[10-Q] Vishay Intertechnology, Inc. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Item 3.01 鈥� Notice of Delisting Status. Vince Holding Corp. (NYSE: VNCE) disclosed that on 08/05/25 the NYSE accepted management鈥檚 remediation plan after the company breached Section 802.01B, which requires both a 30-day average market capitalization and stockholders鈥� equity of 鈮� $50 million.
The exchange has granted a compliance window through 11/06/26 (the 鈥淧lan Period鈥�). VNCE shares will remain listed and trade normally during this time, but the NYSE will conduct periodic reviews. Failure to achieve the $50 million thresholds or demonstrate satisfactory interim progress could trigger suspension and delisting proceedings.
Investor takeaways: acceptance removes the immediate delisting threat and preserves liquidity; however, the sub-$50 million valuation highlights significant capital-structure weakness. Management must execute operational improvements or raise capital before the deadline鈥攕uccess remains uncertain.
Voce 3.01 鈥� Avviso di Rimozione dalla Quotazione. Vince Holding Corp. (NYSE: VNCE) ha comunicato che il 05/08/25 la NYSE ha accettato il piano di rimedio proposto dalla direzione dopo che la societ脿 ha violato la Sezione 802.01B, che richiede una capitalizzazione di mercato media su 30 giorni e un patrimonio netto degli azionisti entrambi 鈮� 50 milioni di dollari.
La borsa ha concesso un periodo di conformit脿 fino al 06/11/26 (il 鈥淧eriodo di Piano鈥�). Le azioni VNCE resteranno quotate e negoziate normalmente durante questo periodo, ma la NYSE effettuer脿 revisioni periodiche. Il mancato raggiungimento delle soglie di 50 milioni di dollari o la mancanza di progressi soddisfacenti potrebbe portare alla sospensione e alla rimozione dalla quotazione.
Considerazioni per gli investitori: l鈥檃ccettazione elimina la minaccia immediata di rimozione e preserva la liquidit脿; tuttavia, la valutazione inferiore a 50 milioni evidenzia una significativa debolezza nella struttura del capitale. La direzione deve attuare miglioramenti operativi o raccogliere capitale prima della scadenza鈥攊l successo non 猫 garantito.
Art铆culo 3.01 鈥� Aviso de Estado de Exclusi贸n. Vince Holding Corp. (NYSE: VNCE) inform贸 que el 05/08/25 la NYSE 补肠别辫迟贸 el plan de remediaci贸n de la administraci贸n tras incumplir la Secci贸n 802.01B, que requiere tanto una capitalizaci贸n de mercado promedio de 30 d铆as como un patrimonio neto de accionistas 鈮� 50 millones de d贸lares.
La bolsa ha otorgado un per铆odo de cumplimiento hasta el 06/11/26 (el 鈥淧er铆odo del Plan鈥�). Las acciones de VNCE permanecer谩n listadas y se negociar谩n normalmente durante este tiempo, pero la NYSE realizar谩 revisiones peri贸dicas. El incumplimiento de los umbrales de 50 millones o la falta de progreso satisfactorio podr铆a desencadenar suspensi贸n y procedimientos de exclusi贸n.
Conclusiones para los inversores: la aceptaci贸n elimina la amenaza inmediata de exclusi贸n y preserva la liquidez; sin embargo, la valoraci贸n por debajo de 50 millones resalta una debilidad significativa en la estructura de capital. La administraci贸n debe implementar mejoras operativas o recaudar capital antes del plazo鈥攅l 茅xito es incierto.
頃 3.01 鈥� 靸侅灔韽愳 韱奠. Vince Holding Corp. (NYSE: VNCE)電� 2025雲� 8鞗� 5鞚� NYSE臧� 須岇偓臧� 靹轨厴 802.01B毳� 鞙勲皹頃� 頉� 瓴届榿歆勳潣 臧滌劆 瓿勴殟鞚� 靾橂澖頄堧嫟瓿� 瓿奠嫓頄堨姷雼堧嫟. 頃措嫻 臁绊暛鞚� 30鞚� 韽夑窢 鞁滉皜齑濎暋瓿� 欤检＜ 鞛愲掣鞚� 臧侁皝 5觳滊 雼煬 鞚挫儊鞚挫柎鞎� 頃潉 鞖旉惮頃╇媹雼�.
瓯半灅靻岆姅 2026雲� 11鞗� 6鞚缄箤歆�(鈥滉硠須� 旮瓣皠鈥�) 欷�靾� 旮瓣皠鞚� 攵�鞐枅鞀惦媹雼�. VNCE 欤检嫕鞚� 鞚� 旮瓣皠 霃欖晥 瓿勳啀 靸侅灔霅橃柎 鞝曥儊 瓯半灅霅橃毵�, NYSE電� 鞝曣赴鞝侅溂搿� 瓴�韱犽ゼ 歆勴枆頃� 鞓堨爼鞛呺媹雼�. 5觳滊 雼煬 旮办鞚� 雼劚頃橃 氇豁晿瓯半倶 毵岇”鞀る煬鞖� 欷戧皠 歆勳矙鞚� 氤挫澊歆� 氇豁晿氅� 瓯半灅 鞝曥 氚� 靸侅灔韽愳 鞝堨皑臧� 鞁滌瀾霅� 靾� 鞛堨姷雼堧嫟.
韴瀽鞛� 鞖旍爯: 靾橂澖鞚� 歃夑皝鞝侅澑 靸侅灔韽愳 鞙勴槕鞚� 鞝滉卑頃橁碃 鞙犽彊靹膘潉 鞙犾頃橃毵�, 5觳滊 雼煬 氙鸽鞚� 韽夑皜鞎§潃 鞛愲掣 甑“鞚� 鞁皝頃� 鞎届爯鞚� 雮橅儉雰呺媹雼�. 瓴届榿歆勳潃 毵堦皭鞚� 鞝勳棎 鞖挫榿 臧滌劆鞚� 鞁ろ枆頃橁卑雮� 鞛愲掣鞚� 臁半嫭頃挫暭 頃橂┌, 靹标车 鞐秬電� 攵堩檿鞁ろ暕雼堧嫟.
Point 3.01 鈥� Avis de radiation. Vince Holding Corp. (NYSE : VNCE) a annonc茅 que le 05/08/25, la NYSE avait accept茅 le plan de redressement de la direction apr猫s que la soci茅t茅 ait enfreint la Section 802.01B, qui exige une capitalisation boursi猫re moyenne sur 30 jours et des capitaux propres d鈥檃u moins 50 millions de dollars.
La bourse a accord茅 une p茅riode de conformit茅 jusqu鈥檃u 06/11/26 (la 芦 p茅riode du plan 禄). Les actions VNCE resteront cot茅es et n茅goci茅es normalement pendant cette p茅riode, mais la NYSE effectuera des examens p茅riodiques. Le non-respect des seuils de 50 millions ou l鈥檃bsence de progr猫s satisfaisants pourrait entra卯ner une suspension et une proc茅dure de radiation.
Points cl茅s pour les investisseurs : l鈥檃cceptation supprime la menace imm茅diate de radiation et pr茅serve la liquidit茅 ; toutefois, la valorisation inf茅rieure 脿 50 millions met en lumi猫re une faiblesse importante dans la structure du capital. La direction doit mettre en 艙uvre des am茅liorations op茅rationnelles ou lever des fonds avant la date limite 鈥� le succ猫s reste incertain.
Position 3.01 鈥� Mitteilung 眉ber den Delisting-Status. Vince Holding Corp. (NYSE: VNCE) gab bekannt, dass die NYSE am 05.08.25 den Sanierungsplan des Managements akzeptiert hat, nachdem das Unternehmen gegen Abschnitt 802.01B versto脽en hatte, der sowohl eine 30-Tage-Durchschnittsmarktkapitalisierung als auch ein Eigenkapital von 鈮� 50 Millionen US-Dollar verlangt.
Die B枚rse hat eine Frist zur Einhaltung bis zum 06.11.26 (die 鈥濸lanperiode鈥�) gew盲hrt. Die VNCE-Aktien bleiben w盲hrend dieser Zeit gelistet und werden normal gehandelt, jedoch wird die NYSE regelm盲脽ige 脺berpr眉fungen durchf眉hren. Das Nichterreichen der 50-Millionen-Dollar-Schwellenwerte oder das Ausbleiben zufriedenstellender Zwischenfortschritte k枚nnte eine Aussetzung und Delisting-Verfahren ausl枚sen.
Wichtige Hinweise f眉r Investoren: Die Akzeptanz beseitigt die unmittelbare Delisting-Gefahr und erh盲lt die Liquidit盲t; jedoch weist die Bewertung unter 50 Millionen auf erhebliche Schw盲chen in der Kapitalstruktur hin. Das Management muss vor Ablauf der Frist operative Verbesserungen umsetzen oder Kapital beschaffen 鈥� der Erfolg bleibt ungewiss.
Positive
- NYSE accepted VNCE鈥檚 compliance plan, allowing continued NYSE trading until 11/06/26 and buying management time to execute a turnaround.
Negative
- Company remains out of compliance with the NYSE鈥檚 $50 million market-cap and equity requirements, maintaining a material delisting risk.
- Sub-$50 million valuation underscores weak investor confidence and limits capital-raising flexibility.
Insights
TL;DR NYSE plan acceptance averts immediate delisting, but VNCE still under $50 m thresholds; impact neutral until management proves recovery.
The NYSE reprieve provides time for strategic actions鈥攑otential equity infusion, asset sales, or operational turnaround鈥攖o restore capital levels. Liquidity in the shares is preserved, limiting near-term trading disruption. Yet the underlying problem remains: a market cap and book equity below $50 m signal fundamental weakness. Until VNCE outlines concrete capital-raising steps or posts improving operating metrics, the event is best viewed as procedural rather than value-creating. I classify the filing as neutral for valuation but it maintains option value for a turnaround.
TL;DR Delisting risk persists; investors face liquidity, capital-raising and perception headwinds if plan fails.
While the acceptance letter pauses immediate enforcement, the company now operates under an NYSE microscope. Should market sentiment worsen or equity erosion continue, VNCE could breach additional listing rules, accelerating delisting. Such an outcome would hamper capital access and employee retention. The disclosure also signals potential going-concern pressures, warranting heightened credit and counterparty scrutiny. Overall, the risk profile has deteriorated versus compliant peers despite the temporary stay.
Voce 3.01 鈥� Avviso di Rimozione dalla Quotazione. Vince Holding Corp. (NYSE: VNCE) ha comunicato che il 05/08/25 la NYSE ha accettato il piano di rimedio proposto dalla direzione dopo che la societ脿 ha violato la Sezione 802.01B, che richiede una capitalizzazione di mercato media su 30 giorni e un patrimonio netto degli azionisti entrambi 鈮� 50 milioni di dollari.
La borsa ha concesso un periodo di conformit脿 fino al 06/11/26 (il 鈥淧eriodo di Piano鈥�). Le azioni VNCE resteranno quotate e negoziate normalmente durante questo periodo, ma la NYSE effettuer脿 revisioni periodiche. Il mancato raggiungimento delle soglie di 50 milioni di dollari o la mancanza di progressi soddisfacenti potrebbe portare alla sospensione e alla rimozione dalla quotazione.
Considerazioni per gli investitori: l鈥檃ccettazione elimina la minaccia immediata di rimozione e preserva la liquidit脿; tuttavia, la valutazione inferiore a 50 milioni evidenzia una significativa debolezza nella struttura del capitale. La direzione deve attuare miglioramenti operativi o raccogliere capitale prima della scadenza鈥攊l successo non 猫 garantito.
Art铆culo 3.01 鈥� Aviso de Estado de Exclusi贸n. Vince Holding Corp. (NYSE: VNCE) inform贸 que el 05/08/25 la NYSE 补肠别辫迟贸 el plan de remediaci贸n de la administraci贸n tras incumplir la Secci贸n 802.01B, que requiere tanto una capitalizaci贸n de mercado promedio de 30 d铆as como un patrimonio neto de accionistas 鈮� 50 millones de d贸lares.
La bolsa ha otorgado un per铆odo de cumplimiento hasta el 06/11/26 (el 鈥淧er铆odo del Plan鈥�). Las acciones de VNCE permanecer谩n listadas y se negociar谩n normalmente durante este tiempo, pero la NYSE realizar谩 revisiones peri贸dicas. El incumplimiento de los umbrales de 50 millones o la falta de progreso satisfactorio podr铆a desencadenar suspensi贸n y procedimientos de exclusi贸n.
Conclusiones para los inversores: la aceptaci贸n elimina la amenaza inmediata de exclusi贸n y preserva la liquidez; sin embargo, la valoraci贸n por debajo de 50 millones resalta una debilidad significativa en la estructura de capital. La administraci贸n debe implementar mejoras operativas o recaudar capital antes del plazo鈥攅l 茅xito es incierto.
頃 3.01 鈥� 靸侅灔韽愳 韱奠. Vince Holding Corp. (NYSE: VNCE)電� 2025雲� 8鞗� 5鞚� NYSE臧� 須岇偓臧� 靹轨厴 802.01B毳� 鞙勲皹頃� 頉� 瓴届榿歆勳潣 臧滌劆 瓿勴殟鞚� 靾橂澖頄堧嫟瓿� 瓿奠嫓頄堨姷雼堧嫟. 頃措嫻 臁绊暛鞚� 30鞚� 韽夑窢 鞁滉皜齑濎暋瓿� 欤检＜ 鞛愲掣鞚� 臧侁皝 5觳滊 雼煬 鞚挫儊鞚挫柎鞎� 頃潉 鞖旉惮頃╇媹雼�.
瓯半灅靻岆姅 2026雲� 11鞗� 6鞚缄箤歆�(鈥滉硠須� 旮瓣皠鈥�) 欷�靾� 旮瓣皠鞚� 攵�鞐枅鞀惦媹雼�. VNCE 欤检嫕鞚� 鞚� 旮瓣皠 霃欖晥 瓿勳啀 靸侅灔霅橃柎 鞝曥儊 瓯半灅霅橃毵�, NYSE電� 鞝曣赴鞝侅溂搿� 瓴�韱犽ゼ 歆勴枆頃� 鞓堨爼鞛呺媹雼�. 5觳滊 雼煬 旮办鞚� 雼劚頃橃 氇豁晿瓯半倶 毵岇”鞀る煬鞖� 欷戧皠 歆勳矙鞚� 氤挫澊歆� 氇豁晿氅� 瓯半灅 鞝曥 氚� 靸侅灔韽愳 鞝堨皑臧� 鞁滌瀾霅� 靾� 鞛堨姷雼堧嫟.
韴瀽鞛� 鞖旍爯: 靾橂澖鞚� 歃夑皝鞝侅澑 靸侅灔韽愳 鞙勴槕鞚� 鞝滉卑頃橁碃 鞙犽彊靹膘潉 鞙犾頃橃毵�, 5觳滊 雼煬 氙鸽鞚� 韽夑皜鞎§潃 鞛愲掣 甑“鞚� 鞁皝頃� 鞎届爯鞚� 雮橅儉雰呺媹雼�. 瓴届榿歆勳潃 毵堦皭鞚� 鞝勳棎 鞖挫榿 臧滌劆鞚� 鞁ろ枆頃橁卑雮� 鞛愲掣鞚� 臁半嫭頃挫暭 頃橂┌, 靹标车 鞐秬電� 攵堩檿鞁ろ暕雼堧嫟.
Point 3.01 鈥� Avis de radiation. Vince Holding Corp. (NYSE : VNCE) a annonc茅 que le 05/08/25, la NYSE avait accept茅 le plan de redressement de la direction apr猫s que la soci茅t茅 ait enfreint la Section 802.01B, qui exige une capitalisation boursi猫re moyenne sur 30 jours et des capitaux propres d鈥檃u moins 50 millions de dollars.
La bourse a accord茅 une p茅riode de conformit茅 jusqu鈥檃u 06/11/26 (la 芦 p茅riode du plan 禄). Les actions VNCE resteront cot茅es et n茅goci茅es normalement pendant cette p茅riode, mais la NYSE effectuera des examens p茅riodiques. Le non-respect des seuils de 50 millions ou l鈥檃bsence de progr猫s satisfaisants pourrait entra卯ner une suspension et une proc茅dure de radiation.
Points cl茅s pour les investisseurs : l鈥檃cceptation supprime la menace imm茅diate de radiation et pr茅serve la liquidit茅 ; toutefois, la valorisation inf茅rieure 脿 50 millions met en lumi猫re une faiblesse importante dans la structure du capital. La direction doit mettre en 艙uvre des am茅liorations op茅rationnelles ou lever des fonds avant la date limite 鈥� le succ猫s reste incertain.
Position 3.01 鈥� Mitteilung 眉ber den Delisting-Status. Vince Holding Corp. (NYSE: VNCE) gab bekannt, dass die NYSE am 05.08.25 den Sanierungsplan des Managements akzeptiert hat, nachdem das Unternehmen gegen Abschnitt 802.01B versto脽en hatte, der sowohl eine 30-Tage-Durchschnittsmarktkapitalisierung als auch ein Eigenkapital von 鈮� 50 Millionen US-Dollar verlangt.
Die B枚rse hat eine Frist zur Einhaltung bis zum 06.11.26 (die 鈥濸lanperiode鈥�) gew盲hrt. Die VNCE-Aktien bleiben w盲hrend dieser Zeit gelistet und werden normal gehandelt, jedoch wird die NYSE regelm盲脽ige 脺berpr眉fungen durchf眉hren. Das Nichterreichen der 50-Millionen-Dollar-Schwellenwerte oder das Ausbleiben zufriedenstellender Zwischenfortschritte k枚nnte eine Aussetzung und Delisting-Verfahren ausl枚sen.
Wichtige Hinweise f眉r Investoren: Die Akzeptanz beseitigt die unmittelbare Delisting-Gefahr und erh盲lt die Liquidit盲t; jedoch weist die Bewertung unter 50 Millionen auf erhebliche Schw盲chen in der Kapitalstruktur hin. Das Management muss vor Ablauf der Frist operative Verbesserungen umsetzen oder Kapital beschaffen 鈥� der Erfolg bleibt ungewiss.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 28, 2025
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from _______ to _______
Commission File Number 011-07416
(Exact name of registrant as specified in its charter)
|
|
||
|
(State or Other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification Number)
|
|
|
|
|
|
|
(Address of Principal Executive Offices)
|
(Registrant’s Area Code and Telephone Number)
|
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading symbol
|
Name of exchange on which registered
|
||
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)
☒Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or
an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
|
|
Accelerated filer ☐
|
|
|
Non-accelerated filer ☐
|
Smaller reporting company
|
|
|
Emerging growth company
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of August 4, 2025 the registrant had 123,488,664
shares of its common stock (excluding treasury shares) and 12,097,148 shares of its Class B common stock outstanding.
This page intentionally left blank.
2
VISHAY INTERTECHNOLOGY, INC.
FORM 10-Q
June 28, 2025
CONTENTS
|
Page Number
|
||||
|
PART I.
|
FINANCIAL INFORMATION
|
|||
|
Item 1.
|
Financial Statements (Unaudited)
|
|||
|
Consolidated Condensed Balance Sheets – June 28, 2025 and December
31, 2024
|
4
|
|||
|
Consolidated Condensed Statements of Operations – Fiscal Quarters Ended June 28, 2025 and June 29, 2024
|
6
|
|||
|
Consolidated Condensed Statements of Comprehensive Income – Fiscal Quarters Ended June 28, 2025 and June 29, 2024
|
7
|
|||
| Consolidated Condensed Statement of Operations – Six Fiscal Months Ended June 28, 2025 and June 29, 2024 | 8 |
|||
| Consolidated Condensed Statements of Comprehensive Income – Six Fiscal Months Ended June 28, 2025 and June 29,
2024 |
9 |
|||
|
Consolidated Condensed Statements of Cash Flows – Six Fiscal
Months Ended June 28, 2025 and June 29, 2024
|
10
|
|||
|
Consolidated Condensed Statements of Equity
|
11
|
|||
|
Notes to the Consolidated Condensed Financial Statements
|
12
|
|||
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and
Results of Operations
|
26
|
||
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
45
|
||
|
Item 4.
|
Controls and Procedures
|
45
|
||
|
PART II.
|
OTHER INFORMATION
|
|||
|
Item 1.
|
Legal Proceedings
|
46
|
||
|
Item 1A.
|
Risk Factors
|
46
|
||
|
Item 2.
|
Unregistered Sales of Equity Securities and
Use of Proceeds
|
46
|
||
|
Item 3.
|
Defaults Upon Senior Securities
|
46
|
||
|
Item 4.
|
Mine Safety Disclosures
|
46
|
||
|
Item 5.
|
Other Information
|
46
|
||
|
Item 6.
|
Exhibits
|
46
|
||
|
SIGNATURES
|
47
|
|||
3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
|
June 28, 2025
|
December 31, 2024
|
|||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||
|
Short-term investments
|
|
|
||||||
|
Accounts receivable, net
|
|
|
||||||
|
Inventories:
|
||||||||
|
Finished goods
|
|
|
||||||
|
Work in process
|
|
|
||||||
|
Raw materials
|
|
|
||||||
|
Total inventories
|
|
|
||||||
|
Prepaid expenses and other current assets
|
|
|
||||||
|
Total current assets
|
|
|
||||||
|
Property and equipment, at cost:
|
||||||||
|
Land
|
|
|
||||||
|
Buildings and improvements
|
|
|
||||||
|
Machinery and equipment
|
|
|
||||||
|
Construction in progress
|
|
|
||||||
|
Allowance for depreciation
|
(
|
)
|
(
|
)
|
||||
|
Property and equipment, net
|
|
|
||||||
|
Right of use assets
|
|
|
||||||
| Deferred income taxes |
||||||||
|
Goodwill
|
|
|
||||||
|
Other intangible assets, net
|
|
|
||||||
|
Other assets
|
|
|
||||||
|
Total assets
|
$
|
|
$
|
|
||||
Continues on following page.
4
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)
|
June 28, 2025
|
December 31, 2024
|
|||||||
|
Liabilities and equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Trade accounts payable
|
$
|
|
$
|
|
||||
|
Payroll and related expenses
|
|
|
||||||
|
Lease liabilities
|
|
|
||||||
|
Other accrued expenses
|
|
|
||||||
|
Income taxes
|
|
|
||||||
|
Total current liabilities
|
|
|
||||||
|
Long-term debt less current portion
|
|
|
||||||
|
Deferred income taxes
|
|
|
||||||
|
Long-term lease liabilities
|
|
|
||||||
|
Other liabilities
|
|
|
||||||
|
Accrued pension and other postretirement costs
|
|
|
||||||
|
Total liabilities
|
|
|
||||||
|
Equity:
|
||||||||
|
Common stock
|
|
|
||||||
|
Class B convertible common stock
|
|
|
||||||
|
Capital in excess of par value
|
|
|
||||||
|
Retained earnings
|
|
|
||||||
| Treasury stock (at cost) |
( |
) | ( |
) | ||||
|
Accumulated other comprehensive income (loss)
|
|
(
|
)
|
|||||
|
Total equity
|
|
|
||||||
|
Total liabilities and equity
|
$
|
|
$
|
|
||||
See accompanying notes.
5
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)
|
Fiscal quarters ended
|
||||||||
|
June 28, 2025
|
June 29, 2024
|
|||||||
|
Net revenues
|
$
|
|
$
|
|
||||
|
Costs of products sold
|
|
|
||||||
|
Gross profit
|
|
|
||||||
|
Selling, general, and administrative expenses
|
|
|
||||||
|
Operating income
|
|
|
||||||
|
Other income (expense):
|
||||||||
|
Interest expense
|
(
|
)
|
(
|
)
|
||||
|
Other
|
|
|
||||||
|
Total other income (expense)
|
(
|
)
|
(
|
|||||
|
Income before taxes
|
|
|
||||||
|
Income tax expense
|
|
|
||||||
|
Net earnings
|
|
|
||||||
|
Less: net earnings attributable to noncontrolling interests
|
|
|
||||||
|
Net earnings attributable to Vishay stockholders
|
$
|
|
$
|
|
||||
|
Basic earnings per share attributable to Vishay stockholders
|
$
|
|
$
|
|
||||
|
Diluted earnings per share attributable to Vishay stockholders
|
$
|
|
$
|
|
||||
|
Weighted average shares outstanding - basic
|
|
|
||||||
|
Weighted average shares outstanding - diluted
|
|
|
||||||
|
Cash dividends per share
|
$
|
|
$
|
|
||||
See accompanying notes.
6
VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)
|
Fiscal quarters ended
|
||||||||
|
June 28, 2025
|
June 29, 2024
|
|||||||
|
Net earnings
|
$
|
|
$
|
|
||||
|
Other comprehensive income (loss), net of tax
|
||||||||
|
Pension and other post-retirement actuarial items
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|||||
|
Other comprehensive income (loss)
|
|
(
|
)
|
|||||
|
Comprehensive income
|
|
|
||||||
|
Less: comprehensive income attributable to noncontrolling interests
|
|
|
||||||
|
Comprehensive income attributable to Vishay stockholders
|
$
|
|
$
|
|
||||
See accompanying notes.
7
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)
|
Six fiscal months ended
|
||||||||
|
June 28, 2025
|
June 29, 2024
|
|||||||
|
Net revenues
|
$
|
|
$
|
|
||||
|
Costs of products sold
|
|
|
||||||
|
Gross profit
|
|
|
||||||
|
Selling, general, and administrative expenses
|
|
|
||||||
|
Operating income
|
|
|
||||||
|
Other income (expense):
|
||||||||
|
Interest expense
|
(
|
)
|
(
|
)
|
||||
|
Other
|
|
|
||||||
|
Total other income (expense)
|
(
|
)
|
(
|
)
|
||||
|
Income before taxes
|
|
|
||||||
|
Income tax expense
|
|
|
||||||
|
Net earnings (loss)
|
(
|
)
|
|
|||||
|
Less: net earnings attributable to noncontrolling interests
|
|
|
||||||
|
Net earnings (loss) attributable to Vishay stockholders
|
$
|
(
|
)
|
$
|
|
|||
|
Basic earnings (loss) per share attributable to Vishay stockholders
|
$
|
(
|
)
|
$
|
|
|||
|
Diluted earnings (loss) per share attributable to Vishay stockholders
|
$
|
(
|
)
|
$
|
|
|||
|
Weighted average shares outstanding - basic
|
|
|
||||||
|
Weighted average shares outstanding - diluted
|
|
|
||||||
|
Cash dividends per share
|
$
|
|
$
|
|
||||
See accompanying notes.
8
VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)
|
Six fiscal months ended
|
||||||||
|
June 28, 2025
|
June 29, 2024
|
|||||||
|
Net earnings (loss)
|
$
|
(
|
)
|
$
|
|
|||
|
Other comprehensive income (loss), net of tax
|
||||||||
|
Pension and other post-retirement actuarial items
|
|
(
|
)
|
|||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|||||
|
Other comprehensive income (loss)
|
|
(
|
)
|
|||||
|
Comprehensive income
|
|
|
||||||
|
Less: comprehensive income attributable to noncontrolling interests
|
|
|
||||||
|
Comprehensive income attributable to Vishay stockholders
|
$
|
|
$
|
|
||||
See accompanying notes.
9
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
|
Six fiscal months ended
|
||||||||
|
June 28, 2025
|
June 29, 2024
|
|||||||
|
Operating activities
|
||||||||
|
Net earnings (loss)
|
$
|
(
|
)
|
$
|
|
|||
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
|
|
||||||
|
(Gain) loss on disposal of property and equipment
|
|
(
|
)
|
|||||
|
Inventory write-offs for obsolescence
|
|
|
||||||
|
Deferred income taxes
|
(
|
)
|
|
|||||
| Stock compensation expense |
||||||||
|
Other
|
(
|
)
|
(
|
)
|
||||
| Change in U.S. transition tax liability |
( |
) | ( |
) | ||||
| Change in repatriation tax liability |
( |
) | ( |
) | ||||
|
Net change in operating assets and liabilities, net of effects of businesses acquired
|
(
|
)
|
(
|
)
|
||||
|
Net cash provided by operating activities
|
|
|
||||||
|
Investing activities
|
||||||||
|
Capital expenditures
|
(
|
)
|
(
|
)
|
||||
|
Proceeds from sale of property and equipment
|
|
|
||||||
| Purchase of businesses, net of cash acquired |
( |
) | ||||||
| Purchase of short-term investments | ( |
) | ( |
) | ||||
|
Maturity of short-term investments
|
|
|
||||||
|
Other investing activities
|
(
|
)
|
(
|
)
|
||||
|
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
|
Financing activities
|
||||||||
| Principal payments on long-term debt |
( |
) | ||||||
|
Net proceeds from revolving credit facility
|
|
|
||||||
|
Dividends paid to common stockholders
|
(
|
)
|
(
|
)
|
||||
|
Dividends paid to Class B common stockholders
|
(
|
)
|
(
|
)
|
||||
|
Repurchase of common stock held in treasury
|
( |
) | ( |
) | ||||
|
Cash withholding taxes paid when shares withheld for vested equity awards
|
(
|
)
|
(
|
)
|
||||
| Other financing activities |
||||||||
|
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(
|
)
|
|||||
|
Net decrease in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
|
Cash and cash equivalents at beginning of period
|
|
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
See accompanying notes.
10
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share and per share amounts)
|
Common
Stock
|
Class B
Convertible
Common
Stock
|
Capital in
Excess of Par
Value
|
Retained
Earnings
|
Treasury Stock |
Accumulated
Other
Comprehensive
Income (Loss)
|
Total Vishay
Stockholders'
Equity
|
Noncontrolling
Interests
|
Total
Equity
|
||||||||||||||||||||||||||||
| Balance at December 31, 2023 |
$
|
|
$
|
|
$
|
|
$
|
|
$ | ( |
) |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
|
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Other comprehensive income (loss)
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
|
Issuance of stock and related tax withholdings for vested restricted stock units (
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
|
Dividends declared ($
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| Repurchase of common stock held in treasury ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
|
Balance at March 30, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | ( |
) |
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
Net earnings
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other comprehensive income (loss)
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||||
| Issuance of stock and related tax withholdings for vested restricted stock units ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
|
Dividends declared ($
|
|
|
|
(
|
)
|
|
(
|
)
|
|
( |
) | |||||||||||||||||||||||||
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| Repurchase of common stock held in treasury ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Balance at June 29, 2024 | $ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
| Balance at December 31, 2024 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
| Net earnings (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||||||||||||||||||
| Issuance of stock and related tax withholdings for vested restricted stock units ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Dividends declared ($ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||||||
| Repurchase of common stock held in treasury ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Balance at March 29, 2025 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||||||||||||||||||
| Issuance of stock and related tax withholdings for vested restricted stock units ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Dividends declared ($ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||||||
| Other |
||||||||||||||||||||||||||||||||||||
| Balance at June 28, 2025 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||||
See accompanying notes.
11
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 1 – Basis of Presentation
The accompanying unaudited consolidated condensed financial statements of Vishay Intertechnology, Inc. (“Vishay” or the “Company”) have been prepared in
accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in
the United States (“GAAP”) for complete financial statements. The information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations,
and cash flows for the interim periods presented. The financial statements should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The
results of operations for the fiscal quarter and six fiscal months ended June 28, 2025 are not necessarily indicative of the results to be expected for the full year.
The Company reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first fiscal quarter,
which always begins on January 1, and the fourth fiscal quarter, which always ends on December 31. The four fiscal quarters in 2025 end on March 29, 2025, June 28, 2025, September 27, 2025, and December 31, 2025, respectively. The four fiscal
quarters in 2024 ended on March 30, 2024, June 29, 2024, September 28, 2024, and December 31, 2024, respectively.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses for the fiscal quarter and six fiscal months ended June 28, 2025 include an $11,293
Reclassifications
Certain prior period amounts have been reclassified to conform to the current financial statement presentation.
Note 2 – Restructuring and Related Activities
In September 2024, the Company announced the implementation of restructuring actions designed to optimize the Company’s
manufacturing footprint and streamline business decision making.
The following table summarizes activity to date related to this program:
| Expense recorded in 2024 |
$ | |||
| Utilized |
( |
) | ||
| Foreign currency translation |
( |
) | ||
| Balance at December 31, 2024 |
$ | |||
| Utilized |
(
|
)
|
||
| Foreign currency translation |
|
|||
| Balance at June 28, 2025 |
$
|
|
Severance payment terms vary by country, but are generally paid in a lump sum at cessation of employment. Some payments are
made over an extended period. The current portion of the liability is $9,354 and is included in other accrued expenses in the
accompanying consolidated condensed balance sheet. The non-current portion of the liability is $15,037 and is included in other
liabilities in the accompanying consolidated condensed balance sheet.
12
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 3 – Leases
The net right of use assets and lease liabilities recognized on the consolidated condensed balance sheets for the Company's operating leases were as
follows:
|
June 28, 2025
|
December 31, 2024
|
|||||||
|
Right of use assets
|
||||||||
|
Operating Leases
|
||||||||
|
Buildings and improvements
|
$
|
|
$
|
|
||||
|
Machinery and equipment
|
|
|
||||||
|
Total
|
$
|
|
$
|
|
||||
|
Current lease liabilities
|
||||||||
|
Operating Leases
|
||||||||
|
Buildings and improvements
|
$
|
|
$
|
|
||||
|
Machinery and equipment
|
|
|
||||||
|
Total
|
$
|
|
$
|
|
||||
|
Long-term lease liabilities
|
||||||||
|
Operating Leases
|
||||||||
|
Buildings and improvements
|
$
|
|
$
|
|
||||
|
Machinery and equipment
|
|
|
||||||
|
Total
|
$
|
|
$
|
|
||||
|
Total lease liabilities
|
$
|
|
$
|
|
||||
Lease expense is classified in the statements of operations based on asset use. Total lease cost recognized on the consolidated condensed statements of
operations is as follows:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Lease expense
|
||||||||||||||||
|
Operating lease expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Short-term lease expense
|
|
|
|
|
||||||||||||
|
Variable lease expense
|
|
|
|
|
||||||||||||
|
Total lease expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
The Company paid $14,222 and $14,801 for its operating leases in the six
fiscal months ended June 28, 2025 and June 29, 2024, respectively, which are included in operating cash flows on the consolidated condensed statements of cash flows. The weighted-average remaining lease term for the Company's operating leases is 8.8 years and the weighted-average discount rate is 6.6 %
as of June 28, 2025.
The undiscounted future lease payments for the Company's operating lease liabilities are as follows:
|
June 28, 2025
|
||||
| 2025 (excluding the six fiscal months ended June 28, 2025) |
$
|
|
||
|
2026
|
|
|||
|
2027
|
|
|||
|
2028
|
|
|||
|
2029
|
|
|||
|
Thereafter
|
|
|||
The undiscounted future lease payments presented in the table above include payments through the term of the lease, which may include periods beyond the
noncancellable term. The difference between the total payments above and the lease liability balance is due to the discount rate used to calculate lease liabilities.
13
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 4 – Income Taxes
The provision for income taxes consists of provisions for federal, state, and foreign income taxes. The effective tax rates for the periods ended June 28, 2025 and June 29, 2024 reflect
the Company’s expected tax rate on reported income before income tax and tax adjustments. The Company operates in a global environment with significant operations in various jurisdictions outside the United States. Accordingly, the consolidated income
tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various jurisdictions where the Company operates.
In December 2021, the Organization for Economic Co-operation and Development (“OECD”) issued model rules for a new global minimum tax (“Pillar Two”). Various
jurisdictions around the world have passed legislation to enact Pillar Two and certain Pillar Two rules are in effect for 2025. The United States has not adopted Pillar Two. The Company does not anticipate a material increase in income tax expense
for 2025 due to Pillar Two and the Company is continuing to monitor Pillar Two developments and the potential future impact on its operations and income tax expense.
On July 4, 2025, H.R. 1 (“the Act”), a tax reconciliation act, was enacted into law in the United States. Under U.S. GAAP
(specifically, Accounting Standards Codification Topic 740), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted. Accordingly, the Company will account for the
Act in the third fiscal quarter. The Company is evaluating the Act’s provisions, but is not currently able to estimate the impact of the Act on its deferred tax balances and future income tax expense. Certain provisions of the Act, particularly
the international tax provisions, may have a material impact on the Company’s deferred tax balances and future income tax expense.
The Company repatriated $75,000
of accumulated earnings to the United States in the second fiscal quarter of 2025 and paid withholding taxes, in Israel, of $9,375 . The
withholding tax expense for the repatriation was recorded in prior years.
During the six fiscal months ended June 28, 2025,
the liabilities for unrecognized tax benefits decreased $744 on a net basis, primarily due to statute expirations, settlements, and payments,
partially offset by accruals for the current period.
Note 5 – Long-Term Debt
Long-term debt consists of the following:
|
June 28, 2025
|
December 31, 2024
|
|||||||
|
Credit facility
|
$
|
|
$
|
|
||||
| Convertible senior notes, due 2025 |
||||||||
|
Convertible senior notes, due 2030
|
|
|
||||||
|
Deferred financing costs
|
(
|
)
|
(
|
)
|
||||
|
|
|
|||||||
|
Less current portion
|
|
|
||||||
|
$
|
|
$
|
|
|||||
The following table summarizes some key facts and terms regarding the outstanding convertible senior notes due 2030 as of June 28, 2025:
| 2030 Notes | ||||
|
Issuance date
|
|
|||
|
Maturity date
|
|
|||
|
Principal amount as of June 28, 2025
|
$ |
|
|
|
|
Cash coupon rate (per annum)
|
|
%
|
||
|
Conversion rate (per $1 principal amount)
|
|
|||
|
Effective conversion price (per share)
|
$ |
|
|
|
|
|
$ |
|
|
|
The convertible senior notes due 2025 matured on June 15, 2025 .
Upon maturity, $41,911 aggregate principal amount of the convertible senior notes due 2025 were settled in cash, funded by borrowings on
the revolving credit facility. No shares were issued to settle the convertible senior notes due 2025.
Deferred financing costs are recognized as non-cash interest expense. Non-cash interest expense was $1,195 and $2,418 for the fiscal quarter and six fiscal months ended
June 28, 2025, respectively, and $1,213 and $2,426
for the fiscal quarter and six fiscal months ended June 29, 2024.
14
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 6 – Stockholders' Equity
In 2022, the Company's Board of Directors adopted a Stockholder Return Policy that will remain in effect until such time as the Board votes to amend or
rescind the policy. The Stockholder Return Policy calls for the Company to return a prescribed amount of cash flows on an annual basis. The Company intends to return such amounts directly, in the form of dividends, or indirectly, in the form of
stock repurchases.
The following table summarizes activity pursuant to this policy:
|
Fiscal quarters ended
|
Six fiscal months ended | |||||||||||||||
|
|
June 28, 2025 |
June 29, 2024 |
|
June 28, 2025 |
June 29, 2024 | |||||||||||
|
Dividends paid to stockholders
|
$
|
|
$ | $ | $ | |||||||||||
|
Stock repurchases
|
|
|||||||||||||||
|
Total
|
$
|
|
$ | $ | $ | |||||||||||
The repurchased shares are being held as treasury stock. The number of shares of common stock being held as treasury stock was 10,662,155 and 9,933,595 as of June 28, 2025 and December 31, 2024, respectively.
Note 7 – Revenue Recognition
Sales returns and allowances accrual activity is shown below:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Sales allowances
|
|
|
|
|
||||||||||||
|
Credits issued
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Foreign currency
|
|
(
|
)
|
|
(
|
)
|
||||||||||
|
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Note 8 – Accumulated Other Comprehensive Income (Loss)
The cumulative balance of each component of other comprehensive income (loss) and the income tax effects allocated to each component are as follows:
|
Pension and
other post-
retirement
actuarial
items
|
Currency
translation
adjustment
|
Total
|
||||||||||
|
Balance at January 1, 2025
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
|
Other comprehensive income (loss) before reclassifications
|
|
|
$
|
|
||||||||
|
Tax effect
|
|
|
$
|
|
||||||||
|
Other comprehensive income before reclassifications, net of tax
|
|
|
$
|
|
||||||||
|
Amounts reclassified out of AOCI
|
|
|
$
|
|
||||||||
|
Tax effect
|
(
|
)
|
|
$
|
(
|
)
|
||||||
|
Amounts reclassified out of AOCI, net of tax
|
|
|
$
|
|
||||||||
|
Net other comprehensive income (loss)
|
$
|
|
$
|
|
$
|
|
||||||
|
Balance at June 28, 2025
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Reclassifications of pension and other post-retirement actuarial items out of AOCI are included in the computation of net periodic benefit cost. See Note
9 for further information.
15
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 9 – Pensions and Other Postretirement Benefits
The Company maintains various retirement benefit plans. The service cost component of net periodic pension cost is classified in costs of products sold or
selling, general, and administrative expenses on the consolidated condensed statements of operations based on the respective employee's function. The other components of net periodic pension cost are classified as other expense on the consolidated
condensed statements of operations.
Defined Benefit Pension Plans
The following table shows the components of the net periodic pension cost for the second fiscal quarters of 2025 and 2024 for the Company’s defined benefit pension plans:
|
Fiscal quarter ended
June 28, 2025
|
Fiscal quarter ended
June 29, 2024
|
|||||||||||||||
|
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
|
Net service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Interest cost
|
|
|
|
|
||||||||||||
|
Expected return on plan assets
|
|
(
|
)
|
|
(
|
)
|
||||||||||
|
Amortization of prior service cost
|
|
|
|
|
||||||||||||
|
Amortization of losses (gains)
|
|
|
(
|
)
|
|
|||||||||||
|
Curtailment and settlement losses
|
|
|
|
|
||||||||||||
|
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
The following table shows the components of the net periodic pension cost for the six fiscal months ended June 28, 2025 and June 29, 2024 for the Company’s defined benefit pension plans:
|
Six fiscal months ended
June 28, 2025
|
Six fiscal months ended
June 29, 2024
|
|||||||||||||||
|
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
|
Net service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Interest cost
|
|
|
|
|
||||||||||||
|
Expected return on plan assets
|
|
(
|
)
|
|
(
|
)
|
||||||||||
|
Amortization of prior service cost
|
|
|
|
|
||||||||||||
|
Amortization of losses (gains)
|
|
|
(
|
)
|
|
|||||||||||
|
Curtailment and settlement losses
|
|
|
|
|
||||||||||||
|
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
16
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Other Postretirement Benefits
The following table shows the components of the net periodic benefit cost for the second fiscal quarters of 2025 and 2024 for the Company’s other postretirement benefit plans:
|
Fiscal quarter ended
June 28, 2025
|
Fiscal quarter ended
June 29, 2024
|
|||||||||||||||
|
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
|
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Interest cost
|
|
|
|
|
||||||||||||
|
Amortization of losses (gains)
|
(
|
)
|
|
(
|
)
|
|
||||||||||
|
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
The following table shows the components of the net periodic pension cost for the six fiscal months ended June 28, 2025 and June 29, 2024 for the Company’s other postretirement benefit plans:
|
Six fiscal months ended
June 28, 2025
|
Six fiscal months ended
June 29, 2024
|
|||||||||||||||
|
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
|
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Interest cost
|
|
|
|
|
||||||||||||
|
Amortization of losses (gains)
|
(
|
)
|
|
(
|
)
|
|
||||||||||
|
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
17
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 10 – Stock-Based Compensation
The following table summarizes stock-based compensation expense recognized:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Restricted stock units ("RSUs")
|
$
|
|
$
|
|
$
|
|
|
|||||||||
|
Phantom stock units
|
|
|
|
|
||||||||||||
|
Total
|
$
|
|
$
|
|
$
|
|
|
|||||||||
The following table summarizes unrecognized compensation cost and the weighted average remaining amortization periods at June 28, 2025 (amortization periods in years):
|
Unrecognized
Compensation
Cost
|
Weighted
Average
Remaining
Amortization
Periods
|
|||||||
|
Restricted stock units
|
$
|
|
|
|||||
|
Phantom stock units
|
|
n/a
|
||||||
|
Total
|
$
|
|
||||||
18
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Restricted Stock Units
RSU activity under the Company's stock incentive programs as of June 28, 2025
and changes during the six fiscal months then ended are presented below (number of RSUs in thousands):
|
Number of
RSUs
|
Weighted
Average
Grant-date
Fair Value per
Unit
|
|||||||
| Outstanding: | ||||||||
| January 1, 2025 |
|
$
|
|
|||||
| |
|
|
||||||
| Vested** |
(
|
)
|
|
|||||
| Cancelled or forfeited |
(
|
)
|
|
|||||
| Outstanding at June 28, 2025 |
|
$
|
|
|||||
| Expected to vest at June 28, 2025 |
|
|||||||
* Employees in certain countries are granted equity-linked awards that will be settled in cash and are accounted for as liability
awards. The liability awards are not material. The number of RSUs granted excludes these awards.
** The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy the statutory tax withholding requirements.
The number of performance-based RSUs that are scheduled to vest increases ratably based on the achievement of defined performance and market criteria between
the established target and maximum levels. RSUs with performance-based and market-based vesting criteria are expected to vest as follows (number of RSUs in thousands):
|
Vesting Date
|
Expected
to Vest
|
Not Expected
to Vest
|
Total
|
|||||||||
| January 1, 2026 |
|
|
|
|||||||||
| January 1, 2027 |
|
|
|
|||||||||
| January 1, 2028 | ||||||||||||
| March 1, 2029 | ||||||||||||
Phantom Stock Units
Phantom stock unit activity as of June 28, 2025
and changes during the six fiscal months then ended are presented below (number of phantom stock units in thousands):
|
Number of
units
|
Grant-date
Fair Value per
Unit
|
|||||||
|
Outstanding:
|
||||||||
|
January 1, 2025
|
|
|||||||
|
Granted
|
|
$
|
|
|||||
|
Dividend equivalents issued
|
|
|||||||
| Outstanding at June 28, 2025 |
|
|||||||
19
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 11 – Segment Information
The following tables set forth business segment information:
|
MOSFETs
|
Diodes
|
Optoelectronic
Components
|
Resistors
|
Inductors
|
Capacitors
|
Corporate/
Other
|
Total
|
|||||||||||||||||||||||||
|
Fiscal quarter ended June 28, 2025:
|
||||||||||||||||||||||||||||||||
|
Net revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
| Cost of products sold (excluding depreciation) |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Depreciation expense in costs of products sold |
||||||||||||||||||||||||||||||||
| Total costs of products sold |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gross profit |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating expenses |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating income (loss) |
$ | ( |
) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Total depreciation expense |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||
| Total assets as of June 28, 2025: |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
Fiscal quarter ended June 29, 2024:
|
||||||||||||||||||||||||||||||||
|
Net revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
| Cost of products sold (excluding depreciation) |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Depreciation expense in cost of products sold |
||||||||||||||||||||||||||||||||
| Total cost of products sold |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gross profit |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating expenses |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating income |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Total depreciation expense |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||
|
Total assets as of June 29, 2024:
|
$
|
|
$
|
|
$ | $ | $ | $ | $ |
$
|
|
|||||||||||||||||||||
20
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
|
MOSFETs
|
Diodes
|
Optoelectronic
Components
|
Resistors
|
Inductors
|
Capacitors
|
Corporate/
Other
|
Total
|
|||||||||||||||||||||||||
|
Six fiscal months ended June 28, 2025:
|
||||||||||||||||||||||||||||||||
|
Net revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||||
| Cost of products sold (excluding depreciation) |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Depreciation expense in costs of products sold |
||||||||||||||||||||||||||||||||
| Total costs of products sold |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gross profit |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating expenses |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating income (loss) |
$ | ( |
) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Total depreciation expense |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||
|
Six fiscal months ended June 29, 2024:
|
||||||||||||||||||||||||||||||||
|
Net revenues
|
$ |
$
|
|
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Cost of products sold (excluding depreciation) |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Depreciation expense in cost of products sold |
||||||||||||||||||||||||||||||||
| Total cost of products sold |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gross profit |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating expenses |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment operating income |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Total depreciation expense |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Reconciliation:
|
||||||||||||||||
|
Segment Operating Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Unallocated Selling, General, and Administrative Expenses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Consolidated Operating Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Unallocated Other Income (Expense)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
|
Consolidated Income Before Taxes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
21
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
The Company has a broad line of products that it sells to original equipment manufacturers ("OEMs"), electronic manufacturing services ("EMS") companies,
and independent distributors. The distribution of sales by channel is shown below:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Distributors
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
OEMs
|
|
|
|
|
||||||||||||
|
EMS companies
|
|
|
|
|
||||||||||||
| Total Revenue |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net revenues were attributable to customers in the following regions:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Asia
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Europe
|
|
|
|
|
||||||||||||
|
Americas
|
|
|
|
|
||||||||||||
| Total Revenue |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
The Company generates substantially all of its revenue from product sales to end customers in the industrial, automotive, telecommunications, computing,
consumer products, power supplies, military and aerospace, and medical end markets. Sales by end market are presented below:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Automotive
|
|
|
|
|
||||||||||||
|
Military and Aerospace
|
|
|
|
|
||||||||||||
|
Medical
|
|
|
|
|
||||||||||||
|
Other
|
|
|
|
|
||||||||||||
|
Total Revenue
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
22
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 12 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to Vishay stockholders (shares in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Numerator:
|
||||||||||||||||
|
Net earnings (loss) attributable to Vishay stockholders
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
|
Denominator:
|
||||||||||||||||
|
Denominator for basic earnings (loss) per share:
|
||||||||||||||||
|
Weighted average shares
|
|
|
|
|
||||||||||||
|
Outstanding phantom stock units
|
|
|
|
|
||||||||||||
|
Adjusted weighted average shares
|
|
|
|
|
||||||||||||
|
Effect of dilutive securities:
|
||||||||||||||||
|
Restricted stock units
|
|
|
|
|
||||||||||||
|
Dilutive potential common shares
|
|
|
|
|
||||||||||||
|
Denominator for diluted earnings per share:
|
||||||||||||||||
|
Adjusted weighted average shares - diluted
|
|
|
|
|
||||||||||||
|
Basic earnings (loss) per share attributable to Vishay stockholders
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
|
Diluted earnings (loss) per share attributable to Vishay stockholders
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Diluted earnings (loss) per share for the periods presented do not reflect the following weighted average potential common shares that would have an
antidilutive effect or have unsatisfied performance conditions (in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||
|
June 28, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
|||||||||||||
|
Restricted stock units
|
|
|
|
|
||||||||||||
If the average market price of Vishay common stock is less than the effective
conversion price of the convertible senior notes due 2030, no shares are included in the diluted earnings per share computation for the convertible senior notes due 2030. Pursuant to the indenture governing the convertible senior notes due 2030, Vishay will satisfy its conversion obligations by paying $1 cash per $1 principal amount of converted notes and settle any additional amounts due in cash
and/or common stock.
In connection with the issuance of the convertible senior notes due 2030, the Company entered into capped call transactions, which were not included in the
calculation of diluted earnings per share as their effect would have been anti-dilutive. The capped calls are intended to reduce the potential dilution to the Company's common stock in the event that at the time of conversion of the convertible senior notes due 2030 the Company's common stock price exceeds the conversion price of the convertible senior notes due 2030.
23
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
Note 13 – Fair Value Measurements
The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis:
|
Total
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
| June 28, 2025 |
||||||||||||||||
|
Assets:
|
||||||||||||||||
|
Assets held in rabbi trusts
|
$
|
$
|
$
|
$
|
||||||||||||
|
Available for sale securities
|
$
|
|||||||||||||||
|
$
|
$
|
$
|
$
|
|||||||||||||
| Liability: |
||||||||||||||||
| Acquisitions contingent consideration |
$ | $ | $ | $ | ||||||||||||
| December 31, 2024
|
||||||||||||||||
|
Assets:
|
||||||||||||||||
|
Assets held in rabbi trusts
|
$
|
$
|
$
|
$
|
||||||||||||
|
Available for sale securities
|
$
|
|||||||||||||||
|
$
|
$
|
$
|
$
|
|||||||||||||
| Liability: |
||||||||||||||||
| Acquisitions contingent consideration |
$ | $ | $ | $ | ||||||||||||
There have been no changes in the classification of any financial instruments within the fair value hierarchy in the periods presented.
The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans.
Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale and company-owned life insurance assets. The marketable securities held in the rabbi trusts are valued using quoted market prices on the last business day
of the period. The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of the marketable securities held in
the rabbi trust is considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.
The Company holds investments in debt securities that are intended to fund a portion of its pension and other postretirement benefit obligations outside of
the United States. The investments are valued based on quoted market prices on the last business day of the period. The fair value measurement of the investments is considered a Level 1 measurement within the fair value hierarchy.
The Company may be required to make certain contingent consideration payments related to acquisitions. The fair value of these contingent payments is
determined by estimating the net present value of the expected cash flows based on the probability of expected payments. The fair value measurement of the contingent consideration payments is considered a Level 3 measurement within the fair value
hierarchy.
The fair value of the long-term debt, excluding the derivative liabilities and deferred financing costs, at June 28, 2025 and December 31, 2024 is approximately $865,500 and $850,600 , respectively,
compared to its carrying value, excluding the deferred financing costs, of $935,000 and $927,911 , respectively. The Company estimates the fair value of its long-term debt using a combination of quoted market prices for similar financing arrangements and expected
future payments discounted at risk-adjusted rates, which are considered Level 2 inputs.
24
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)
At June 28, 2025 and December 31, 2024, the Company’s short-term investments were comprised of time deposits with financial institutions that have maturities that exceed 90
days from the date of acquisition; however they all mature within one year from the respective balance sheet dates. The Company's short-term investments are accounted for as held-to-maturity debt instruments, at amortized cost, which approximates
their fair value. The investments are funded with excess cash not expected to be needed for operations prior to maturity; therefore, the Company believes it has the intent and ability to hold the short-term investments until maturity. At each
reporting date, the Company performs an evaluation to determine if any unrealized losses are other-than-temporary. No no no
At June 28, 2025 and December 31, 2024, the Company’s cash and cash equivalents were comprised of demand deposits, time deposits with maturities of three months or less when
purchased, and money market funds. The Company estimates the fair value of its cash, cash equivalents, and short-term investments using Level 2 inputs. Based on the current interest rates for similar investments with comparable credit risk and time
to maturity, the fair value of the Company's cash, cash equivalents, and held-to-maturity short-term investments approximate the carrying amounts reported in the consolidated condensed balance sheets.
In the second fiscal quarter of 2025, the Company entered into a forward contract with a highly-rated financial institution to mitigate the foreign
currency risk associated with an intercompany loan denominated in a currency other than the legal entity's functional currency. The notional amount of the forward contract was $25,000 as of June 28, 2025. We have not designated the forward contract as a hedge for accounting purposes, and as such the change in the fair value of the contract is
recognized in the consolidated condensed statements of operations as a component of other income (expense). The Company estimates the fair value of the forward contract based on applicable and commonly used pricing models using current market
information and is considered a Level 2 measurement within the fair value hierarchy. Due to the timing of the forward contract, the value of the forward contract was immaterial as of June 28, 2025. The Company does not utilize derivatives or other
financial instruments for trading or other speculative purposes.
The Company’s financial instruments also include accounts receivable and accounts payable. The carrying amounts for these financial instruments reported
in the consolidated condensed balance sheets approximate their fair values.
25
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
This Management's Discussion and Analysis ("MD&A") is intended to provide an understanding of Vishay's financial condition, results
of operations and cash flows by focusing on changes in certain key measures from period to period. The MD&A should be read in conjunction with our Consolidated Condensed Financial Statements and accompanying Notes included in Item 1. This
discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in
our Annual Report on Form 10-K, particularly in Item 1A. "Risk Factors," filed with the Securities and Exchange Commission on February 14, 2025.
Overview
Vishay Intertechnology, Inc. ("Vishay," "we," "us," or "our") manufactures one of the world’s largest portfolios of discrete semiconductors and passive
electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets.
We operate in six segments based on product functionality: MOSFETs, Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors.
Our goal is to enhance stockholder value by growing our business and improving earnings per share. Since 1985, we have pursued a business strategy of
growth through focused research and development and acquisitions. We plan to continue to grow our business through intensified internal growth supplemented by opportunistic acquisitions, while maintaining a prudent capital structure. We have
developed go-to-market strategies and are investing in and expanding the key product lines for growth that we have identified. In addition, we are strategically expanding our outsourced production of commodity products to subcontractors. At the
same time, we are enhancing our channel management while investing in internal resources by adding customer-facing engineers and filling gaps in technology and market coverage. Taken together, each of these initiatives supports our Think Customer
First organizational culture.
We are focused on realizing the full value of our broad product portfolio, becoming a customer-first company, and capitalizing on the mega trends of
e-mobility, sustainability, and connectivity to drive top line growth, expand margins, and optimize stockholder returns. We are using eight strategic levers to achieve these goals. Despite the industry recovery being slower than expected, we
remain committed to our long-term plan of increasing our capacity to assure our customers of reliable volume as they scale. While we plan to advance our capacity expansion projects, we have and will continue to modulate spending in response to
order flow and the timing of customer demand and qualification. The decreased lead time for equipment and the increased subcontractor capacity are also variables that allow us to adjust our capacity spending. For 2025, we plan to spend between
$300 million to $350 million for capital expenditures, at least 70% of which will be invested in capacity expansion projects for high growth products lines, including our wafer fab expansions.
In addition to enhancing stockholder value through growing our business, in 2022, our Board of Directors adopted a Stockholder
Return Policy, which calls for us to return at least 70% of free cash flow, net of scheduled principal payments of long-term debt, on an annual basis. See further discussion in “Stockholder Return Policy” below.
Our business and operating results have been and will continue to be impacted
by worldwide economic conditions. Our revenues are dependent on end markets that are impacted by consumer and industrial demand, and our operating results can be adversely affected by reduced demand in those global markets. In this volatile
economic environment, we continue to closely monitor our fixed costs, capital expenditure plans, inventory, and capital resources to respond to changing conditions and to ensure we have the management, business processes, and resources to meet our
future needs. We believe we can react quickly and professionally to changes in demand to minimize manufacturing inefficiencies and excess inventory build in periods of decline and maximize opportunities in periods of growth. The Company
implemented restructuring programs in the third fiscal quarter of 2024 designed to optimize the Company's manufacturing footprint and streamline business decision making. We believe we have significant liquidity to withstand temporary
disruptions in the economic environment.
We utilize several financial metrics, including net revenues, gross profit margin, operating margin, segment operating margin, end-of-period backlog,
book-to-bill ratio, inventory turnover, change in average selling prices, net cash and short-term investments (debt), and free cash generation to evaluate the performance and assess the future direction of our business. See further discussion in
“Financial Metrics” and “Financial Condition, Liquidity, and Capital Resources” below. The key financial metrics increased versus the prior fiscal quarter, but were mixed versus the prior year period. Net revenues and margins increased versus the
prior fiscal quarter and net revenues increased versus the prior year quarter, but margins were lower. The increases are primarily due to increased sales volume.
26
Net revenues for the fiscal quarter ended June 28, 2025
were $762.3 million, compared to $715.2
million and $741.2 million for the fiscal quarters ended March 29, 2025 and June 29, 2024, respectively. The net earnings attributable to Vishay
stockholders for the fiscal quarter ended June 28, 2025 was $2.0 million, or $0.01 per diluted share, compared to a net loss
of $(4.1) million, or $(0.03)
per share for the fiscal quarter ended March 29, 2025, and net earnings of $23.5 million, or $0.17 per diluted share for the fiscal quarter
ended June 29, 2024.
Net revenues for the six fiscal months
ended June 28, 2025 were $1,477.5
million, compared to $1,487.5 million for the six fiscal months ended June 29, 2024. The net loss attributable to Vishay
stockholders for the six fiscal months ended June 28, 2025 was $(2.1) million, or $(0.02) per share, compared to net earnings of $54.5 million, or
$0.39 per diluted share for the six
fiscal months ended June 29, 2024.
We define adjusted net earnings as net earnings (loss) determined in accordance with GAAP adjusted for various items that
management believes are not indicative of the intrinsic operating performance of our business. We define free cash as the cash flows generated from continuing operations less capital expenditures plus net proceeds from the sale of property and
equipment. The reconciliations below include certain financial measures which are not recognized in accordance with GAAP, including adjusted net earnings, adjusted earnings per share, and free cash. These non-GAAP measures should not be viewed as
alternatives to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, and free cash do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable
to similarly titled measures used by other companies. Management believes that adjusted net earnings and adjusted earnings per share are meaningful because they provide insight with respect to our intrinsic operating results. Management believes
that free cash is a meaningful measure of our ability to fund acquisitions, repay debt, and otherwise enhance stockholder value through stock repurchases or dividends. We utilize the free cash metric in defining our Stockholder Return Policy.
Net earnings (loss) attributable to Vishay stockholders include items affecting comparability. The items affecting comparability are (in thousands, except per share amounts):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
GAAP net earnings (loss) attributable to Vishay stockholders
|
$
|
2,004
|
$
|
(4,092
|
)
|
$
|
23,533
|
$
|
(2,088
|
)
|
$
|
54,457
|
||||||||
|
|
||||||||||||||||||||
|
Reconciling items affecting operating income:
|
||||||||||||||||||||
|
Favorable resolution of contingency
|
$
|
(11,293
|
)
|
$
|
-
|
$
|
-
|
$
|
(11,293
|
)
|
$
|
-
|
||||||||
|
|
||||||||||||||||||||
|
Adjusted net earnings (loss)
|
$
|
(9,289
|
)
|
$
|
(4,092
|
)
|
$
|
23,533
|
$
|
(13,381
|
)
|
$
|
54,457
|
|||||||
| Adjusted weighted average diluted shares outstanding |
135,702 | 135,799 | 138,084 | 135,750 | 138,279 | |||||||||||||||
| Adjusted earnings (loss) per diluted share | $ | (0.07 | ) | $ | (0.03 | ) | $ | 0.17 | $ | (0.10 | ) | $ | 0.39 | |||||||
27
The following table
reconciles gross profit by segment to consolidated gross profit (in thousands).
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
MOSFETs
|
$
|
9,379
|
$
|
11,606
|
$
|
21,569
|
$
|
20,985
|
$
|
47,042
|
||||||||||
|
Diodes
|
29,538
|
28,022
|
30,999
|
57,560
|
63,369
|
|||||||||||||||
|
Optoelectronic Components
|
12,558
|
10,700
|
14,205
|
23,258
|
21,206
|
|||||||||||||||
|
Resistors
|
44,330
|
40,354
|
41,182
|
84,684
|
87,653
|
|||||||||||||||
|
Inductors
|
26,836
|
17,597
|
28,284
|
44,433
|
55,071
|
|||||||||||||||
|
Capacitors
|
26,042
|
27,275
|
26,631
|
53,317
|
58,936
|
|||||||||||||||
|
Gross profit
|
$
|
148,683
|
$
|
135,554
|
$
|
162,870
|
$
|
284,237
|
$
|
333,277
|
||||||||||
Although the term "free cash" is not defined in GAAP, each of the elements used to calculate free cash for the year-to-date period is presented as a line
item on the face of our consolidated condensed statement of cash flows prepared in accordance with GAAP and the quarterly amounts are derived from the year-to-date GAAP statements as of the beginning and end of the respective quarter. Free cash
results are as follows (in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net cash provided by (used in) continuing operating activities
|
$
|
(8,791
|
)
|
$
|
16,098
|
$
|
(24,730
|
)
|
$
|
7,307
|
$
|
55,481
|
||||||||
|
Proceeds from sale of property and equipment
|
215
|
279
|
514
|
494
|
1,265
|
|||||||||||||||
|
Less: Capital expenditures
|
(64,598
|
)
|
(61,569
|
)
|
(62,564
|
)
|
(126,167
|
)
|
(115,648
|
)
|
||||||||||
|
Free cash
|
$
|
(73,174
|
)
|
$
|
(45,192
|
)
|
$
|
(86,780
|
)
|
$
|
(118,366
|
)
|
$
|
(58,902
|
)
|
|||||
For the past several quarters, orders were negatively impacted by a distributor inventory correction and channel inventory that overhung the market, but there are indicators that the
prolonged period of excess inventory digestion is ending. The long-term outlook of our business remains strong, although our results are weaker than our prior year results.
28
Stockholder Return Policy
In 2022, our Board of Directors adopted a Stockholder Return Policy, which calls for us to return at least 70% of free cash flow, net of scheduled
principal payments of long-term debt, on an annual basis. We intend to return such amounts to stockholders directly, in the form of dividends, or indirectly, in the form of stock repurchases. The policy sets forth our intention, but does not obligate us to acquire any shares of common stock or declare any dividends, and the policy may be terminated or suspended at any time at our discretion, in accordance with
applicable laws and regulations. We expect negative free cash flow for the fiscal year ending December 31, 2025 due to our capacity expansion plans. As a result, we expect to maintain our dividend and opportunistically repurchase shares based
on U.S. available liquidity in line with this policy. We did not repurchase any shares of common stock in the second fiscal quarter. We expect to be in compliance with our Stockholder Return Policy without repurchasing any additional
shares in 2025.
Tariff Impact
The newly announced U.S. tariffs will impact our future results. The tariff rates and application are currently unsettled and any potential demand
distraction is not able to be estimated at this time. Historically, we have charged tariff adders to customers to offset increased costs. The gross profit impact of the tariffs and tariff adders is approximately zero, but they negatively
impact gross profit margin. The net impact of tariffs on gross profit margin in the second fiscal quarter was (40) basis points.
Recent Developments
The announcement of the U.S. tariffs and recent geopolitical events resulted in significant stock market volatility and uncertainty in the markets
for our products. A sustained decrease in share price or prolonged deterioration in the general economy could represent indicators of impairment of our goodwill or other long-lived assets.
29
Financial Metrics
We utilize several financial metrics to evaluate the performance and assess the future direction of our business. These key financial measures and metrics
include net revenues, gross profit margin, operating margin, segment operating income, segment operating margin, end-of-period backlog, and the book-to-bill ratio. We also monitor changes in inventory turnover and our or publicly available average
selling prices (“ASP”).
Gross profit margin is computed as gross profit as a percentage of net revenues. Gross profit is generally net revenues less costs of products sold, but
also deducts certain other period costs, particularly losses on purchase commitments and inventory write-downs. Losses on purchase commitments and inventory write-downs have the impact of reducing gross profit margin in the period of the charge, but
result in improved gross profit margins in subsequent periods by reducing costs of products sold as inventory is used. We also regularly evaluate gross profit by segment to assist in the analysis of consolidated gross profit. Gross profit margin
and gross profit margin by segment are clearly a function of net revenues, but also reflect our cost management programs and our ability to contain fixed costs.
Operating margin is computed as gross profit less operating expenses, expressed as a percentage of net revenues. Operating margin is clearly a function of
net revenues, but also reflects our cost management programs and our ability to contain fixed costs.
Our chief operating decision maker makes decisions, allocates resources, and evaluates business segment performance based on segment gross profit and
segment operating income. Only dedicated, direct selling, general, and administrative ("SG&A") expenses of the segments are included in the calculation of segment operating income. We do not allocate certain SG&A expenses that are managed
at the regional or corporate global level to our segments. Accordingly, segment operating income excludes these SG&A expenses that are not directly traceable to the segments. Segment operating income would also exclude costs not routinely used
in the management of the segments in periods when those items are present, such as restructuring and severance costs, goodwill impairment charges, and other items affecting comparability. Segment operating income is clearly a function of net
revenues, but also reflects our cost management programs and our ability to contain fixed costs. Segment operating margin is segment operating income expressed as a percentage of net revenues.
End-of-period backlog is one indicator of future revenues. We include in our backlog only open orders that we expect to ship in the next twelve months. If
demand falls below customers’ forecasts, or if customers do not control their inventory effectively, they may cancel or reschedule the shipments that are included in our backlog, in many instances without the payment of any penalty. Therefore, the
backlog is not necessarily indicative of the results to be expected for future periods.
An important indicator of demand in our industry is the book-to-bill ratio, which is the ratio of the amount of product ordered during a period as compared
with the product that we ship during that period. A book-to-bill ratio that is greater than one indicates that our backlog is building and that we are likely to see increasing revenues in future periods. Conversely, a book-to-bill ratio that is less
than one is an indicator of declining demand and may foretell declining revenues.
We focus on our inventory turnover as a measure of how well we are managing our inventory. We define inventory turnover for a financial reporting period
as our costs of products sold for the four fiscal quarters ending on the last day of the reporting period divided by our average inventory (computed using each fiscal quarter-end balance) for this same period. A higher level of inventory turnover
reflects more efficient use of our capital.
Pricing in our industry can be volatile. Using our and publicly available data, we analyze trends and changes in average selling prices to evaluate likely
future pricing. The erosion of average selling prices of established products is typical for semiconductor products. We attempt to offset this deterioration with ongoing cost reduction activities and new product introductions. Our specialty
passive components are more resistant to average selling price erosion. All pricing is subject to governing market conditions and is independently set by us.
30
The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following table
shows net revenues, gross profit margin, operating margin, end-of-period backlog, book-to-bill ratio, inventory turnover, and changes in ASP for our business as a whole during the five fiscal quarters beginning with the second fiscal quarter of 2024 through
the second fiscal quarter of 2025 (dollars in thousands):
|
2nd Quarter 2024
|
3rd Quarter 2024
|
4th Quarter 2024
|
1st Quarter 2025
|
2nd Quarter 2025
|
||||||||||||||||
|
Net revenues
|
$
|
741,239
|
$
|
735,353
|
$
|
714,716
|
$
|
715,236
|
$
|
762,250
|
||||||||||
|
Gross profit margin
|
22.0
|
%
|
20.5
|
%
|
19.9
|
%
|
19.0
|
%
|
19.5
|
%
|
||||||||||
|
Operating margin(1)
|
5.1
|
%
|
(2.5
|
)%
|
(7.9
|
)%
|
0.1
|
%
|
2.9
|
%
|
||||||||||
|
End-of-period backlog
|
$
|
1,145,400
|
$
|
1,075,800
|
$
|
1,051,500
|
$
|
1,124,300
|
$
|
1,174,900
|
||||||||||
|
Book-to-bill ratio
|
0.86
|
0.88
|
1.01
|
1.08
|
1.02
|
|||||||||||||||
|
Inventory turnover
|
3.4
|
3.4
|
3.3
|
3.3
|
3.3
|
|||||||||||||||
|
Change in ASP vs. prior quarter
|
(0.7
|
)%
|
(1.0
|
)%
|
(0.6
|
)%
|
(1.3
|
)%
|
0.0
|
%
|
||||||||||
_________________________________________
(1) Operating margin for the second fiscal quarter of 2025 includes an $11.3 million gain recognized upon the favorable resolution of a contingency. Operating margin for the third fiscal quarter of 2024 includes $40.6 million of restructuring and severance expenses (see Note 2 to our consolidated condensed financial statements). Operating margin for the fourth fiscal quarter of 2024 includes $66.5 million of goodwill impairment charges.
See “Financial Metrics by Segment” below for net revenues, book-to-bill ratio, and gross profit margin broken out by segment.
Revenues increased versus the prior fiscal quarter
and prior year quarter. The increases versus the prior fiscal quarter and prior year quarter are primarily due to higher sales volume and favorable exchange rate impacts. The book-to-bill ratio remained above 1.0 for the third consecutive
quarter. Backlog was relatively flat versus the prior fiscal quarter and prior year fiscal quarter. We continue to increase capacity for critical product lines. Average selling prices, including tariff adders, were flat versus the prior fiscal
quarter, but decreased versus the prior year fiscal quarter.
Gross profit margin increased versus the prior fiscal quarter, but decreased versus the prior year fiscal quarter. The increase versus the prior fiscal
quarter is primarily due to higher sales volume and lower fixed costs. The decrease versus the prior year quarter is primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also
contributed to the decrease versus the prior year quarter.
31
Financial Metrics by Segment
The following table shows net revenues, book-to-bill ratio, gross profit margin, and segment operating margin broken out by segment for the five fiscal
quarters beginning with the second fiscal quarter of 2024 through the second fiscal quarter of 2025 (dollars in thousands):
|
2nd Quarter 2024
|
3rd Quarter 2024
|
4th Quarter 2024
|
1st Quarter 2025
|
2nd Quarter 2025
|
||||||||||||||||
|
MOSFETs
|
||||||||||||||||||||
|
Net revenues
|
$
|
155,053
|
$
|
147,134
|
$
|
146,619
|
$
|
142,113
|
$
|
148,633
|
||||||||||
|
Book-to-bill ratio
|
0.79
|
0.84
|
0.98
|
1.32
|
1.00
|
|||||||||||||||
|
Gross profit margin
|
13.9
|
%
|
11.7
|
%
|
15.6
|
%
|
8.2
|
%
|
6.3
|
%
|
||||||||||
|
Segment operating margin
|
1.2
|
%
|
(2.9
|
)%
|
0.8
|
%
|
(6.1
|
)%
|
(9.7
|
)%
|
||||||||||
|
Diodes
|
||||||||||||||||||||
|
Net revenues
|
$
|
146,265
|
$
|
145,183
|
$
|
141,397
|
$
|
140,963
|
$
|
147,942
|
||||||||||
|
Book-to-bill ratio
|
0.85
|
0.74
|
1.00
|
0.99
|
0.93
|
|||||||||||||||
|
Gross profit margin
|
21.2
|
%
|
20.1
|
%
|
20.2
|
%
|
19.9
|
%
|
20.0
|
%
|
||||||||||
|
Segment operating margin
|
16.7
|
%
|
15.7
|
%
|
16.1
|
%
|
15.0
|
%
|
15.0
|
%
|
||||||||||
|
Optoelectronic Components
|
||||||||||||||||||||
|
Net revenues
|
$
|
53,010
|
$
|
63,227
|
$
|
46,932
|
$
|
51,168
|
$
|
54,119
|
||||||||||
|
Book-to-bill ratio
|
0.82
|
0.77
|
1.00
|
0.90
|
1.05
|
|||||||||||||||
|
Gross profit margin
|
26.8
|
%
|
18.3
|
%
|
11.7
|
%
|
20.9
|
%
|
23.2
|
%
|
||||||||||
|
Segment operating margin
|
16.4
|
%
|
9.7
|
%
|
1.1
|
%
|
10.6
|
%
|
12.6
|
%
|
||||||||||
|
Resistors
|
||||||||||||||||||||
|
Net revenues
|
$
|
179,498
|
$
|
180,889
|
$
|
177,031
|
$
|
179,500
|
$
|
194,769
|
||||||||||
|
Book-to-bill ratio
|
0.87
|
0.95
|
0.91
|
1.00
|
0.91
|
|||||||||||||||
|
Gross profit margin
|
22.9
|
%
|
22.5
|
%
|
17.3
|
%
|
22.5
|
%
|
22.8
|
%
|
||||||||||
|
Segment operating margin
|
18.3
|
%
|
17.9
|
%
|
12.7
|
%
|
17.4
|
%
|
17.9
|
%
|
||||||||||
|
Inductors
|
||||||||||||||||||||
|
Net revenues
|
$
|
94,061
|
$
|
90,253
|
$
|
83,390
|
$
|
84,121
|
$
|
95,675
|
||||||||||
|
Book-to-bill ratio
|
0.97
|
0.83
|
1.01
|
1.02
|
0.91
|
|||||||||||||||
|
Gross profit margin
|
30.1
|
%
|
30.3
|
%
|
29.6
|
%
|
20.9
|
%
|
28.0
|
%
|
||||||||||
|
Segment operating margin
|
26.1
|
%
|
26.2
|
%
|
25.0
|
%
|
16.5
|
%
|
24.0
|
%
|
||||||||||
|
Capacitors
|
||||||||||||||||||||
|
Net revenues
|
$
|
113,352
|
$
|
108,667
|
$
|
119,347
|
$
|
117,371
|
$
|
121,112
|
||||||||||
|
Book-to-bill ratio
|
0.87
|
1.10
|
1.21
|
1.13
|
1.40
|
|||||||||||||||
|
Gross profit margin
|
23.5
|
%
|
22.9
|
%
|
25.1
|
%
|
23.2
|
%
|
21.5
|
%
|
||||||||||
|
Segment operating margin
|
18.5
|
%
|
17.4
|
%
|
20.0
|
%
|
17.5
|
%
|
16.3
|
%
|
||||||||||
32
Results of Operations
Statements of operations’ captions as a percentage of net revenues and the effective tax rates were as follows:
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Cost of products sold
|
80.5
|
%
|
81.0
|
%
|
78.0
|
%
|
80.8
|
%
|
77.6
|
%
|
||||||||||
|
Gross profit
|
19.5
|
%
|
19.0
|
%
|
22.0
|
%
|
19.2
|
%
|
22.4
|
%
|
||||||||||
|
Selling, general & administrative expenses
|
16.6
|
%
|
18.8
|
%
|
16.9
|
%
|
17.7
|
%
|
17.0
|
%
|
||||||||||
|
Operating income
|
2.9
|
%
|
0.1
|
%
|
5.1
|
%
|
1.6
|
%
|
5.4
|
%
|
||||||||||
|
Income (loss) before taxes and noncontrolling interest
|
1.6
|
%
|
(0.6
|
)%
|
4.9
|
%
|
0.5
|
%
|
5.4
|
%
|
||||||||||
|
Net earnings (loss) attributable to Vishay stockholders
|
0.3
|
%
|
(0.6
|
)%
|
3.2
|
%
|
(0.1
|
)%
|
3.7
|
%
|
||||||||||
|
________
|
||||||||||||||||||||
|
Effective tax rate
|
83.7
|
%
|
3.2
|
%
|
34.2
|
%
|
125.9
|
%
|
31.3
|
%
|
||||||||||
Net Revenues
Net revenues were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$
|
762,250
|
$
|
715,236
|
$
|
741,239
|
$
|
1,477,486
|
$
|
1,487,518
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025 |
Six fiscal months ended
June 28, 2025 |
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
47,014
|
6.6
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
21,011
|
2.8
|
%
|
$
|
(10,032
|
)
|
(0.7
|
)%
|
|||||||
Changes in net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Increase in volume
|
4.3
|
%
|
2.8
|
%
|
0.9
|
%
|
||||||
|
Change in average selling prices
|
0.0
|
%
|
(2.0
|
)%
|
(2.5
|
)%
|
||||||
|
Foreign currency effects
|
2.3
|
%
|
1.5
|
%
|
0.2
|
%
|
||||||
|
Acquisitions
|
0.0
|
%
|
0.4
|
%
|
0.5
|
%
|
||||||
|
Other
|
0.0
|
%
|
0.1
|
%
|
0.2
|
%
|
||||||
|
Net change
|
6.6
|
%
|
2.8
|
%
|
(0.7
|
)%
|
||||||
There are indications that the channel inventory that has overhung the market is normalizing
and the prolonged period of excess inventory digestion is ending. The long-term prospects for our business remain favorable, and we continue to increase manufacturing capacities for critical product lines. The increase in net revenues versus
the prior fiscal quarter and prior year periods are primarily due to sales volume and favorable foreign currency impacts.
Gross Profit Margins
Gross profit margins for the fiscal quarter ended June 28, 2025 were 19.5%, versus 19.0% and 22.0%, for the comparable prior quarter and prior year quarter, respectively. Gross
profit margins for the six fiscal months ended June 28, 2025 were 19.2%, versus 22.4% for the comparable prior year period. Gross profit margin increased versus the prior fiscal quarter primarily due to higher sales volume. The decreases versus the prior
year periods are primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year-to-date period.
33
Segments
Analysis of revenues and margins for our segments is provided below.
MOSFETs
Net revenues, gross profit margins, and segment operating margins of the MOSFETs segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$ |
148,633
|
$ |
142,113
|
$ |
155,053
|
$ |
290,746
|
$ |
308,226
|
||||||||||
|
Gross profit margin
|
6.3
|
%
|
8.2
|
%
|
13.9
|
%
|
7.2
|
%
|
15.3
|
%
|
||||||||||
|
Segment operating margin
|
(9.7
|
)%
|
(6.1
|
)%
|
1.2
|
%
|
(8.0
|
)%
|
3.2
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
6,520
|
4.6
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
(6,420
|
)
|
(4.1
|
)%
|
$
|
(17,480)
|
(5.7
|
)%
|
|||||||
Changes in MOSFETs segment net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Change in volume
|
8.1
|
%
|
3.5
|
%
|
(0.2
|
)%
|
||||||
|
Decrease in average selling prices
|
(4.0
|
)%
|
(7.9
|
)%
|
(6.1
|
)%
|
||||||
|
Foreign currency effects
|
1.1
|
%
|
0.7
|
%
|
0.1
|
%
|
||||||
| Acquisition |
0.0 | % | 0.0 | % | 0.6 | % | ||||||
|
Other
|
(0.6
|
)%
|
(0.4
|
)%
|
(0.1
|
)%
|
||||||
|
Net change
|
4.6
|
%
|
(4.1
|
)%
|
(5.7
|
)%
|
||||||
Net revenues of the MOSFETs segment increased versus the prior fiscal quarter, but decreased versus the prior year periods. The increase
versus the prior fiscal quarter is primarily due to increased sales to distribution customers, power supply end market customers, and customers in the Asia region. The decreases versus the prior year periods are primarily due to
decreased sales to OEM customers, industrial end market customers, and customers in the Europe region.
Gross profit margin decreased versus the prior fiscal quarter and prior year periods. The decreases are primarily due to lower average selling prices. Costs associated with the Newport wafer fab also contributed to the decrease
versus the prior year-to-date period.
Segment operating margin decreased versus the prior fiscal quarter and prior year periods. The decreases are primarily due to gross profit
decreases.
Average selling prices decreased versus the prior fiscal quarter and the prior year periods.
We continue to invest to expand mid- and long-term manufacturing capacity for strategic product lines. We are building a 12-inch wafer fab
in Itzehoe, Germany adjacent to our existing 8-inch wafer fab, which we expect will increase our in-house wafer capacity by approximately 70% by 2028 and allow us to balance our in-house and foundry wafer supply.
We acquired leading edge silicon and silicon carbide MOSFETs products with our acquisition of MaxPower in the fourth fiscal quarter of 2022.
We plan to use the Newport wafer fabrication facility acquired in the first fiscal quarter of 2024 as the home for MaxPower to further develop and scale our SiC MOSFETs and diodes capabilities. The acquisitions of MaxPower
Semiconductor, Inc. and the Newport wafer fab, as well as the planned capacity expansions at Itzehoe and Newport, are long-term investments which are not expected to generate significant income or cash flows in the near-term, but should
greatly enhance the long-term position of our MOSFETs business. We remain committed to these long-term projects.
34
Diodes
Net revenues, gross profit margins, and segment operating margins of the Diodes segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$ |
147,942
|
$ |
140,963
|
$ |
146,265
|
$ |
288,905
|
$ |
295,395
|
||||||||||
|
Gross profit margin
|
20.0
|
%
|
19.9
|
%
|
21.2
|
%
|
19.9
|
%
|
21.5
|
%
|
||||||||||
|
Segment operating margin
|
15.0
|
%
|
15.0
|
%
|
16.7
|
%
|
15.0
|
%
|
17.1
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
6,979
|
5.0
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
1,677
|
1.1
|
%
|
$
|
(6,490
|
)
|
(2.2
|
)%
|
|||||||
Changes in Diodes segment net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Increase in volume
|
3.7
|
%
|
5.0
|
%
|
2.9
|
%
|
||||||
|
Decrease in average selling prices
|
(0.7
|
)%
|
(4.9
|
)%
|
(5.2
|
)%
|
||||||
|
Foreign currency effects
|
1.9
|
%
|
1.1
|
%
|
0.2
|
%
|
||||||
|
Other
|
0.1
|
%
|
(0.1
|
)%
|
(0.1
|
)%
|
||||||
|
Net change
|
5.0
|
%
|
1.1
|
%
|
(2.2
|
)%
|
||||||
Net revenues of the Diodes segment increased versus the prior fiscal quarter and the prior year quarter, but decreased versus the prior year-to-date
period. The increases versus the prior fiscal quarter and prior year quarter are primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region. The decrease versus the prior
year-to-date period is primarily due to decreased sales to OEM customers, automotive end market customers, and customers in the Americas region.
Gross profit margin increased slightly versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior
fiscal quarter is primarily due to higher sales volume. The decreases versus the prior year periods is primarily due to lower average selling prices.
Segment operating margin was flat versus the prior fiscal quarter, but decreased versus the prior year periods. The decreases versus the prior year
periods are primarily due to decreased gross profit.
Average selling prices decreased versus the prior fiscal quarter and prior year periods.
35
Optoelectronic Components
Net revenues, gross profit margins, and segment operating margins of the Optoelectronic Components segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$
|
$ 54,119
|
$
|
$ 51,168
|
$
|
$ 53,010
|
$ |
105,287
|
$ |
102,209
|
||||||||||
|
Gross profit margin
|
23.2
|
%
|
20.9
|
%
|
26.8
|
%
|
22.1
|
%
|
20.7
|
%
|
||||||||||
|
Segment operating margin
|
12.6
|
%
|
10.6
|
%
|
16.4
|
%
|
11.6
|
%
|
10.0
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
2,951
|
5.8
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
1,109
|
2.1
|
%
|
3,078
|
3.0
|
%
|
|||||||||
Changes in Optoelectronic Components segment net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Increase in volume
|
3.4
|
%
|
0.4
|
%
|
2.5
|
%
|
||||||
|
Decrease in average selling prices
|
(0.7
|
)%
|
(0.7
|
)%
|
(0.3
|
)%
|
||||||
|
Foreign currency effects
|
3.5
|
%
|
2.3
|
%
|
0.5
|
%
|
||||||
|
Other
|
(0.4
|
)%
|
0.1
|
%
|
0.3
|
%
|
||||||
|
Net change
|
5.8
|
%
|
2.1
|
%
|
3.0
|
%
|
||||||
Net revenues of the Optoelectronic Components segment increased versus the prior fiscal quarter and prior year periods. The increase versus the
prior fiscal quarter is primarily due to increased sales to OEM and distribution customers, industrial and consumer end market customers, and customers in the Europe region. The increase versus the prior year quarter is primarily due to
increased sales to OEM customers, automotive and industrial end market customers, and customers in the Europe region. The increase versus the prior year-to-date period is primarily due to increased sales to distribution customers, industrial
end market customers, and customers in the Asia region.
Gross margin increased versus the prior fiscal quarter and prior year-to-date period, but decreased versus the prior year quarter. The increases
versus the prior fiscal quarter and prior year-to-date period are primarily due to higher sales volume and lower utility costs. The decrease versus the prior year quarter is primarily due to lower average selling prices and higher metals and
fixed costs.
Segment operating margin increased versus the prior fiscal quarter and prior year-to-date period, but decreased versus the prior year quarter. The
changes are primarily due to changes in gross profit.
Average selling prices decreased versus the prior fiscal quarter and prior year periods.
36
Resistors
Net revenues, gross profit margins, and segment operating margins of the Resistors segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$ |
194,769
|
$ |
179,500
|
$ |
179,498
|
$ |
374,269
|
$ |
367,694
|
||||||||||
|
Gross profit margin
|
22.8
|
%
|
22.5
|
%
|
22.9
|
%
|
22.6
|
%
|
23.8
|
%
|
||||||||||
|
Segment operating margin
|
17.9
|
%
|
17.4
|
%
|
18.3
|
%
|
17.7
|
%
|
19.3
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
15,269
|
8.5
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
15,271
|
8.5
|
%
|
$
|
6,575
|
1.8
|
%
|
||||||||
Changes in Resistors segment net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Increase in volume
|
5.3
|
%
|
5.9
|
%
|
2.2
|
%
|
||||||
|
Change in average selling prices
|
0.5
|
%
|
(0.3
|
)%
|
(1.4
|
)%
|
||||||
|
Foreign currency effects
|
2.9
|
%
|
1.9
|
%
|
0.3
|
%
|
||||||
| Acquisitions |
0.0 | % | 0.7 | % | 0.7 | % | ||||||
|
Other
|
(0.2
|
)%
|
0.3
|
%
|
0.0
|
%
|
||||||
|
Net change
|
8.5
|
%
|
8.5
|
%
|
1.8
|
%
|
||||||
Net revenues of the Resistors segment increased versus the prior fiscal quarter and prior year periods. The increases versus the prior fiscal
quarter and prior year quarter are primarily due to increased sales to distribution and OEM customers, industrial and automotive end market customers, and customers in all regions. The increase versus the prior year-to-date period is primarily
due to increased sales to distribution customers, military and aerospace end market customers, and customers in the Asia and Americas regions.
Gross profit margin increased versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal
quarter is primarily due to higher sales volume. The decrease versus the prior year periods is primarily due to lower average selling prices.
Segment operating margin increased versus the prior fiscal quarter, but decreased versus the prior year periods. The changes are primarily due to
changes in gross profit.
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and decreased versus the prior year periods.
We are increasing critical manufacturing capacities for certain product lines. We continue to broaden our business with targeted acquisitions of
specialty resistors businesses.
37
Inductors
Net revenues, gross profit margins, and segment operating margins of the Inductors segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$ |
95,675
|
$ |
84,121
|
$ |
94,061
|
$ |
179,796
|
$ |
182,712
|
||||||||||
|
Gross profit margin
|
28.0
|
%
|
20.9
|
%
|
30.1
|
%
|
24.7
|
%
|
30.1
|
%
|
||||||||||
|
Segment operating margin
|
24.0
|
%
|
16.5
|
%
|
26.1
|
%
|
20.5
|
%
|
26.1
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
11,554
|
13.7
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
1,614
|
1.7
|
%
|
$
|
(2,916
|
)
|
(1.6
|
)%
|
|||||||
Changes in Inductors segment net revenues were attributable to the following:
|
vs. Prior Quarter
|
vs. Prior Year Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Change in volume
|
7.6
|
%
|
(2.1
|
)%
|
(2.5
|
)%
|
||||||
|
Increase in average selling prices
|
4.4
|
%
|
3.0
|
%
|
0.7
|
%
|
||||||
|
Foreign currency effects
|
1.4
|
%
|
0.8
|
%
|
0.2
|
%
|
||||||
|
Other
|
0.3
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||
|
Net change
|
13.7
|
%
|
1.7
|
%
|
(1.6
|
)%
|
||||||
Net revenues of the Inductors segment increased versus the prior fiscal quarter and prior year quarter, but decreased versus the prior year-to-date period. The increase versus the prior fiscal quarter is
primarily due to increased sales to distribution and OEM customers, automotive and industrial end market customers, and customers in all regions. The increase versus the prior year quarter is primarily due to increased sales to distribution
customers, industrial end market customers, and customers in the Asia region. The decrease versus the prior year-to-date period is primarily due to decreased sales to OEM customers, automotive and military and aerospace end market customers, and
customers in the Americas region, partially offset by increased sales to distribution customers and customers in the Asia region.
Gross profit margin increased significantly versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal quarter is primarily due to higher sales volume and manufacturing efficiencies.
The decreases versus the prior year periods are primarily due to lower sales volume.
Segment operating margin increased significantly versus the prior fiscal quarter, but decreased versus the prior year periods. The changes are primarily due to changes in gross profit.
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and prior year periods.
We expect long-term growth in this segment, and are continuously expanding manufacturing capacity for certain product lines and evaluating
acquisition opportunities, particularly of specialty businesses.
38
Capacitors
Net revenues, gross profit margins, and segment operating margins of the Capacitors segment were as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Net revenues
|
$ |
121,112
|
$ |
117,371
|
$ |
113,352
|
$ |
238,483
|
$ |
231,282
|
||||||||||
|
Gross profit margin
|
21.5
|
%
|
23.2
|
%
|
23.5
|
%
|
22.4
|
%
|
25.5
|
%
|
||||||||||
|
Segment operating margin
|
16.3
|
%
|
17.5
|
%
|
18.5
|
%
|
16.9
|
%
|
20.5
|
%
|
||||||||||
The change in net revenues versus the comparable prior periods was as follows (dollars in thousands):
|
Fiscal quarter ended
June 28, 2025
|
Six fiscal months ended
June 28, 2025
|
|||||||||||||||
|
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
|
March 29, 2025
|
$
|
3,741
|
3.2
|
%
|
n/a
|
n/a
|
||||||||||
|
June 29, 2024
|
$
|
7,760
|
6.8
|
%
|
$
|
7,201
|
3.1
|
%
|
||||||||
Changes in Capacitors segment net revenues were attributable to the following:
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
|
Change attributable to:
|
||||||||||||
|
Change in volume
|
(2.8
|
)%
|
(0.7
|
)%
|
0.0
|
%
|
||||||
|
Increase in average selling prices
|
2.1
|
%
|
2.7
|
%
|
0.9
|
%
|
||||||
|
Foreign currency effects
|
3.6
|
%
|
2.4
|
%
|
0.2
|
%
|
||||||
| Acquisitions |
0.0 | % | 1.1 | % | 1.4 | % | ||||||
|
Other
|
0.3
|
%
|
1.3
|
%
|
0.6
|
%
|
||||||
|
Net change
|
3.2
|
%
|
6.8
|
%
|
3.1
|
%
|
||||||
Net revenues of the Capacitors segment increased versus the prior fiscal quarter and prior year periods. The increase versus the prior fiscal
quarter is primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region, partially offset by decreased sales to customers in the Europe region. The increase versus the prior year
quarter is primarily due to increased sales to OEM customers, industrial and telecommunications end market customers, and customers in the Asia region. The increase versus the prior year-to-date period is primarily due to increased sales to
OEM customers, industrial and telecommunications end market customers, and customers in the Europe region, partially offset by decreased sales to military and aerospace end market customers and customers in the Americas region.
Gross profit margin decreased versus the prior fiscal quarter and prior year periods. The decrease versus the prior fiscal quarter is primarily due
to lower sales volume. The decreases versus the prior year periods are primarily due to higher fixed costs. Lower sales volume also contributed to the decrease versus the prior fiscal quarter.
Segment operating margin decreased versus the prior fiscal quarter and prior year periods. The changes are primarily due to gross profit decreases.
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and prior year periods.
39
Selling, General, and Administrative Expenses
Selling, general, and administrative (“SG&A”) expenses are summarized as follows (dollars in thousands):
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
|
June 28, 2025
|
March 29, 2025
|
June 29, 2024
|
June 28, 2025
|
June 29, 2024
|
||||||||||||||||
|
Total SG&A expenses
|
$
|
126,565
|
$
|
134,739
|
$
|
124,953
|
$
|
261,304
|
$
|
252,689
|
||||||||||
|
as a percentage of revenues
|
16.6
|
%
|
18.8
|
%
|
16.9
|
%
|
17.7
|
%
|
17.0
|
%
|
||||||||||
The sequential decrease in SG&A expenses is primarily attributable to an $11.3 million gain recognized upon the favorable resolution of a contingency. Excluding the one-time benefit, the sequential increase is primarily due to exchange
rate impacts. SG&A expenses increased versus the prior year periods due to higher stock-based compensation expense, general cost inflation, and exchange rate impacts.
Other Income (Expense)
Interest expense for the fiscal quarter ended June 28, 2025
increased $1.8 million versus the fiscal quarter ended March 29, 2025 and increased $3.9 million versus the fiscal quarter ended June 29, 2024. Interest expense for the six
fiscal months ended June 28, 2025 increased by $6.2 million versus the six fiscal months ended June 29, 2024. The increases versus the prior fiscal quarter and the prior year periods are due to higher average outstanding balances on our revolving
credit facility.
In the second fiscal quarter of 2025, we entered into a forward contract with a highly-rated financial institution to mitigate the foreign currency risk
associated with an intercompany loan denominated in a currency other than the legal entity's functional currency. The notional amount of the forward contract was $25 million as of June 28, 2025. We have not designated the forward contract as a
hedge for accounting purposes, and as such the change in the fair value of the contract is recognized in the consolidated condensed statements of operations as a component of other income (expense). Due to the timing of the forward contract, the
value of the forward contract was immaterial as of June 28, 2025.
The following tables analyze the components of the line “Other” on the consolidated condensed statements of operations (in thousands):
|
Fiscal quarters ended
|
||||||||||||
|
June 28, 2025
|
June 29, 2024
|
Change
|
||||||||||
|
Foreign exchange gain (loss)
|
$
|
(1,673
|
)
|
$
|
620
|
$
|
(2,293
|
)
|
||||
|
Interest income
|
4,023
|
6,663
|
(2,640
|
)
|
||||||||
|
Other components of net periodic pension expense
|
(1,794
|
)
|
(2,056
|
)
|
262
|
|||||||
|
Investment income (expense)
|
179
|
(148
|
)
|
327
|
||||||||
|
Other
|
12
|
(68
|
)
|
80
|
||||||||
|
$
|
747
|
$
|
5,011
|
$
|
(4,264
|
)
|
||||||
|
Fiscal quarters ended
|
||||||||||||
|
June 28, 2025
|
March 29, 2025
|
Change
|
||||||||||
|
Foreign exchange gain (loss)
|
$
|
(1,673
|
)
|
$
|
1,329
|
$
|
(3,002
|
)
|
||||
|
Interest income
|
4,023
|
3,877
|
146
|
|||||||||
|
Other components of net periodic pension expense
|
(1,794
|
)
|
(1,697
|
)
|
(97
|
)
|
||||||
|
Investment income (expense)
|
179
|
261
|
(82
|
)
|
||||||||
|
Other
|
12
|
(23
|
)
|
35
|
||||||||
|
$
|
747
|
$
|
3,747
|
$
|
(3,000
|
)
|
||||||
|
Six fiscal months ended
|
||||||||||||
|
June 28, 2025
|
June 29, 2024
|
Change
|
||||||||||
|
Foreign exchange gain (loss)
|
$
|
(344
|
)
|
$
|
1,913
|
$
|
(2,257
|
)
|
||||
|
Interest income
|
7,900
|
15,716
|
(7,816
|
)
|
||||||||
|
Other components of net periodic pension expense
|
(3,491
|
)
|
(4,129
|
)
|
638
|
|||||||
|
Investment income (expense)
|
440
|
(514
|
)
|
954
|
||||||||
|
Other
|
(11
|
)
|
112
|
(123
|
)
|
|||||||
|
$
|
4,494
|
$
|
13,098
|
$
|
(8,604
|
)
|
||||||
40
Income Taxes
For the fiscal quarter ended June 28, 2025, our effective tax rate was 83.7%, as
compared to 3.2% and 34.2%
for the fiscal quarters ended March 29, 2025 and June 29, 2024, respectively. For the six fiscal months ended June 28, 2025, our effective tax rate was 125.9%,
as compared to 31.3% for the six
fiscal months ended June 29, 2024. Our current
effective tax rate is not indicative of expected future tax rates due to relatively small items having a disproportionate impact on the current effective tax rate. When pre-tax earnings increase, we expect that our effective tax rate will be
higher than the U.S. statutory rate, excluding unusual transactions.
During the six fiscal months ended June 28, 2025, the liabilities for unrecognized tax benefits decreased $0.7 million on a net basis, primarily due to statute expirations, settlements, and payments, partially offset by accruals for the current period.
On July 4, 2025, H.R. 1 (“the Act”), a tax reconciliation act, was enacted into law in the United States. Under U.S.
GAAP (specifically, Accounting Standards Codification Topic 740), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted. Accordingly, we will account for the
Act in the third fiscal quarter. We are evaluating the Act’s provisions, but are not currently able to estimate the impact of the Act on our deferred tax balances and future income tax expense. Certain provisions of the Act, particularly the
international tax provisions, may have a material impact on our deferred tax balances and future income tax expense.
We operate in a global environment with significant operations in various locations outside the United States. Accordingly, the consolidated income tax
rate is a composite rate reflecting our earnings and the applicable tax rates in the various locations where we operate. Part of our historical strategy has been to achieve cost savings through the transfer and expansion of manufacturing operations
to countries where we can take advantage of lower labor costs and available tax and other government-sponsored incentives.
Additional information about income taxes is included in Note 4 to our consolidated condensed financial statements.
41
Financial Condition, Liquidity, and Capital Resources
Our financial condition as of June 28, 2025 continued to be strong. We have historically been a strong
generator of operating cash flows. The cash generated from operations is used to fund our capital expenditure plans, and cash in excess of our capital expenditure needs is available to fund our acquisition strategy, fund our Stockholder Return
Policy, and to reduce debt levels.
Management uses a non-GAAP measure, "free cash," to evaluate our ability to fund acquisitions, repay debt, and otherwise enhance stockholder value through stock repurchases or
dividends. See "Overview" above for "free cash" definition and reconciliation to GAAP.
Cash flows provided by operating activities were $7.3 million for
the six fiscal months ended June 28, 2025, as compared to cash flows provided by operations of $55.5 million for the six fiscal months ended June 29, 2024.
In order to manage our working capital and operating cash needs, we monitor our cash conversion cycle. The following table presents the components of our
cash conversion cycle during the five fiscal quarters beginning with the second fiscal quarter of 2024 through the second fiscal quarter of 2025:
|
Fiscal quarters ended
|
||||||||||||||||||||
|
2nd Quarter 2024
|
3rd Quarter 2024
|
4th Quarter 2024
|
1st Quarter 2025
|
2nd Quarter 2025
|
||||||||||||||||
|
Days sales outstanding ("DSO") (a)
|
51
|
53
|
53
|
53
|
53
|
|||||||||||||||
|
Days inventory outstanding ("DIO") (b)
|
105
|
106
|
109
|
110
|
109
|
|||||||||||||||
|
Days payable outstanding ("DPO") (c)
|
(31
|
)
|
(32
|
)
|
(34
|
)
|
(34
|
)
|
(32
|
)
|
||||||||||
|
Cash conversion cycle
|
125
|
127
|
128
|
129
|
130
|
|||||||||||||||
a) DSO measures the average collection period of our receivables. DSO is calculated by dividing the average
accounts receivable by the average net revenue per day for the respective fiscal quarter.
b) DIO measures the average number of days from procurement to sale of our product. DIO is calculated by
dividing the average inventory by average cost of goods sold per day for the respective fiscal quarter.
c) DPO measures the average number of days our payables remain outstanding before payment. DPO is calculated
by dividing the average accounts payable by the average cost of goods sold per day for the respective fiscal quarter.
Cash paid for property and equipment for the six
fiscal months ended June 28, 2025 was $126.2
million, as compared to $115.6 million for the six fiscal months ended June 29, 2024. To be well positioned to service our
customers and to fully participate in growing markets, we have increased and expect to maintain a relatively high level of capital expenditures for expansion in the mid-term. We remain committed to our long-term plan of increasing Vishay's
capacity, to assure our customers of reliable volume as they scale. While we plan to advance our capacity expansion projects, we have and will continue to modulate spending in response to order flow and the timing of customer demand and
qualifications. The decreased lead time for equipment and the increased subcontractor capacity are also variables that allow us to adjust our capacity spending. For 2025, we plan to spend between $300 million to $350 million for capital
expenditures, at least 70% of which will be invested in capacity expansion projects for high growth product lines, including our wafer fab expansions.
Free cash flow for the six fiscal months ended June 28, 2025 decreased versus the six
fiscal months ended June 29, 2024 primarily due to decreased net earnings. We expect that free cash flow will be negatively impacted by
the expected high level of capital expenditures for expansion after which we expect to generate increasingly higher levels of free cash. There is no assurance, however, that we will be able to continue to generate cash flows from operations and free
cash at our historical levels, or at all, going forward if the economic environment worsens.
In 2022, our Board of Directors adopted a Stockholder Return Policy that will remain in effect until such time as the Board votes to amend or rescind the policy. See
“Stockholder Return Policy” above for additional information.
The following table summarizes the components of net cash and short-term investments (debt) at June 28, 2025 and December 31, 2024 (in thousands):
|
June 28, 2025
|
December 31, 2024
|
|||||||
|
Credit facility
|
$
|
185,000
|
$
|
136,000
|
||||
| Convertible senior notes, due 2025 | - | 41,911 | ||||||
|
Convertible senior notes, due 2030
|
750,000
|
750,000
|
||||||
|
Deferred financing costs
|
(20,496
|
)
|
(22,892
|
)
|
||||
|
Total debt
|
914,504 | 905,019 | ||||||
|
Cash and cash equivalents
|
473,860 | 590,286 | ||||||
|
Short-term investments
|
5,217 | 16,130 | ||||||
|
Net cash and short-term investments (debt)
|
$ | (435,427 | ) | (298,603 | ) | |||
42
"Net cash and short-term investments (debt)" does not have a uniform definition and is not recognized in accordance with GAAP. This measure should
not be viewed as an alternative to GAAP measures of performance or liquidity. However, management believes that an analysis of "net cash and short-term investments (debt)" assists investors in understanding aspects of our cash and debt
management. The measure, as calculated by us, may not be comparable to similarly titled measures used by other companies.
We invest a portion of our excess cash in highly liquid, high-quality instruments with maturities greater than 90 days, but less than 1 year, which we
classify as short-term investments on our consolidated condensed balance sheets. As these investments were funded using a portion of excess cash and represent a significant aspect of our cash management strategy, we include the investments in the
calculation of net cash and short-term investments (debt).
The interest rates on our short-term investments vary by location. Transactions related to these investments are classified as investing activities on our
consolidated condensed statements of cash flows.
Our business is geographically diverse and our cash is generated by our subsidiaries around the world. Cash dividends to stockholders, share
repurchases, and principal and interest payments on our debt instruments need to be paid by the U.S. parent company, Vishay Intertechnology, Inc. We continue to allocate capital responsibly between our business, our lenders, and our stockholders.
The capital allocated to our business is further allocated between our subsidiaries to meet local operating cash needs, to fund capital expenditures as part of our growth plan, and to meet corporate funding needs while also aiming to minimize our
tax expense.
We repatriated $75 million of accumulated earnings to the United States in the second fiscal quarter of 2025 and paid withholding taxes, in Israel, of $9.4 million. As
of June 28, 2025, $26.5 million of our cash and cash equivalents and short-term investments were held by our U.S. subsidiaries. As of June 28, 2025, we are in a net borrowing position in the U.S. and we expect to continue to be at least
throughout 2025, primarily due to Newport expansion funding requirements. As of June 28, 2025, we have approximately $491.1 million of German and Israeli earnings that are deemed not indefinitely reinvested. Based on the expected timing of
future repatriations, we estimate that the tax liability to repatriate these unremitted earnings will be approximately $75.3 million, which has been accrued, but will only be paid upon repatriation of the unremitted earnings. Repatriating these
unremitted earnings earlier than currently planned may not be possible and would incur additional tax expense. We also have amounts of unremitted foreign earnings held by subsidiaries in countries other than Israel and Germany, which continue to
be reinvested indefinitely, that we have not accrued for the incremental foreign income taxes and withholding taxes payable to foreign jurisdictions that would be incurred to repatriate these amounts. Certain of these subsidiaries are located in
countries with restrictive regulations and high tax rates for repatriating cash. Due to the uncertainties associated with the ability, timing, and method to repatriate these unremitted earnings and other complexities associated with its
hypothetical calculation, determination of the amount of tax expense that would be incurred to repatriate the unremitted earnings is not practicable, but could be significant. Our undrawn credit facility provides us with adequate operating
liquidity in the United States.
Upon successful completion of our growth plan, we expect to generate increasingly higher levels of free cash that will be sufficient to meet our
long-term financing needs related to normal operating requirements, regular dividend payments, share repurchases pursuant to our Stockholder Return Policy, while allowing us to manage our repatriation and financing activities to minimize tax and
interest expense. During the current period of intensified capital expenditures to achieve our growth plans, we are considering a combination of additional and alternative sources of financing and our cash on hand to fund a portion of the capital
expenditures that would conserve cash for future acquisitions while enabling us to minimize tax expense.
We maintain a $750 million revolving credit agreement with a consortium of banks led by JPMorgan Chase Bank, N.A., that matures on May 8, 2028. The
maximum amount available on the revolving credit facility is restricted by the financial covenants described below. The credit facility also provides us the ability to request up to $300 million of incremental facilities, subject to the
satisfaction of certain conditions, which could take the form of additional revolving commitments, incremental “term loan A” or “term loan B” facilities, or incremental equivalent debt.
Pursuant to the credit facility, the financial maintenance covenants include (a) an interest coverage ratio of not less than 3.25 to 1; and (b) a net
leverage ratio of not more than 3.25 to 1 (and a pro forma ratio of 3.00 to 1 on the date of incurrence of additional debt). Net leverage ratio reduces the measure of outstanding debt by up to $250 million of unrestricted cash.
The credit facility limits or restricts us from, among other things, incurring indebtedness, incurring liens on its respective assets, making investments
and acquisitions (assuming our pro forma net leverage ratio is greater than 2.75 to 1.00), making asset sales, and paying cash dividends and making other restricted payments (assuming our pro forma net leverage ratio is greater than 2.50 to 1.00).
We were in compliance with all financial covenants under the credit facility at June 28, 2025. Our interest coverage ratio and net leverage ratio were
10.69 to 1 and 2.34 to 1, respectively. We expect to continue to be in compliance with these covenants based on current projections. Based on our current EBITDA and outstanding revolver balance, the usable capacity on the credit facility is
approximately $275 million.
43
If we are not in compliance with all of the required financial covenants, the credit facility could be terminated by the lenders, and any amounts then
outstanding pursuant to the credit facility could become immediately payable. Additionally, our convertible senior notes due 2030 have cross-default provisions that could accelerate repayment in the event the indebtedness under the credit
facility is accelerated.
Borrowings under the credit facility bear interest at variable reference rates plus an interest margin. The applicable interest margin is based on our
total leverage ratio. We also pay a commitment fee, also based on our total leverage ratio, on undrawn amounts. U.S. dollar borrowings under the credit facility are based on SOFR (including a customary spread adjustment). Borrowings in foreign
currencies bear interest at currency-specific reference rates plus an interest margin. Based on our current total leverage ratio of 3.16 to 1, any new U.S. dollar borrowings will bear interest at SOFR plus 2.10% (including the applicable credit
spread), and the undrawn commitment fee is 0.35% per annum.
The borrowings under the credit facility are secured by a lien on substantially all assets, including accounts receivable, inventory, machinery and
equipment, and general intangibles (but excluding real estate, intellectual property registered or licensed solely for use in, or arising solely under the laws of, any country other than the United States, assets located solely outside of the
United States and deposit and securities accounts), of Vishay and certain significant subsidiaries located in the United States, and pledges of stock in certain subsidiaries; and are guaranteed by certain significant subsidiaries.
We had $136 million outstanding on our revolving credit facility at December 31, 2024 and $185 million outstanding at June 28, 2025. We borrowed
$420 million and repaid $371 million on the revolving credit facility during the six fiscal months ended June 28, 2025. The average outstanding balance on our revolving credit facility calculated at fiscal month-ends was $223 million and the
highest amount outstanding at a fiscal month end was $309 million during the six fiscal months ended June 28, 2025. We expect, at least initially, to fund certain future obligations required to be paid by the U.S. parent company by borrowing
under our credit facility. We also expect to continue to use the credit facility from time-to-time to meet certain short-term financing needs. Additional acquisition activity, convertible debt repurchases, or conversion of our convertible
debt instruments may require additional borrowing under our credit facility or may otherwise require us to incur additional debt. No principal payments on our debt are due until 2028.
The convertible senior notes due 2030 are not currently convertible. Pursuant to the indenture governing the convertible senior notes due 2030, we
will cash-settle the principal amount of $1,000 per note and settle any additional amounts in cash or shares of our common stock. We intend to finance the principal amount of any converted notes using borrowings under our credit facility. No
conversions have occurred to date.
The convertible senior notes due 2025 matured on June 15, 2025. Pursuant to the indenture governing the convertible senior notes due 2025 and the
amendments thereto incorporated in the Supplemental Indenture dated December 23, 2020, we cash-settled the $41.9 million aggregate principal amount outstanding as of June 15, 2025. The settlement was funded using borrowings under our credit
facility. No shares were issued to settle the convertible senior notes due 2025.
44
Safe Harbor Statement
From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may
contain “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,”
“should,” or other similar words or expressions often identify forward-looking statements.
Such statements are based on current expectations only, and are subject to
certain risks, uncertainties, and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may
vary materially from those anticipated, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; delays or difficulties in implementing our cost reduction
strategies; delays or difficulties in expanding our manufacturing capacities; manufacturing or supply chain interruptions or changes in customer demand (including due to political, economic, and health instability and military conflicts and
hostilities); an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in
foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider
acceptable, and integration and performance of acquired businesses; changes in applicable domestic and foreign tax regulations and uncertainty regarding the same; changes in U.S. and foreign trade regulations and tariffs and uncertainty regarding
the same; changes in applicable accounting standards and other factors affecting our operations, markets, capacity to meet demand, products, services, and prices that are set forth in our filings with the SEC, including our annual reports on Form
10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Our 2024 Annual Report on Form 10-K listed various important factors that could cause actual results to differ materially from projected and historic
results. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. Readers can find them in Part I, Item 1A, of that filing under the heading “Risk Factors.” You should understand that it is not
possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our Annual Report on Form 10-K for the year ended December 31, 2024,
filed with the SEC on February 14, 2025, describes our exposure to market risks. There have been no material changes to our market risks since December 31, 2024.
| Item 4. |
Controls and Procedures
|
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief
Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report to ensure that information required to be disclosed in
reports that we file or submit under the Exchange Act are: (1) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (2) accumulated and communicated to our management, including our CEO and
CFO, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.
45
PART II - OTHER INFORMATION
| Item 1. |
Legal Proceedings
|
Item 3 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 14, 2025 describes certain of our legal proceedings. There have been no material developments to the
legal proceedings previously disclosed.
| Item 1A. |
Risk Factors
|
There have been no material changes to the risk factors we previously disclosed under Item 1A of Part I of our Annual Report on Form 10-K for the year
ended December 31, 2024, filed with the SEC on February 14, 2025.
| Item 2. |
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Not applicable.
| Item 3. |
Defaults Upon
Senior Securities
|
Not applicable.
| Item 4. |
Mine Safety
Disclosures
|
Not applicable.
| Item 5. |
Other Information
|
None of our directors or executive officers adopted or terminated a Rule 10b5-1
trading arrangement or adopted or terminated
a non-Rule 10b5-1 trading arrangement (as defined by Item 408(c) of Regulation S-K) during the fiscal quarter ended June 28, 2025.
| Item 6. |
Exhibits
|
|
31.1
|
Certification pursuant to Rule
13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Joel Smejkal, Chief Executive Officer.
|
|
31.2
|
Certification pursuant to Rule
13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - David E. McConnell, Chief Financial Officer.
|
|
32.1
|
Certification Pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Joel Smejkal, Chief Executive Officer.
|
|
32.2
|
Certification Pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – David E. McConnell, Chief Financial Officer.
|
|
101
|
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended June 28, 2025, furnished in iXBRL (Inline eXtensible Business
Reporting Language)).
|
|
104
|
Cover Page Interactive Data File (formatted as Inline eXtensible Business Reporting Language and contained in Exhibit 101)
|
____________
46
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
|
VISHAY INTERTECHNOLOGY, INC.
|
||
|
/s/ David E. McConnell
|
||
|
David E. McConnell
|
||
|
Executive Vice President and Chief Financial Officer
|
||
|
(as a duly authorized officer and principal financial officer)
|
||
|
/s/ David L. Tomlinson
|
||
|
David L. Tomlinson
|
||
|
Senior Vice President - Chief Accounting Officer
|
||
|
(as a duly authorized officer and principal accounting officer)
|
||
Date: August 6, 2025
47
Source:
FAQ
Why did the NYSE notify VNCE of non-compliance?
Because VNCE鈥檚 30-day average market capitalization and stockholders鈥� equity both fell below the $50 million thresholds set in Section 802.01B.
How long does Vince Holding (VNCE) have to regain compliance?
Until November 6, 2026, the end of the NYSE-approved Plan Period.
Will VNCE shares continue trading during the Plan Period?
Yes. The Acceptance Letter states VNCE will remain listed on the NYSE provided it meets all other listing rules.
What happens if VNCE fails to meet NYSE requirements by Nov 6 2026?
The NYSE may begin suspension and delisting proceedings, which could significantly reduce liquidity and market visibility.
Does the NYSE decision change VNCE鈥檚 SEC reporting obligations?
No. The company must continue to file all required reports with the SEC.
Vishay Intertech
NYSE:VSH
VSH Rankings
VSH Latest News
VSH Latest SEC Filings
VSH Stock Data
2.17B
119.58M
3.09%
109.78%
6.9%
Semiconductors
Electronic Components & Accessories
United States
MALVERN