Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its first quarter ended March 30, 2012.
First Quarter Highlights
- Net sales were $94.1 million, up 6.9 percent from $88.0 million in the prior-year quarter, and up 4.0 percent from $90.5 million in the fourth quarter.
- Operating loss (U.S. GAAP) was $2.1 million compared with a loss of $10.3 million in the prior-year quarter and a loss of $2.7 million in the fourth quarter.
- Non-GAAP operating loss was $0.2 million, compared with a non-GAAP loss of $2.9 million in the prior-year quarter and a non-GAAP loss of $0.9 million in the fourth quarter. (See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
- Wireless segment sales increased 74.2 percent from the prior-year quarter with significantly improved gross profit margin.
“Overall, our performance was well within guidance this quarter,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “Non-GAAP operating loss was within our guidance on revenue that was slightly above the range of our guidance, which was a good result as the overall industry weakness we saw in our network and power segments in the second half of 2011 continued into the first part of this quarter. Our wireless business continued to grow and improved its gross margins as some ramp up costs ended and efficiency improved.”“On our efforts to delever, we now have a combination of closed transactions, letters of intent on asset sales, and a commitment letter for new financing, which if completed will exceed the approximately $55 million necessary to fully retire our outstanding credit facility. While we cannot confirm the timing or results of any individual transaction due to the uncertainty inherent in these matters, the asset values offered by potential buyers are acceptable to us and the transactions are proceeding on a reasonable schedule. We are highly motivated to close the transactions by June 28 and, importantly, not all of the contemplated transactions need to be closed in order to complete our refinancing by that date,” said Mr. Faison.