KEMET Reports Results of 4th Quarter and Fiscal Year 2007
Net Sales were $658.7 million for fiscal year 2007, up 34% over last year
Gross Margin for the year was 21.4%, up from 18.5% last year
Net Income on a pro-forma basis was $42.7 million or $0.50 per share, up 140% from FY 2006
Greenville, South Carolina (May 9, 2007) - KEMET Corporation (NYSE:KEM) today reported that net sales for the quarter ended March 31, 2007, were $157.1 million which is an 18% increase over the same quarter last year and 5% lower than the prior quarter. Net income before special charges was $8.3 million, or $0.10 per share, compared to $10.7 million, or $0.12 per share, for the same quarter last year and $12.3 million, or $0.15 per share, for the prior quarter. On a GAAP basis, net income was $0.1 million, or $0.00 per share, for the current quarter compared to a net loss of $2.3 million for the same quarter last year and net income of $5.3 million for the prior quarter. KEMET reports results before special charges because the results offer an alternative depiction of normal operations. Comparisons to prior periods are as follows:
"We are extremely pleased with the Company's results for the fiscal year ended March 31, 2007," stated Per Loof, Chief Executive Officer. "With revenues up 34% and net income before special charges up 140% over the prior year, we exceeded all our expectations. We are tracking a full year ahead of the improvement plan I established when I joined KEMET two years ago and I am confident that we will continue to make progress in the years to come."
"The results in the fiscal fourth quarter, though generally in line with our expectations given normal seasonality and the impact of the Chinese New Year, need to improve and will improve. Our acquisition strategy is intended to mitigate future volatility. Our relentless efforts to reduce our costs will continue as we work every day to provide better solutions for our customers and increased profitability for our shareholders."
"We are pleased to note that we closed the purchase of Evox Rifa Group Oyj on April 24, 2007. This complementary business brings us one step closer to becoming The Capacitance Company. We would like to welcome every Evox Rifa customer and employee into the KEMET family, and look forward to new opportunities to provide capacitance solutions around the world. Our success in integrating the tantalum business unit acquired from EPCOS during the past fiscal year gives us confidence that we will see accretive results from the new Evox Rifa businesses as well in fiscal year 2008."
The Company will hold a conference call at 9:00 am ET Wednesday, May 9, 2007, to discuss this earnings release. To access the call, participants in the United States should dial 1-800-416-8033, and participants outside the United States should dial 1-706-643-0979. Participants should reference "KEMET Corporation" and the Conference ID #: 5684155. In conjunction with the conference call, there will be a simultaneous live broadcast over the Internet, which can be accessed at www.KEMET.com/IR. A replay of the conference call will be available until midnight May 23, 2007, at the same link.
KEMET's common stock is listed on The New York Stock Exchange under the symbol KEM. At the Investor Relations portion of the Company's web site at www.KEMET.com/IR, users can subscribe to KEMET news releases and can find additional Company information.
QUIET PERIOD
Beginning July 1, 2007, KEMET will observe a Quiet Period during which the information provided in this news release and the Company's annual report on Form 10-K will no longer constitute the Company's current expectations.
During the Quiet Period, this information should be considered to be historical, applying prior to the Quiet Period only and not subject to update by the Company. The Quiet Period will extend until the day when KEMET's next quarterly earnings release is published.
