On November 8, 2023, Vishay Intertechnology Inc (VSH, Financial) released its third-quarter financial results, revealing a decrease in revenue compared to the previous quarter. The company attributed this decline to inventory adjustments by distribution and EMS customers and a softened demand in industrial markets. Despite these challenges, Vishay has continued to increase inventory with distribution partners, focusing on expanding its presence in the higher margin distribution channel.
Financial Performance Overview
For the quarter ended September 30, 2023, Vishay reported net revenues of $853.7 million, a decrease from $892.1 million in the second quarter and $924.8 million in the same quarter of the previous year. Gross profit for the quarter was $237.6 million, with a gross margin of 27.8%, compared to 31.3% in the same period last year. Operating income stood at $115.1 million, resulting in an operating margin of 13.5%. Net earnings attributable to Vishay stockholders were $65.5 million, with basic and diluted earnings per share of $0.47.
For the nine fiscal months ended September 30, 2023, net revenues totaled $2.6 billion, with a gross margin of 29.6%. Net earnings attributable to Vishay stockholders for this period were $272.3 million, or $1.94 per diluted share.
Balance Sheet and Cash Flow Highlights
Vishay's balance sheet as of September 30, 2023, showed total assets of $4.2 billion, with current assets accounting for $2.4 billion. The company's cash and cash equivalents stood at $1.1 billion, an increase from $610.8 million at the end of 2022. Total liabilities amounted to $2.1 billion, with equity at $2.1 billion. Net cash provided by operating activities for the nine months ended September 30, 2023, was $359.4 million.
Strategic Acquisitions and Outlook
Joel Smejkal, President and CEO of Vishay, commented on the company's strategic moves, stating,
“The capacity readiness activities we have underway are increasing our value to the distribution channel and reliably supporting our accelerating design activities related to the megatrends of e-mobility, sustainability, and connectivity.”He also highlighted the acquisition of Newport wafer fab, which is expected to enhance the company's manufacturing capabilities and technology offerings.
Looking ahead to the fourth quarter of 2023, Vishay expects revenues to range between $770 million and $810 million, with a gross profit margin of approximately 25.5%, plus or minus 50 basis points.
Investor Communications
Vishay held a conference call on November 8, 2023, to discuss the earnings report. A replay of the call and related materials are available on the Investor Relations section of Vishay's website.
For detailed financial tables and a reconciliation of adjusted earnings per share, investors and analysts are encouraged to review the full earnings release and filings.
Vishay Intertechnology Inc (VSH, Financial) continues to navigate market challenges while executing its strategic initiatives to strengthen its position in the electronic components industry. The company's focus on expanding its distribution channel and strategic acquisitions like Newport wafer fab signal its commitment to long-term growth and technological advancement.
Explore the complete 8-K earnings release (here) from Vishay Intertechnology Inc for further details.
