LISLE, Ill.--(BUSINESS WIRE)--Molex Incorporated (NASDAQ:MOLX)(NASDAQ:MOLXA), a global electronic components company, today revised its revenue and earnings per share guidance for the first fiscal quarter ending September 30, 2009.
Revenue for the September quarter is now expected to be in the range of $650 million to $665 million, compared with the prior outlook of $590 million to $630 million provided on August 4, 2009. At the midpoint of the new range, this represents a sequential increase of 15% from the June quarter.
“Customer orders in all key markets have continued to trend higher in the September quarter, leading to the higher outlook for revenue,” said Martin Slark, Chief Executive Officer. “The consumer and data markets in particular have rebounded quite nicely. On a geographic basis, we are seeing the strongest demand in Asia. At this point, it is impossible to judge whether we are seeing stronger end demand or the impact of temporary factors such as restocking, stimulus packages and pre-Christmas builds.”
The Company recently announced a mediated settlement which will allow for the closure of a manufacturing facility in Europe. This settlement will accelerate the recognition of certain restructuring costs and, along with other projects, will increase the total program cost compared with previous estimates. The total restructuring program is now estimated to cost between $270 million and $280 million due to revised severance estimates, redevelopment costs and asset impairments. The prior cost estimate was between $240 million and $250 million.
At the revised revenue level, a GAAP basis loss for the September quarter is now expected to be in the range of $0.12 to $0.08 per share, including pretax restructuring charges of approximately $60 million or $0.24 per share after-tax. The prior outlook for earnings per share was a range of $0.00 to $0.06, including a pretax restructuring charge of approximately $10 million or $0.04 per share after-tax.
|GAAP earnings (loss) per share||($0.12) – ($0.08)||$0.00 – $0.06|
|Non GAAP earnings per share||$0.12 - $0.16||$0.04 - $0.10|
No conference call will be held in conjunction with this revised guidance. Molex is scheduled to release financial results for the September quarter on Tuesday, October 27.
Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Words such as “anticipates,” “expects,” “believes,” “intends,” “plans,” “projects,” “estimates,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based on currently available information. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions including those associated with the operation of our business, including the risk that customer demand will decrease either temporarily or permanently, whether due to the Company's actions or the demand for the Company's products, and that the Company may not be able to respond through cost reductions in a timely and effective manner; the risk that the value of our inventory may decline; price cutting, new product introductions and other actions by our competitors; fluctuations in the costs of raw materials that the Company is not able to pass through to customers because of existing contracts or market factors; the availability of credit and general market liquidity; fluctuations in currency exchange rates; the financial condition of our customers; the challenges attendant to plant closings and restructurings, including the difficulty of predicting plant closing and relocation costs, the difficulty of commencing or increasing production at existing facilities, and the reactions of customers, governmental units, employees and other groups, the challenges attendant to plant construction; and the ability to realize cost savings from restructuring activities.
Other factors, risks and uncertainties are set forth in Item 1A “Risk Factors” of the Company’s Form 10-K for the year ended June 30, 2009 which are incorporated by reference and in other reports that Molex files or furnishes with the Securities and Exchange Commission. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed in these forward-looking statements. As a result, this release speaks only as of its date and Molex disclaims any obligation to revise these forward-looking statements or to provide any updates regarding information contained in this release resulting from new information, future events or otherwise.
Reference to Non-GAAP Financial Measure
In this release Molex refers to Non-GAAP earnings per share, a non-GAAP financial measure to describe earnings for such periods excluding the items referenced in the table. This is in addition to disclosing the most directly comparable measure for such periods determined in accordance with GAAP. Molex believes that this non-GAAP financial measure provides useful information to investors because it provides information about the estimated financial performance of Molex’s ongoing business and provides for greater transparency of supplemental information used by management in its financial and operational decision-making. This non-GAAP financial measure may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Molex Incorporated is a 71-year-old global manufacturer of electronic, electrical and fiber optic interconnection systems. Based in Lisle, Illinois, USA, the Company operates 43 manufacturing locations in 18 countries. The Molex website is www.molex.com.
Editor’s note: Molex is traded on the NASDAQ Global Select Market (MOLX and MOLXA) in the United States and on the London Stock Exchange. The Company’s voting common stock (MOLX) is included in the S&P 500 Index.
Steve Martens, 630-527-4344
Vice President, Investor Relations