AVX Corporation Announces Second Quarter Results

MYRTLE BEACH, S.C.--(Business Wire)--
AVX Corporation (NYSE: AVX):

Quarter highlights:

-- Revenue increased over the previous quarter to $400.3 million.

-- GAAP earnings per share were $0.16 per diluted share. Non-GAAP
diluted earnings per share, excluding special charges, were
$0.19 per diluted share.

-- Dividends of $6.8 million, or $0.04 per share, were paid
during the current quarter.

AVX today reported net sales for the quarter ended September 30,
2008 of $400.3 million, which represents an increase over the previous
quarter's sales. Net sales for the six month period ended September
30, 2008 increased $13.3 million to $797.2 million compared to net
sales of $783.9 million for the same period last year.

Chief Executive Officer and President, John Gilbertson stated,
"Despite uncertainty in the overall economic picture, the sales in the
current quarter grew and margins improved. Some of this quarter's
restructuring actions will help subsequent quarters' margins, but the
overall visibility into the next few quarters is limited. Still, we
are confident that our customer relationships will allow AVX to
continue to take advantage of available market growth."

On a U.S. GAAP basis (including special charges), net income was
$27.8 million, or $0.16 per diluted share, for the current quarter
compared to net income of $37.4 million for the same quarter last
year. Non-GAAP net income excluding special charges was $31.8 million,
or $0.19 per diluted share, compared to $39.3 million for the same
quarter last year. During the current quarter, the Company incurred
$4.0 million of pre-tax restructuring costs related to global
headcount reductions and the closure of a plant in Brazil as it
continues to realign production capabilities and reduce costs. In
addition, the Company recorded a $1.7 million pre-tax impairment
charge related to the decline in value of its available-for-sale
securities as a result of the current economic turmoil in the
financial markets around the world.

-0-
*T
GAAP to Non-GAAP Reconciliation
(unaudited) Three Months Six Months
(in thousands, except per share Ended Ended
data) September 30, September 30,
2007 2008 2007 2008
------- ------- ------- --------
Including special charges (GAAP)
Net Sales $400,706 $400,280 $783,864 $797,169

Net income $ 37,441 $ 27,791 $ 76,600 $ 58,796
Diluted Income per share $ 0.22 $ 0.16 $ 0.44 $ 0.34

Excluding special charges (Non-
GAAP)
Special charges (after-tax)
Restructuring $ 1,439 $ 2,801 $ 1,552 $ 3,705
IPR&D $ 390 $ - $ 390 $ -
Other operating income $ - $ - $ - $ (2,957)
Available-for-Sale
securities impairment $ - $ 1,178 $ - $ 1,178
Net income $ 39,270 $ 31,770 $ 78,542 $ 60,722
Diluted income per share $ 0.23 $ 0.19 $ 0.46 $ 0.35
*T

See discussion of GAAP/Non-GAAP presentation below.

Chief Financial Officer, Kurt Cummings stated, "The Company's
financial position remains exceptionally strong with cash and cash
equivalents and short and long-term investments in securities of
$804.0 million and no debt at September 30, 2008. During the quarter,
$6.8 million of dividends to stockholders were paid and $3.6 million
was spent to repurchase shares of AVX stock on the open market which
are held as treasury stock."

Management believes that in order to better understand the
Company's short-term and long-term financial trends, investors may
find it useful to consider results excluding special charges related
to the estimated write off of in-process research and development
("IPR&D") in connection with the acquisition of ATC, other operations'
restructuring charges for headcount reductions, other operating income
and the write off of some available-for-sale securities due to an
other-than-temporary impairment. Management believes that the
resulting non-GAAP financial measure provides useful information to
investors regarding the underlying business trends and performance of
the Company's ongoing operations and is useful for period-over-period
comparisons of such operations. Management eliminates such charges
when evaluating the operating performance of the Company. Investors
should consider the non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance
with GAAP. In addition, the non-GAAP financial measure may not be the
same as similar measures presented by other companies. Detail of the
Company's non-GAAP measure is provided in the table above.

AVX, headquartered in Myrtle Beach, South Carolina, is a leading
manufacturer and supplier of a broad line of passive electronic
components and related products.

Please visit our website at www.avx.com.

-0-
*T
AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)

Three Months Ended Six Months Ended
September 30, September 30,
2007 2008 2007 2008
--------- ------- ------- --------
Net sales $ 400,706 $400,280 $783,864 $797,169
Cost of sales 329,861 333,510 638,133 666,968
Restructuring charges 2,056 3,297 2,217 4,576
--------- ------- ------- --------
Gross profit 68,789 63,473 143,514 125,625
Selling, general & admin.
expense 29,581 32,530 60,149 66,679
Restructuring charges - 705 - 717
In-process research and
development 390 - 390 -
Other operating income - - - (4,051)
--------- ------- ------- --------
Profit from operations 38,818 30,238 82,975 62,280
Other income 13,184 5,595 24,180 13,971
--------- ------- ------- --------
Income before income taxes 52,002 35,833 107,155 76,251
Provision for taxes 14,561 8,042 30,555 17,455
--------- ------- ------- --------
Net income $ 37,441 $ 27,791 $ 76,600 $ 58,796
========= ======= ======= ========

Basic income per share $ 0.22 $ 0.16 $ 0.45 $ 0.34
Diluted income per share $ 0.22 $ 0.16 $ 0.44 $ 0.34

Weighted average common shares
outstanding:
Basic 171,685 170,700 171,741 170,837
Diluted 172,477 170,802 172,554 171,103
*T

Results for the quarter and six months ended September 30, 2008
include restructuring charges of $4,002 and $5,293, respectively. In
addition, during the quarter ended September 30, 2008, the Company
recorded a $1,683 impairment charge in other income related to the
decline in value of its available-for-sale securities. For the six
month period ended September 30, 2008, results also reflect a gain on
the sale of corporate assets of $4,051 included in other operating
income.

Results for the quarter and six months ended September 30, 2007
include restructuring charges of $2,056 and $2,217, respectively. In
addition, during the quarter ended September 30, 2007, the Company
recorded a $390 charge for the write-off of in process research and
development related to the acquisition of ATC on September 26, 2007.

-0-
*T
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

March 31, September 30,
2008 2008
--------- -------------
Assets
Cash and cash equivalents $ 568,864 $ 560,103
Short-term investments in securities 50,000 -
Available-for-sale securities 44,790 40,026
Accounts receivable, net 203,762 209,559
Inventories 421,216 399,747
Other current assets 88,573 75,331
--------- -------------
Total current assets 1,377,205 1,284,766
Long-term investments in securities 108,999 179,001
Long-term available-for-sale securities 42,666 24,912
Property, plant and equipment, net 316,572 306,148
Goodwill and other intangibles 254,059 257,027
Other assets 9,577 9,178
--------- -------------

TOTAL ASSETS $2,109,078 $ 2,061,032
========= =============

Liabilities and Stockholders' Equity
Accounts payable $ 137,152 $ 114,202
Income taxes payable and accrued expenses 83,364 79,614
--------- -------------
Total current liabilities 220,516 193,816
Other liabilities 59,211 55,770
--------- -------------

TOTAL LIABILITIES 279,727 249,586

TOTAL STOCKHOLDERS' EQUITY 1,829,351 1,811,446
--------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,109,078 $ 2,061,032
========= =============
*T

AVX Corporation, Myrtle Beach
Kurt Cummings, 843-946-0691
finance@avxus.com

Copyright Business Wire 2008