Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its second quarter ended June 29, 2012.
Second Quarter Highlights
- Net sales were $100.4 million, up 5.9 percent from $94.8 million in the prior-year quarter, and up 6.6 percent from $94.1 million in the first quarter.
- Operating loss (U.S. GAAP) was $0.1 million compared with a loss of $4.2 million in the prior-year quarter and a loss of $2.1 million in the first quarter.
- Non-GAAP operating profit was $0.8 million, compared with $1.5 million in the prior-year quarter and a non-GAAP loss of $0.2 million in the first quarter. (See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
- The potential asset sales initiated as part of the strategy to delever the balance sheet likely will not be completed as expeditiously as previously desired.
“Overall, our operating performance was well within guidance again this quarter,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “Revenue and non-GAAP operating profit were both within our guidance, which was a good indicator that our strategic actions are generating the improved performance we expected. Our network business made good progress in an ongoing challenging business environment, generating sequential improvements in revenue and operating profit. Our wireless business, while it continued to grow, experienced flat operating margins as higher margin products in new handset programs did not ramp as quickly at our customers as we expected and start up costs remained high.“We are continuing to pursue the asset sales we previously discussed as part of our efforts to delever our balance sheet, but the process slowed considerably during the last part of July. We still cannot confirm the timing or results of these transactions, but due to a number of factors we do not believe that they will be closed on the same timeline we had hoped. However, we remain committed to exploring all financing and strategic alternatives available to us to reduce our debt levels, increase our liquidity, and maximize shareholder value,” said Mr. Faison.