Knowles Corporation, a leading supplier of advanced micro-acoustic solutions, announced this week the results for the first quarter ended March 31, 2014. Revenue for the first quarter of 2014 was $273.4 million, compared with $276.1 million reported in the same period one year ago. Gross profit for the first quarter of 2014 was $83.1 million compared with gross profit of $94.5 million reported in the same period one year ago. Net earnings for the first quarter of 2014 were $7.6 million compared with $11.9 million reported in the same period one year ago. Current period results include $10.7 million from amortization of intangibles, $9.1 million in production transfer costs and spin related charges and $1.5 million in stock-based compensation.
"We delivered first quarter earnings that were in line with our prior analyst day projections provided on February 19, 2014," said Jeffrey Niew, President and CEO of Knowles. "Revenue from both our Mobile Consumer Electronics and Specialty Components segments exceeded our expectations in the first quarter. Within Mobile Consumer, we experienced stronger than expected demand from a North American OEM customer. Sales of Precision Devices were also better than we expected fueled by improved communications infrastructure spending as 4G/LTE rollouts continue throughout the world."
"We continue to believe that 2014 will be another year of revenue growth for Knowles, driven by new product launches weighted to the second half of the year in our Mobile Consumer segment, and continued strength in the Specialty Components segment. With the projected top line growth and the continuing optimization of our global manufacturing footprint, we expect to drive year-over-year margin expansion beginning in the fourth quarter of 2014," Niew added.
Knowles said that it achived a 12% year-over-year revenue increase in the mobile consumer electronics market segment in the first quarter, excluding sales to Nokia and Blackberry. The company also stated that it has released and shipped 30 million units of the "world's first" digital multimode microphones which reportedly features 3 times lower power consumption relative to other digital microphones. Knowles also stated that this new MEMS microphone enables longer battery life and "always-on" listening functionality.
Additionally, the company said that it was selected as the main microphone supplier for GN ReSound's LiNX and First products. The ReSound LiNX and Beltone First are reportedly the world's first Made for iPhone (MFi) hearing aids.
Knowles also stated that it plans to close its Vienna, Austria manufacturing facility and transfer production to existing facilities in Asia by mid-year 2014.
Knowles is a leading supplier of advanced micro-acoustic solutions and specialty components serving the mobile communications, consumer electronics, medical technology, military, aerospace and industrial markets. Knowles has a leading position in MEMS enabled microphones, speakers and receivers which are used in smartphones, tablets and mobile handsets. Knowles is also a leading manufacturer of transducers used in hearing aids and other medical devices and claims to have a strong position in oscillators (timing devices) and capacitor components which enable various types of communication. Founded in 1946 and headquartered in Itasca, Illinois, Knowles has more than 10,000 employees in 36 locations around the world.
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