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 August 1, 2007
|
|
Common
Stock, par value $0.01 per share
|
171,903,670
|
Page
Number
|
||
PART
I:
|
Financial
Information:
|
|
ITEM
1.
|
Financial
Statements:
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
ITEM
2.
|
|
13
|
ITEM
3.
|
|
19
|
ITEM
4.
|
|
19
|
PART
II:
|
|
|
ITEM
1.
|
|
20
|
ITEM
4.
|
|
20
|
ITEM
6.
|
|
21
|
22
|
March
31,
|
June
30,
|
|||
ASSETS
|
2007
|
2007
|
||
Current
assets:
|
||||
Cash
and cash equivalents
|
$
|
684,382
|
$
|
763,384
|
Short-term
investments in securities
|
|
145,000
|
|
130,000
|
Accounts
receivable - trade
|
|
191,106
|
|
194,719
|
Accounts
receivable - affiliates
|
|
5,059
|
|
4,959
|
Inventories
|
|
330,141
|
|
335,530
|
Deferred
income taxes
|
|
26,941
|
|
26,947
|
Prepaid
and other
|
|
38,766
|
|
40,396
|
Total
current assets
|
|
1,421,395
|
|
1,495,935
|
Long-term
investments in securities
|
|
139,000
|
|
99,000
|
Property
and equipment
|
|
1,593,282
|
|
1,615,493
|
Accumulated
depreciation
|
|
(1,349,409)
|
|
(1,370,326)
|
|
|
243,873
|
|
245,167
|
Goodwill
|
|
71,166
|
|
73,130
|
Other
assets
|
|
24,102
|
|
22,549
|
Total
Assets
|
$
|
1,899,536
|
$
|
1,935,781
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
Current
liabilities:
|
||||
Accounts
payable - trade
|
$
|
50,903
|
$
|
52,271
|
Accounts
payable - affiliates
|
|
75,786
|
|
66,934
|
Income
taxes payable
|
|
14,668
|
|
16,487
|
Accrued
payroll and benefits
|
|
38,965
|
|
37,511
|
Accrued
expenses
|
|
27,038
|
|
24,775
|
Total
current liabilities
|
|
207,360
|
|
197,978
|
Other
liabilities
|
|
56,897
|
|
58,401
|
Total
Liabilities
|
|
264,257
|
|
256,379
|
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
|
|
341,480
|
Retained
earnings
|
|
1,226,283
|
|
1,259,630
|
Accumulated
other comprehensive income
|
|
128,812
|
|
135,995
|
Treasury
stock, at cost:
|
(62,491)
|
(59,467)
|
||
4,694
and 4,467 shares at March 31 and June 30, 2007,
respectively
|
|
|
||
Total
Stockholders' Equity
|
|
1,635,279
|
|
1,679,402
|
Total
Liabilities and Stockholders' Equity
|
$
|
1,899,536
|
$
|
1,935,781
|
Three
Months Ended June 30,
|
||||
|
|
2006
|
2007
|
|
Net
sales
|
$
|
366,408
|
$
|
383,158
|
Cost
of sales
|
|
291,081
|
|
308,433
|
Gross
profit
|
|
75,327
|
|
74,725
|
Selling,
general and administrative expenses
|
|
28,374
|
|
30,568
|
Profit
from operations
|
|
46,953
|
|
44,157
|
Other
income (expense):
|
||||
Interest
income
|
|
7,994
|
|
12,082
|
Interest
expense
|
|
-
|
|
(242)
|
Other,
net
|
|
(1,269)
|
|
(844)
|
Income
before income taxes
|
|
53,678
|
|
55,153
|
Provision
for income taxes
|
|
17,445
|
|
15,994
|
Net
income
|
$
|
36,233
|
$
|
39,159
|
Income
per share:
|
||||
Basic
|
$
|
0.21
|
$
|
0.23
|
Diluted
|
$
|
0.21
|
$
|
0.23
|
Weighted
average common shares outstanding:
|
||||
Basic
|
|
172,281
|
|
171,797
|
Diluted
|
|
173,096
|
|
172,587
|
Three
Months Ended June 30,
|
||||
|
2006
|
2007
|
||
Operating
Activities:
|
||||
Net
income
|
$
|
36,233
|
$
|
39,159
|
Adjustment
to reconcile net income to net cash from operating
activities:
|
||||
Depreciation
|
14,111
|
12,036
|
||
Stock-based
compensation expense
|
700
|
732
|
||
Deferred
income taxes
|
2,971
|
2,687
|
||
Changes
in operating assets and liabilities:
|
||||
Accounts
receivable
|
(12,464)
|
(2,501)
|
||
Inventories
|
5,788
|
(5,380)
|
||
Accounts
payable and accrued expenses
|
20,169
|
(8,475)
|
||
Income
taxes payable
|
10,087
|
6,149
|
||
Other
assets
|
(854)
|
(3,158)
|
||
Other
liabilities
|
(90)
|
(2,146)
|
||
Net
cash provided by (used in) operating activities
|
76,651
|
39,103
|
||
Investing
Activities:
|
||||
Purchases
of property and equipment
|
(9,160)
|
(13,673)
|
||
Purchases
of investment securities
|
(39,000)
|
(59,000)
|
||
Redemption
of investment securities
|
39,000
|
114,000
|
||
Net
cash provided by (used in) investing activities
|
(9,160)
|
41,327
|
||
Financing
Activities:
|
||||
Dividends
paid
|
(6,462)
|
(6,871)
|
||
Purchase
of treasury stock
|
(2,378)
|
-
|
||
Proceeds
from exercise of stock options
|
1,570
|
2,442
|
||
Excess
tax benefit from stock-based payment arrangements
|
140
|
417
|
||
Net
cash provided by (used in) financing activities
|
(7,130)
|
(4,012)
|
||
Effect
of exchange rate on cash
|
3,166
|
2,584
|
||
Increase
(decrease) in cash and cash equivalents
|
63,527
|
79,002
|
||
Cash
and cash equivalents at beginning of period
|
505,326
|
684,382
|
||
Cash
and cash equivalents at end of period
|
$
|
568,853
|
$
|
763,384
|
1.
|
Basis
of Presentation:
|
2.
|
Earnings
Per Share:
|
|
|
Three
Months Ended June 30,
|
||
|
|
2006
|
2007
|
|
Net
Income
|
$
|
36,233
|
$
|
39,159
|
Computation
of Basic EPS:
|
||||
Weighted
Average Shares Outstanding used
in
computing
Basic EPS
|
|
172,281
|
|
171,797
|
Basic
earnings per share
|
$
|
0.21
|
$
|
0.23
|
Computation
of Diluted EPS:
|
||||
Weighted
Average Shares Outstanding
|
|
172,281
|
|
171,797
|
Effect
of stock options
|
|
815
|
|
790
|
Shares
used in computing Diluted EPS (1)
|
|
173,096
|
|
172,587
|
Diluted
Income per share
|
$
|
0.21
|
$
|
0.23
|
3.
|
Trade
Accounts Receivable:
|
March
31, 2007
|
June
30, 2007
|
||||
Gross
Accounts Receivable - Trade
|
$
|
213,869
|
$
|
219,273
|
|
Less:
|
|
|
|
|
|
|
Allowances
for doubtful accounts
|
|
1,705
|
|
1,643
|
|
Stock
rotation and ship from stock and debit
|
|
11,918
|
|
13,082
|
|
Sales
returns and discounts
|
|
9,140
|
|
9,829
|
|
Total
allowances
|
|
22,763
|
|
24,554
|
|
Net
Accounts Receivable - Trade
|
$
|
191,106
|
$
|
194,719
|
Three
Months Ended June 30,
|
|||||
|
|
2006
|
2007
|
|
|
Allowances
for doubtful accounts:
|
|
|
|||
Beginning
Balance
|
$
|
1,772
|
$
|
1,705
|
|
Charges
|
|
(255)
|
-
|
|
|
Applications
|
|
-
|
(75)
|
|
|
Translation
and other
|
|
16
|
13
|
|
|
Ending
Balance
|
$
|
1,533
|
$
|
1,643
|
|
Stock
rotation and ship from stock and debit:
|
|
|
|||
Beginning
Balance
|
|
14,292
|
11,918
|
|
|
Charges
|
|
10,964
|
10,824
|
|
|
Applications
|
|
(10,010)
|
(9,677)
|
|
|
Translation
and other
|
|
43
|
17
|
|
|
Ending
Balance
|
$
|
15,289
|
$
|
13,082
|
|
Sales
returns and discounts:
|
|
|
|||
Beginning
Balance
|
|
8,496
|
9,140
|
|
|
Charges
|
|
5,063
|
8,488
|
|
|
Applications
|
|
(4,673)
|
(7,816)
|
|
|
Translation
and other
|
|
59
|
17
|
|
|
Ending
Balance
|
$
|
8,945
|
$
|
9,829
|
|
4.
|
Inventories:
|
|
|
March
31, 2007
|
June
30, 2007
|
|
Finished
goods
|
$
|
100,266
|
$
|
97,907
|
Work
in process
|
|
98,147
|
|
95,115
|
Raw
materials and supplies
|
|
131,728
|
|
142,508
|
|
$
|
330,141
|
$
|
335,530
|
5.
|
Stock-Based
Compensation:
|
6.
|
Commitments
and Contingencies:
|
7.
|
Comprehensive
Income:
|
Three
Months Ended June 30,
|
|||||
|
|
2006
|
2007
|
||
Net
income
|
$
|
36,233
|
$
|
39,159
|
|
Other
comprehensive income:
|
|||||
|
Pension
liability adjustment, net of tax
|
|
-
|
|
426
|
|
Foreign
currency translation adjustment
|
|
24,978
|
|
8,119
|
|
Foreign
currency cash flow hedges
|
|
(975)
|
|
(1,362)
|
Comprehensive
income
|
$
|
60,236
|
$
|
46,342
|
|
8.
|
Segment
and Geographic Information:
|
Three
Months Ended June 30,
|
||||
|
|
2006
|
2007
|
|
Net
sales:
|
||||
Passive
Components
|
$
|
228,039
|
$
|
226,426
|
KED
Resale
|
|
115,993
|
|
131,154
|
Connectors
|
|
22,376
|
|
25,578
|
Total
|
$
|
366,408
|
$
|
383,158
|
Three
Months Ended June 30,
|
||||
|
|
2006
|
2007
|
|
Operating
profit:
|
||||
Passive
Components
|
$
|
48,657
|
$
|
47,150
|
KED
Resale
|
|
9,265
|
|
11,479
|
Connectors
|
|
1,715
|
|
2,293
|
Research
& development
|
|
(2,547)
|
|
(2,864)
|
Corporate
administration
|
|
(10,137)
|
|
(13,901)
|
Total
|
$
|
46,953
|
$
|
44,157
|
|
|
March
31, 2007
|
June
30, 2007
|
|
Assets:
|
||||
Passive
Components
|
$
|
498,343
|
$
|
504,609
|
KED
Resale
|
|
39,943
|
|
36,178
|
Connectors
|
|
44,913
|
|
46,129
|
Research
& development
|
|
7,133
|
|
7,042
|
Cash,
A/R and investments in securities
|
|
1,164,547
|
|
1,192,062
|
Goodwill
- Passive components
|
|
60,889
|
|
62,853
|
Goodwill
- Connectors
|
|
10,277
|
|
10,277
|
Corporate
administration
|
|
73,491
|
|
76,631
|
Total
|
$
|
1,899,536
|
$
|
1,935,781
|
Three
Months Ended June 30,
|
||||
|
|
2006
|
2007
|
|
Net
sales:
|
||||
Americas
|
$
|
112,455
|
$
|
102,633
|
Europe
|
|
85,717
|
|
92,628
|
Asia
|
|
168,236
|
|
187,897
|
Total
|
$
|
366,408
|
$
|
383,158
|
9.
|
Pension
Plans:
|
U.S.
Plans
|
International
Plans
|
|||||||
Three
Months Ended June 30,
|
Three
Months Ended June 30,
|
|||||||
|
|
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
|
10.
|
Subsequent
Event:
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF
|
|
FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
|
in
thousands, except per share data
|
Three
Months Ended June 30,
|
|||
|
|
2006
|
2007
|
|
Net
Sales
|
$
|
366,408
|
$
|
383,158
|
Gross
Profit
|
|
75,327
|
|
74,725
|
Operating
Income
|
|
46,953
|
|
44,157
|
Net
Income
|
|
36,233
|
|
39,159
|
Diluted
Earnings per Share
|
$
|
0.21
|
$
|
0.23
|
Sales
Revenue
|
Three
Months Ended June 30,
|
|||
$(000's)
|
|
2006
|
2007
|
|
Ceramic
Components
|
$
|
61,970
|
$
|
54,077
|
Tantalum
Components
|
|
74,326
|
|
79,677
|
Advanced
Components
|
|
91,743
|
|
92,672
|
Total
Passive Components
|
|
228,039
|
|
226,426
|
KDP
and KKC Resale
|
|
98,564
|
|
110,061
|
KEC
Resale
|
|
17,429
|
|
21,093
|
Total
KED Resale
|
|
115,993
|
|
131,154
|
Connectors
|
|
22,376
|
|
25,578
|
Total
Revenue
|
$
|
366,408
|
$
|
383,158
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
CONTROLS
AND PROCEDURES
|
PART
II:
|
ITEM
1.
|
|
|
|
|
Shares Voted
"For"
|
Shares
"Withheld"
|
|
Class
I
|
|
Kazuo
Inamori
|
|
146,699,438
|
|
21,999,814
|
Class
I
|
|
Noboru
Nakamura
|
|
153,725,206
|
|
14,974,046
|
Class
I
|
|
Benedict
P. Rosen
|
|
150,322,989
|
|
18,376,263
|
Class
I
|
|
David
A. DeCenzo
|
|
152,902,643
|
|
15,796,609
|
Class
II
|
|
John
S. Gilbertson
|
Class
II
|
|
Makoto
Kawamura
|
Class
II
|
|
Rodney
N. Lanthorne
|
Class
II
|
|
Joseph
Stach
|
Class
III
|
|
Masahiro
Umemura
|
Class
III
|
|
Yuzo
Yamamura
|
Class
III
|
|
Donald
B. Christiansen
|
ITEM
6.
|
|
10.1
|
Agreement
and Plan of Merger, dated as of June 15, 2007, by and among AVX
Corporation, Admiral Byrd Acquisition Sub, Inc. and American Technical
Ceramics Corp. (incorporated by reference to Exhibit 2 to the Schedule
13D
filed by the Company with the SEC on June 25, 2007)
|
10.2
|
Voting
Agreement, dated as of June 15, 2007, by and among Admiral Byrd
Acquisition Sub, Inc., AVX Corporation and the stockholders named
therein
(incorporated by reference to Exhibit 3 to the Schedule 13D filed by
the Company with the SEC on June 25, 2007)
|
|
|
|
|
|
|
AVX
Corporation
|
|
By:
|
/s/ Kurt P. Cummings |
Kurt
P. Cummings
|
|
Vice
President,
|
|
Chief
Financial Officer,
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Treasurer
and Secretary
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