Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its third quarter ended September 27, 2013.
Third Quarter Highlights
- Net sales were $94.8 million, up 7.5% from $88.2 million in the prior-year quarter, and up 7.5% from $88.3 million in the second quarter.
- Operating profit (U.S. GAAP) was $0.5 million compared with a loss of $5.8 million in the prior-year quarter and a profit of $1.6 million in the second quarter.
- Non-GAAP operating profit was $3.6 million, compared with a loss of $0.6 million in the prior-year quarter and a profit of $2.2 million in the second quarter. (See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
- Adjusted EBITDA increased for the fourth consecutive quarter to $5.5 million.
- Substantially completed the implementation of new ERP system.
“Our operating performance for both revenue and non-GAAP operating profit were within guidance again this quarter,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “We achieved solid growth in our wireless segment as demand from certain programs at our smartphone customers increased. We also made significant progress in the operating results of this segment. Meanwhile, we had sequential operating profit improvements in our network and power segments despite a muted demand environment. We continued to improve operational efficiencies and control expenses. This quarter we achieved a milestone $5 million in adjusted EBITDA, representing our fourth consecutive increase, and sixth increase in the last seven quarters, demonstrating the continuous progress the Pulse team is making toward our target operating model.“I am very pleased that, as of the end of October, the majority of our sites are now live on our new ERP system. This implementation has been a core component of our strategic turnaround plan, and our fully-integrated, modern system promises to markedly improve Pulse’s customer service, operational effectiveness, and overall organizational efficiency,” continued Mr. Faison. “I would like to express my appreciation to the many Pulse employees around the world, and particularly those directly engaged on the project, for their tireless work over the many months of the implementation. This was an incredibly complex undertaking, and everyone involved should feel extremely proud of the successful transition they have achieved.”