KEMET Corporation (KEMET) has reported net sales of $190.7 million for the third quarter of fiscal 2009, down 16.6%, compared with the net sales of $228.7 million in the year-ago quarter. It has also reported net loss of $11.1 million, or $0.14 loss per share, for the third quarter of fiscal 2009, compared with a net loss of $8.2 million, or $0.10 loss per share, in the year-ago quarter.
Net sales for the nine month period ended December 31, 2008 were $668.3 million which is a 9.8% increase compared to the same period last year, inclusive of acquisitions. Sales declined about 13% compared to the prior quarter ended September 2008 excluding the impact of exchange rates and the sale of the Company’s wet tantalum assets.
The Non-GAAP net loss, excluding special charges, was $4.9 million or $0.06 per share for the current quarter compared to net loss of $1.6 million, or $0.02 per share for the same quarter last year and compares to a net loss of $3.6 million, or $0.04 per share for the prior quarter ended September 2008.
The current quarter includes a $4.6 million restructuring charge primarily related to a global headcount reduction plan, $0.6 million in integration expenses related to recent acquisitions, and a $1.1 million loss on sales and disposals of certain assets.
Although the world-wide recession continues to put pressure on our business the actions that we took last year minimized the impact to our operating income this quarter. Since last August we have taken over fifty million dollars of annual expense out of the business and that is clearly reflected in our financial results this quarter as sales decreased forty-four million, but our operating income was only impacted by nine-hundred thousand dollars versus the September quarter, stated Per Loof, KEMET’s chief executive officer. Our cash balance remains stable and we remain focused on keeping our working capital in line with market demands to maximize cash to position KEMET for a strong rebound when normal economic activities resume, continued Loof.
The management believes that investors may find it useful to review the Company’s financial results that exclude special items as determined by management. These special items include impairment charges associated with goodwill and long-lived assets, integration costs incurred as a result of recent business acquisitions, restructuring charges related primarily to employee severance and equipment moves, losses incurred due to the early retirement of debt and sales or disposals of certain asset groups. Management believes that this Non-GAAP disclosure is useful to investors in that it provides an alternative way to possibly better understand the underlying operating performance. Management uses Non-GAAP financial reporting to evaluate operating performance; however Non-GAAP financial performance should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.