Taitron’s Net Surges Fourfold to $765,000

Taitron Components Inc., a Santa Clarita-based distributor of semiconductors, diodes and other electronic components, reported a more than fourfold increase in earnings in the first quarter that ended March 31.

Taitron posted net income of $765,000 for the three-month period, compared to $165,000 in the same quarter a year earlier. Sales rose to $8.31 million, up 61% from $5.16 million a year earlier. Taitron became a public company after completing an initial public offering of 2.5 million shares of common stock April 19.

Stewart Wang, chief executive of Taitron, said the company’s first-quarter earnings a year ago were hurt by charges for earthquake repairs. But he added, “Net growth in our customer base represented approximately half of our first-quarter revenue increase” in the latest period.

Taitron’s profits soared also because the company had built up a substantial inventory of semiconductor devices before growing demand pushed prices higher in recent months, Wang said. Replacing the inventory at current higher costs may squeeze future profit margins, he said.

Taitron distributes components to other electronics distributors and original equipment manufacturers.