VISHAY INTERTECHNOLOGY INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - VISHAY INTERTECHNOLOGY, INC. 8-K - VISHAY INTERTECHNOLOGY INC	form8-k.htm

Exhibit 99.1

VISHAY REPORTS RESULTS FOR SECOND QUARTER 2012

·	Revenues for Q2 2012 of $588 million

·	EPS Q2 2012 of $0.29, or $0.24 when excluding gain on sale of property

·	Book-to-bill ratio of 1.01 in Q2 2012

·	Cash from operations for YTD June 2012 of $94 million and capital expenditures of $47 million

·	Guidance for Q3 2012 for revenues between $570 and $610 million at margins similar to Q2 2012.

MALVERN, PENNSYLVANIA -- (BUSINESS WIRE) -- July 31, 2012 – Vishay Intertechnology, Inc. (NYSE: VSH), one of the world’s largest manufacturers of discrete semiconductors and passive components, today announced its results for the fiscal quarter and six fiscal months ended June 30, 2012.

Revenues for the fiscal quarter ended June 30, 2012 were $588.2 million, compared to $709.8 million for the fiscal quarter ended July 2, 2011. The net earnings attributable to Vishay stockholders for the fiscal quarter ended June 30, 2012 were $45.7 million, or $0.29 per diluted share, compared to $82.1 million, or $0.48 per diluted share for the fiscal quarter ended July 2, 2011.

Revenues for the six fiscal months ended June 30, 2012 were $1,126.7 million, compared to $1,405.0 million for the six fiscal months ended July 2, 2011. The net earnings attributable to Vishay stockholders for the six fiscal months ended June 30, 2012 were $79.5 million, or $0.49 per diluted share, compared to $157.4 million, or $0.91 per diluted share for the six fiscal months ended July 2, 2011.

As listed on the attached reconciliation schedule, net earnings attributable to Vishay stockholders for the fiscal quarter and six fiscal months ended June 30, 2012 include a pretax gain of $12.2 million on the sale of a vacated property in Belgium. The results for the fiscal quarter and six fiscal months ended July 2, 2011 include a pretax charge of $3.9 million to accelerate the recognition of certain executive compensation upon the passing of Dr. Zandman, the Company’s late Executive Chairman and Chief Technical and Business Development Officer. Results for the six fiscal months ended July 2, 2011 also include $10.0 million of one-time tax expense due to a tax law change in Israel. Adjusted net earnings per diluted share, which exclude these items, were $0.24 and $0.44 for the fiscal quarter and six fiscal months ended June 30, 2012, respectively, compared to $0.50 and $0.98 for the fiscal quarter and six fiscal months ended July 2, 2011, respectively.

Commenting on the results for the second quarter of 2012, Dr. Gerald Paul, President and Chief Executive Officer, stated, “In the second quarter, we experienced a substantial revenue increase versus the first quarter of 2012, though not quite to the degree anticipated. During the second quarter most end markets seem to be increasingly influenced by macro uncertainties. As announced, due to the volume increase our temporary fixed cost reductions implemented in the first quarter could not be sustained, which negatively impacted our incremental performance quarter over quarter. We continue to pursue our growth plan through investing in capacities for strategic product lines, and through increasing our resources for R&D, for technical marketing and for field application engineering; all of which is supplemented by opportunistic acquisitions of specialty businesses.”

Dr. Paul continued, “In the second quarter, Vishay demonstrated again its earnings power by achieving an adjusted operating margin of 10% at the comparably low revenue level of under $600 million. Thanks to Vishay’s business model of being a broad-line manufacturer with a global presence selling into all end markets as well as to our low breakeven point, Vishay is very well positioned to face any erratic developments of the macro economy or to benefit from an economic upturn.”

Commenting on the outlook for the third quarter of 2012, Dr. Paul stated, “We currently anticipate revenues between $570 and $610 million at margins similar to the second quarter of 2012.”

The Company expects to file its Quarterly Report on Form 10-Q for the second fiscal quarter of 2012 with the Securities and Exchange Commission after the close of the market on Tuesday, July 31, 2012. This financial report will be available at ir.vishay.com.

A conference call to discuss second quarter financial results is scheduled for Tuesday, July 31, 2012 at 9:00 AM ET. The dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if calling from outside the United States or Canada) and the conference ID is 89023734.

There will be a replay of the conference call from 10:30 AM ET on Tuesday, July 31, 2012 through 11:59 PM ET on Monday, August 6, 2012. The telephone number for the replay is 800-585-8367 (+1 855-859-2056 or 404-537-3406 if calling from outside the United States or Canada) and the access code is 89023734.

There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

About Vishay

Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay’s product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet at http://www.vishay.com.

This press release includes certain financial measures which are not recognized in accordance with generally accepted accounting principles (“GAAP”), including adjusted net earnings (loss) and adjusted net earnings (loss) per share, 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 and should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted net earnings and adjusted earnings per diluted share 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 these measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to an understanding to the Company’s intrinsic operations. These reconciling items are indicated on the accompanying reconciliation schedule 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 statements with respect to forecasted revenues, margins, cash generation, internal growth and acquisition activity, and the general state of the Company, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should,” 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; difficulties in implementing our cost reduction strategies; 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; uncertainty related to the effects of changes in foreign currency exchange rates; 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.

Source: Vishay Intertechnology, Inc.

Contact:

Vishay Intertechnology, Inc.

Peter G. Henrici

Senior Vice President, Corporate Communications

+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)

	Fiscal quarters ended
	June 30, 2012			March 31, 2012			July 2, 2011

Net revenues	$	588,199		$	538,547		$	709,838
Costs of products sold		440,580			401,838			497,648
Gross profit		147,619			136,709			212,190
Gross margin		25.1	%		25.4	%		29.9	%

Selling, general, and administrative expenses		86,889			86,364			92,796
Gain on sale of property		(12,153	)		-			-
Executive compensation charge		-			-			3,889
Operating income		72,883			50,345			115,505
Operating margin		12.4	%		9.3	%		16.3	%

Other income (expense):
Interest expense		(5,539	)		(4,717	)		(4,624	)
Other		(2,094	)		1,308			(28	)
Total other income (expense) - net		(7,633	)		(3,409	)		(4,652	)

Income before taxes		65,250			46,936			110,853

Income taxes		19,420			12,861			28,357

Net earnings		45,830			34,075			82,496

Less: net earnings attributable to noncontrolling interests		159			263			401

Net earnings attributable to Vishay stockholders	$	45,671		$	33,812		$	82,095

Basic earnings per share attributable to Vishay stockholders	$	0.30		$	0.22		$	0.51

Diluted earnings per share attributable to Vishay stockholders	$	0.29		$	0.21		$	0.48

Weighted average shares outstanding - basic		152,462			157,199			160,801

Weighted average shares outstanding - diluted		159,249			163,944			170,645

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)

	Six fiscal months ended
	June 30, 2012			July 2, 2011

Net revenues	$	1,126,746		$	1,404,989
Costs of products sold		842,418			978,136
Gross profit		284,328			426,853
Gross margin		25.2	%		30.4	%

Selling, general, and administrative expenses		173,253			185,261
Gain on sale of property		(12,153	)		-
Executive compensation charge		-			3,889
Operating income		123,228			237,703
Operating margin		10.9	%		16.9	%

Other income (expense):
Interest expense		(10,256	)		(8,678	)
Other		(786	)		(535	)
Total other income (expense) - net		(11,042	)		(9,213	)

Income before taxes		112,186			228,490

Income taxes		32,281			70,387

Net earnings		79,905			158,103

Less: net earnings attributable to noncontrolling interests		422			721

Net earnings attributable to Vishay stockholders	$	79,483		$	157,382

Basic earnings per share attributable to Vishay stockholders	$	0.51		$	0.97

Diluted earnings per share attributable to Vishay stockholders	$	0.49		$	0.91

Weighted average shares outstanding - basic		154,831			163,006

Weighted average shares outstanding - diluted		161,596			173,143

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)

	June 30, 2012			December 31, 2011
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	708,772		$	749,088
Short-term investments		239,503			249,139
Accounts receivable, net		298,974			270,970
Inventories:
Finished goods		109,688			104,478
Work in process		196,050			181,354
Raw materials		128,818			131,795
Total inventories		434,556			417,627

Deferred income taxes		24,581			24,632
Prepaid expenses and other current assets		115,794			119,220
Total current assets		1,822,180			1,830,676

Property and equipment, at cost:
Land		91,131			91,507
Buildings and improvements		502,872			493,550
Machinery and equipment		2,092,532			2,079,395
Construction in progress		76,718			94,717
Allowance for depreciation		(1,890,152	)		(1,851,264	)
		873,101			907,905

Goodwill		34,866			9,051

Other intangible assets, net		139,738			103,927

Other assets		137,813			142,171
Total assets	$	3,007,698		$	2,993,730

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)

	June 30, 2012			December 31, 2011
	(unaudited)
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks	$	116		$	13
Trade accounts payable		154,277			154,942
Payroll and related expenses		103,765			109,833
Other accrued expenses		146,318			161,119
Income taxes		4,600			13,881
Total current liabilities		409,076			439,788

Long-term debt less current portion		462,173			399,054
Deferred income taxes		146,645			110,356
Other liabilities		113,869			117,235
Accrued pension and other postretirement costs		298,426			319,136
Total liabilities		1,430,189			1,385,569

Equity:
Vishay stockholders' equity
Common stock		13,114			14,374
Class B convertible common stock		1,213			1,345
Capital in excess of par value		1,998,765			2,086,925
Retained earnings (accumulated deficit)		(423,933	)		(503,416	)
Accumulated other comprehensive income (loss)		(17,227	)		3,778
Total Vishay stockholders' equity		1,571,932			1,603,006
Noncontrolling interests		5,577			5,155
Total equity		1,577,509			1,608,161
Total liabilities and equity	$	3,007,698		$	2,993,730

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
	Six fiscal months ended
	June 30, 2012			July 2, 2011


Operating activities
Net earnings	$	79,905		$	158,103
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization		83,838			90,771
(Gain) loss on disposal of property and equipment		(13,070	)		(930	)
Accretion of interest on convertible debentures		1,308			861
Inventory write-offs for obsolescence		10,050			10,560
Other		8,110			(2,502	)
Changes in operating assets and liabilities,
net of effects of businesses acquired		(75,737	)		(82,947	)
Net cash provided by operating activities		94,404			173,916

Investing activities
Purchase of property and equipment		(47,298	)		(45,365	)
Proceeds from sale of property and equipment		6,355			1,473
Purchase of businesses, net of cash acquired or refunded		(85,493	)		-
Purchase of short-term investments		(201,143	)		(391,524	)
Maturity of short-term investments		207,077			82,990
Other investing activities		(640	)		307
Net cash used in investing activities		(121,142	)		(352,119	)

Financing activities
Proceeds of long-term borrowings		150,000			150,000
Issuance costs		(4,827	)		(4,144	)
Common stock repurchase		(150,000	)		(150,000	)
Principal payments on long-term debt and capital lease obligations		(16	)		(6	)
Net proceeds (payments) on revolving credit lines		5,000			(60,000	)
Net changes in short-term borrowings		(2	)		(9	)
Proceeds from stock options exercised		174			7,938
Excess tax benefit from stock options exercised		-			555
Distributions to noncontrolling interests		-			(500	)
Net cash provided by (used in) financing activities		329			(56,166	)
Effect of exchange rate changes on cash and cash equivalents		(13,907	)		29,623

Net decrease in cash and cash equivalents		(40,316	)		(204,746	)

Cash and cash equivalents at beginning of period		749,088			897,338
Cash and cash equivalents at end of period	$	708,772		$	692,592

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended								Six fiscal months ended
	June 30, 2012			March 31, 2012		July 2, 2011			June 30, 2012			July 2, 2011

GAAP net earnings attributable to Vishay stockholders	$	45,671		$	33,812	$	82,095		$	79,483		$	157,382

Reconciling items affecting operating margin:
Gain on sale of property	$	(12,153	)	$	-	$	-		$	(12,153	)	$	-
Executive compensation charge		-			-		3,889			-			3,889

Reconciling items affecting tax expense (benefit):
Tax effects of items above and other one-time tax expense (benefit)	$	4,131		$	-	$	(1,419	)	$	4,131		$	8,605

Adjusted net earnings	$	37,649		$	33,812	$	84,565		$	71,461		$	169,876

Adjusted weighted average diluted shares outstanding		159,249			163,944		170,645			161,596			173,143

Adjusted earnings per diluted share**	$	0.24		$	0.21	$	0.50		$	0.44		$	0.98

** Includes add-back of interest on exchangeable notes in periods where the notes are dilutive.

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