MALVERN, PA — Vishay Intertechnology, Inc. (NYSE: VSH) recently released its financial results for the third quarter ending September 30, 2023, and announced its strategic acquisition of Newport wafer fab to bolster its manufacturing capabilities.
The company reported revenues of $853.7 million for the third quarter of 2023, with earnings per share (EPS) of $0.47, or an adjusted EPS of $0.60. However, the book-to-bill ratio stood at 0.63, indicating a lower demand for the company’s products. Despite the decrease in revenue from the second quarter due to inventory adjustments by distribution and EMS customers, Vishay remained resolute in its strategy of increasing inventory with distribution partners.
Joel Smejkal, President and Chief Executive Officer of Vishay, commented on the Q3 results, stating that the company’s capacity readiness activities have increased their value to the distribution channel and effectively supported their accelerating design activities related to e-mobility, sustainability, and connectivity trends.
In addition to the Q3 results, Vishay also announced its plans to acquire Newport wafer fab. This move is expected to accelerate the company’s plan to scale manufacturing and advance the technology differentiation of their silicon carbide MOSFETs, aligning with the company’s ongoing strategy.
Returning a total of $31.1 million to its stockholders, Vishay demonstrates its commitment to generating returns for investors even amidst challenging market conditions. The company ended the quarter with a backlog equivalent to 5.5 months, reinforcing its robust operational resilience.
Looking forward to the fourth quarter of 2023, the management expects revenues to be in the range of $770 million to $810 million, with a gross profit margin in the range of 25.5% +/- 50 basis points. This outlook reflects Vishay’s confidence in its strategic initiatives and its ability to navigate through the current market dynamics.
These developments signify a pivotal moment for Vishay Intertechnology as it continues to strengthen its position in the semiconductor industry, capitalizing on emerging trends and creating value for its shareholders. The company’s strategic moves, coupled with its financial resilience, demonstrate its commitment to achieving sustainable growth and profitability in the long term.
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