TUNE ( $20-$18) EPS -$1.26...2nd Quarter 2001 Results in Line With Expectations
PLANO, Texas, Jul 23, 2001 (BUSINESS WIRE) -- Microtune(TM), Inc.
(Nasdaq:TUNE), a leader in integrated radio frequency (RF) silicon and systems
solutions for the broadband communications and consumer electronics markets,
today reported financial results for the second quarter ended June 30, 2001, in
line with consensus estimates.
Second quarter 2001 revenue was $14.5 million, a decrease of 18% from the $17.7
million reported in first quarter 2001 and a 4% decrease from revenue of $15.1
million in the comparable quarter of 2000. Gross margins were 30% in the second
quarter 2001 compared to 30% in first quarter 2001, excluding additional
inventory reserves recorded in first quarter 2001. Gross margins continue to be
impacted by lower loading of the Company's module factories and pricing pressure
on more mature product lines. Pro forma loss per share, which excludes non-cash
charges for stock option compensation and amortization of intangibles and
goodwill, was $0.09 for second quarter 2001, an increase of $0.02 over the pro
forma loss per share of $0.07 in first quarter 2001.
Microtune ended the second quarter 2001 with $71.1 million in cash and cash
equivalents compared to $71.8 million at the end of first quarter 2001. The
Company's balance sheet continues to show strength with minimal net cash burn
and a reduction in overall inventories and accounts receivable during the
quarter. Cash outflows in second quarter 2001 included a convertible loan issued
in the amount of $1.0 million to a private RF-focused company.
During the quarter, Microtune continued to fortify its position across customers
and products, positioning itself for market recovery, future growth and
continued RF technology and market leadership, even during the current period of
economic and industry slowdown. First, Microtune expanded its market reach by
introducing the MT4950 RF Subsystem, the industry's first commercially available
RF transceiver supporting primary-line, cable-based phone services. Based on
Microtune's RF silicon and systems technologies, the MT4950 provides one of the
critical building blocks for enabling bundled video, voice and data services to
the home. Unique in supporting both circuit-switched and packet-switched
architectures, the MT4950 provides a migration strategy to future Voice over
Internet Protocol (VoIP) platforms, a critical consideration for cable equipment
suppliers. The new MT4950 further extends Microtune's RF technology portfolio
into the cable telephony segment and positions the company for leadership as the
market begins to ramp.
Microtune also announced several design wins for its RF silicon products across
a diverse group of cable broadband products and customers, including Motorola,
which extended its supply agreement to include Microtune's amplifier chips in
its set-top box products. In the second quarter, approximately 19% of products
shipped contained Microtune proprietary silicon, further demonstrating the
expanded adoption of Microtune's RF silicon in both on-board and subsystems
solutions, up from less than 10% in the first quarter of 2001.
Microtune also announced an agreement with STMicroelectronics for the
development of high-performance, cost-optimized solutions that will integrate
both companies' silicon and systems technologies into products targeted for
next-generation cable modems, set-top boxes and other digital cable broadband
appliances. The two companies introduced the first product in their
collaboration, an all-silicon cable modem Reference Design, which is expected to
offer the most cost-effective cable modem system on the market.
Supporting this initiative and the migration to silicon tuner-on-board
implementations, Microtune's MicroTuner(TM) tuner and MicroStreamer(TM) upstream
amplifier were integrated into a cable modem that achieved DOCSIS certification
during CableLabs' Certification Wave 18. This represents the industry's first
cable modem to be certified using a single-chip tuner. Combined with the other
cable modems that achieved the DOCSIS-certified seal with Microtune's RF
technology, Microtune has supplied the tuner-receiver in one or more models for
32 of 51 companies that have achieved certification.
Further solidifying its position in the RF automotive market, Microtune
announced a teaming relationship with Delphi Automotive Systems' Fuba Automotive
GmbH subsidiary to develop advanced, integrated mobile multimedia systems.
Microtune's new class of 5102 automotive multimedia tuners, developed as part of
this alliance, delivers premium radio and rear seat in-vehicle television and
video. This device expands Microtune's portfolio of mobile RF solutions and
places the company at the forefront of the expanding automotive/consumer
electronics convergence market.
Supporting the quality-driven manufacturing processes required by the automotive
industry, Microtune also announced that its newest manufacturing facility, NSF
RF Technologies Corporation, in Manila (Philippines) has received official
certification for QS9000 and ISO 9001, while its European Headquarters operation
in Ingolstadt (Germany) has been re-certified for QS9000 and ISO 9001. These
certifications meet demanding automotive specifications and also demonstrate the
company's strong commitment to quality across all its product lines.
"Microtune remains positive about the cable broadband markets and the commitment
of cable operators to deploy new broadband services," said Douglas J. Bartek,
Chairman and CEO of Microtune, Inc. "The stabilization of cable modem
inventories that is expected later this year is a key indicator. During the
current economic conditions, we are managing our business to ensure
cost-efficient operations, as evidenced by our cash neutral position. At the
same time, we are aggressively focused on our strategic long-term objectives
across all our markets. The introduction of new industry-leading RF silicon and
systems products and our continued design-win successes strengthen our position
for the future as the market recovers."
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements, including those
discussing the joint development efforts with different companies and the
results of those efforts, that are subject to risks and uncertainties that could
cause such statements to differ materially from actual future events or results.
Such forward-looking statements are generally accompanied words such as "plan,"
"estimate," "expect," "believe," "could," "would," "anticipate," "may," or other
words that convey uncertainty of future events or outcomes. These
forward-looking statements and other statements made elsewhere in this release
are made in reliance on the Private Securities Litigation Reform Act of 1995.
Factors which could cause actual results to differ include the companies'
abilities to develop jointly new products that comply with industry standards
and are accepted within the cable-based broadband communications industry, and
the ability to migrate customers to silicon-based products, ability to develop
new products within anticipated cost range, and general economic conditions that
have affected the broadband communications markets recently, any of which may
cause the company's financial results to fluctuate. Readers are referred to the
reports and documents filed by Microtune with the Securities and Exchange
Commission from time to time, including its Form 10-K for the year ended
December 31, 2000 and Form 10Q for the quarter ended March 31, 2001.
ABOUT MICROTUNE
Microtune Inc. is a leading RF silicon and systems company that designs,
manufactures and markets RF broadband 'gateway' solutions for use in cable
modems, set-top boxes, PC/TV multimedia, TV/digital TV, automotive entertainment
and other consumer electronics. Inventors of the MicroTuner(TM) single-chip
broadband tuner and a family of silicon broadband amplifiers, the company
currently holds fourteen U.S. patents for its RF technology, with an additional
thirteen pending approval, containing a total of more than 1000 supporting
claims. Founded in 1996, Microtune is headquartered in Plano, Texas, with key
design, manufacturing and sales centers located around the world. The Web site
is www.microtune.com. |
