Second Quarter 1998 Financial Results
Thursday July 9, 4:01 pm Eastern Time
Company Press Release
SOURCE: Dallas Semiconductor Corporation
DALLAS, July 9 /PRNewswire/ -- Dallas Semiconductor Corporation (NYSE: DS - news) today
reported net sales of $87.0 million for the second quarter ended June 28, 1998, compared to
$91.0 million for the second quarter of 1997 and $87.4 million for the first quarter of 1998. Net
income for the second quarter of 1998 was $14.0 million ($0.47 per share) compared to $15.3
million ($0.52 per share) for the second quarter of 1997 and $13.5 million (0.45 per share) for the
first quarter of 1998. ''We believe that the second quarter results reflect difficult but temporary
conditions affecting most of the industry,'' said Vin Prothro, Chairman and Chief Executive Officer.
''We are pleased to report that several cost-containment and reduction measures helped maintain
gross margins at 52.5% and allowed operating margins to increase to 22.2% compared to the first
quarter. Given our limited visibility and the upcoming historically soft summer quarter, we will
continue to focus on capacity management and cost control measures,'' said Mr. Prothro.
Approximately half of the Company's second quarter revenues were derived from orders received
and shipped during the quarter.
''Some good news is that the Company's high-speed T1/E1 communications products posted
record sales for the quarter. We continue to invest heavily in these and other products for the
growing high-speed digital transmission and wide area networking markets. Given our skills and the
needs of the market, this area will continue to represent a meaningful long-term growth opportunity
for the Company. In addition to our communications products, we are maintaining a steady stream
of important new product introductions in all other key areas of the Company,'' said Mr. Prothro.
''Looking ahead, our goal is to maintain our operating efficiencies and new product development
efforts to ensure that we fully participate when industry conditions improve,'' concluded Mr.
Prothro.
Dallas Semiconductor Corporation develops, manufactures and markets high performance
Complementary Metal Oxide Semiconductor (CMOS) integrated circuits and
semiconductor-based systems that provide innovative and cost-effective solutions to electronic
design problems in a wide range of existing and emerging markets.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: With the
exception of historical information, the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties including, but not limited to, economic conditions,
competition, manufacturing performance, new product development, market acceptance of the
Company's new products and other risks indicated in filings with the Securities and Exchange
Commission.
DALLAS SEMICONDUCTOR CORPORATION
REPORTS SECOND QUARTER 1998 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
----------------------------- --------------------
Jun. 28, Mar. 29, Jun. 29, Jun. 28, Jun. 29,
1998 1998 1997 1998 1997
-------- --------- -------- -------- --------
Net sales $87,029 $87,448 $91,040 $174,477 $179,744
Cost of sales 41,338 41,498 44,627 82,836 89,394
Research and
development 11,791 12,567 11,471 24,358 22,373
Selling, general
and admin. 14,586 14,649 13,451 29,235 26,184
------- ------- ------- -------- --------
Total costs and
expenses 67,715 68,714 69,549 136,429 137,951
------- ------- ------- -------- --------
Operating income 19,314 18,734 21,491 38,048 41,793
Interest income, net 1,297 1,137 1,125 2,434 2,039
------- ------- ------- -------- --------
Income before income
taxes 20,611 19,871 22,616 40,482 43,832
Provision for income
taxes 6,596 6,359 7,294 12,955 14,136
------- ------- ------- -------- --------
Net income $14,015 $13,512 $15,322 $ 27,527 $ 29,696
======= ======= ======= ======== ========
Net income per share,
basic $ 0.50 $ 0.49 $ 0.56 $ 0.99 $ 1.10
======= ======= ======= ======== ========
Net income per share,
diluted $ 0.47 $ 0.45 $ 0.52 $ 0.92 $ 1.02
======= ======= ======= ======== ========
Shares used to calculate
net income per share:
Basic 27,967 27,825 27,193 27,896 27,007
Diluted 29,839 30,010 29,482 29,924 29,120
Dividends declared
per share $ 0.04 $ 0.04 $ 0.035 $ 0.08 $ 0.07
Effective tax rate 32.0% 32.0% 32.3% 32.0% 32.3%
Percentage of sales
Gross margin 52.5% 52.5% 51.0% 52.5% 50.3%
Research & development 13.5% 14.4% 12.6% 14.0% 12.4%
Selling, general &
admin. 16.8% 16.8% 14.8% 16.8% 14.6%
Operating income 22.2% 21.4% 23.6% 21.8% 23.3%
Net income 16.1% 15.5% 16.8% 15.8% 16.5%
------------------------------------------------
DALLAS SEMICONDUCTOR CORPORATION
REPORTS SECOND QUARTER 1998 FINANCIAL RESULTS
------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands)
(Unaudited)
June 28, 1998 December 28, 1997
------------- -----------------
Assets
Current assets:
Cash and cash investments $111,007 $114,608
Accounts receivable 49,602 62,337
Inventories 66,576 59,131
Other current assets 16,401 14,164
-------- --------
Total current assets 243,586 250,240
Property, plant and equipment, net 185,103 161,755
Other assets 5,574 5,147
-------- --------
$434,263 $417,142
======== ========
Liabilities and stockholders' equity
Current liabilities 48,600 66,085
Stockholders' equity 385,663 351,057
-------- --------
$434,263 $417,142
======== ========
Additional quarterly information: Q298
----
Annualized return on equity 14.8%
Depreciation expense $ 10,880
Capital expenditures $ 14,102
Dividends paid $ 1,119
SOURCE: Dallas Semiconductor Corporation |
