Cherry Corporation Anticipates Flat First Quarter Sales
2 June 1999
Cherry Corporation Anticipates Flat First Quarter Sales and Lower Earnings Than the Prior Year's First QuarterWAUKEGAN, Ill., June 1 -- The Cherry Corporation (Nasdaq: CHERA, CHERB) today announced that it anticipates its sales for the first quarter ending May 31, 1999 will approximate last year and that its earnings per share will be approximately $.15 per share lower than the $.50 per share reported last year. The company had anticipated lower earnings on relatively flat sales from its semiconductor operation as the result of its increased sales and engineering effort in the computer and communications marketplace. This effort should result in increased semiconductor sales in the second half of the fiscal year. The company, however, had expected stronger sales and earnings in its other business segments. Instead, sales to date are flat with the prior year, mostly as the result of timing issues. Stronger sales of an existing electronic control panel had been expected prior to the production start of its replacement in June. It now appears that the new control will have stronger sales than anticipated for the rest of the year. In addition, some advanced performance keyboard and sensor programs have been delayed. Finally there is some softness in the snap switch business. The Cherry Corporation manufactures proprietary and custom electrical switches, sensors, electronic keyboards and controls, and semiconductors for the worldwide automotive, computer, and consumer and commercial markets. The company has eight wholly owned subsidiaries in the United States, Germany, England, France, Australia, Czech Republic, Mexico, and Hong Kong. Cherry also has 50-50 joint ventures in Japan, Hirose Cherry Precision Company Limited, and in India, TVS Cherry Private Limited, and a Japanese automotive sales and engineering office. Additional information is available on the company's website at http://www.cherrycorp.com . Certain statements in this press release, including those regarding indications of future sales of semiconductor and electronic control panel increases, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties that could significantly impact future results. A discussion of these risks and uncertainties is contained in the Company's Form 10-K for the year ended February 28, 1999, filed with the Securities and Exchange Commission.