Molex reports 8.2% revenue rise in December quarter

Lisle, Ill. — Molex Inc. has reported revenue of $729.6 million in the quarter ended December 31, 2009, exceeding the high end of its guidance provided in October of $720.0 million. Revenue increased 8.2 percent from the September 2009 quarter and 9.4 percent from the prior December quarter.

Molex reports orders for the quarter were $777.9 million, an increase of 7.4 percent from the September 2009 quarter and 38.4 percent from the prior year. Positive book-to-bill ratios were reported in all primary markets.

“For the third consecutive quarter we saw sequential gains in sales and incoming orders,” said Martin P. Slark, Molex’s chief executive officer, in a statement.

“Revenue was well above our prior guidance and we had a 1.07 book-to-bill ratio. Margins improved due to higher revenue, cost containment and the favorable impact of restructuring. Looking forward to our third fiscal quarter, we expect to see a smaller than normal seasonal slow down over the Chinese New Year period, returning to normal seasonal patterns thereafter. Longer term, our strong presence in Asia coupled with continued demand for new consumer electronic devices and pent up demand for information technology products should provide us with opportunities for sustained growth,” stated Slark.

Key financial highlights:

  • Gross profit margin improved to 29.1 percent, compared with 28.4 percent in the September 2009 quarter due to higher revenue and cost reductions.
  • SG&A expense was $150.1 million, an increase of $4.5 million from the September 2009 quarter. The increase was largely due to the reinstatement of salaries and benefits that had been reduced in the March 2009 quarter.
  • Capital expenditures were $47.7 million or 6.5 percent of revenue.
  • Depreciation and amortization expense was $60.7 million or 8.3 percent of revenue.
  • The effective tax rate excluding the impact of restructuring costs was 31.4 percent.
  • The book-to-bill ratio was 1.07.
  • Backlog was $340.6 million, an increase of $36.4 million or 11.9 percent from the September 2009 quarter.
  • Cash flow from operations was $71.2 million.

Revenue for the six-months ended December 31, 2009 was $1.4 billion, a decrease of 6.8 percent compared with the prior fiscal year. The decrease in local currency was 8.5 percent.

Molex forecasts revenue in the range of $715 to $735 million for the March 2010 quarter.