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Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its third quarter ended September 30, 2011.
Third Quarter Highlights
Net sales were $96.0 million compared with $122.0 million in the prior-year quarter, and up 1.3 percent from $94.8 million in the second quarter.
Operating loss (U.S. GAAP) was $0.7 million compared with a profit of $8.1 million in the prior-year quarter and a loss of $4.2 million in the second quarter.
Non-GAAP operating profit was $2.6 million, compared with a non-GAAP profit of $8.7 million in the prior-year quarter and $1.5 million in the second quarter. (See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
Long-term debt was reduced by $9.2 million.
Operating expenses declined 6.9% from the second quarter as a result of expense reduction actions earlier in the year. The company remains on track to meet its objective of reducing annual operating expenses by $12 million in the next 6 to 12 months.
Wireless segment sales increased 22.9 percent from the prior quarter as sales to new antenna customers increased 34 percent from the second quarter.
“Overall, our performance was well within guidance this quarter,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “We delivered non-GAAP operating profit above our guidance on revenue that was about as expected in an economic and market environment that was very challenging. Wireless segment sales grew significantly from the trough we reached in the second quarter due to our successes with new customers.
“I am very pleased with the progress we are making on our strategic turnaround plan, and this quarter demonstrated a number of significant proof points that our plan is beginning to deliver on expectations. We:
Generated $10.1 million in sales from new antenna customers, an increase of 34 percent from the second quarter and comprising 65 percent of total wireless sales.
Completed the cost and expense reduction actions we expected to be effective this quarter and made good progress on our longer term initiatives. Our operating expenses of $19.8 million demonstrate we remain on track to achieve our objective of reducing annual operating expenses by approximately $12 million in the next 6 to 12 months.
Continued the consolidation of our manufacturing footprint in China, from 10 plants at the beginning of the year, to seven currently, and an expected six by the end of 2011.
Remained on track in the implementation of our ERP system.”
Third Quarter Operating Performance
Net sales were $96.0 million compared with $122.0 million in the prior-year quarter due to lower industry demand for network and power products, and lower wireless sales as this segment emerges from the revenue trough reached in the prior quarter. Sequentially, net sales increased 1.3 percent compared with second quarter net sales of $94.8 million primarily due to strong growth in the wireless segment.