Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its fourth quarter and fiscal year ended December 28, 2012.
Fourth Quarter Highlights
- Net sales were $90.4 million, essentially flat from $90.5 million in the prior-year quarter, and up 2.5 percent from $88.2 million in the third quarter.
- Operating loss (U.S. GAAP) was $4.6 million compared with a loss of $2.7 million in the prior-year quarter and a loss of $5.8 million in the third quarter.
- Non-GAAP operating profit was $1.3 million, compared with a loss of $0.9 million in the prior-year quarter and a loss of $0.6 million in the third quarter. (See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
- The closing of the Oaktree recapitalization investment was completed, resolving issues with liquidity, debt maturity, and cash interest, allowing the company to refocus on business performance.
“We are encouraged by our performance this quarter despite the ongoing uncertainty and weakness in our key markets,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “Revenue was within our guidance range and non-GAAP operating profit was slightly ahead of guidance due to improving results in each of our segments. Gross profit margins increased significantly both year over year and sequentially as the results of our cost reduction activities and manufacturing consolidation initiatives began reaping substantial benefits throughout the organization. This achievement is especially notable given the challenging revenue environment. I believe it puts Pulse in an excellent position to deliver strong profit improvement when our markets return to more normal demand levels. Our wireless segment revenue rebounded as we expected following the customer ramp delays from earlier in the year. Although wireless operating results were slightly lower than we had hoped, they were substantially improved from the third quarter and reflected improved volume efficiencies and better control of new product ramp costs. We continue to believe that wireless will be able to generate near breakeven profitability at revenue levels like we had in the fourth quarter.