X
|
Quarterly
Report Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934
|
Transition
Report Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934
|
Delaware
|
33-0379007
|
|
(State
or other jurisdiction of
incorporation or organization)
|
(IRS
Employer ID
No.)
|
|
801
17th Avenue South, Myrtle
Beach, South
Carolina
|
29577
|
|
(Address
of principle executive
offices)
|
(Zip
Code)
|
|
(843)
448-9411
|
||
(Registrant's
phone number,
including area code)
|
Yes
|
X
|
No
|
Large
accelerated filer
|
X
|
Accelerated
filer
|
Non-accelerated
filer
|
Yes
|
No
|
X
|
Class
|
Outstanding
at February
1, 2008
|
|
Common
Stock, par value $0.01 per
share
|
171,203,440
|
Page
Number
|
||
PART
I:
|
Financial
Information:
|
|
ITEM
1.
|
Financial
Statements:
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
ITEM
2.
|
|
15
|
ITEM
3.
|
|
22
|
ITEM
4.
|
|
22
|
PART
II:
|
|
|
ITEM
1.
|
|
23
|
ITEM
1A.
|
|
24
|
ITEM
2.
|
|
24
|
ITEM
5.
|
|
24
|
ITEM
6.
|
|
25
|
26
|
March
31,
|
December
31,
|
|
ASSETS
|
2007
|
2007
|
Current
assets:
|
||
Cash
and cash
equivalents
|
$
684,382
|
$
574,881
|
Short-tem
investment in
securities
|
145,000
|
70,000
|
Available-for-sale
securities
|
-
|
94,693
|
Accounts
receivable -
trade
|
191,106
|
223,719
|
Accounts
receivable -
affiliates
|
5,059
|
4,540
|
Inventories
|
330,141
|
398,100
|
Deferred
income
taxes
|
26,941
|
27,027
|
Prepaid
and
other
|
38,766
|
39,584
|
Total
current
assets
|
1,421,395
|
1,432,544
|
Long-term
investments in
securities
|
139,000
|
69,000
|
Property
and
equipment
|
1,593,282
|
1,720,165
|
Accumulated
depreciation
|
(1,349,409)
|
(1,424,644)
|
|
243,873
|
295,521
|
Goodwill
|
71,166
|
150,517
|
Intangible
assets
|
-
|
95,998
|
Other
assets
|
24,102
|
9,591
|
Total
Assets
|
$
1,899,536
|
$
2,053,171
|
LIABILITIES
AND STOCKHOLDERS'
EQUITY
|
||
Current
liabilities:
|
||
Accounts
payable -
trade
|
$
50,903
|
$
60,568
|
Accounts
payable -
affiliates
|
75,786
|
78,176
|
Current
portion of long-term
debt
|
-
|
567
|
Income
taxes
payable
|
14,668
|
6,887
|
Accrued
payroll and
benefits
|
38,965
|
42,285
|
Accrued
expenses
|
27,038
|
39,341
|
Total
current
liabilities
|
207,360
|
227,824
|
Long-term
debt
|
-
|
1,145
|
Other
liabilities
|
56,897
|
67,897
|
Total
Liabilities
|
264,257
|
296,866
|
Commitments
and contingencies
(Note 6)
|
||
Stockholders'
Equity:
|
||
Preferred
stock, par value $.01
per share:
|
-
|
-
|
Authorized,
20,000
shares; None issued and outstanding
|
||
Common
stock, par value $.01 per
share:
|
1,764
|
1,764
|
Authorized,
300,000
shares; issued, 176,368
shares
|
||
Additional
paid-in
capital
|
340,911
|
342,154
|
Retained
earnings
|
1,226,283
|
1,320,341
|
Accumulated
other comprehensive
income
|
128,812
|
161,243
|
Treasury
stock, at
cost:
|
(62,491)
|
(69,197)
|
4,694
and 5,091 shares at March 31 and December 31, 2007,
respectively
|
||
Total
Stockholders' Equity
|
1,635,279
|
1,756,305
|
Total
Liabilities and
Stockholders'
Equity
|
$
1,899,536
|
$
2,053,171
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||
|
2006
|
2007
|
2006
|
2007
|
|
Net
sales
|
$
378,088
|
$
429,542
|
$
1,119,144
|
$
1,213,406
|
|
Cost
of
sales
|
305,493
|
355,532
|
893,331
|
993,665
|
|
Restructuring
charges
|
-
|
204
|
-
|
2,421
|
|
Gross
profit
|
72,595
|
73,806
|
225,813
|
217,320
|
|
Selling,
general and
administrative expenses
|
29,513
|
33,339
|
87,302
|
93,488
|
|
In-process
research and
development charge
|
-
|
-
|
-
|
390
|
|
Profit
from
operations
|
43,082
|
40,467
|
138,511
|
123,442
|
|
Other
income
(expense):
|
|||||
Interest
income
|
10,548
|
9,762
|
28,181
|
34,984
|
|
Interest
expense
|
-
|
(93)
|
-
|
(335)
|
|
Other,
net
|
(552)
|
(1,137)
|
(2,476)
|
(1,937)
|
|
Income
before income
taxes
|
53,078
|
48,999
|
164,216
|
156,154
|
|
Provision
for income
taxes
|
17,251
|
11,980
|
53,371
|
42,535
|
|
Net
income
|
$
35,827
|
$
37,019
|
$
110,845
|
$
113,619
|
|
Earnings
per
share:
|
|||||
Basic
|
$
0.21
|
$
0.22
|
$
0.64
|
$
0.66
|
|
Diluted
|
$
0.21
|
$
0.22
|
$
0.64
|
$ 0.66
|
|
Weighted
average common shares
outstanding:
|
|||||
Basic
|
172,041
|
171,356
|
172,138
|
171,612
|
|
Diluted
|
172,926
|
171,888
|
172,897
|
172,275
|
Nine
Months Ended December 31,
|
||||
|
2006
|
2007
|
||
Operating
Activities:
|
||||
Net
income
|
$
|
110,845
|
$
|
113,619
|
Adjustment
to reconcile net income
to net cash from operating activities,
|
||||
net of business acquired: | ||||
Depreciation
and
amortization
|
40,304
|
39,184
|
||
In-process
research and
development charge
|
-
|
390
|
||
Stock-based
compensation
expense
|
2,016
|
2,024
|
||
Deferred
income
taxes
|
9,757
|
5,984
|
||
Loss
on pro rata distribution of
available-for-sale securities
|
-
|
980
|
||
(Gain)
Loss on sale of property,
plant & equipment
|
(37)
|
(327)
|
||
Changes
in operating assets and
liabilities, net of business acquired:
|
||||
Accounts
receivable
|
(5,001)
|
(18,672)
|
||
Inventories
|
(334)
|
(17,962)
|
||
Accounts
payable and accrued
expenses
|
33,425
|
18,058
|
||
Income
taxes
payable
|
12,976
|
(3,830)
|
||
Other
assets
|
(5,211)
|
13,360
|
||
Other
liabilities
|
|
(2,581)
|
|
(19,501)
|
Net
cash provided by (used in)
operating activities
|
|
196,159
|
|
133,307
|
Investing
Activities:
|
||||
Purchases
of property and
equipment
|
(37,279)
|
(39,550)
|
||
Purchase
of business, net of
cash acquired
|
-
|
(223,333)
|
||
Pro
rata distribution of
available-for-sale securities
|
-
|
(114,705)
|
||
Redemption
of
available-for-sale securities
|
|
18,802
|
||
Purchases
of investment
securities
|
(148,000)
|
(99,000)
|
||
Redemption
of investment
securities
|
178,017
|
244,000
|
||
Proceeds
from property,
plant & equipment dispositions
|
41
|
2,251
|
||
Net
cash provided by (used in)
investing activities
|
|
(7,221)
|
|
(211,535)
|
Financing
Activities:
|
||||
Dividends
paid
|
(19,379)
|
(20,621)
|
||
Repayment
of
debt
|
-
|
(5,231)
|
||
Purchase
of treasury
stock
|
(10,912)
|
(14,257)
|
||
Proceeds
from exercise of
stock options
|
4,310
|
5,778
|
||
Excess
tax benefit from
stock-based payment arrangements
|
657
|
992
|
||
Net
cash provided by (used
in) financing activities
|
|
(25,324)
|
|
(33,339)
|
Effect
of exchange rate on
cash
|
|
8,789
|
|
2,066
|
Increase
(decrease) in cash and
cash equivalents
|
172,403
|
|
(109,501)
|
|
Cash
and cash equivalents at
beginning of period
|
|
505,326
|
|
684,382
|
Cash
and cash equivalents at end
of period
|
$
|
677,729
|
$
|
574,881
|
1.
|
Basis
of
Presentation:
|
2.
|
Earnings
Per
Share:
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||
|
|
2006
|
2007
|
2006
|
2007
|
|||
Net
Income
|
$
|
35,827
|
$
|
37,019
|
$
|
110,845
|
$
|
113,619
|
Computation
of Basic
EPS:
|
||||||||
Weighted
Average Shares Outstanding used in
computing
Basic EPS
|
172,041
|
171,356
|
172,138
|
171,612
|
||||
Basic
earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.64
|
$
|
0.66
|
Computation
of Diluted
EPS:
|
||||||||
Weighted
Average Shares
Outstanding
|
172,041
|
171,356
|
172,138
|
171,612
|
||||
Effect
of stock
options
|
|
885
|
|
532
|
|
759
|
|
663
|
Shares
used in computing Diluted EPS (1)
|
172,926
|
171,888
|
172,897
|
172,275
|
||||
Diluted
earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.64
|
$
|
0.66
|
3.
|
Trade
Accounts
Receivable:
|
March
31,
2007
|
December
31,
2007
|
||||
Gross
Accounts Receivable - Trade
|
$
|
213,869
|
$
|
247,735
|
|
Less:
|
|||||
Allowances
for doubtful accounts
|
1,705
|
1,351
|
|||
Stock
rotation and ship from stock and debit
|
11,918
|
13,286
|
|||
|
Sales
returns and discounts
|
|
9,140
|
|
9,379
|
|
Total
allowances
|
|
22,763
|
|
24,016
|
|
Net
Accounts Receivable - Trade
|
$
|
191,106
|
$
|
223,719
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
||||||||
2006
|
2007
|
2006
|
2007
|
||||||
Allowances
for doubtful accounts:
|
|||||||||
Beginning
Balance
|
$
|
1,415
|
$
|
1,409
|
$
|
1,772
|
$
|
1,705
|
|
Charges
|
159
|
(36)
|
(93)
|
(78)
|
|||||
Applications
|
(6)
|
(6)
|
(143)
|
(279)
|
|||||
Translation
and other
|
|
24
|
|
(16)
|
|
|
56
|
|
3
|
Ending
Balance
|
$
|
1,592
|
$
|
1,351
|
|
$
|
1,592
|
$
|
1,351
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
||||||||
2006
|
2007
|
2006
|
2007
|
Stock
rotation and ship from stock and debit:
|
|||||||||
Beginning
Balance
|
$
|
15,742
|
$
|
13,806
|
$
|
14,292
|
$
|
11,918
|
|
Charges
|
8,904
|
11,351
|
30,803
|
32,733
|
|||||
Applications
|
(9,651)
|
(11,857)
|
(30,164)
|
(31,375)
|
|||||
Translation
and other
|
|
44
|
|
(14)
|
|
|
108
|
|
10
|
Ending
Balance
|
$
|
15,039
|
$
|
13,286
|
|
$
|
15,039
|
$
|
13,286
|
Sales
returns and discounts:
|
|||||||||
Beginning
Balance
|
$
|
9,661
|
$
|
9,517
|
$
|
8,496
|
$
|
9,140
|
|
Charges
|
6,817
|
4,554
|
20,221
|
20,092
|
|||||
Applications
|
(5,159)
|
(4,686)
|
(17,504)
|
(19,909)
|
|||||
Translation
and other
|
|
79
|
|
(6)
|
|
|
185
|
|
56
|
Ending
Balance
|
$
|
11,398
|
$
|
9,379
|
|
$
|
11,398
|
$
|
9,379
|
4.
|
Inventories:
|
|
March
31,
2007
|
December
31, 2007
|
||
Finished
goods
|
$
|
100,266
|
$
|
114,780
|
Work
in process
|
98,147
|
107,362
|
||
Raw
materials and supplies
|
|
131,728
|
|
175,958
|
$
|
330,141
|
$
|
398,100
|
5.
|
Stock-Based
Compensation:
|
6.
|
Commitments
and
Contingencies:
|
7.
|
Comprehensive
Income:
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||
2006
|
2007
|
2006
|
2007
|
||||||
Net
income
|
$
|
35,827
|
$
|
37,019
|
$
|
110,845
|
$
|
113,619
|
|
Other
comprehensive income:
|
|||||||||
Pension
liability adjustment, net of tax
|
-
|
426
|
-
|
1,278
|
|||||
Foreign
currency translation adjustment
|
27,965
|
5,935
|
67,591
|
33,816
|
|||||
Foreign
currency cash flow hedges
|
(282)
|
(2,334)
|
(553)
|
(2,502)
|
|||||
Unrealized
gain (loss) on available-for-sale
securities
|
(161)
|
(161)
|
|||||||
Comprehensive
income
|
$
|
63,510
|
$
|
40,885
|
$
|
177,883
|
$
|
146,050
|
8.
|
Segment
and Geographic
Information:
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Net
sales:
|
||||||||
Passive
Components
|
$
|
219,103
|
$
|
250,068
|
$
|
668,426
|
$
|
703,272
|
KED
Resale
|
134,390
|
152,958
|
378,596
|
432,156
|
||||
Connectors
|
24,595
|
26,516
|
72,122
|
77,978
|
||||
Total
|
$
|
378,088
|
$
|
429,542
|
$
|
1,119,144
|
$
|
1,213,406
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Operating
profit:
|
||||||||
Passive
Components
|
$
|
39,947
|
$
|
42,346
|
$
|
134,848
|
$
|
128,844
|
KED
Resale
|
11,277
|
11,764
|
30,961
|
35,272
|
||||
Connectors
|
1,945
|
1,911
|
5,792
|
6,714
|
||||
Research
& development
|
(2,835)
|
(3,308)
|
(8,157)
|
(9,050)
|
||||
Corporate
administration
|
(7,252)
|
(12,246)
|
(24,933)
|
(38,338)
|
||||
Total
|
$
|
43,082
|
$
|
40,467
|
$
|
138,511
|
$
|
123,442
|
|
March
31,
2007
|
December
31,
2007
|
||
Assets:
|
||||
Passive
Components
|
$
|
498,343
|
$
|
709,722
|
KED
Resale
|
|
39,943
|
|
43,255
|
Connectors
|
|
44,913
|
|
48,328
|
Research
&
development
|
|
7,133
|
|
6,657
|
Cash,
A/R and investments in
securities
|
|
1,164,547
|
|
1,036,833
|
Goodwill
- Passive components
|
|
60,889
|
|
140,240
|
Goodwill
- Connectors
|
|
10,277
|
|
10,277
|
Corporate
administration
|
|
73,491
|
|
57,859
|
Total
|
$
|
1,899,536
|
$
|
2,053,171
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Net
sales:
|
||||||||
Americas
|
$
|
103,383
|
$
|
110,941
|
$
|
324,712
|
$
|
316,425
|
Europe
|
82,090
|
92,309
|
250,806
|
277,015
|
||||
Asia
|
192,615
|
226,292
|
543,626
|
619,966
|
||||
Total
|
$
|
378,088
|
$
|
429,542
|
$
|
1,119,144
|
$
|
1,213,406
|
9.
|
Pension
Plans:
|
U.S.
Plans
|
International
Plans
|
|||||||
Three
Months Ended December 31,
|
Three
Months Ended December 31,
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Service
cost
|
$
|
100
|
$
|
107
|
$
|
342
|
$
|
373
|
Interest
cost
|
406
|
409
|
1,375
|
1,513
|
||||
Expected
return on plan assets
|
(399)
|
(426)
|
(1,252)
|
(1,366)
|
||||
Amortization
of prior service cost
|
18
|
21
|
15
|
17
|
||||
Recognized
actuarial loss
|
45
|
66
|
316
|
371
|
||||
Net
periodic pension cost
|
$
|
170
|
$
|
177
|
$
|
796
|
$
|
908
|
U.S.
Plans
|
International
Plans
|
|||||||
Nine
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Service
cost
|
$
|
300
|
$
|
321
|
$
|
1,026
|
$
|
1,119
|
Interest
cost
|
1,218
|
1,227
|
4,125
|
4,539
|
||||
Expected
return on plan assets
|
(1,197)
|
(1,278)
|
(3,756)
|
(4,098)
|
||||
Amortization
of prior service cost
|
54
|
63
|
45
|
51
|
||||
Recognized
actuarial loss
|
135
|
198
|
948
|
1,113
|
||||
Net
periodic pension cost
|
$
|
510
|
$
|
531
|
$
|
2,388
|
$
|
2,724
|
10.
|
Acquisition:
|
Assets
and Liabilities Acquired
|
|
Accounts
receivable
|
$ 12,818
|
Inventory
|
31,339
|
Other
current assets and liabilities
|
2,247
|
Working
capital
|
$ 46,404
|
Property
and equipment
|
38,367
|
Intangible
assets
|
97,390
|
Other
assets
|
263
|
Long-term
debt
|
(4,773)
|
Deferred
taxes
|
(23,790)
|
Total
identified assets and liabilities
|
$ 153,861
|
Purchase
price
|
$ 231,317
|
Goodwill
|
$ 77,456
|
11.
|
Debt
|
12.
|
Restructuring:
|
ITEM
2.
|
|
FINANCIAL
CONDITION AND RESULTS OF
OPERATIONS
|
Three
Months Ended December 31,
|
||||
$(000's)
|
2006
|
2007
|
||
Net
Sales
|
$
|
378,088
|
$
|
429,542
|
Gross
Profit
|
72,595
|
73,806
|
||
Operating
Income
|
43,082
|
40,467
|
||
Net
Income
|
35,827
|
37,019
|
||
Diluted
Earnings per Share
|
$
|
0.21
|
$
|
0.22
|
Sales
Revenue
|
Three
Months Ended December 31,
|
|||
$(000's)
|
2006
|
2007
|
||
Ceramic
Components
|
$
|
52,845
|
$
|
50,684
|
Tantalum
Components
|
|
72,269
|
|
75,862
|
Advanced
Components
|
|
93,989
|
|
123,522
|
Total
Passive
Components
|
|
219,103
|
|
250,068
|
KDP
and KKC
Resale
|
|
114,696
|
|
128,502
|
KEC
Resale
|
|
19,694
|
|
24,456
|
Total
KED
Resale
|
|
134,390
|
|
152,958
|
Connectors
|
|
24,595
|
|
26,516
|
Total
Revenue
|
$
|
378,088
|
$
|
429,542
|
Nine
Months Ended December 31,
|
||||
$(000's)
|
2006
|
2007
|
||
Net
Sales
|
$
|
1,119,144
|
$
|
1,213,406
|
Gross
Profit
|
225,813
|
217,320
|
||
Operating
Income
|
138,511
|
123,442
|
||
Net
Income
|
110,845
|
113,619
|
||
Diluted
Earnings per Share
|
$
|
0.64
|
$
|
0.66
|
Sales
Revenue
|
Nine
Months Ended December 31,
|
|||
$(000's)
|
2006
|
2007
|
||
Ceramic
Components
|
$
|
172,069
|
$
|
159,889
|
Tantalum
Components
|
|
214,356
|
|
235,298
|
Advanced
Components
|
|
282,001
|
|
308,085
|
Total
Passive
Components
|
|
668,426
|
|
703,272
|
KDP
and KKC
Resale
|
|
322,378
|
|
364,638
|
KEC
Resale
|
|
56,218
|
|
67,518
|
Total
KED
Resale
|
|
378,596
|
|
432,156
|
Connectors
|
|
72,122
|
|
77,978
|
Total
Revenue
|
$
|
1,119,144
|
$
|
1,213,406
|
ITEM
4.
|
PART
II:
|
ITEM
1.
|
ITEM
1A.
|
Period
|
|
Total
Number of Shares Purchased
(1)(2)(3)
|
|
Average
Price Paid Per
Share
|
|
Total
Number of Shares Purchased
as Part of Publicly Announced Plans or Programs (1)(2)(3)
|
|
Maximum
Number of Shares that may
yet be Purchased Under the Plans or Programs(1)(2)(3)
|
10/1/07-
10/31/07
|
|
75,500
|
|
$ 15.61
|
|
75,500
|
|
9,684,900
|
11/1/07-
11/30/07
|
|
347,900
|
|
14.48
|
|
347,900
|
|
9,337,000
|
12/1/07-
12/31/07
|
107,500
|
14.02
|
107,500
|
9,229,500
|
||||
Total
|
|
530,900
|
|
$ 14.55
|
|
530,900
|
|
9,229,500
|
(1)
|
On
April 19, 2001, the Board of Directors of the Company authorized
the
repurchase of up to 5,000,000 shares of our common stock from time
to time
in the open market. The repurchased shares are held as treasury
stock and are available for general corporate
purposes.
|
(2)
|
On
October 19, 2005, the Board of Directors of the Company authorized
the
repurchase of an additional 5,000,000 shares of our common stock
from time
to time in the open market. The repurchased shares are held as
treasury stock and are available for general corporate
purposes.
|
(3)
|
On
October 17, 2007, the Board of Directors of the Company authorized
the
repurchase of an additional 5,000,000 shares of our common stock
from time
to time in the open market. The repurchased shares are held as
treasury stock and are available for general corporate
purposes.
|
ITEM
5.
|
ITEM
6.
|
|
3.1
|
By-laws
of AVX Corporation as Amended and Restated December 21, 2007 (incorporated
by reference to Exhibit 3.1 of the Current Report on Form 8-K filed
with
the Securities and Exchange Commission on December 21, 2007).
|
31.1
|
|
31.2
|
|
32.1
|
|
AVX
Corporation
|
|
By:
|
/s/
Kurt P.
Cummings
|
Kurt
P.
Cummings
|
|
Vice
President,
|
|
Chief
Financial
Officer,
|
|
Treasurer
and
Secretary
|