Vishay Intertechnology Reports $715.2 Million Revenue and $4.1 Million Net Loss for Fiscal Quarter

Vishay Intertechnology, Inc. reported a net revenue of $715.2 million for the fiscal quarter ending March 29, 2025, a slight increase from $714.7 million in the previous quarter but a decrease of 4.2% compared to $746.3 million in the same quarter of the previous year. The company experienced a net loss attributable to stockholders of $4.1 million, or $(0.03) per share, contrasting sharply with net earnings of $30.9 million, or $0.22 per share, in the prior year. The decline in profitability was attributed to lower sales volume and decreased average selling prices across its product lines.

In terms of operational performance, Vishay's gross profit margin fell to 19.0% from 22.8% year-over-year, primarily due to increased fixed costs and lower average selling prices. The company's selling, general, and administrative expenses rose to $134.7 million, representing 18.8% of revenues, up from 17.1% in the same quarter last year. The company also reported a significant increase in interest expense, which rose to $8.8 million from $6.5 million in the prior year, reflecting higher outstanding balances on its revolving credit facility.

Vishay's strategic initiatives included ongoing investments in capacity expansion, particularly in high-growth product lines. The company plans to allocate between $300 million to $350 million for capital expenditures in 2025, with at least 70% directed towards expanding manufacturing capabilities. The company is also focused on enhancing its product portfolio and customer engagement, as evidenced by its restructuring efforts initiated in September 2024 to optimize its manufacturing footprint.

Geographically, Vishay's revenue distribution showed stability in Asia, with revenues of $284.6 million, while Europe and the Americas saw declines. The company reported a book-to-bill ratio of 1.08, indicating a positive trend in order intake, which may signal a recovery in demand. However, the overall market conditions remain volatile, and Vishay continues to monitor its inventory and capital resources closely to adapt to changing demand dynamics.

Looking ahead, Vishay remains committed to its long-term growth strategy, despite the current economic challenges. The company anticipates that the normalization of channel inventory will support future revenue growth. However, it acknowledges the potential impact of new U.S. tariffs on its operations and profitability. The management's outlook emphasizes a cautious approach, balancing capital expenditures with operational efficiency to ensure sustainable growth and shareholder returns.