MALVERN, PA --  Passive components maker Vishay Intertechnology reported second-quarter sales fell 10.1% and net earnings were off 76% year-on-year, as restructuring costs took their toll. 

For the July quarter, Vishay reported sales of $582 million and net earnings of $9.72 million. Sequentially, revenue was up 5.1% and net earnings rose 70%.

A year ago, the company reported net earnings of $41.1 million. First-half sales are off 11.8% vs. last year.

The firm took $9.4 million in charges for restructuring and severance, $9.2 million for in-process research and development purchases, $3.75 million related to its acquisition of Siliconix, and $1.3 million for losses resulting from adjustments to previously existing purchase commitments. The firm took a gain of $2.1 million from land sales, and recorded a $3.7 million favorable tax benefit.

Cost of products sold (COGS), as a percentage of sales, was 77.2%, down from 78.6% in first quarter. Cash from operations for the quarter was $45 million.

Vishay guided for third-quarter sales of $560 million to $580 million and margins to be flat to slightly lower.

During the quarter the company completed its tender offer for the outstanding shares of Siliconix. A larger acquisition remains a goal, chairman Dr. Felix Zandman said.

Vishay recently signed a letter of intent to buy CyOptics Israel Ltd., a designer of optical components.

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