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SECURITY: MAG
(Common) EXCHANGE: New York Stock Exchange CURRENCY:
US Dollar
Magnetek, Inc. manufactures
digital power supplies and systems used in many industrial, commercial
and consumer applications requiring highly reliable, precise, energy-efficient
power. The Company operates manufacturing and research facilities in North
America, Europe and Asia
Magnetek
Announces Fiscal 2006 Third-Quarter Results
CHATSWORTH, Calif.--(BUSINESS
WIRE)--May 12, 2006--Magnetek, Inc. (NYSE:MAG):
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Revenue from continuing operations was $57.2 million, compared
to $57.0 million in the third quarter of fiscal 2005.
--
Gross profit declined to $12.4 million from $14.2 million in the
prior-year third quarter, resulting in a net loss of $.15
per share.
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Quarterly bookings of $65.1 million exceeded billings by 14%;and backlog
increased 15% to $72.7 million, the highest level
in over a year.
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Quarterly sales of Magnetek's newly introduced alternative energy and utility
grid management systems increased 30% to
$1.7 million.
Magnetek, Inc. (NYSE:MAG)
today reported its results for the third quarter and first nine months
of fiscal 2006, which ended on April 2, 2006(a).
The Company's continuing
operations recorded revenue of $57.2 million, compared to $57.0 million
in the third quarter of fiscal 2005.
Gross profit amounted to
$12.4 million, compared to $14.2 million in the corresponding period a
year ago. Gross profit as a percentage of sales decreased from the third
quarter of last year as well as the second quarter of this year due primarily
to manufacturing dislocations created by product-line moves and ramp-up
inefficiencies associated with new products.
Reduced gross profit resulted
in a $2.6 million third-quarter operating loss from continuing operations,
versus a $0.9 million operating loss in the prior year third quarter.
The operating loss, together
with interest expense related to debt refinancing and income taxes, including
non-cash tax consequence of tax-basis goodwill amortization, resulted in
a third-quarter net loss from continuing operations of $4.4 million or
$.15 per share. This compares with a net loss from continuing operations
of $1.9 million or $.07 per share in last year's third quarter.
Including results of discontinued
operations, Magnetek's fiscal 2006 third-quarter net loss also amounted
to $4.4 million or $.15 per share, compared to a net loss of $25.0 million
or $.88 per share in the same period a year earlier; $22.0 million of this
was attributable to a non-cash charge stemming from a patent arbitration
award that the Company is contesting in Federal Court.
Third-Quarter Results
Third-quarter sales of power-electronic
products increased sequentially from the second quarter of fiscal 2006,
due to strengthening in embedded power supplies markets such as information
technology, communications and consumer appliances. Due primarily to seasonal
factors affecting industrial markets, sales of the Company's power-control
systems declined in the third quarter. Power-electronic products accounted
for 58% of Magnetek's revenues in the third quarter, while power-control
systems accounted for 42% of revenues. |
