Annual Report 2007
Vishay Intertechnology, Inc.
One of the World’s Largest Manufacturers of
Discrete Semiconductors and Passive Components
Financial
Highlights
Net sales
$ in millions
3,000 –
2,500 –
2,000 –
1,500 –
1,000 –
500 –
0
Operating Profit*
$ in millions
Income from Continuing
Operations*
$ in millions
300 –
200 –
100 –
0
05
$95.8
06
07
$209.2 $218.4
300 –
200 –
100 –
0
05
$62.3
06
07
$139.7 $140.4
Operating Profit, Adjusted**
$ in millions
Income from Continuing
Operations, Adjusted**
$ in millions
300 –
200 –
100 –
0
05
06
$2,296.5 $2,581.5 $2,833.3
07
05
06
$149.5 $277.9 $252.8
07
300 –
200 –
100 –
0
05
$92.9
06
07
$196.1 $181.5
The following table reconciles amounts as reported to the adjusted operating profit and adjusted net earnings presented in the charts above.
(in millions)
*As reported
Restructuring and severance costs
Asset write-downs
Contract termination charge
Inventory write-downs and loss (gain) on
purchase commitments
Purchased research and development
Siliconix transaction related expenses
Other
Net tax benefit of reconciling items
**Adjusted
Operating Profit
2006
$ 209.2
40.2
6.7
—
2007
$ 218.4
14.7
3.9
18.9
2005
$ 95.8
29.8
11.4
—
Income From Continuing
Operations
2007
2006
$ 140.4 $ 139.7
40.2
6.7
—
14.7
3.9
18.9
2005
$ 62.3
29.8
11.4
—
—
15.3
(1.0)
—
15.3
(1.0)
—
—
(3.1)
—
$ 252.8
—
—
6.5
—
9.7
3.8
—
—
$ 277.9 $ 149.5
—
—
5.2
(1.6)
—
—
9.3
(15.1)
$ 181.5 $ 196.1
9.7
3.8
(11.1)
(12.0)
$ 92.9
Measurements such as adjusted operating profit and adjusted income from continuing operations are not recognized in accordance with generally accepted accounting principles
(GAAP) and should not be viewed as an alternative to GAAP measures of performance. Management believes that adjusted operating profit and adjusted income from continuing
operations, “non-GAAP” measures, are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Reconciling items
to arrive at adjusted operating profit and adjusted income from continuing operations represent significant charges or credits that are important to an understanding
of the Company’s intrinsic operations. These reconciling items are more fully described in the Company’s consolidated financial statements.
www.vishay.com
As of and for the year ended December 31
(in thousands, except per share amounts)
Net revenues
Operating income
Net earnings
Depreciation and amortization
Basic earnings per share
Diluted earnings per share
Weighted average shares outstanding - basic
Weighted average shares outstanding - diluted
Cash flows from operations
Working capital
Property and equipment - net
Long-term debt
Stockholders’ equity
2007
2006
2005
$ 2,833,266
$ 2,581,477
$ 2,296,521
218,368
130,764
214,691
$ 0.70
$ 0.69
185,646
198,226
$ 354,012
1,145,873
1,220,998
607,237
209,200
139,736
196,963
$ 0.76
$ 0.73
184,400
210,316
95,759
62,274
188,900
$ 0.35
$ 0.34
177,606
189,321
$ 349,466
$ 202,874
1,192,833
1,124,365
608,434
1,136,466
1,090,592
751,553
$ 3,356,775
$ 3,080,813
$ 2,855,852
About Vishay
Vishay is one of the world’s largest manufacturers of discrete semiconductors and passive electronic components.
These components are used in virtually all types of electronic devices and equipment, in the industrial, computing,
automotive, consumer, telecommunications, military, aerospace, and medical markets.
Vishay’s global footprint includes sales offices worldwide, as well as manufacturing plants in China and five other
Asian countries, Europe, and the Americas. Vishay has market shares ranging from substantial to number one for
each of its products. Its product innovations, successful acquisition strategy, focus on cost reductions, and ability
to provide “one-stop shop” service have made Vishay a global industry leader.
About the Cover
Vishay Intertechnology, Inc.
The individual product images
on the front cover are samples of
Vishay’s broad product portfolio.
(The products are not shown
to scale.) In the background
are enlarged images of silicon
wafers used in semiconductor
manufacturing.
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7
Annual Report 2007
Vishay Intertechnology, Inc.
Discrete Semiconductors and Passive Components
Table of Contents
Letter from the Executive Chairman and CEO
Semiconductors
Passive Components
The Vishay Story
Vishay Serves Diverse Markets
Financial Summary
Product List
Form 10-K
2
4
5
6
8
10
12
Corporate Information
inside back cover
Vishay Intertechnology
1
Letter from the
Executive Chairman and CEO
Year 2007 was one of the most successful years in Vishay’s
history. Revenues for 2007 were an all-time record. Our adjusted
earnings per share in 2007 were in the same range as 2006.
We invested significantly in expansion and reduced costs
during 2007. In addition, we successfully integrated the discrete
semiconductor product lines from our acquisition of the Power
Control Systems (PCS) business of International Rectifier®.
While we are very pleased with our results during 2007, the
general economic outlook for 2008 is not good, and most
analysts are predicting a bleak year. At the moment, we have
no more than three months’ visibility at best. However, Vishay is
prepared to move quickly with any needed corrections.
Year 2007
Vishay’s revenues for 2007 were $2.83 billion, an increase of
9.8% compared to 2006. Adjusted earnings per share for 2007
were $0.95, compared to $0.99 in 2006. The adjustments are
associated with restructuring and severance costs, related
asset write-downs, a contract termination charge, and other
items. (For more details about the adjustments, see the table
on the inside front cover.) During 2007, cash generated from
continuing operations was $354 million, compared to $349
million during 2006.
In April 2007, Vishay completed its acquisition of the PCS
business of International Rectifier, which included selected
discrete semiconductor and module product lines. These
generate annualized sales of approximately $240 million. The
PCS acquisition also included the Automotive Modules and
Subsystems Business Unit (ASBU). Vishay has announced that,
because the ASBU business does not satisfactorily complement
Vishay’s operations and does not provide potential synergies,
Vishay intends to sell it. Currently, Vishay is in negotiations with
interested parties.
Vishay also acquired the on-board weighing systems business of
PM Group during 2007. This was part of Vishay’s ongoing series
of acquisitions to vertically integrate its Measurements Group
business, which includes resistance strain gages (in which Vishay
is the worldwide leader), transducers (the metallic structures to
which strain gages are cemented), electronic instruments that
measure and control output of the transducers, and complete
systems for process control and on-board weighing applications.
Vishay’s capital spending during 2007 was $200 million. More
than 50% of this was for capacity expansion, primarily for
discrete semiconductors. In the area of passive components,
Vishay added capacity only for specialty products. These
included face-down tantalum chip capacitors that feature
2
Vishay Intertechnology
Vishay’s proprietary multi-array packaging (MAP) technology
and film power capacitors.
In November 2007, Vishay received two awards from the
National Electronic Distributors Association (NEDA). Vishay was
the first company to win awards for both Active Component
Manufacturer of the Year and I, P, and E (Interconnect, Passive,
and Electromechanical) Component Manufacturer of the Year.
Vishay’s research and development (R&D) efforts are on target,
and the share of new products released to the market continues
to increase. Below are just a few examples of new product
platforms and new products released by Vishay in 2007:
• MOSFETs based on a new version of Vishay’s TrenchFET®
technologies that sets a new record for lowest on-resistance
per unit area for p-channel load switching devices and provides
the highest efficiency for n-channel PWM switching devices.
Both types of devices reduce power losses, extend battery run
times, and increase functionality in portable end products
• The MicroSMP™ miniature package for Schottky rectifiers
and transient voltage suppressors that provides more power
in a smaller package for consumer, telecommunications,
automotive, and industrial applications
• An industry-first 8-diode array in Vishay’s ultra-compact
LLP leadless package that protects against electrostatic
discharge while saving space in portable electronics for mobile
computing, mobile communication, consumer, industrial,
automotive, and medical applications
• A series of compact infrared receiver modules with the
industry’s highest sensitivity-to-size ratio that is designed
for long-range operation in infrared remote control, data
transmission, and light barrier applications
• The industry-first HVArc Guard® series of multilayer ceramic
chip capacitors that prevents surface arc-over at high voltages,
thereby improving the reliability of lighting systems and power
supplies for medical, computer, motor control, construction and
mining, and telecommunications applications
• A compact surface-mount resistor that uses Vishay’s patented
Power Metal Strip® technology to provide precision current
monitoring of sensitive circuits, such as automotive electronic
controls including engine, transmission, and pollution controls
• Ultra-high-precision Bulk Metal® foil resistors built on Vishay’s
breakthrough Z- foil technology, which provides a significant
reduction of the resistive component’s sensitivity to ambient
temperature variations and applied power changes, and
improves stability by an order of magnitude compared to any
other resistor technology
Vishay products recently were chosen as finalists for the
prestigious EDN Innovations Awards and EE Times Annual
Creativity in Electronics (ACE) Awards. Vishay products that
received industry awards in 2007 and early 2008 include
the following:
• analogZONE Product of the Year award for Best Innovation in
Load Switches: Vishay Siliconix SiP4280A and SiP4282 families
of p-channel load switches
• International CES Innovations Design and Engineering Award
in the Enabling Technologies product category:
SMS8021/RFW8021 UHF antenna chip, developed with
Siano Mobile Silicon
• EE Times / eeProductCenter Most Popular Product of 2007:
Vishay HE3 wet tantalum high-energy capacitor
• Electronic Products China Product of the Year: Vishay HE3 wet
tantalum high-energy capacitor
Financial Highlights
Dr. Felix Zandman
Executive Chairman of the Board
Dr. Gerald Paul
Chief Executive Officer
in Asia. Vishay has manufacturing plants and sales offices in this
region, and will continue to work closely with distribution partners
to reach end customers.
Net revenues for the year ended December 31, 2007 were
$2,833.3 million compared to $2,581.5 million for the year
ended December 31, 2006. Net earnings for the year ended
December 31, 2007 were $130.8 million, or $0.69 per diluted
share, compared with net earnings for the year ended December
31, 2006 of $139.7 million, or $0.73 per diluted share. Adjusted
net earnings for 2007 and 2006 were $181.5 million and $196.1
million respectively, or $0.95 and $0.99 per diluted share.
Free cash generation is a major focus at Vishay. We generated
substantial amounts of free cash during 2007, and expect to do
even better in 2008. During 2008, Vishay will continue to seek
opportunities for cost reductions. As always, we will continue to
focus on R&D, as new products are vital to the organic growth
of Vishay. We also will continue to look for strategic acquisitions
to enhance our product portfolio, enter new markets, and gain
new customers.
Vishay continued to generate cash from continuing operations
during 2007. For the year ended December 31, 2007, the
Company’s cash flow from operations was $354.0 million.
Purchases of property and equipment for the year ended
December 31, 2007 were $200.0 million, and depreciation and
amortization for the year ended December 31, 2007 were $214.7
million. Free cash (net cash provided by operating activities
minus capital expenditures) generated by Vishay in 2007 was
$154.0 million, compared to $166.2 million in 2006. Our cash
balance, including short-term investments, at December 31, 2007
was $537.3 million.
At December 31, 2007, the long-term debt of Vishay was $607.2
million (substantially all in convertibles), and stockholders’ equity
was $3,356.8 million, resulting in a debt-to-equity ratio of 0.18.
Looking Ahead
In 2008, Vishay will continue to leverage its position as a
broad-line manufacturer of discrete semiconductors, passive
components, and weighing and measurement products. We
anticipate that semiconductor products from Vishay’s PCS
acquisition will be a focus of new product development and
provide synergies with existing Vishay products.
The capacity expansion for semiconductors and specialty
passive components that took place during 2007 will continue in
2008. As this will be done strategically, we anticipate that capital
expenditures will be reduced by approximately 15% in 2008
compared to 2007.
Vishay revenues in Asia during 2007 surpassed the one billion
dollar mark. Year 2008 will provide new opportunities for sales
Although the general economic outlook for 2008 is not good,
Vishay’s business strategy has proven to be successful during
past downturns in the global electronics industry. As we
look ahead, we once again express our gratitude to Vishay’s
employees, customers, vendors, and strategic business partners
for their confidence in Vishay, and thank the Company’s
shareholders for their support.
Sincerely,
Dr. Felix Zandman
Executive Chairman of the Board
Dr. Gerald Paul
Chief Executive Officer
Vishay Intertechnology
3
Semiconductors Discrete semiconductors (diodes, transistors, and optoelectronic
components) typically perform a single function in electronic
circuits, such as switching, amplifying, rectifying, and
transmitting electrical signals. Semiconductors are referred to as
“active” components because they require power to function.
Siliconix
MOSFETs
Metal-oxide-semiconductor field-effect transistors (MOSFETs)
function as solid-state switches to control power. For example,
they turn off specific functions of notebook computers and cell
phones when these functions are not in use, thereby extending
battery life. They also help convert power into levels required by
other components. Vishay offers low- and high-voltage Siliconix
TrenchFET® and planar MOSFETs in innovative package formats
to switch and manage power very efficiently.
Integrated Circuits (ICs)
Integrated circuits combine the functions of multiple
semiconductor and passive components on a single chip. IC
products from Vishay are focused on analog signal switching
and routing, power conversion, and power management.
They are used in end products such as notebook and
desktop computers, cell phones, and fixed telecom systems.
Switchmode and linear regulators, MOSFET drivers, bus
interface devices, and analog switches and multiplexers are
included in the Vishay IC portfolio.
Vishay Semiconductors
Rectifiers
Diodes and Thyristors
Rectifiers convert alternating current (AC) into direct current
(DC), a unidirectional current required for operation of many
electronic systems. For example, a bridge rectifier is used in
a clock radio to change the AC voltage from a wall outlet to
a specific DC voltage. Vishay’s patented TMBS™ rectifiers
reduce power losses and improve efficiency in computing,
telecommunications, and other applications.
Diodes and thyristors are semiconductor components that allow
voltage to be conducted in only one direction. Both types of
devices are used in a wide range of electronic systems to route,
switch, and block RF, analog, and power signals. The Vishay
Semiconductors diode portfolio includes Schottky, switching,
PIN, sinterglass, and rectifier devices as well as products for
transient voltage suppression, ESD protection, and EMI filtering.
RF Transistors
Optoelectronics
RF transistors amplify analog or digital signals. They are
designed specifically to handle small-signal radio frequencies
in the front ends of radios, television sets, mobile phones, and
other devices to amplify antenna signals.
Modules
Modules and assemblies combine several components into a
single package. For example, products in Vishay’s FunctionPAK®
dc-to-dc converter family combine up to 20 devices in a single
15-mm by 15-mm package. Modules combining multiple diodes
and thyristors address a host of applications from motor drives
to line-frequency welding machines.
Optoelectronic components emit light, detect light, or do both.
Types include infrared data communications devices (IRDCs)
for two-way data transfer, optocouplers and solid-state relays
for circuit isolation, IR emitters and IR receivers for one-way
remote controls (as used in television sets, for example),
optical sensors for detection, LEDs for light sources, and
7-segment displays.
Vishay’s extensive portfolio of semiconductors and passive
components can be divided into five groups: Siliconix, Vishay
Semiconductors, Resistors/Inductors, Capacitors, and
Measurements Group. The pie chart on page 7 titled Revenue
by Product Group 2007 shows the percentage of total Vishay
revenue generated by each of these five groups.
4
Vishay Intertechnology
Passive Components
Passive components (resistors, capacitors, inductors, transducers)
do not require a power supply to handle the signals that pass
through them. They are used to store electrical charges, to limit or
resist electrical current, and to help in filtering, surge suppression,
measurement, timing, and tuning applications.
Resistors/Inductors
Resistive Products
Magnetics
Resistors restrict current flow. Vishay manufactures many
different types of resistive products, including single (discrete)
resistors based on foil, thin film, thick film, metal oxide film,
carbon film, and wirewound technologies, as well as resistor
networks and arrays, in which multiple resistors are combined
in a single package. Vishay also manufactures thermistors and
varistors, which suppress voltage increases due to temperature
and voltage changes. Resistors are used in all electronic circuits.
Inductors and transformers are categorized as magnetics.
Inductors use an internal magnetic field to change AC current
phase and resist AC current. Inductor applications include
controlling AC current and voltage and filtering out unwanted
electrical signals. Transformers (two inductors on a common
core of magnetic material) increase or decrease AC voltage or
AC currents.
Capacitors
Capacitors
Capacitors store energy and discharge it when needed. Applications include power conversion, DC-linking, frequency
conversion, bypass, decoupling, and filtering. Types of capacitors manufactured by Vishay include tantalum (both solid and wet),
ceramic (both multilayer chip and disk), film, power, heavy-current, and aluminum, as well as high-performance, high-precision,
silicon-based RF capacitors. Capacitors are used in almost all electronic circuits.
Measurements Group
Strain Gages and Instruments
Transducers
Strain gages are sensors used to detect stress and other
physical forces. They are widely used in weighing, process
control, force measurement, and other systems. Related
instruments are used to measure, display, and record the
information detected by strain gages.
Systems
Systems use transducers and instruments to control process
weighing in food, chemical, and pharmaceutical plants. Force
measurement systems are used to control web tension in paper
mills, roller force in steel mills, and cable tension in winch
controls. On-board weighing systems are installed in logging
and waste-handling trucks. Special scale systems are used for
aircraft weighing and portable truck weighing.
Load-cell-type transducers measure weight. For example, in
a digital bathroom scale, small strain gages are attached to a
transducer that is hidden beneath the platform of the scale.
A person’s weight pressing down on the transducer causes
the strain gage to issue a signal to the electronic system that
displays the weight in pounds or kilograms.
PhotoStress®
PhotoStress coatings and instruments use a unique optical
process to reveal and measure the distribution of stresses in
structures under live load conditions. They are used to improve
structural design in aerospace, automotive, military, civil
engineering, industrial, and medical applications.
Vishay Intertechnology
5
Solutions for Weighing and Measurement
Through acquisitions, Vishay’s original strain gage business has
become the foundation of an extensive portfolio of products
for weighing and measurement that includes resistance strain
gages (in which Vishay is the worldwide leader), transducers
(the metallic structures to which strain gages are cemented),
electronic instruments that measure and control output of the
transducers, and complete systems for process control and
on-board weighing applications. Vishay manufactures customized
systems for process control in paper mills, food processing
plants, and other facilities worldwide. Vishay on-board weighing
systems are used in the waste-handling, trucking, forestry, quarry
and mining, and aerospace industries.
Growth in Semiconductors
In 1998, Vishay acquired the Semiconductor Business Group
of TEMIC, which included Telefunken and 80.4% of Siliconix,
producers of MOSFETs, RF transistors, diodes, optoelectronics,
and power and analog switching integrated circuits. Vishay’s
next semiconductor acquisition came in 2001, with the purchase
of the infrared components business of Infineon Technologies.
That was followed the same year by the acquisition of General
Semiconductor, a leading global manufacturer of rectifiers and
diodes. The addition of Infineon’s infrared components group and
General Semiconductor enhanced Vishay’s existing Telefunken
and Siliconix businesses and propelled Vishay into the top
ranks of discrete semiconductor manufacturers. In 2005, Vishay
purchased the remaining 19.6% of Siliconix shares.
Vishay’s most recent semiconductor acquisition comprises
selected discrete semiconductor and module product lines from
International Rectifier. This acquisition has added manufacturing
plants in Italy, China, and India and provided products that are
new to Vishay: high-voltage planar MOSFETs and high-power
diodes and thyristors. It further enhances Vishay’s market
position in discrete semiconductors.
Successful Strategy, Financial Strength
Vishay’s focus on innovation and growth through acquisition has
enabled it to remain financially strong during periodic downturns
in the highly cyclical electronics industry. Vishay’s historically
strong cash generation has provided money to acquire other
companies and businesses. The result is a 20% compound
annual growth rate of revenues during the past 20 years. In
the process, Vishay has become a truly international company
— a leader in the global electronics industry that sells into all
geographic markets and all relevant market segments.
The
Vishay
Story
In the 1950s, patents were issued for the PhotoStress®
products developed by Dr. Felix Zandman. These products
reveal and measure stress distribution in airplanes, cars, and
other structures under live load conditions. Dr. Zandman’s
research in this area led him to develop Bulk Metal® foil resistors,
still the most precise and stable resistors available. Dr. Zandman,
with the financial support of Alfred P. Slaner, founded Vishay
in 1962 to develop and manufacture Bulk Metal foil resistors.
The Company was named after the village in Lithuania where
relatives of Dr. Zandman and Mr. Slaner had perished during the
Holocaust. The Company’s initial product portfolio consisted of
foil resistors and foil resistance strain gages.
Passive Component Acquisitions
During the 1960s and 1970s, Vishay became known as the
world’s leading manufacturer of foil resistors, PhotoStress
products, and strain gages. Vishay’s subsequent decision to
grow through acquisitions proved very successful. Starting in
1985, Vishay acquired resistor companies Dale Electronics,
Draloric Electronic, and Sfernice. These acquisitions helped
produce dramatic sales growth. In the early 1990s, Vishay
applied its acquisition strategy to the capacitor market by
purchasing Sprague Electric, Roederstein, and Vitramon.
Vishay’s last major passive component acquisition was
BCcomponents (former passive component businesses of
Philips Electronics and Beyschlag). This 2002 acquisition
greatly enhanced Vishay’s global market position.
Vishay’s Sales Growth
$3000
$2500
$2000
$1500
$1000
$500
$0
20% Compound Annual
Growth Rate (CAGR) of
Sales 1986 - 2006
Dollars in the millions
87 88 89 90 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07
6
Vishay Intertechnology
Meeting Customer Needs
Growth through R&D
Vishay’s customer mix includes original equipment
manufacturers (OEMs), electronic manufacturing services (EMS)
companies that manufacture for OEMs on an outsourcing
basis, and distributors that, depending on their size, sell to
end customers at an international, regional, or local level.
Vishay’s global sales force includes direct field sales personnel,
independent sales representatives, and field application
engineers (FAEs). Vishay’s FAE team provides technical and
applications support to customers. Its efforts focus on getting
design engineers to include Vishay components in the new end
products they are developing. When the FAEs highlight new
Vishay components and seek to have them “designed in” to end
products being developed by design engineers, they have at
their disposal Vishay’s extensive product portfolio — one of the
industry’s broadest.
From a customer perspective, Vishay’s “one-stop shop” service
for complete discrete component solutions provides key benefits:
Customers are able to streamline their design and purchasing
processes by ordering multiple types of components from Vishay.
Customers can send their bills of materials to Vishay and ask
that Vishay cross-reference Vishay products in all categories. In
addition, Vishay’s product sample service for design engineers
provides free product samples worldwide.
Vishay generates a steady stream of new components to help
designers create innovative end products — from ultra-thin
notebook computers to implantable medical devices to advanced
engine controls.
While many Vishay products are commodity products, others are
high-margin specialty products based on proprietary technology.
Vishay’s mix of commodity and specialty products moderates
the price erosion that is a fact of life in the electronics industry.
Some leading Vishay products that are well established in the
marketplace have been licensed by Vishay to other companies.
Other industry-first Vishay products are still relatively new, and
thus have significant potential to gain market share.
One measure of Vishay’s successful ability to meet market
demand is industry awards. Awards to Vishay in 2007 and
early 2008 included the analogZONE Product of the Year award
for Best Innovation in Load Switches, the International CES
Innovations Design and Engineering Award in the Enabling
Technologies category, the EE Times / eeProductCenter Most
Popular Product of 2007, and the Electronic Products China
Product of the Year award.
Revenue by Product Group 2007
Revenue by Region 2007
Semiconductors 53%
Passive Components 47%
Siliconix 24%
Measurement Group 7%
Vishay Semiconductors 29%
Capacitors 17%
Resistors/Inductors 23%
Asia 38%
Americas 24%
Europe 38%
Industry Rankings
Discrete Semiconductors
Number 1 worldwide in low-voltage power MOSFETs
Number 1 worldwide in rectifiers
Number 1 worldwide in glass diodes
Number 1 worldwide in infrared components
...and others
Passive Components
Number 1 worldwide in wirewound and other power resistors
Number 1 worldwide in foil, SMD thin film, and leaded film resistors
Number 1 worldwide in wet tantalum capacitors
Number 1 worldwide in strain gage sensors and load cells
..and others
Vishay Intertechnology
7
Vishay Serves Diverse Markets
Vishay components are used
by virtually all major American
and European manufacturers of
electronic products, as well as by
most major Asian manufacturers
of electronic products.
Industrial
From oil drilling platforms to wind power turbines, from heavy machinery in food processing
plants to barcode scanners at supermarket check-out counters — myriad industrial applications
depend on electronic components to help manage and convert power, process data, control
motors, and perform other vital functions. Vishay is a leading producer of components that
handle wide voltage and current ranges, extreme temperatures, and other environmental
stresses. Electric power generation plants, high-voltage transmission lines, automated
factory equipment, heating and air conditioning systems, lighting, trains, elevators, automatic
teller machines — these and other industrial products and systems use types of electronic
components manufactured by Vishay.
Vishay Customer Base
Alcatel-Lucent
Apple
Acer
Arrow
Array
Astec/Emerson
Asus
Avnet
Bosch
Celestica
Cisco
Compal
Continental
Dell
Delphi
Delta
Ericsson
Flextronics
Foxconn
Future
HP
IBM
Jabil
LG Electronics
Motorola
Nokia
Nintendo
Philips
Quanta
Rutronik
Ryoden
Samsung
Sanmina-SCI
Siemens
Sony
TTI
Tomen
WPI
…and others
8
Vishay Intertechnology
Computing
Computers of all kinds contain microprocessors — the complex integrated circuits that
perform calculations and coordinate activities. Supporting the microprocessors are discrete
semiconductors and passive components. From network servers to notebooks, computers
must handle the current levels and heat associated with rapid microprocessing speeds. Vishay
components dissipate heat, support disk drive motor controls and graphics cards, suppress
radio frequency interference (RFI), protect against electrical shock, and more. In portable
computing devices, they monitor power usage, extend battery life, and enable short-range,
two-way communication. Vishay components also are used in printers, scanners, photocopiers,
and other computing and digital imaging hardware.
Automotive
Automobiles — whether they run on gas, battery power, or alternative fuels — employ
electronic control units (ECUs) for functions including engine control, steering, braking,
traction control, emission control, airbag deployment, security, heating and air conditioning,
lighting, and onboard entertainment. Vishay components are essential parts of automotive
ECUs. Very hot under-the-hood temperatures, cold weather conditions, and vibration are
just some of the stresses placed upon automotive components. Reliability is critical. Vishay
manufactures a variety of components that meet the high quality and reliability standards set
by the automotive industry. Vishay components help to provide driver safety, security, and
comfort, and are used in vehicle information and entertainment systems.
Consumer
The consumer market ranges from handheld audio, video, and gaming devices to large
household appliances. Vishay components are used to extend battery life and perform other
functions in portable entertainment devices, electronic toys, and power tools. They are part of
the electronic circuits for cable and satellite television, flat-panel video displays, and wireless
remote controls. They also are used in “white goods” — refrigerators, washers and dryers,
microwaves, and other common household appliances — for motor control, temperature
sensing and overtemperature protection, capacitive discharge, short-term pulsing, power
dissipation, voltage division, dc-to-dc conversion, and more.
Vishay Serves Diverse Markets
Revenue By End Market 2007
Telecommunications
Mobile phones are increasingly complex devices with audio, text, and imaging
capabilities. Vishay components are used in mobile and landline (wired) phones,
battery chargers and adapters, PCMCIA cards and dongles for Bluetooth®, and
remote controls for wireless data communications. Key applications include
detection, modulation, and mixing of radio frequency (RF) signals; power
management; audio signal switching; filtering of unwanted noise and suppression
of electromagnetic interference (EMI) and radio frequency interference (RFI); and
protection against electrostatic discharge (ESD). Supporting and enabling phone-
based communications are satellites, base stations, and other parts of the global
telecommunications infrastructure. Vishay components are used here as well.
Industrial 39%
Telecommunications 8%
Computing 19%
Military/Aerospace 4%
Automotive 16%
Medical 1%
Consumer 13%
Military and Aerospace
Vishay manufactures one of the industry’s broadest lines of military-qualified resistors,
capacitors, and inductors. The Company also produces customized components for
military and aerospace customers. Vishay components are used in cockpit equipment, GPS
navigation, radar and sonar units, radio and satellite communications, weapons such as
missiles and torpedoes, and other military, space, airborne, and aerospace systems. They
are designed to withstand extreme temperatures, intense vibration, high humidity, and other
environmental stresses. Vishay’s focus on innovation and commitment to product quality
have enabled it to build strong relationships with leading military and aerospace customers.
Medical
The growing medical electronics market includes implantable devices, instrumentation,
and communications systems. Implantable devices include glucose monitors for
diabetics, nerve stimulators to control symptoms of Parkinson’s disease, and pacemakers,
defibrillators, and stents to prevent and treat heart problems. Instrumentation ranges
from small blood pressure cuffs to large imaging, radiation, and ventilator equipment.
Communications systems link medical staff and patients. Vishay is a leading manufacturer
of telemetry coils for pacemakers and defibrillators, transformers for defibrillators, and
tantalum capacitors for hearing aids. It provides close engineering support to medical
customers. Each advance in medical technology provides new opportunities for Vishay.
Vishay Intertechnology
9
Summary Of Operations
in thousands, except per share amounts
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Net revenues
Cost of products sold
Loss (gain) on purchase commitments
Gross profit
Selling, general, and administrative expenses
Amortization of goodwill
Other operating expenses (credits)
Operating profit (loss)
Other income (expense)
Interest expense
Other
Total other income (expense)
Income (loss) from continuing operations
before taxes and minority interest
Income tax provision (benefit)
Minority interest
Income (loss) from continuing operations
Loss from discontinued operations
$ 2,833,266
$ 2,581,477
$ 2,296,521
$ 2,414,654
$ 2,170,597
$ 1,822,813
$ 1,655,346
$ 2,465,066
$ 1,760,091
$ 1,572,745
$ 1,125,219
2,138,438
1,916,658
1,769,978
1,842,080
1,690,267
1,454,540
1,273,827
1,459,784
1,299,705
1,189,107
858,020
-
694,828
439,017
-
37,443
218,368
(28,652)
15,948
(12,704)
205,664
64,133
1,180
140,351
(9,587)
5,687
659,132
403,027
-
46,905
209,200
(32,215)
14,565
(17,650)
191,550
50,836
978
139,736
-
(963)
527,506
377,114
-
54,633
95,759
(33,590)
15,603
(17,987)
77,772
11,737
3,761
62,274
-
16,613
555,961
386,346
-
76,046
93,569
(34,252)
10,700
(23,552)
70,017
13,729
11,592
44,696
-
11,392
468,938
380,011
-
29,560
59,367
(39,226)
26,285
(12,941)
46,426
11,528
8,056
26,842
-
106,000
262,273
310,509
-
30,970
(79,206)
(29,503)
8,664
(20,839)
(100,045)
(16,900)
9,469
(92,614)
-
696,498
193,744
-
381,519
278,171
11,190
77,908
14,250
(16,848)
12,701
(4,147)
10,103
5,695
3,895
513
-
1,005,282
297,315
11,469
-
-
(25,177)
18,904
(6,273)
690,225
148,186
24,175
517,864
-
460,386
254,282
12,360
-
-
(53,296)
(5,737)
(59,033)
134,711
36,940
14,534
83,237
-
-
383,638
234,840
12,272
42,601
93,925
(49,038)
(2,241)
(51,279)
42,646
30,624
3,810
8,212
-
-
267,199
136,876
7,218
14,503
108,602
(18,819)
(222)
(19,041)
89,561
34,167
2,092
53,302
-
Net earnings (loss)
$ 130,764
$ 139,736
$ 62,274
$ 44,696
$ 26,842
$ (92,614)
$ 513
$ 517,864
$ 83,237
$ 8,212
$ 53,302
Earnings (loss) per share
Basic
Diluted
Shares used in computing earnings (loss) per
share
Basic
Diluted
Financial Data
$ 0.70
$ 0.76
$ 0.35
$ 0.27
$ 0.17
$ (0.58)
$ 0.00
$ 3.83
$ 0.66
$ 0.07
$ 0.42
$ 0.69
$ 0.73
$ 0.34
$ 0.27
$ 0.17
$ (0.58)
$ 0.00
$ 3.77
$ 0.66
$ 0.07
$ 0.42
185,646
198,226
184,400
210,316
177,606
189,321
163,701
165,938
159,631
160,443
159,413
159,413
141,171
142,514
135,295
137,463
126,678
128,233
126,665
126,797
126,627
126,904
in thousands, except per share amounts
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Cash, cash equivalents, and short-term
investments
Working capital
Current ratio
Property and equipment, net
Capital expenditures
Depreciation and amortization
Total assets
Long-term debt
Stockholders’ equity
$ 537,295
$ 671,586
$ 632,502
$ 632,700
$ 555,540
$ 339,938
$ 367,115
$ 337,213
$ 105,193
$ 113,729
$ 55,263
1,145,873
1,192,833
1,136,466
1,168,383
1,049,892
897,456
1,096,034
1,057,200
2.92
3.23
3.42
3.27
1,220,998
1,124,365
1,090,592
1,171,815
200,027
214,691
183,298
196,963
136,714
188,900
4,995,235
4,691,896
4,527,591
607,237
608,434
751,553
3,356,775
3,080,813
2,855,852
158,627
202,580
4,638,590
752,145
2,773,335
2.81
2.56
3.29
1,213,600
1,274,850
1,167,533
110,074
180,748
162,493
163,387
3.53
973,554
229,781
140,840
604,150
2.87
930,545
119,638
139,676
650,483
3.13
997,067
151,682
127,947
4,315,159
3,951,523
2,783,658
2,323,781
2,462,744
1,719,648
706,316
605,031
140,467
656,943
814,838
2,358,787
2,366,545
1,833,855
1,013,592
1,002,519
455,134
3.38
709,142
78,074
81,874
347,463
959,648
126,635
194,055
4,566,360
836,606
2,514,034
Note: This table should be read in conjunction with the related consolidated financial statements and accompanying notes and management’s discussion and analysis of financial
condition and results of operations. Earnings per share amounts and weighted average shares outstanding have been retroactively restated for stock dividends and stock splits.
10
Vishay Intertechnology
Net revenues
Cost of products sold
Loss (gain) on purchase commitments
Gross profit
Selling, general, and administrative expenses
Amortization of goodwill
Other operating expenses (credits)
Operating profit (loss)
Other income (expense)
Interest expense
Other
Total other income (expense)
Income (loss) from continuing operations
before taxes and minority interest
Income tax provision (benefit)
Minority interest
Income (loss) from continuing operations
Loss from discontinued operations
Earnings (loss) per share
Basic
Diluted
Basic
Diluted
share
Shares used in computing earnings (loss) per
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
$ 2,833,266
$ 2,581,477
$ 2,296,521
$ 2,414,654
$ 2,170,597
$ 1,822,813
$ 1,655,346
$ 2,465,066
$ 1,760,091
$ 1,572,745
$ 1,125,219
2,138,438
1,916,658
1,769,978
1,842,080
1,690,267
1,454,540
1,273,827
1,459,784
1,299,705
1,189,107
858,020
-
-
694,828
439,017
37,443
218,368
(28,652)
15,948
(12,704)
205,664
64,133
1,180
140,351
(9,587)
5,687
659,132
403,027
-
46,905
209,200
(32,215)
14,565
(17,650)
191,550
50,836
978
139,736
-
(963)
527,506
377,114
-
54,633
95,759
(33,590)
15,603
(17,987)
77,772
11,737
3,761
62,274
-
16,613
555,961
386,346
-
76,046
93,569
(34,252)
10,700
(23,552)
70,017
13,729
11,592
44,696
-
11,392
468,938
380,011
-
29,560
59,367
(39,226)
26,285
(12,941)
46,426
11,528
8,056
26,842
-
106,000
262,273
310,509
-
30,970
(79,206)
(29,503)
8,664
(20,839)
(100,045)
(16,900)
9,469
(92,614)
-
-
381,519
278,171
11,190
77,908
14,250
(16,848)
12,701
(4,147)
10,103
5,695
3,895
513
-
-
1,005,282
297,315
11,469
-
-
460,386
254,282
12,360
-
696,498
193,744
(25,177)
18,904
(6,273)
690,225
148,186
24,175
517,864
-
(53,296)
(5,737)
(59,033)
134,711
36,940
14,534
83,237
-
-
383,638
234,840
12,272
42,601
93,925
(49,038)
(2,241)
(51,279)
42,646
30,624
3,810
8,212
-
-
267,199
136,876
7,218
14,503
108,602
(18,819)
(222)
(19,041)
89,561
34,167
2,092
53,302
-
Net earnings (loss)
$ 130,764
$ 139,736
$ 62,274
$ 44,696
$ 26,842
$ (92,614)
$ 513
$ 517,864
$ 83,237
$ 8,212
$ 53,302
$ 0.70
$ 0.76
$ 0.35
$ 0.27
$ 0.17
$ (0.58)
$ 0.00
$ 3.83
$ 0.66
$ 0.07
$ 0.42
$ 0.69
$ 0.73
$ 0.34
$ 0.27
$ 0.17
$ (0.58)
$ 0.00
$ 3.77
$ 0.66
$ 0.07
$ 0.42
185,646
198,226
184,400
210,316
177,606
189,321
163,701
165,938
159,631
160,443
159,413
159,413
141,171
142,514
135,295
137,463
126,678
128,233
126,665
126,797
126,627
126,904
Cash, cash equivalents, and short-term
$ 537,295
$ 671,586
$ 632,502
$ 632,700
$ 555,540
$ 339,938
$ 367,115
$ 337,213
$ 105,193
$ 113,729
$ 55,263
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
investments
Working capital
Current ratio
Property and equipment, net
Capital expenditures
Depreciation and amortization
Total assets
Long-term debt
Stockholders’ equity
2.92
3.23
3.42
3.27
1,220,998
1,124,365
1,090,592
1,171,815
200,027
214,691
183,298
196,963
136,714
188,900
4,995,235
4,691,896
4,527,591
607,237
608,434
751,553
3,356,775
3,080,813
2,855,852
158,627
202,580
4,638,590
752,145
2,773,335
1,145,873
1,192,833
1,136,466
1,168,383
1,049,892
897,456
1,096,034
1,057,200
126,635
194,055
4,566,360
836,606
2,514,034
2.81
2.56
3.29
1,213,600
1,274,850
1,167,533
110,074
180,748
162,493
163,387
3.53
973,554
229,781
140,840
604,150
2.87
930,545
119,638
139,676
650,483
3.13
997,067
151,682
127,947
455,134
3.38
709,142
78,074
81,874
4,315,159
3,951,523
2,783,658
2,323,781
2,462,744
1,719,648
706,316
605,031
140,467
656,943
814,838
2,358,787
2,366,545
1,833,855
1,013,592
1,002,519
347,463
959,648
Vishay Intertechnology
11
Product List
Semiconductors
Rectifiers
Schottky (single, dual)
Standard, Fast and Ultra-Fast Recovery
(single, dual)
Bridge
Superectifier®
Sinterglass Avalanche Diodes
High-Power Diodes and Thyristors
High-Power Fast-Recovery Diodes
Phase-Control Thyristors
Fast Thyristors
Small-Signal Diodes
Schottky and Switching (single, dual)
Tuner/Capacitance (single, dual)
Bandswitching
PIN
Zener and Suppressor Diodes
Zener (single, dual)
TVS (TRANSZORB®, Automotive, ESD, Arrays)
FETs
Low-Voltage TrenchFET® Power MOSFETs
High-Voltage TrenchFET® Power MOSFETs
High-Voltage Planar MOSFETs
JFETs
Passive Components
Resistive Products
Foil Resistors
Film Resistors
Metal Film Resistors
Thin Film Resistors
Thick Film Resistors
Metal Oxide Film Resistors
Carbon Film Resistors
Wirewound Resistors
Power Metal Strip® Resistors
Chip Fuses
Variable Resistors
Cermet Variable Resistors
Wirewound Variable Resistors
Conductive Plastic Variable Resistors
Networks/Arrays
Non-Linear Resistors
NTC Thermistors
PTC Thermistors
Varistors
Magnetics
Inductors
Transformers
12
Vishay intertechnology
RF Transistors
Bipolar Transistors (AF and RF)
Dual Gate MOSFETs
MOSMICs®
Optoelectronics
IR Emitters and Detectors, and IR Receiver
Modules
Optocouplers and Solid-State Relays
Optical Sensors
LEDs and 7-Segment Displays
Infrared Data Transceiver Modules
Custom Products
ICs
Power ICs
Analog Switches
RF Transmitter and Receiver Modules
ICs for Optoelectronics
Modules
Power Modules (contain power diodes,
thyristors, MOSFETs, IGBTs)
DC/DC Converters
Capacitors
Tantalum Capacitors
Molded Chip Tantalum Capacitors
Coated Chip Tantalum Capacitors
Solid Through-Hole Tantalum Capacitors
Wet Tantalum Capacitors
Ceramic Capacitors
Multilayer Chip Capacitors
Disc Capacitors
Film Capacitors
Power Capacitors
Heavy-Current Capacitors
Aluminum Capacitors
Silicon RF Capacitors
Strain Gage Transducers and Stress
Analysis Systems
PhotoStress®
Strain Gages
Load Cells
Force Transducers
Instruments
Weighing Systems
Specialized Strain Gage Systems