UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported): July 30, 2008
BEL
FUSE INC.
(Exact
name of registrant as specified in charter)
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New
Jersey
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0-11676
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22-1463699
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(State
or other
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(Commission
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(IRS
Employer
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jurisdiction
of
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File
Number)
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Identification
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incorporation)
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Number)
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206
Van Vorst Street, Jersey City, New Jersey
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07302
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including
area
code: (201) 432-0463
(Former
name or former address, if changed since
last
report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14s-2(b) under the Exchange Act (17 CFR
240-14d-2(b))
¨ Pre-commencement
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On
July
30, 2008, Bel Fuse Inc. (the “Company”) issued a press release regarding results
for the quarter ended June 30, 2008. A copy of this press release is being
furnished as Exhibit 99.1 to this Current Report on Form 8-K.
In
accordance with General Instruction B.6 of Form 8-K, the information in this
Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, or otherwise subject to the liability of that section, nor shall it
be
deemed incorporated by reference in any filing under the Securities Act of
1933,
as amended, except as shall be expressly set forth by specific reference in
such
a filing.
ITEM
9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c)
Exhibits
As
described in Item 2.02 of this Report, the following Exhibit is furnished as
part of this Current Report on Form 8-K:
99.1
Press Release of Bel Fuse Inc. dated July 30, 2008.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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BEL
FUSE INC
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By:
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/s/ Daniel Bernstein
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Name:
Daniel Bernstein
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Title:
President
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Date:
July 30, 2008
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EXHIBIT
INDEX
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Exhibit
No.
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Description
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99.1
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Press
release, dated July 30, 2008 issued by the
Company.
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 |
FOR
IMMEDIATE RELEASE
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Bel
Fuse Inc.
206
Van Vorst Street
Jersey
City, NJ 07302
www.belfuse.com
tel
201.432.0463
fax
201.432.9542
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Investor
Contact:
Neil
Berkman Associates
(310)
826-5051
info@berkmanassociates.com
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Company
Contact:
Daniel
Bernstein
President
ir@BelFuse.com
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BEL
Reports 18% Increase in Revenue
to
A Second Quarter Record $72.5 Million
JERSEY
CITY, New Jersey,
July
30, 2008 — Bel
Fuse Inc. (NASDAQ:BELFA & NASDAQ:BELFB)
today
announced financial results for the second quarter of 2008.
Second
Quarter Results
Paced
by
higher sales in Bel's Modules and Magnetics product groups, net sales for the
three months ended June 30, 2008 reached a second quarter record $72,454,000,
a
sequential increase of 19% when compared to net sales of $60,869,000 for the
first quarter of 2008 and 18% higher than net sales of $61,612,000 reported
for
the second quarter of 2007.
Net
earnings for this year's second quarter of $1,811,000 include a non-cash pre-tax
charge of $2,353,000 for the other-than-temporary impairment of Bel's holdings
in Toko Inc. (TSE: 6801). Excluding this charge, Bel's second quarter net
earnings would have sequentially increased 51% for the quarter, compared to
net
earnings of $2,167,000 for the first quarter of 2008.
Net
earnings for the second quarter of 2007 were $6,158,000, which included a
pre-tax gain of $880,000 on the sale of real estate in the Far East and a
pre-tax gain of $2,508,000 from the partial disposition of Bel's holdings in
Toko Inc., offset by a $500,000 accrual for performance bonuses awarded by
the
Board in connection with the Toko investment, a $1,200,000 warranty claim and
increased legal expenses of approximately $450,000, primarily associated with
defending patent claims.
Net
earnings per diluted Class A common share were $0.14 for this year's second
quarter. For the second quarter of 2007, net earnings per diluted Class A common
share were $0.49. For the first quarter of 2008, net earnings per diluted Class
A common share were $0.17. Net earnings per diluted Class B common share were
$0.16 for this year's second quarter. Diluted Class B common share earnings
were
$0.52 for last year's second quarter, and $0.19 per diluted Class B common
share
for this year's first quarter.
"As
in
the first quarter 2008, our profitability in the second quarter continued to
be
affected by higher labor and raw materials costs and the weakness of the dollar
against the Chinese yuan. We hired a total of approximately 5,000 workers since
the Chinese New Year holiday, including approximately 1,500 workers during
the
second quarter, in order to meet continued strong demand for our products.
The
inefficiencies and overtime expenses associated with training these new workers
contributed to lower gross margin in this year's first half versus last
year.
"As
these
workers complete their training and become more productive, our efficiencies
will increase, overtime expenses will decline and gross margin will improve.
We
will implement a corporate-wide cost reduction plan in the third quarter to
further streamline the organization. Finally, we increased product pricing
in
July, which should help alleviate the strain on margins from the cost increases
we absorbed in the year's first half," said Daniel Bernstein, Bel's CEO and
President.
(more)
BEL
Reports 18% Increase Revenue to a Second Quarter Record $72.5
Million
July
30,
2008
Page
Two
"We
continue to seek acquisition opportunities with the potential to increase
shareholder value," Bernstein concluded.
First
Half Results
For
the
six months ended June 30, 2008, net sales increased 8% to $133,323,000. This
compares to net sales of $123,419,000 for the first six months of 2007. Net
earnings decreased to $3,978,000 compared to net earnings of $10,167,000 for
last year's first half.
For
the
first six months of 2008, net earnings were $0.31 and $0.34 per diluted Class
A
and Class B common share, respectively. For the first six months of 2007, net
earnings were $0.81 and $0.86 per diluted Class A and Class B common share,
respectively.
Balance
Sheet Highlights
At
June
30, 2008, Bel reported cash, cash equivalents and marketable securities of
approximately $111,449,000, working capital of approximately $177,992,000,
a
current ratio of 5.8-to-1, total long-term obligations of $17,039,000, and
shareholders' equity of $248,075,000. At December 31, 2007, cash, cash
equivalents and marketable securities were approximately $107,690,000, working
capital was approximately $173,171,000, the current ratio was 6.2-to-1, total
long-term obligations were $16,273,000, and shareholders' equity was
$244,527,000.
During
the first half of 2008, Bel repurchased 25,496 Class A shares at a cost of
$766,000.
Conference
Call
Bel
has
scheduled a conference call at 11:00 a.m. EDT today. To participate in the
call,
dial (212) 231-2900, reservation #21383061. A simultaneous webcast of the
conference call may be accessed from the Investor
Info
link at
www.belfuse.com.
A
replay will be available after 1:00 p.m. EDT, for a period of 20 days, at this
same Internet address. For a telephone replay, dial (800) 633-8284, reservation
#21383061 after 1:00 p.m. EDT.
About
Bel
Bel
(www.belfuse.com)
and its
subsidiaries are primarily engaged in the design, manufacture and sale of
products used in networking, telecommunications, high speed data transmission,
and consumer electronics. Products include magnetics (discrete components,
power
transformers and MagJack®s), modules (DC-DC converters, integrated analog front
end modules and custom designs), circuit protection (miniature, micro and
surface mount fuses) and interconnect devices (passive jacks, plugs and cable
assemblies). Bel operates facilities around the world.
Forward-Looking
Statements
Except
for historical information contained in this news release, the matters discussed
in this press release (including statements regarding the impact of price
increases, corporate cost reductions and acquisition possibilities) are forward
looking statements that involve risks and uncertainties. Among the factors
that
could cause actual results to differ materially from such statements are: the
market concerns facing our customers, the continuing viability of sectors that
rely on our products, the effect of business and economic conditions; capacity
and supply constraints or difficulties; product development, commercializing
or
technological difficulties; the regulatory and trade environment; risks
associated with foreign currencies; uncertainties associated with legal
proceedings; the market's acceptance of the Company's new products and
competitive responses to those new products and the risk factors detailed from
time to time in the Company's SEC reports. In light of the risks and
uncertainties, there can be no assurance that any forward-looking statement
will
in fact prove to be correct. We undertake no obligation to update or revise
any
forward-looking statements.
(tables
attached)
#4553
BEL
FUSE INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(000s
omitted, except for per share data) (Unaudited)
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Three
Months Ended
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Six
Months Ended
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||||||||||||
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June
30,
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June
30,
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||||||||||||
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2008
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2007
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2008
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2007
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Net
Sales
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$
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72,454
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$
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61,612
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$
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133,323
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$
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123,419
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Costs and expenses:
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|||||||||||||
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Cost of Sales
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59,317
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48,599
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108,955
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96,490
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Selling, general and administrative
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9,284
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9,178
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18,217
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18,661
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Gain on sale of fixed assets
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—
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(880
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)
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—
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(880
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)
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|||||||
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68,601
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56,897
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127,172
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114,271
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Income from operations
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3,853
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4,715
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6,151
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9,148
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Interest expense and other costs
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(2
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)
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(2
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)
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(1
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)
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(124
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)
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(Impairment charge) gain
on sale of investment
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(2,352
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)
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2,508
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(2,633
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)
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2,508
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Interest income
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605
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1,003
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1,518
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1,836
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Earnings before provision for income taxes
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2,104
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8,224
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5,035
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13,368
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Income tax provision
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283
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2,066
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1,057
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3,201
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Net earnings
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$
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1,811
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$
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6,158
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$
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3,978
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$
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10,167
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Earnings per Class A common share - basic
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$
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0.14
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$
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0.49
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$
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0.31
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$
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0.81
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Earnings per Class A common share - diluted
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$
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0.14
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$
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0.49
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$
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0.31
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$
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0.81
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Weighted average Class A common shares outstanding
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Basic
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2,525
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2,662
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2,529
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2,682
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Diluted
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2,525
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2,662
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2,529
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2,682
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Earnings per Class B common share - basic
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$
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0.16
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$
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0.52
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$
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0.34
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$
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0.87
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Earnings per Class B common share - diluted
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$
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0.16
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$
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0.52
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$
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0.34
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$
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0.86
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Weighted average Class B common shares outstanding
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|||||||||||||
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Basic
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9,352
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9,233
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9,330
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9,204
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Diluted
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9,353
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9,262
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9,333
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9,234
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CONDENSED CONSOLIDATED BALANCE SHEET DATA (000s omitted)
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Jun. 30,
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Dec. 31,
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Jun. 30,
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Dec. 31,
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|||||||||||||
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2008
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2007
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2008
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2007
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|||||||||||
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(unaudited)
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(audited)
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(unaudited)
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(audited)
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|||||||||||||
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ASSETS
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LIABILITIES & EQUITY | |||||||||||||||
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Current assets
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$
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215,400
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$
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206,231
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Current liabilities |
$
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37,408
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$
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33,060
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Property,
plant &
equipment, net |
41,030
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41,113
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Noncurrent liabilities |
17,039
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16,273
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|||||||||||
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Goodwill
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28,686
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28,447
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Intangibles & other assets
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17,406
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18,069
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Stockholders' equity |
248,075
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244,527
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|||||||||||
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Total Assets
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$
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302,522
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$
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293,860
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Total Liabilities & Equity |
$
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302,522
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$
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293,860
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