Nu Horizons Electronics Corp. Reports Financial Results for the Third Quarter and Nine Months of Fiscal Year 2010

Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components, today reported financial results for the third quarter and nine months of fiscal 2010 ended November 30, 2009.

Net sales for the quarter ended November 30, 2009 were $179,446,000 as compared to $188,219,000 for the comparable period last year, a decrease of 4.7%. Net income for the quarter was $650,000 or $0.04 per diluted share as compared to net income of $150,000 or $0.01 per diluted share for the third quarter of the prior year. Sequentially, net sales for the quarter ended November 30, 2009 increased $22,846,000 or 14.6%, from $156,600,000 in the second quarter of fiscal 2010.

Operating income for the third quarter of fiscal 2010 was $2,356,000 as compared with an operating loss of $(377,000) in the second quarter of fiscal 2010 and $(143,000) in the prior year third quarter. Operating income as a percentage of sales increased to 1.31% compared to an operating loss of (0.1)% in the prior year quarter.

For the nine months ended November 30, 2009, net sales decreased to $483,805,000 or 19.4% from $600,184,000 in the comparable period last year. Net income for the nine-month period was $249,000 or $0.01 per diluted share compared to net income of $1,497,000 or $0.08 per diluted share in the prior year. Operating income for the nine months ended November 30, 2009 was $1,324,000 compared to $4,203,000 in the comparable prior period.

Net of tax, the effect on diluted earnings per share related to professional fees associated with the ongoing SEC investigation of Vitesse Semiconductor Corp. was $0.00 and $0.03 for the three months and $0.03 and $0.11 for the nine months ended November 30, 2009 and 2008, respectively.

Arthur Nadata, Executive Chairman and Interim Chief Executive Officer of Nu Horizons stated, "This is our second consecutive quarter of growth in sales, gross profit and operating income despite the year-over-year impact of the global economic slowdown. We continue to see a positive book-to-bill. Our improved third quarter sales, coupled with our continued efforts to control costs, has returned the company to profitability for the quarter and year-to-date. In the current quarter, we had sequential sales growth in all geographic areas, including North America $8,925,000 (9.5%), Asia $12,176,000 (25.8%), and Europe $1,745,000 (11.0%). Despite our lack of visibility over the long term, our sequential quarterly growth and improved backlog provide some wind at our back, and we have become cautiously optimistic."

Kurt Freudenberg, Executive Vice President and Chief Financial Officer, added, "We have a strong balance sheet. At November 30, 2009, the company had $167,390,000 in working capital, our current ratio was 3.1:1, and our ratio of bank debt to equity was .24:1."

A conference call to further discuss earnings will be held today at 4:30 pm ET. The conference call may be accessed by dialing 1-888-510-1785 (international, dial 1-719-325-2217) and providing the passcode 5014730. Listeners can also access the webcast live through the company's website at www.nuhorizons.com. The webcast will be archived on the company’s website for 60 days following the call. An audio replay of the conference call will be available for seven days beginning at 7:30 p.m. Eastern time on January 7, 2010. The audio replay dial-in number for North America is 1-888-203-1112 and 1-719-457-0820 for international callers. The replay passcode is 5014730. A transcript of the call will remain available on the company's website.

About Nu Horizons Electronics Corp.

Nu Horizons Electronics Corp. is a leading global distributor of advanced technology semiconductor, display, illumination, power and system solutions to a wide variety of commercial original equipment manufacturers (OEMs) and electronic manufacturing services providers (EMS). With sales facilities in 54 locations across North America, Europe and Asia and regional logistics centers throughout the globe, Nu Horizons partners with a limited number of best-in-class suppliers to provide in-depth product development, custom logistics and life-cycle support to its customers. Information on Nu Horizons and its services is available at www.nuhorizons.com.

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. When used in this press release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Nu Horizons or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Nu Horizons’ management, as well as assumptions made by and information currently available to its management. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as the level of business and consumer spending for electronic products, the amount of sales of the Company’s products, the competitive environment within the electronics industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company’s expansion efforts, the financial strength of the Company’s customers and suppliers and risks and costs related to the pending Vitesse-related SEC investigation. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. Such statements reflect our current view with respect to the future and are subject to these and other risks, uncertainties and assumptions relating to Nu Horizons’ financial condition, results of operations, growth strategy and liquidity. The Company does not undertake any obligation to update its forward-looking statements.

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