Click here to close now.

SYS-CON MEDIA Authors: Plutora Blog, Roger Strukhoff, Leo Reiter, Kevin Jackson, Peter Silva

News Feed Item

Methode Electronics, Inc. Reports Record Sales and Income From Operations for Fiscal 2014

Sales Growth of 49% Leads to Substantial Growth in Income From Operations and Earnings

CHICAGO, IL -- (Marketwired) -- 06/26/14 -- Methode Electronics, Inc. (NYSE: MEI), a global developer of custom engineered and application specific products and solutions, today announced financial results for the Fiscal 2014 fourth quarter and year ended May 3, 2014.

Fourth-Quarter Fiscal 2014
Methode's fourth-quarter Fiscal 2014 net sales grew $76.6 million, or 51.7 percent, to $224.9 million from $148.3 million in the same quarter of Fiscal 2013.

Net income increased $38.1 million to $48.2 million, or $1.25 per share, in the fourth quarter of Fiscal 2014 from $10.1 million, or $0.27 per share, in the same period of Fiscal 2013.

Year over year, Fiscal 2014 fourth-quarter net income benefitted from:

  • higher income tax benefit of $17.5 million;
  • higher sales volumes in the Automotive, Interconnect and Power Products segments;
  • a gain on the sale of the Company's Lumidigm investment of $3.2 million;
  • lower goodwill and intangible asset impairment charges in the Power Products segment related to Eetrex of $2.6 million;
  • the absence of severance and building demolition costs in the Automotive segment of $1.1 million;
  • increased efficiencies due to higher sales and vertical integration in the Automotive segment; and
  • favorable raw material commodity pricing in the Power Products segment.

Year over year, Fiscal 2014 fourth-quarter net income was negatively affected by:

  • higher bonus and other wage expense of $3.3 million;
  • higher development costs of $0.9 million;
  • higher legal and other professional fee expense of $0.6 million; and
  • manufacturing inefficiencies in the Interconnect segment.

Excluding the impact of the U.S. deferred tax valuation allowance release and other discrete tax adjustments, as well as a gain related to the sale of Lumidigm in the Fiscal 2014 fourth quarter, and the impact of the Malta valuation allowance adjustment and goodwill and intangible asset impairment charges in the Fiscal 2014 and Fiscal 2013 fourth quarters, Methode's Fiscal 2014 fourth-quarter net income was $18.8 million, or $0.49 per share, and Fiscal 2013 fourth-quarter net income was $6.9 million, or $0.18 per share.

Consolidated gross margins as a percentage of sales improved to 19.1 percent in the Fiscal 2014 fourth quarter compared to 18.7 percent in the Fiscal 2013 period as a result of increased manufacturing efficiencies related to higher sales and vertical integration in the Automotive segment, as well as favorable raw material commodity pricing in the Power Products segment, partially offset by manufacturing inefficiencies within the Interconnect segment as a result of product mix, higher development costs and an unfavorable product mix within the Power Products segment, and lower torque sensing sales volumes within the Other segment.

Selling and administrative expenses as a percentage of net sales decreased to 9.2 percent for the Fiscal 2014 fourth quarter compared to 13.4 percent in the same period last year. Selling and administrative expenses increased $1.0 million, or 5.1 percent, to $20.8 million in the Fiscal 2014 fourth quarter compared to $19.8 million in the prior-year fourth quarter due primarily to higher bonus and performance-based compensation, professional services, and development expenses.

In the Fiscal 2014 fourth quarter, income tax benefit increased $17.5 million to $24.5 million from $7.0 million in the Fiscal 2013 fourth quarter due to a $31.7 million release of deferred tax asset valuation allowance partially offset by $7.2 million of income tax expense on foreign profits and other discrete tax adjustments. Methode's non-GAAP effective tax rate in the Fiscal 2014 fourth quarter was 16.4 percent. The Fiscal 2013 fourth-quarter net tax benefit of $7.0 million included an $8.6 million benefit related to adjustments of foreign tax credits partially offset by income tax expense on foreign profits of $1.6 million.

Fourth-Quarter Fiscal 2014 Segment Comparisons
Comparing the Automotive segment's Fiscal 2014 fourth quarter to the same period of Fiscal 2013,

  • Net sales increased 93.4 percent attributable to
    • a 294.6 percent sales improvement in North America due to sales of the General Motors' center console program as well as higher demand for transmission lead frame assembly products, partially offset with lower sales volumes for the Ford center console program; and
    • a 25.0 percent sales increase in Europe primarily driven by new product launches and currency rate fluctuations; partially offset by
    • an 8.1 percent sales decrease in Asia attributable to lower steering-angle sensor and transmission lead frame assembly product sales.
  • Gross margins as a percentage of sales improved to 18.3 percent from 15.1 percent due to increased efficiencies as a result of higher sales and vertical integration.
  • Income from operations increased 264.1 percent due to higher sales, improved manufacturing efficiencies and vertical integration, partially offset by higher selling and administrative expenses.

Comparing the Interconnect segment's Fiscal 2014 fourth quarter to the same period of Fiscal 2013,

  • Net sales decreased 8.3 percent attributable to
    • a 12.3 percent sales decline in North America due to lower data solution product and appliance sales, partially offset with higher radio remote control sales; and
    • flat sales in Asia; partially offset by
    • a 12.1 percent sales increase in Europe attributable to higher demand for radio remote control products, partially offset by lower sensor sales.
  • Gross margins as a percentage of sales declined to 23.5 percent from 25.5 percent due primarily to manufacturing inefficiencies related to sales mix.
  • Income from operations declined 33.3 percent due to lower sales volumes and increased severance and development costs.

Comparing the Power Products segment's Fiscal 2014 fourth quarter to the same period of Fiscal 2013,

  • Net sales improved 21.6 percent attributable to
    • a 25.3 percent sales increase in North America due to higher demand for PowerRail and associated products, partially offset by lower heat sink demand; and
    • a 22.0 percent sales increase in Asia driven by increased busbar and cabling products sales; partially offset by
    • an 11.1 percent sales decline in Europe attributable to lower demand for electric vehicle busbars.
  • Gross margins as a percentage of sales decreased to 19.4 percent from 22.9 percent due to an unfavorable sales mix in Europe and higher development costs, partially offset by higher sales and favorable raw material commodity pricing.
  • Income from operations improved $3.1 million due to lower impairment of goodwill charges, higher sales, favorable raw material commodity pricing and lower selling and administrative expenses.

Fiscal 2014
Methode's Fiscal 2014 net sales grew $253.0 million, or 48.7 percent, to $772.8 million from $519.8 million in the Fiscal 2013 period. Net sales included tooling sales (at nearly breakeven margins) of $24.4 million in Fiscal 2014 versus $20.0 million in Fiscal 2013.

Net income increased $55.4 million to $96.1 million, or $2.51 per share, in Fiscal 2014 compared to $40.7 million, or $1.08 per share, in the same period of Fiscal 2013.

Year over year, Fiscal 2014 net income benefitted from:

  • higher income tax benefit of $17.8 million;
  • higher sales volume in the Automotive, Interconnect and Power Products segments;
  • a gain on the sale of the Company's Lumidigm investment of $3.2 million;
  • lower goodwill and intangible asset impairment charges in the Power Products segment related to Eetrex of $2.6 million;
  • increased efficiencies due to higher sales and vertical integration in the Automotive segment; and
  • favorable raw material commodity pricing and product mix in the Power Products segment.

Year over year, Fiscal 2014 net income was negatively affected by:

  • the absence of the gain recorded in connection with a legal settlement of $20.0 million;
  • higher bonus and other wage expense of $5.4 million;
  • higher travel and other general expense of $2.6 million;
  • higher performance-based compensation expense of $1.8 million;
  • higher legal and professional services expense of $1.2 million;
  • higher development expense of $1.2 million;
  • manufacturing inefficiencies in the Interconnect segment due to product mix; and
  • the absence of a one-time reversal of accruals related to a customer bankruptcy in Fiscal 2013 of $1.1 million.

Excluding the impact of the U.S. deferred tax valuation allowance release and other discrete tax adjustments, as well as the gain related to the sale of Lumidigm in Fiscal 2014, the impact of the Malta valuation allowance adjustments and the goodwill and intangible asset impairment charges in Fiscals 2014 and 2013, and the impact of the gain recorded in connection with a legal settlement in Fiscal 2013, Methode's Fiscal 2014 net income was $66.8 million, or $1.75 per share, and Fiscal 2013 net income was $17.5 million, or $0.46 per share.

Consolidated gross margins as a percentage of sales improved to 20.3 percent in Fiscal 2014 compared to 17.6 percent in Fiscal 2013 as a result of increased efficiencies related to higher sales and vertical integration in the Automotive segment, as well as favorable raw material commodity pricing and product mix in the Power Products segment, partially offset by manufacturing inefficiencies in the Interconnect segment due to product mix.

Selling and administrative expenses as a percentage of net sales decreased to 10.3 percent for Fiscal 2014 compared to 12.8 percent last year. Selling and administrative expenses increased $13.3 million, or 20.1 percent, to $79.6 million in Fiscal 2014 compared to $66.3 million in the prior year due primarily to higher expenses related to bonus and other wages, travel, performance-based compensation, legal and professional services, and development, as well as the absence of a one-time reversal of accruals related to a customer bankruptcy in Fiscal 2013.

In Fiscal 2014, income tax benefit increased $17.8 million to $20.3 million from a benefit of $2.5 million for the Fiscal 2013 period. The Fiscal 2014 net tax benefit included a tax benefit of $31.7 million due to a release of deferred tax asset valuation allowance partially offset by $11.4 million of income tax expense on foreign profits and other discrete tax adjustments. Methode's Fiscal 2014 non-GAAP effective tax rate was 10.6 percent. The Fiscal 2013 net tax benefit of $2.5 million included a benefit of $8.6 million related to adjustments of foreign tax credits partially offset by income tax expense on foreign profits of $6.1 million.

Fiscal 2014 Segment Comparisons
Comparing the Automotive segment's Fiscal 2014 to Fiscal 2013,

  • Net sales increased 68.4 percent attributable to
    • a 180.5 percent sales improvement in North America due to sales of the General Motors' center console program, as well as higher transmission lead frame product sales;
    • a 23.4 percent sales increase in Europe primarily driven by new product launches, increased switch product sales and currency rate fluctuations; and
    • an 8.5 percent sales improvement in Asia attributable to increased steering-angle sensor, transmission lead frame assembly and switch product sales.
  • Gross margins as a percentage of sales improved to 18.8 percent from 14.0 percent due to increased efficiencies related to higher sales and vertical integration.
  • Income from operations increased 84.5 percent due to higher sales, improved efficiencies due to the vertical integration and lower legal expense, partially offset by the absence of the gain recorded in connection with the legal settlement, the reversal of various accruals, as well as higher bonus and travel expenses. Excluding the impact of the gain recorded in connection with the legal settlement in the Fiscal 2013, income from operations improved 280.9 percent in Fiscal 2014.

Comparing the Interconnect segment's Fiscal 2014 to Fiscal 2013,

  • Net sales increased 19.8 percent attributable to
    • a 26.4 percent sales improvement in North America due to higher appliance, data solution product and radio remote control sales; and
    • a 6.4 percent sales increase in Europe driven by higher radio remote control sales partially offset by lower sensor sales; partially offset by
    • a 10.4 percent sales decline in Asia attributable to reduced legacy product sales due to the planned exit of a product line.
  • Gross margins as a percentage of sales decreased to 25.0 percent from 26.2 percent due primarily to lower European sensor sales and manufacturing inefficiencies related to sales mix.
  • Income from operations grew 24.2 percent due to improved sales volumes, partially offset by manufacturing inefficiencies and higher selling and administrative expenses.

Comparing the Power Products segment's Fiscal 2014 to Fiscal 2013,

  • Net sales improved 37.6 percent attributable to
    • a 23.0 percent sales increase in North America due to improved PowerRail product sales, partially offset by lower heat sink product sales;
    • a 220.6 percent sales improvement in Europe attributable to by-pass switch and electric vehicle busbar sales; and
    • a 29.3 percent sales increase in Asia driven by improved busbar and cabling assembly sales.
  • Gross margins as a percentage of sales improved to 21.4 percent from 17.3 percent due to favorable raw material commodity pricing and favorable product mix.
  • Income from operations increased to $8.3 million from a loss of $2.1 million due to higher sales, favorable raw material commodity pricing, favorable product mix and lower selling and administrative expenses.

Guidance
For Fiscal 2015, Methode anticipates sales in the range of $835 to $860 million, income from operations in the range of $93 to $100 million and earnings per share in the range of $1.85 to $2.00. The guidance ranges for Fiscal 2015 are based upon management's expectations regarding a variety of factors and involve a number of risks and uncertainties, including the following significant factors considered by management in preparing this guidance:

  • the first and third quarters historically have had lower sales and earnings than the second and fourth quarters;
  • the sales volumes and timing thereof for certain makes and models of automobiles, trucks and SUVs for Fiscal 2015;
  • sales mix within the markets served;
  • the uncertainty of the European economy;
  • the timing of the vertical integration of capacitive touchscreens;
  • the finished goods position of large customers;
  • foreign exchange gains or losses;
  • the anticipated impact of, and costs associated with, litigation instituted recently against a former Hetronic distributor in Europe;
  • an effective tax rate in the low 20 percent, and no significant changes in tax valuation allowances;
  • compensation expense related to tandem cash awards;
  • no future unusual or one-time items;
  • an increase in shares outstanding between 700,000 to 800,000 due to the vesting of the 2010 performance-based restricted stock awards;
  • $10 to $15 million of Automotive tooling sales; and
  • no acquisitions or divestitures.

Management Comments
President and Chief Executive Officer Donald W. Duda said, "Methode's Fiscal 2014 sales and income from operations are our highest since becoming a public company. Revenue grew nearly 50 percent, gross margins increased 270 basis points and, excluding last year's legal settlement and this year's tax valuation allowance release, earnings per share increased fivefold over last fiscal year.

"Comparing Fiscal 2014 results to guidance, revenue exceeded our range by $22 million. However, $24 million of Automotive segment tooling sales at nearly breakeven margins, combined with a higher overall effective tax rate, higher than anticipated compensation and legal costs, as well as sales mix, resulted in non-GAAP earnings closer to the midpoint of our range."

Mr. Duda concluded, "During Fiscal 2015, we will continue to invest in our businesses to grow, defend and improve our competitive position. We expect to increase our development costs by approximately $4 million over last fiscal year, as we continue our strategy to apply unique technology and value-added, innovative solutions to enable our customers' differentiation. In particular, we are focusing on bringing to market this fiscal year our Dabir Therapeutic Surfaces, TouchSensor's HyperTouch, as well as our SmartCenter Stack solutions."

Conference Call
The Company will conduct a conference call and Webcast to review financial and operational highlights led by its President and Chief Executive Officer, Donald W. Duda, and Chief Financial Officer, Douglas A. Koman, today at 10:00 a.m. Central time.

To participate in the conference call, please dial (877) 407-8031 (domestic) or (201) 689-8031 (international) at least five minutes prior to the start of the event. A simultaneous Webcast can be accessed through the Company's Web site, www.methode.com, by selecting the Investor Relations page, and then clicking on the "Webcast" icon.

A replay of the conference call, as well as an MP3 download, will be available shortly after the call through July 10 by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing Conference ID number 13585233. On the Internet, a replay will be available for 30 days through the Company's Web site, www.methode.com, by selecting the Investor Relations page and then clicking on the "Webcast" icon.

About Methode Electronics, Inc.
Methode Electronics, Inc. (NYSE: MEI) is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, the Philippines, Singapore, Switzerland, the United Kingdom and the United States. We design, manufacture and market devices employing electrical, electronic, wireless, safety radio remote control, sensing and optical technologies to control and convey signals through sensors, interconnections and controls. Our business is managed on a segment basis, with those segments being Automotive, Interconnect, Power Products and Other. Our components are in the primary end markets of the automobile, computer, information processing and networking equipment, voice and data communication systems, consumer electronics, appliances, aerospace vehicles and industrial equipment industries. Further information can be found on Methode's Web site www.methode.com.

Forward-Looking Statements
This press release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this press release involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation, the following: (1) dependence on a small number of large customers, including two large automotive customers; (2) dependence on the automotive, appliance, computer and communications industries; (3) investment in programs prior to the recognition of revenue; (4) timing, quality and cost of new program launches; (5) ability to withstand price pressure; (6) dependence on our supply chain; (7) dependence on the availability and price of raw materials; (8) customary risks related to conducting global operations; (9) currency fluctuations; (10) income tax rate fluctuations; (11) fluctuations in our gross margins; (12) the recognition of goodwill impairment charges; (13) ability to keep pace with rapid technological changes; (14) location of a significant amount of cash outside of the U.S.; (15)ability to successfully benefit from acquisitions and divestitures; (16) ability to avoid design or manufacturing defects; (17) ability to protect our intellectual property; (18) ability to compete effectively; (19) ability to withstand business interruptions; (20) a breach of our information technology systems; and (21) costs and expenses due to regulations regarding conflict minerals.



METHODE ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
($ in thousands, except per share data)

                             Three Months Ended        Fiscal Year Ended
                         ------------------------- -------------------------
                            May 3,      April 27,     May 3,      April 27,
                              2014         2013         2014         2013
                         ------------ ------------ ------------ ------------

Net sales                $     224.9  $     148.3  $     772.8  $     519.8

  Cost of products sold        182.0        120.5        616.1        428.2
                         -----------  -----------  -----------  -----------

  Gross profit                  42.9         27.8        156.7         91.6

  Selling and
   administrative
   expenses                     20.8         19.8         81.4         68.1
  Impairment of Goodwill
   and Intangible Assets         1.7          4.3          1.7          4.3
  Income from settlement          --           --           --        (20.0)
                         -----------  -----------  -----------  -----------

Income from operations          20.4          3.7         73.6         39.2

  Interest expense, net           --           --          0.3           --
  Other expense, net            (3.4)         0.7         (2.6)         1.3
                         -----------  -----------  -----------  -----------

Income before income
 taxes                          23.8          3.0         75.9         37.9

Income tax expense             (24.5)        (7.0)       (20.3)        (2.5)
                         -----------  -----------  -----------  -----------

Net income                      48.3         10.0         96.2         40.4

Less: Net income/(loss)
 attributable to
 noncontrolling interest         0.1         (0.1)         0.1         (0.3)
                         -----------  -----------  -----------  -----------
NET INCOME ATTRIBUTABLE
 TO METHODE ELECTRONICS,
 INC.                    $      48.2  $      10.1  $      96.1  $      40.7
                         ===========  ===========  ===========  ===========

Amounts per common share
 attributable to Methode
 Electronics, Inc.:
    Basic                $      1.26  $      0.27  $      2.53  $      1.09
    Diluted              $      1.25  $      0.27  $      2.51  $      1.08
  Cash dividends:
    Common stock         $      0.09  $      0.07  $      0.30  $      0.28
  Weighted average
   number of Common
   Shares outstanding:
    Basic                 38,384,980   37,431,030   37,973,697   37,406,386
    Diluted               38,667,231   38,216,259   38,216,259   37,886,626



                 METHODE ELECTRONICS, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                    (in millions, except per share data)

                                                           May 3,  April 27,
                                                            2014      2013
                                                         --------- ---------
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                              $  116.4  $   65.8
  Accounts receivable, less allowance (2014 -- $0.7;
   2013 --$1.0)                                             173.0     119.8
  Inventories:
    Finished products                                        14.2      11.7
    Work in process                                          12.0      10.2
    Materials                                                45.4      38.0
                                                         --------  --------
                                                             71.6      59.9
  Deferred income taxes                                       8.7       3.3
  Prepaid and refundable income taxes                         0.4       0.3
  Prepaid expenses and other current assets                  11.6       9.5
                                                         --------  --------
        TOTAL CURRENT ASSETS                                381.7     258.6
PROPERTY, PLANT AND EQUIPMENT
  Land                                                        3.1       3.1
  Buildings and building improvements                        45.9      43.2
  Machinery and equipment                                   274.6     251.0
                                                         --------  --------
                                                            323.6     297.3
  Less allowances for depreciation                          222.4     198.9
                                                         --------  --------
                                                            101.2      98.4
OTHER ASSETS
  Goodwill                                                   13.0      12.9
  Other intangibles, less accumulated amortization           13.0      16.5
  Cash surrender value of life insurance                      8.2       9.3
  Deferred income taxes                                      40.0      14.8
  Pre-production costs                                       10.5      11.5
  Other                                                       7.9      12.9
                                                         --------  --------
                                                             92.6      77.9
                                                         --------  --------
TOTAL ASSETS                                             $  575.5  $  434.9
                                                         ========  ========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts payable                                       $   82.0  $   61.5
  Salaries, wages and payroll taxes                          15.3       9.7
  Other accrued expenses                                     15.9      14.8
  Deferred income taxes                                        --       0.6
  Income tax payable                                          4.6       3.8
                                                         --------  --------
      TOTAL CURRENT LIABILITIES                             117.8      90.4
LONG-TERM DEBT                                               48.0      43.5
OTHER LIABILITIES                                             3.4       3.3
DEFERRED COMPENSATION                                        12.8       8.1
DEFERRED INCOME TAXES                                         1.3        --
SHAREHOLDERS' EQUITY
  Common stock, $0.50 par value, 100,000,000 shares
   authorized, 39,262,168 and 38,455,853 shares issued
   as of May 3, 2014 and April 27, 2013, respectively        19.6      19.2
  Additional paid-in capital                                 89.8      81.5
  Accumulated other comprehensive income                     24.7      15.7
  Treasury stock, 1,342,188 shares as of May 3, 2014 and
   April 27, 2013                                           (11.4)    (11.4)
  Retained earnings                                         269.2     184.4
                                                         --------  --------
TOTAL METHODE ELECTRONICS, INC. SHAREHOLDERS' EQUITY        391.9     289.4
  Noncontrolling interest                                     0.3       0.2
                                                         --------  --------
TOTAL EQUITY                                                392.2     289.6
TOTAL LIABILITIES AND EQUITY                             $  575.5  $  434.9
                                                         ========  ========



                 METHODE ELECTRONICS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in millions)

                                                     Fiscal Year Ended
                                               -----------------------------
                                                 May 3,  April 27, April 28,
                                                  2014      2013      2012
                                               --------- --------- ---------
OPERATING ACTIVITIES
  Net income                                   $   96.2  $   40.4  $    8.2
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Loss on sale of fixed assets                    0.2        --       0.1
    Impairment of goodwill and intangible
     assets                                         1.7       4.3        --
    Gain on bargain purchase                         --        --      (0.3)
    Provision for depreciation                     22.1      17.0      14.3
    Amortization of intangible assets               1.8       1.8       1.8
    Stock-based compensation                        3.3       3.3       4.0
    Provision for bad debt                           --       0.1       0.5
    Deferred income taxes                         (29.2)     (7.2)     (2.0)
    Changes in operating assets and
     liabilities:
      Accounts receivable                         (49.7)    (21.2)    (13.4)
      Inventories                                 (11.0)    (16.1)     (3.3)
      Prepaid expenses and other assets             0.2       9.1     (10.3)
      Accounts payable and other expenses          36.8       1.7      25.2
                                               --------  --------  --------
  NET CASH PROVIDED BY OPERATING ACTIVITIES        72.4      33.2      24.8

INVESTING ACTIVITIES
  Purchases of property, plant and equipment      (29.0)    (38.6)    (25.7)
  Acquisition of businesses                          --      (1.4)     (6.4)
  Sale of investment                                6.1        --        --
                                               --------  --------  --------
NET CASH USED IN INVESTING ACTIVITIES             (22.9)    (40.0)    (32.1)

FINANCING ACTIVITIES
  Proceeds from exercise of stock options           5.0       0.6       0.3
  Tax benefit from stock option exercises           0.4        --        --
  Cash dividends                                  (11.3)    (10.3)    (10.4)
  Proceeds from borrowings                         38.0      37.0      52.0
  Repayment of borrowings                         (33.5)    (41.5)     (4.0)
                                               --------  --------  --------
  NET CASH PROVIDED BY/ (USED IN) FINANCING
   ACTIVITIES                                      (1.4)    (14.2)     37.9
Effect of foreign currency exchange rate
 changes on cash                                    2.5        --      (1.2)
                                               --------  --------  --------
INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                       50.6     (21.0)     29.4
Cash and cash equivalents at beginning of year     65.8      86.8      57.4
                                               --------  --------  --------
  CASH AND CASH EQUIVALENTS AT END OF YEAR     $  116.4  $   65.8  $   86.8
                                               ========  ========  ========


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Shipping daily, injecting faults, and keeping an extremely high availability "without Ops"? Understand why NoOps does not mean no operations. Agile development methodologies require evolved operations to be successful. In his keynote at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how Microsoft teams who have made huge progress with a DevOps transformation effectively utilize operations staff and how challenges were overcome. Regardless ...
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, explored the synergies in these two approaches, with practical tips, techniques, research data, wa...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
SYS-CON Events announced today that Blue Box has been named “Bronze Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Blue Box delivers Private Cloud as a Service (PCaaS) to a worldwide customer base. Built on a technology platform leveraging decades of operational expertise in cloud and distributed systems, Blue Box Cloud is a managed private cloud product available in both hosted and on-prem versions. Each Blue Box ...
Many of the well-known examples of DevOps success we read in blogs on the Internet paint an idyllic picture of DevOps productivity. A team was facing a stodgy, slow-moving operations department, teams weren’t delivering software on time. Those teams moved to DevOps, became proactive about infrastructure and deployment automation, and an overnight transition to productivity ensues. People are promoted, projects are successful, and developers and system administrators dance hand-in-hand in a final...
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
ProfitBricks has launched its SDK for .NET, adding to its growing collection of libraries for the DevOps community. This new library exposes all functionality found in the SOAP API and expands ProfitBricks’ support for developers who work with Microsoft technology. “This .NET library addition provides a powerful programmatic interface to our SOAP API,” commented Achim Weiss, Co-founder and CEO of ProfitBricks. “This release is the latest in a series of new offerings that further extend ProfitBr...
ProfitBricks, the provider of painless cloud infrastructure IaaS, today released its SDK for Ruby, written against the company's new RESTful API. The new SDK joins ProfitBricks' previously announced support for the popular multi-cloud open-source Fog project. This new Ruby SDK, which exposes advanced functionality to take advantage of ProfitBricks' simplicity and productivity, aligns with ProfitBricks' mission to provide a painless way to automate infrastructure in the cloud. Ruby is a genera...
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.