Vishay reported revenues for Q3 of $814 million.
EPS was $0.67 for the quarter.
Adjusted earnings per share was $0.63 for the quarter.
Revenues in the quarter were $814 million, down by 0.7% from previous quarter and up by 27.1% compared to prior year.
Gross margin was 27.7%.
Operating margin was 15.2%.
EPS was $0.67, adjusted earnings per share was $0.63.
EBITDA was $162 million or 19.9%.
Reconciling versus prior quarter, operating income quarter three 2021 compared to operating income for prior quarter based on $5 million lower sales or flat sales, excluding exchange rate impacts, operating income decreased by $2 million to $124 million in Q3 2021 from $125 million in Q2 2021.
The main elements were: Average selling prices had a positive impact of $10 million, representing a 1.3% ASP increase; volume decreased with a negative impact of $4 million, equivalent to a 1.3% decrease in volume.
Variable costs increased with a negative impact of $12 million, primarily due to increases in metal prices as well as materials and services and not completely offset by cost reductions.
Fixed costs decreased with a positive impact of $4 million, in line with our guidance.
Reconciling versus prior year, operating income quarter three 2021 compared to adjusted operating income in quarter three 2020, based on $174 million higher sales, or $172 million excluding exchange rate impacts, adjusted operating income increased by $62 million to $124 million in Q3 2021, from $61 million in Q3 2020.
The main elements were: Average selling prices had a positive impact of $18 million, representing a 2.2% ASP increase; volume increased with a positive impact of $70 million, representing a 23.2% increase.
Variable costs increased with a negative impact of $8 million.
Fixed cost increased with a negative impact of $17 million, primarily due to annual wage increases and higher incentive compensation costs, only partially offset by our restructuring programs.
Inventory impacts had a positive impact of $9 million.
Exchange rates had a negative effect of $9 million.
Selling, general and administrative expenses for the quarter were $102 million, in line with our guidance, excluding exchange rate impacts.
For quarter four 2021, our expectations are approximately $104 million of SG&A expenses at current exchange rates.
We had total liquidity of $1.7 billion at quarter end.
Cash and short-term investments comprised $916 million, and there are no amounts outstanding on our $750 million credit facility.
Total shares outstanding at quarter end were 145 million.
The expected share count for earnings per share purposes for the fourth quarter 2021 is approximately 145.6 million.
Our U.S. GAAP tax rate year-to-date was approximately 18%, which mathematically yields a rate of 17% for quarter three.
In quarter three, we recorded a tax benefit of $5.7 million due to the reversal of deferred tax valuation allowances in certain jurisdictions.
We also recorded benefits of $8.3 million year-to-date due to changes in tax regulations.
Our normalized effective tax rate, which excludes the unusual tax items, was approximately 22% for the quarter, and 23% for the year-to-date period.
We expect our normalized effective tax rate for full year 2021 to be between 22% and 24%.
Cash from operations for the quarter was $136 million.
Capital expenditures for the quarter were $57 million.
Free cash for the quarter was $79 million.
For the trailing 12 months, cash from operations was $436 million, capital expenditures were $171 million, split approximately for expansion, $113 million; for cost reduction, $9 million; for maintenance of business, $49 million.
Free cash generation for the trailing 12-month period was $267 million.
The trailing 12-month period includes $15 million cash taxes paid for the 2021 installment of the U.S. tax reform transition tax.
Vishay has consistently generated in excess of $100 million cash flows from operations in each of the past 26 years and greater than $200 million for the past 19 years.
Backlog at the end of quarter three was at $2.244 billion or 8.3 months of sales.
Inventories increased quarter-over-quarter by $30 million excluding exchange rate impacts.
Days of inventory outstanding were 81 days.
Days of sales outstanding for the quarter were 43 days.
Days of payables outstanding for the quarter were 35 days, resulting in a cash conversion cycle of 89 days.
We had a gross margin of 27.7% of sales and operating margin of 15.2% of sales.
Earnings per share were $0.67 and adjusted earnings per share, $0.63.
Vishay in the third quarter generated $79 million of free cash, and we do expect another good year of cash generation.
POS in the third quarter continued on a record level of the second quarter, running 34% over prior year.
POS increased versus Q2 by 5% in the Americas and by 3% in Europe.
Asia was slightly down by 2%.
Inventory turns of global distribution in quarter three turns was at 4.2 turns, started to normalize from quite extreme 4.4 turns in the second quarter.
In the Americas, 2.2 turns after 2.1 turns in the second quarter and 1.5 turns in prior year.
In Asia, 6.1 turns after 7.4 turns in Q2 and 4.3 turns in prior year.
And in Europe, 4.5 turns in the quarter after 4.6 turns in the second quarter and 3.2 turns in prior year.
We achieved sales of $814 million versus $819 million in prior quarter and versus $640 million in prior year.
Excluding exchange rate effects, sales in Q3 were flat versus prior quarter and up by $172 million or by 27% versus prior year.
Book-to-bill in the quarter has remained on an extraordinarily high level of 1.26 after 1.38 in prior quarter.
1.29 book-to-bill for distribution after 1.41 in quarter two; 1.23 for OEMs after 1.34 in the second quarter; 1.27 for semis after 1.41 in Q2; 1.26 for passives after 1.35; 1.30 for the Americas after 1.33 in Q2; 1.14 for Asia after 1.29; 1.41 for Europe after 1.54, I think we can speak of a broad continuation of an excellent economical environment.
Our backlog in the third quarter has climbed to another record high of 8.3 months after 7.5 in the second quarter, 8.9 months in semis after 8.4 months in Q2 and 7.6 months in passives after 6.7 months in Q2.
We have seen 1.3% prices up versus prior quarter and 2.2% versus prior year.
For the semiconductors, it was 2.2% up versus prior quarter and 3.8% up versus prior year.
For the passives, 0.3% up versus prior quarter and 0.5% up versus prior year.
SG&A costs in Q3 came in at $102 million according to expectations when excluding exchange rate impacts.
And manufacturing fixed costs in the quarter came in at $137 million, below our expectations when excluding exchange rate impacts.
Total employment at the end of the third quarter was 22,730, 1% up from prior quarter.
By $30 million, $13 million in raw materials and $17 million in WIP and finished goods.
Inventory turns in the third quarter remained at a very high level of 4.5 after 4.8 in Q2.
Capital spending in the quarter was $57 million versus $22 million in prior year, $41 million for expansion, $2 million for cost reduction and $14 million for the maintenance of business.
We continue to expect for the year 2021 capex of approximately $250 million for the most part, of course, for expansion projects.
We, in the third quarter generated cash from operations of $436 million on a trailing 12-month basis.
And also, on a 12-month basis, we generated $267 million free cash.
Sales in the quarter were $181 million, down by $12 million or 6% from previous quarter, but up by $35 million or 24% versus prior year, all excluding exchange rate impacts.
The book-to-bill ratio in the quarter continued strong, 1.26 after 1.39 in the second quarter.
The backlog increased further to 7.8 months from 6.6 months in the prior quarter.
Gross margin in the quarter decreased to 27% of sales, down from a peak of 30% in Q2.
Inventory turns in the quarter remained on a very high level of 4.7 after 5.1 in the second quarter.
Selling prices continued to increase, plus 0.5% versus prior quarter and plus 0.7% versus prior year.
Sales of inductors in the third quarter were $85 million, flat versus prior quarter and up by $5 million or by 7% versus prior year, excluding exchange rate effects.
The book-to-bill ratio in the third quarter was 1.11 after 1.21 in prior quarter.
The backlog for inductors grew further to 5.4 months from 5.1 in the second quarter.
Gross margin continued to run at an excellent level of 32% of sales, slightly down from a peak of 34% in prior quarter.
Inventory turns were at 4.6, practically flat versus prior quarter.
There is a substantially reduced price decline at inductors, a slight price increase of 0.2% versus prior quarter and minus 1% versus prior year.
Sales in the third quarter were $116 million, 3% below prior quarter but 25% above prior year, which excludes exchange rate impacts.
Book-to-bill in the third quarter for capacitors remained at very strong 1.7 on the level of the prior quarter.
Backlog increased to an absolute record of 8.9 months, up from 7.7 months in the second quarter.
Gross margin in the third quarter reduced to 21% of sales from 24% in the second quarter.
Inventory turns in the quarter remained on a healthy level of 3.5 after 3.9 in prior quarter.
We are steadily increasing selling prices, 0.1%-plus versus prior quarter and 1.3%-plus versus prior year.
Sales in the quarter were $71 million, 6% below prior quarter, but 9% above prior year, which excludes exchange rate impacts.
Book-to-bill in the third quarter continued strong at 1.36 after extreme 1.69 in the second quarter.
Backlog continued to grow to another record high of 10.9 months after 9.3 months in prior quarter.
Gross margin in the third quarter improved further to 34% of sales after 32% in prior quarter.
We have seen now more normal inventory turns of 5.0 in the quarter after 5.8 in the second quarter.
The selling prices are going up, plus 1.9% versus prior quarter and plus 5% versus prior year.
Sales in the quarter were $185 million, up by $12 million or by 7% versus prior quarter, and up by $61 million or 49% versus prior year without exchange rate effects.
We see a continued strong book-to-bill ratio of 1.31 in the quarter after 1.45 in Q2.
Backlog climbed to an extreme high of 8.9 months from 8.5 months in prior quarter.
With growing volume, gross margin continued to improve to 25% of sales as compared to 24% in Q2.
Inventory turns were at 4.5 after 4.7 in prior quarter.
Selling prices keep increasing by 2.9% versus prior quarter and by 5.1% versus prior year.
Sales in the quarter were $176 million, 5% above prior quarter and 31% above prior year, excluding exchange rate impacts.
Book-to-bill ratio in Q3 was 1.19 after 1.26 in the second quarter.
Backlog has grown further to an extreme level of 8.1 months as compared to 7.9 in the second quarter.
Higher volume, better selling prices and good efficiencies allowed gross margin to increase further to 31% of sales, up from 28% in the second quarter.
Inventory turns in the quarter were at 5.1, virtually flat versus prior quarter.
We are implementing price increases plus 1.5% versus prior quarter and plus 2.2% versus prior year.
And this in mind, we decided to build a 12-inch wafer fab in Itzehoe in Germany, adjacent to our existing eight-inch fab, which will increase our in-house wafer capacity by 70%, 7-0 percent, within three to four years.
We guide to a sales range between $805 million and $845 million at a gross margin of 27.7%.

Summary:
Vishay reported revenues for Q3 of $814 million.
EPS was $0.67 for the quarter.
Adjusted earnings per share was $0.63 for the quarter.
Revenues in the quarter were $814 million, down by 0.7% from previous quarter and up by 27.1% compared to prior year.
EPS was $0.67, adjusted earnings per share was $0.63.
Earnings per share were $0.67 and adjusted earnings per share, $0.63.
We achieved sales of $814 million versus $819 million in prior quarter and versus $640 million in prior year.
We guide to a sales range between $805 million and $845 million at a gross margin of 27.7%.