on December 22, 1998.
4.1 Amended and Restated Rights Agreement, dated as of November 21, 1998,
between the Company and The Bank of New York as Rights Agent, including
the form of Right Certificate and the Summary of Rights to Purchase
Preferred Shares attached thereto as exhibits B and C, respectively
incorporated by reference to Exhibit 4.1 of Registrant's Current Report on
Form 8-K filed with the Commission on December 22, 1998.
10.1 Grant Agreement, dated June 19, 1981, as supplemented, by and among the
Industrial Development Authority of Ireland, Power Products Ltd. and
Computer Products, Inc. - incorporated by reference to Exhibit 10.2 of
Registrant's Annual Report on Form 10-K for the fiscal year ended
December 31, 1982.
10.2 Indenture between Industrial Development Authority of Ireland and Power
Products Ltd. - incorporated by reference to Exhibit 10.3 of Registrant's
Annual Report on Form 10-K for the fiscal year ended December 31, 1982.
10.3 Lease for facilities of Boschert, Incorporated located in Milpitas,
California - incorporated by reference to Exhibit 10.14 of Registrant's
Annual Report on Form 10-K for the fiscal year ended January 3, 1986.
10.4 Letter Amendment to Lease for facilities of Boschert, Incorporated, dated
January 9, 1991 located in Milpitas, California - incorporated by
reference to Exhibit 10.8 of Registrant's Annual Report on Form 10-K for
the fiscal year ended December 28, 1990.
10.5 Sublease for facilities of Boschert, Incorporated located in Milpitas,
California - incorporated by reference to Exhibit 10.8 of Registrant's
Annual Report on Form 10-K for the fiscal year ended January 1, 1988.
10.6 Sublessee Estoppel Certificate to Sublease for facilities of Boschert,
Incorporated, dated February 4, 1991, located in Milpitas, California
incorporated by reference to Exhibit 10.10 of Registrant's Annual Report
on Form 10-K for the fiscal year ended December 28, 1990.
10.7 1981 Stock Option Plan, as amended, effective as of October 16, 1990
incorporated by reference to Exhibit 10.10 of Registrant's Current Report
on Form 8-K, filed with the Commission on November 30, 1990.
10.8 Computer Products, Inc. 1986 Outside Directors' Stock Option Plan, amended
as of February 22, 1988 - incorporated by reference to Exhibit 10.12 of
Registrant's Annual Report on Form 10-K for the fiscal year ended January
1, 1988.
10.9 Asset Purchase Agreement, dated as of January 1, 1992, by and among
Computer Products, Inc., HC Holding Corp. and Heurikon Corporation
including exhibits and schedules thereto - incorporated by reference to
Exhibit 2 of Registrant's Current Report on Form 8-K, filed with the
Commission on January 20, 1992.
10.10 Contract to Purchase between Computer Products, Inc. and Sauk Enterprises
dated December 23, 1991 for the premises located at 8310 Excelsior Drive,
Madison, Wisconsin - incorporated by reference to Registrant's Annual
Report on Form 10-K for the fiscal year ended January 3, 1992.
10.11 Lease for facilities of the executive offices located in Boca Raton,
Florida - incorporated by reference to Exhibit 10.23 of Registrant's
Annual Report on Form 10-K for the fiscal year ended December 30, 1988.
10.12 Outside Directors' Retirement Plan, effective October 17, 1989
incorporated by reference to Exhibit 10.22 of Registrant's Annual Report
on Form 10-K for the fiscal year ended December 29, 1989.
10.13 1990 Performance Equity Plan - incorporated by reference to Exhibit 10.26
of Registrant's Annual Report on Form 10-K for the fiscal year ended
December 28, 1990.
10.14 1990 Outside Directors' Stock Option Plan - incorporated by reference to
Exhibit 10.27 of Registrant's Annual Report on Form 10-K for the fiscal
year ended December 28, 1990.
10.15 Manufacturing and Development Agreement dated March 16, 1992, between
Computer Products, Inc. and Analogic Corporation - incorporated by
reference to Exhibit 10.30 of Registrant's Annual Report on Form 10-K for
the fiscal year ended January 3, 1992.
10.16 License Agreement dated March 16, 1992, between Computer Products, Inc.
and Analogic Corporation - incorporated by reference to Exhibit 10.31 of
Registrant's Annual Report on Form 10-K for the fiscal year ended January
3, 1992.
10.17 Asset Purchase Agreement between Computer Products, Inc., Tecnetics
Incorporated, Miller Acquisition Corporation and certain former managers
of Tecnetics Incorporated - incorporated by reference to Exhibit 10.29 of
Registrant's Quarterly Report on Form 10-Q for the quarterly period ended
April 3, 1992.
10.18 Manufacturing License and Technical Assistance Agreement between Heurikon
Corporation and Lockheed Sanders, Inc. dated January 31, 1992 incorporated
by reference to Exhibit 10.34 of Registrant's Quarterly Report on Form
10-Q for the quarterly period ended July 3, 1992.
10.19 Star MVP Domestic Terms and Conditions of Sale Between Heurikon
Corporation and Lockhead Sanders, Inc. dated March 18, 1992 incorporated
by reference to Exhibit 10.35 of Registrant's Quarterly Report on Form
10-Q for the quarterly period ended July 3, 1992.
10.20 DSP32C VME Board License Agreement between Heurikon Corporation and
American Telephone and Telegraph Company dated October 28, 1991
incorporated by reference to Exhibit 10.36 of Registrant's Quarterly
Report on Form 10-Q for the quarterly period ended July 3, 1992.
10.21 Software License agreement between Heurikon Corporation and American
Telephone and Telegraph Company dated October 28, 1991 - incorporated by
reference to Exhibit 10.37 of Registrant's Quarterly Report on Form 10-Q
for the quarterly period ended July 3, 1992.
10.22 Employment Agreement, dated June 29, 1994, by and between Computer
Products, Inc. and Joseph M. O'Donnell - incorporated by reference to
Exhibit 10.41 of Registrant's Quarterly Report on Form 10-Q for the
quarterly period ended July 1, 1994.
10.23 Grant Agreement, dated October 26, 1994, by and among the Industrial
Development Authority of Ireland, Power Products Ltd. and Computer
Products, Inc. - incorporated by reference to Exhibit 10.43 of
Registrant's Annual Report on Form 10-K for the fiscal year ended December
30, 1994.
10.24 1996 Employee Stock Purchase Plan - incorporated by reference to
Exhibit 10.45 of Registrant's Annual Report on Form 10-K for the fiscal
year ended December 29, 1995.
10.25 1990 Performance Equity Plan as amended - incorporated by reference to
Exhibit 10.46 of Registrant's Annual Report on Form 10-K for the fiscal
year ended December 29, 1995.
10.26 1990 Outside Directors Stock Option Plan, restated as of January 25, 1996
incorporated by reference to Exhibit 10.47 of Registrant's Annual Report
on Form 10-K for the fiscal year ended December 29, 1995.
10.27 1996 Executive Incentive Plan - incorporated by reference to Exhibit 10.48
of Registrant's Annual Report on Form 10-K for the fiscal year ended
December 29, 1995.
10.28 Executive Stock Ownership plan - incorporated by reference to Exhibit
10.49 of Registrant's Annual Report on Form 10-K for the fiscal year ended
December 29, 1995.
10.29 Agreement by and between Oates Business Park and the Company dated May 1,
1995 regarding the leasing of certain premises and real property located
in Lincoln, California - Incorporated by reference to Exhibit 10.26 to
Form 10-K of Zytec Corporation for the year ended December 31, 1995 (File
No. 0-22428).
10.30 Agreement and Addendum by and between Buzz Oates Enterprise and the
Company dated September 15, 1995, as amended December 8, 1995, and as
second amended March 8, 1996, and as third amended May 14, 1996, and as
fourth amended November 8, 1996, regarding the leasing of certain premises
and real property located in Lincoln, California - Incorporated by
reference to Exhibit 10.19 to Form 10-K of Zytec Corporation for the year
ended December 31, 1996.
10.31 Agreement by and between Superior Investments I, Inc. and the Company
dated January 22, 1996 regarding the leasing of certain premises and real
property located in Broomfield, Colorado - Incorporated by reference to
Exhibit 10.27 to Form 10-K of Zytec Corporation for the year ended
December 31, 1995. (File No. 0-22428).
10.32 RentalAgreement by and between Schrack Elektronik Aktiengesellschaft and
IMMORENT-Weiko Grundverwertungsge- sellschaft m.b.H. dated March 14, 1985
(English translation) regarding the leasing of certain real property
located in Kindberg, Austria - Incorporated by reference to Exhibit 10.70
to Zytec Corporation's Registration Statement on Form S-1 (File No.
33-68822).
10.33 Real Estate Lease Agreement by and between IMMORENT - Weiko
Grundverwertungsge-sellschaft m.b.H. and Schrack Elektronik
Aktiengesellschaft dated December 16, 1984 (English translation) regarding
the leasing of certain real property located in Kindberg, Austria
Incorporated by reference to Exhibit 10.71 to Zytec Corporation's
Registration Statement on Form S-1 (File No. 33-68822).
10.34 Lease (Rental) Agreement by and between Schrack Telecom AG and Schrack
Power Supply Gesellschaft m.b.H. dated February 19, 1991 (English
translation) regarding the leasing of certain property located in
Kindberg, Austria Incorporated by reference to Exhibit 10.72 to Zytec
Corporation's Registration Statement on Form S-1 (File No. 33-68822).
10.35 Sublease (Subrental) Agreement by and between Schrack Power Supply
Gesellschaft m.b.H. and Schrack Power Supply Gesellschaft m.b.H. dated
February 14, 1991 (English translation) regarding the leasing of certain
property located in Kindberg, Austria - Incorporated by reference to
Exhibit 10.73 to Zytec Corporation's Registration Statement on Form S-1
(File No. 33-68822).
10.36 Sublease (Subrental) Agreement by and between Schrack Power Supply
Gesellschaft m.b.H. and Schrack Telecom AG dated February 14, 1991
(English translation) regarding the leasing of certain property located in
Kindberg, Austria - Incorporated by reference to Exhibit 10.74 to Zytec
Corporation's Registration Statement on Form S-1 (File No. 33-68822).
10.37 Third Addendum to Lease Agreement between Zytec Corporation and Superior
Investments I, Inc. dated May 23, 1997 - Incorporated by reference to
Exhibit 10.2 to Form 10-Q of Zytec Corporation for the quarter ended June
29, 1997.
10.38 Fourth Addendum to Lease Agreement between Zytec Corporation and Superior
Investments I, Inc. dated June 27, 1997- Incorporated by reference to
Exhibit 10.3 to Form 10-Q of Zytec Corporation for the quarter ended June
29, 1997.
10.39 Loan agreement between Herbert Elektronische Gerate GmbH & Co. KG and
First Union National Bank, London Branch dated as of July 15, 1997
Incorporated by reference to Exhibit 10.43 of Registrant's Annual Report
on Form 10-K for the fiscal year ended January 2, 1998.
10.40 Loan agreement between Computer Products, Inc. and First Union National
Bank, London Branch dated as of July 15, 1997 - Incorporated by reference
to Exhibit 10.44 of Registrant's Annual Report on Form 10-K for the fiscal
year ended January 2, 1998.
10.41 Amended and restated loan agreement between Computer Products, Inc., First
Union National Bank and First Union National Bank, London Branch dated as
of July 15, 1997 - Incorporated by reference to Exhibit 10.45 of
Registrant's Annual Report on Form 10-K for the fiscal year ended January
2, 1998.
10.42 Credit Agreement among Artesyn Technologies, Inc., certain of its
subsidiaries, ABN AMRO Bank N.V., as Administrative Agent and Co-Arranger,
First Union National Bank, as Syndication Agent and Co-Arranger,
NationsBank, N.A., as Co-Agent, dated as of December 31, 1998 -
Incorporated by reference to Exhibit 1 of the Registrant's Current Report
on Form 8-K, filed with the Commission on December 31, 1998.
10.43 Outside Directors' Retirement Plan effective October 17, 1989, as amended
January 25, 1994, August 15, 1996 and January 29, 1998.
13 Annual Report of Artesyn Technologies, Inc. for the fiscal year ended
January 1, 1999.
21 List of subsidiaries of the Registrant.
23.1 Consent of Arthur Andersen LLP.
23.2 Consent of PricewaterhouseCoopers LLP.
27 Financial data schedule.
(b) REPORTS ON FORM 8-K
During the thirteen-week period ended January 1, 1999, the Company filed the
following reports on Form 8-K:
On December 22, 1998, the Company filed a Current Report on Form 8-K (pursuant
to Item 5 thereof) describing the extension and amendment of its shareholder
rights plan.
On December 31, 1998, the Company filed a Current Report on Form 8-K (pursuant
to Item 5 thereof) announcing that the Company received funding under a new
three-year, multi-currency $200 million credit facility arranged and syndicated
by ABN AMRO Bank and First Union National Bank.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SCHEDULE
To the Board of Directors and Shareholders of
Artesyn Technologies, Inc.:
We have audited in accordance with generally accepted auditing standards, the
consolidated financial statements included in Artesyn Technologies, Inc.'s
Annual Report to Shareholders incorporated by reference in this Form 10-K, and
have issued our report thereon dated January 22, 1999. Our audits were made for
the purpose of forming an opinion on those statements taken as a whole. We did
not audit the statement of financial condition as of January 3, 1997 and the
related statement of operations, shareholders' equity and cash flows for the
fiscal year ended January 3, 1997 of Zytec Corporation, a company acquired on
December 29, 1997 in a transaction accounted for under the pooling-of-interests
method of accounting. Such statements are included in the consolidated financial
statements of Artesyn Technologies, Inc. and were audited by other auditors
whose report has been furnished to us, and our opinion, insofar as it relates to
amounts included for Zytec Corporation, is based solely upon the report of the
other auditors. The schedule listed in Item 14(a)(2) is the responsibility of
the Company's management and is presented for purposes of complying with the
Securities and Exchange Commission's rules and is not part of the basic
consolidated financial statements. This schedule has been subjected to the
auditing procedures applied in the audits of the basic consolidated financial
statements and, in our opinion, based on our audits and the report of other
auditors, fairly states in all material respects the financial data required to
be set forth therein in relation to the basic consolidated financial statements
taken as a whole.
ARTHUR ANDERSEN LLP
Fort Lauderdale, Florida,
January 22, 1999.
REPORT OF INDEPENDENT ACCOUNTANTS
The Shareholders and Board of Directors of
Artesyn Technologies, Inc.:
We have audited the consolidated balance sheet of Zytec Corporation as of
December 31, 1996, and the related consolidated statements of operations, cash
flows and stockholders' equity for the year ended December 31, 1996 (not shown
separately in Artesyn Technologies, Inc. Annual Report on Form 10-K for the year
ended January 1, 1999). In connection with our audit of such financial
statements, we have also audited the related financial statement schedule II,
valuation and qualifying accounts for the year ended December 31, 1996 (not
shown separately in Artesyn Technologies, Inc. Annual Report on Form 10-K for
the year ended, January 1, 1999). These financial statements and financial
statement schedule are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial statement schedule based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Zytec Corporation
as of December 31, 1996, and the consolidated results of its operations and its
cash flows for the year ended December 31, 1996, in conformity with generally
accepted accounting principles. In addition, in our opinion, the financial
statement schedule referred to above, when considered in relation to the basic
financial statements taken as a whole, presents fairly, in all material
respects, the information required to be included therein.
PRICEWATERHOUSECOOPERS LLP
Minneapolis, Minnesota
February 18, 1997
ARTESYN TECHNOLOGIES, INC. AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended on the Friday Nearest December 31 ($000s)
- ---------------------------------------------------------- ----------- ------------------------ ----------------------- -----------
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
- ---------------------------------------------------------- ----------- ------------------------ ----------------------- -----------
-----------------------
Additions
----------- ------------ ---------- ---------------------- ----------
Balance at Charged to Charged to Deductions Balance at
Beginning Costs & Other ----------- ---------- End of
Description of Period Expenses Accounts Description Amount Period
- ---------------------------------------------------------- ----------- ----------- ------------ ----------- ----------- -----------
Fiscal Year 1998:
Reserve deducted from asset to which it applies:
Allowance for doubtful accounts $1,736 $ 138 $ - $ - $1,875
Restructuring reserve - 5,958 - (1) 3,163 2,795
Fiscal Year 1997:
Reserve deducted from asset to which it applies:
Allowance for doubtful accounts $1,312 $ 426 $ - (2) $ 2 $1,736
Fiscal Year 1996:
Reserve deducted from asset to which it applies:
Allowance for doubtful accounts $1,223 $ 89 $ - $ - $ 1,312
Other 292 - - (2) 292 -
(1) This amount relates to payments.
(2) This amount relates to recoveries.
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
ARTESYN TECHNOLOGIES, INC.
--------------------------
(Registrant)
Dated: March 26, 1999 By: JOSEPH M. O'DONNELL
-------------------
Joseph M. O'Donnell
Co-Chairman of the Board, President
and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Registrant in the
capacities and on the dates indicated.
SIGNATURE TITLE DATE
JOSEPH M. O'DONNELL Co-Chairman of the Board, 03/26/99
- ------------------- President and Chief Executive
JOSEPH M. O'DONNELL Officer, Director
RONALD D. SCHMIDT Co-Chairman of the Board 03/26/99
- -----------------
RONALD D. SCHMIDT
RICHARD J. THOMPSON Vice President-Finance, 03/26/99
- ------------------- Chief Financial Officer,
RICHARD J. THOMPSON and Secretary
EDWARD S. CROFT, III Director 03/26/99
- --------------------
EDWARD S. CROFT, III
DR. FRED C. LEE Director 03/26/99
- ---------------
DR. FRED C. LEE
LAWRENCE J. MATTHEWS Director 03/26/99
- --------------------
LAWRENCE J. MATTHEWS
STEPHEN A. OLLENDORFF Director 03/26/99
- ---------------------
STEPHEN A. OLLENDORFF
PHILLIP A. O'REILLY Director 03/26/99
PHILLIP A. O'REILLY
BERT SAGER Director 03/26/99
- ----------
BERT SAGER
A. EUGENE SAPP, JR. Director 03/26/99
- -------------------
A. EUGENE SAPP, JR.
LEWIS SOLOMON Director 03/26/99
- -------------
LEWIS SOLOMON
JOHN M. STEEL Director 03/26/99
- -------------
JOHN M. STEEL
INDEX TO EXHIBITS
EXHIBIT
NO. DESCRIPTION
3.4 Articles of Amendement to the Articles of Incorporation
10.43 Outside Directors' Retirement Plan effective October 17, 1989, as
amended January 25, 1994, August 15, 1996 and January 29, 1998.
13 Annual Report of Artesyn Technologies, Inc. for
the fiscal year ended January 1, 1999
21 List of subsidiaries of the Registrant
23.1 Consent of Arthur Andersen LLP
23.2 Consent of PricewaterhouseCoopers LLP
27 Financial Data Schedule