2020-05-01 07:37:49 BELFA Bel Fuse
05/01/20 05/0107:37 05/01/2007:37 | Bel Fuse reports Q1 EPS (30c), one est. (30c)Reports Q1 revenue $104M, one est. $115M. Daniel Bernstein, President and CEO, said, "Our focus during much of the first quarter has been on the continued safety and well-being of our associates around the world in light of COVID-19. The majority of the products manufactured by Bel are utilized in military, medical and networking applications, and are therefore deemed essential by the various jurisdictions in which we operate. We have implemented significant protective measures throughout our facilities, including travel and visitor restrictions, work from home policies, employee screenings, social distancing and use of face coverings as we continue to service our customers. While this remains a fluid situation that evolves daily, as of today, we are pleased to report that all of our manufacturing sites are operating, with the majority of them at or near normal production rates. I want to extend a sincere thank you to the manufacturing associates in each of Bel's factories around the world who continue to come to work each day with courage and dedication to our Company and our customers. Our first quarter financial results reflect the extended closure of our facilities in China earlier in the quarter due to the outbreak of COVID-19 and the related impact to our supply chain. This led to a portion of scheduled shipments being deferred to the second quarter, and cost approximately $14-$17 million in first quarter sales. In addition to the effects from such deferred shipments, the Company also incurred additional indirect COVID-19 related costs, including operational inefficiencies and employee retention programs in the quarter. These costs were partially offset by COVID-19 relief funding received from the Chinese government during the quarter. We've seen positive signs in Bel's underlying business as we enter the second quarter. Orders received in the first quarter of 2020 were the highest since the third quarter of 2018, indicating that the excess inventory in the supply channel from 2019 has been worked through, and our customers and distribution partners are starting to place replenishment orders again. Further, our acquisition of CUI in late 2019 was accretive to Bel's earnings during the first quarter, generating $8.2 million in sales and contributing $865,000 of operating income. CUI bookings during the first quarter were over $11 million, one of their highest booking quarters in history, which was a contributing factor to Bel's consolidated book-to-bill ratio of 1.3 for the first quarter. Based on the above factors, we currently anticipate an improvement in sales and financial results in the second quarter as compared to the first quarter. However, beyond the second quarter, we have limited visibility due to the evolving COVID-19 environment." concluded Mr. Bernstein. |
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