Microsemi Reports Third Quarter Results
-- Third Quarter Results in Line with Updated Guidance -- Revenues $51.5 million -- Pro Forma net income $0.04 per share
IRVINE, Calif.--(BUSINESS WIRE)--July 25, 2002-- Microsemi Corp. (Nasdaq:MSCC - News), today reported results for its fiscal 2002 third quarter, which are in line with the reduced expectations it announced on June 24, 2002.
Net sales for the quarter ended June 30, 2002 were $51.5 million, compared with net sales of $60.1 million in the third quarter of 2001. Third quarter pro forma net income was $1.2 million or $0.04 per share diluted, compared with $4.9 million, or $0.16 per share diluted, in the third quarter of last year.
James J. Peterson, president and CEO stated that, "These are difficult days in our industry, but I am confident that Microsemi is well-positioned to deliver as our markets turn toward a more positive outlook."
Revenues for the first nine months of fiscal 2002 were $163.5 million compared with last fiscal year's nine-month revenues of $186.2 million. Pro forma net income for the first nine months of fiscal year 2002 totaled $8.8 million, or $0.29 per share diluted, compared with $14.2 million, or $0.48 per share diluted in the first nine months of fiscal year 2001.
Microsemi also reported pro forma ongoing pretax Restructuring charges of $2.6 million in the third quarter, which are not reflected in the pro forma results reported above. The costs include workforce reductions, excess manufacturing costs, inventory abandonments, facility abandonments and costs to relocate operations.
The Restructuring charges are part of the company's Capacity Optimization and Profit Enhancement Program. The objectives of this program are to increase company-wide capacity utilization and operating efficiencies through consolidations and realignments of operations. Also not included in the pro forma results is a one-time pretax net gain of $2.9 million on the sales of certain assets, primarily on the sale by Microsemi RF Products Inc. of its low-frequency RF bipolar transistor business.
Business Outlook
The book-to-bill ratio for the third quarter was 0.97. The sales outlook for the fourth quarter is expected to be flat after excluding the sales from the business unit that was sold in the third quarter. Sales are expected to be $49 to $51 million. Diluted pro forma EPS are expected to improve slightly over the third quarter to $0.04 to $0.06 for the fourth quarter.
About Microsemi
Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi's products include individual components as well as complete circuit solutions that enhance customer designs by improving reliability, battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecom/datacom, medical, industrial, automotive, digital media, space/satellite and military.
More information may be obtained by contacting the company directly or by visiting its Web site at microsemi.com.
Read the following factors that can materially affect Microsemi's future results.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements. For instance, all statements of belief and expectations are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Potential risks and uncertainties include, but are not limited to, such factors as the difficulties regarding the making of estimates and projections, the hiring and retention of qualified technical personnel in a competitive labor market, acquiring and integrating new operations or assets, closing or disposing of operations or assets, rapidly changing technology and product obsolescence, the potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, results of in-process or planned development or marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, future effects of the tragic events of September 11, variations in customer order preferences, fluctuations in market prices of the company's common stock and potential unavailability of additional capital on favorable terms, difficulties in implementing company strategies, dealing with environmental matters or litigation, difficulties protecting patents and other proprietary rights, and inventory obsolescence. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K filed on Dec. 24, 2001 and the Form 10-Q filed on May 10, 2002, each filed by Microsemi with the Securities and Exchange Commission. Microsemi does not undertake to supplement or correct any information in this release that is or becomes incorrect.
MICROSEMI CORP.
Pro Forma Consolidated Income Statements
Excluding Restructuring, Asset Impairment
And Acquisition Related Amortization
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
July 1, June 30, July 1, June 30,
2001 2002 2001 2002
NET SALES $ 60,089 $ 51,466 $ 186,225 $ 163,453
Cost of sales 39,623 34,040 125,232 104,274
GROSS MARGIN 20,466 17,426 60,993 59,179
Operating expenses:
Selling, general and
administrative 9,464 9,416 29,348 28,623
Research and development 4,094 6,116 11,291 17,063
Total operating expenses 13,558 15,532 40,639 45,686
OPERATING INCOME 6,908 1,894 20,354 13,493
Interest and other income
(expense), net 383 (96) 785 (412)
INCOME BEFORE PROVISION
FOR INCOME TAXES 7,291 1,798 21,139 13,081
Provision for income taxes 2,406 593 6,976 4,317
PRO FORMA NET INCOME $ 4,885 $ 1,205 $ 14,163 $ 8,764
Pro forma earnings per share:
Basic $ 0.17 $ 0.04 $ 0.51 $ 0.31
Diluted $ 0.16 $ 0.04 $ 0.48 $ 0.29
Common and common equivalent
shares outstanding:
Basic 27,992 28,877 27,882 28,605
Diluted 29,820 29,423 29,512 29,799
The above pro forma amounts have been adjusted to exclude the
following items:
Amortization of goodwill and
other
intangible assets $ (670)$ (965)$ (2,029)$ (2,901)
Restructuring charges:
Inventory write-off -- (346) -- (1,926)
Workforce reduction -- (597) -- (2,644)
Facility and asset abandonment -- (231) -- (1,919)
Relocation of operations -- (381) -- (381)
Excess manufacturing cost -- (959) -- (959)
Assets impairment -- (79) -- (1,686)
Non-recurring gain on sales of
assets -- 2,864 -- 2,864
(670) (694) (2,029) (9,552)
Income tax effect 221 229 670 2,694
Net effect of pro forma
adjustments
on net income $ (449)$ (465)$ (1,359)$ (6,858)
MICROSEMI CORP.
Unaudited Consolidated Income Statements
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
July 1, June 30, July 1, June 30,
2001 2002 2001 2002
NET SALES $ 60,089 $ 51,466 $ 186,225 $ 163,453
Cost of sales 39,623 35,740 125,232 107,554
GROSS MARGIN 20,466 15,726 60,993 55,899
Operating expenses:
Selling, general and
administrative 9,464 9,895 29,348 29,102
Research and development 4,094 6,116 11,291 17,063
Amortization of goodwill and
other intangible assets 670 965 2,029 2,901
Restructuring charges 335 -- 4,070
Asset impairment 79 -- 1,687
Total operating expenses 14,228 17,391 42,668 54,823
OPERATING INCOME (LOSS) 6,238 (1,665) 18,325 1,076
Interest and other income, net 383 2,769 785 2,453
INCOME BEFORE PROVISION
FOR INCOME TAXES 6,621 1,104 19,110 3,529
Provision for income taxes 2,185 364 6,306 1,165
NET INCOME $ 4,436 $ 740 $ 12,804 $ 2,364
Earnings per share:
Basic $ 0.16 $ 0.03 $ 0.46 $ 0.08
Diluted $ 0.15 $ 0.03 $ 0.43 $ 0.08
Common and common
equivalent shares
outstanding:
Basic 27,992 28,877 27,882 28,605
Diluted 29,820 29,423 29,512 29,799
MICROSEMI CORP.
Condensed Unaudited Consolidated Balance Sheets
(In thousands)
September June 30,
30, 2001 2002
ASSETS
Cash and cash equivalents $ 24,808 $ 26,340
Accounts receivable, net 37,950 31,111
Inventories 58,889 56,870
Other current assets 14,349 14,796
Total current assets 135,996 129,117
Property and equipment, net 63,380 65,279
Other assets 40,795 37,991
TOTAL ASSETS $ 240,171 $ 232,387
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 53,744 $ 40,716
Long-term debt 6,078 4,373
Other long-term liabilities 4,960 4,631
Stockholders' equity 175,389 182,667
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 240,171 $ 232,387
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Contact:
Microsemi Corp., Irvine
David R. Sonksen (financial/investors), 949/221-7101
Cliff Silver (editorial), 949/221-7112 |
