WALLINGFORD, CT – Amphenol saw sales of $3.2 billion for the third quarter, down 3% from the same quarter last year.
For the fourth quarter, Amphenol expects sales to be in the range of $3.09 billion to $3.15 billion, which would represent a 3-5% decline over the prior year quarter.
"We are pleased to have closed the third quarter of 2023 with sales and Adjusted Diluted EPS both exceeding the high end of our guidance," said Amphenol President and CEO R. Adam Norwitt. "Sales decreased from prior year by 3%, driven by moderations in the mobile networks, mobile devices, IT datacom, broadband and industrial markets, which were partially offset by growth in the commercial air, military and automotive markets as well as contributions from the Company’s acquisition program. Despite the reduction in our sales from prior year, our team executed strongly in the quarter, with Adjusted Operating Margin reaching 20.8%.
"During the third quarter of 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. This included the repurchase of 1.7 million shares of its common stock for $149 million as well as the payment of dividends of $125 million, resulting in total capital returned to shareholders of nearly $275 million.
"We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification as well as an active and successful acquisition program. To that end, we are excited to have closed on three acquisitions since our July earnings call: Connor Manufacturing Services, Q Microwave and XMA Corporation. Based in Illinois, Connor is a global manufacturer of power interconnect products including high voltage busbars for the automotive and industrial markets with annual sales of approximately $100 million. Based in California, Q Microwave is a designer and manufacturer of mission-critical radio frequency components utilized in military platforms with annual sales of approximately $20 million. Based in New Hampshire, XMA is also a provider of radio frequency components for the military and IT datacom markets with annual sales of approximately $15 million. Connor will be included in our Interconnect and Sensor Systems Segment, while Q Microwave and XMA will be included in our Harsh Environment Solutions Segment. All of these acquisitions further expand our offering of high-technology interconnect products across a variety of our markets, while adding talented management teams to the Amphenol family.
"We are also pleased that on October 13, 2023, we entered into a definitive agreement to acquire PCTEL, Inc. (Nasdaq: PCTI). PCTEL is a leading global provider of antennas, as well as purpose-built Industrial IoT products and test and measurement solutions. The transaction is expected to close by early 2024, subject to approval from PCTEL’s shareholders and other customary closing conditions. We are excited by the opportunities PCTEL brings to further expand the breadth of our already strong antenna offering."
