Microsemi Reports Improved Sales and Profits Over Prior Quarter
Thursday April 24, 4:03 pm ET
-- Second Quarter Results beat Consensus Estimates
IRVINE, Calif.--(BUSINESS WIRE)--April 24, 2003-- -- Revenues Increase 5% over First Quarter
Positive Book-to-Bill Ratio of 1.06 for Second Quarter
Microsemi Corp. (Nasdaq:MSCC - News) today reported results for its fiscal 2003 second quarter.
Net sales for the quarter ended March 30, 2003 were $48.2 million, down 12% compared with net sales of $55 million in the second quarter of 2002, but up 5% from net sales of $45.9 million in the first quarter.
Second quarter pro forma net income was $0.8 million, or $0.03 per share diluted, down 69% compared with $2.6 million, or $0.09 per share diluted, in the second quarter of last year but up 385% from the $0.2 million, or $0.01 per share diluted, in the company's first quarter of fiscal year 2003. Pro forma earnings are explained in the attached tables.
James J. Peterson, president and CEO, stated that, "We are very pleased with our second quarter results which reflect a 5% sequential quarter over quarter increase in sales and a $0.02 sequential increase in pro forma earnings per share diluted."
Revenues for the first six months of fiscal 2003 were $94.1 million compared with the first six months of last fiscal year of $112 million. Pro forma net income for the first six months of fiscal year 2003 totaled $1 million, or $0.03 per share diluted, compared with $7.6 million, or $0.25 per share diluted, in the first half of fiscal year 2002.
The book-to-bill ratio for the quarter was 1.06.
The company's earnings as calculated under Generally Accepted Accounting Principles for the second quarter were $2.1 million, or $0.07 per share diluted, compared with losses of $2.6 million, or $0.09 per share diluted in the second quarter of last year and $1.6 million, or $0.06 per share diluted in its first quarter of fiscal year 2003. The company's earnings as calculated under Generally Accepted Accounting Principles for the first six months of fiscal year 2003 were $0.5 million, or $0.02 per share diluted, compared with $1.6 million, or $0.06 per share diluted in the first six months of last year.
Business Outlook
The book-to-bill ratio for the first two quarters has seen positive change. Based upon this and other factors, the sales outlook for the third quarter is expected to be up 2 to 4 percent over the second quarter. Pro forma earnings per share diluted for the third quarter are expected to be between $0.03 and $0.05.
Non pro forma (or GAAP) based earnings are expected to be $0.02 to $0.04 per share diluted reflecting the $0.3 million after tax charge for amortization of acquisition-related intangible costs. The gross margin percentage for the third quarter is expected to increase 20 to 50 basis points over the second 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 Sept. 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 in determining and maintaining adequate insurance coverage, 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. 19, 2002, and the Form 10-Q filed on Feb. 12, 2003, filed by Microsemi with the Securities and Exchange Commission. Additional risk factors may be identified from time to time in Microsemi's future filings. Microsemi does not undertake to supplement or correct any information in this release that is or becomes incorrect.
-0-
MICROSEMI CORP.
Pro Forma Consolidated Income Statements
(In thousands, except per share amounts)
Quarter ended Six months ended
March March March March
31, 30, 31, 30,
2002 2003 2002 2003
NET SALES $54,969 $48,217 $111,987 $94,086
Cost of sales 35,035 32,981 70,234 64,560
GROSS MARGIN 19,934 15,236 41,753 29,526
Operating expenses:
Selling, general and administrative 10,088 9,091 19,207 18,108
Research and development 5,793 4,825 10,947 9,788
Total operating expenses 15,881 13,916 30,154 27,896
OPERATING INCOME 4,053 1,320 11,599 1,630
Interest and other expense, net (220) (105) (314) (165)
INCOME BEFORE INCOME TAXES 3,833 1,215 11,285 1,465
Provision for income taxes 1,265 401 3,724 483
PRO FORMA NET INCOME $ 2,568 $ 814 $ 7,561 $ 982
Pro Forma Earnings per share:
Basic $ 0.09 $ 0.03 $ 0.27 $ 0.03
Diluted $ 0.09 $ 0.03 $ 0.25 $ 0.03
Common and common equivalent shares outstanding:
Basic 28,607 28,934 28,469 28,920
Diluted 29,855 29,340 29,987 29,244
MICROSEMI CORP.
Schedule Reconciling Pro Forma Earnings to GAAP Earnings
(in thousands, except per share amounts)
The pro forma amounts have been adjusted to exclude the following
items:
Quarter Six months
ended ended
March March March March
31, 30, 31, 30,
2002 2003 2002 2003
Amortization of goodwill, in fiscal
year 2002, and other intangible
assets $ (844)$ (390)$(1,936)$ (713)
Restructuring charges:
Inventory write-off (1,580) -- (1,580) (200)
Workforce reduction (2,047) -- (2,047) (686)
Facility and asset abandonment (1,688) -- (1,688) (477)
Excess manufacturing cost -- -- -- (584)
Reorganization charges -- (509) -- (509)
Assets impairment (1,607) -- (1,607) --
Gain on sales of assets, net -- 2,821 -- 2,393
(7,766) 1,922 (8,858) (776)
Income tax effect 2,563 634 2,923 (256)
Net effect of pro forma
adjustments on net income $(5,203)$ 1,288 $(5,935)$ (520)
Adjustments on (Loss) Earnings per
share:
Basic $ (0.18)$ 0.04 $ (0.21)$ (0.01)
Diluted $ (0.18)$ 0.04 $ (0.21)$ (0.01)
Common and common equivalent
shares outstanding:
Basic 28,607 28,934 28,469 28,920
Diluted 28,607 29,340 28,469 28,920
Microsemi provides unaudited pro forma results as additional
information for its operating results. These measures are not in
accordance with, or an alternative for, generally accepted accounting
principles (GAAP) and may be different from pro forma measures used by
other companies.
MICROSEMI CORP.
Unaudited Consolidated Income Statements
(In thousands, except per share amounts)
Quarter Six months
ended ended
March March March March
31, 30, 31, 30,
2002 2003 2002 2003
NET SALES $ 54,969 $48,217 $111,987 $94,086
Cost of sales 36,615 33,490 71,814 66,330
GROSS MARGIN 18,354 14,727 40,173 27,756
Operating expenses:
Selling, general and
administrative 10,088 9,091 19,207 18,108
Research and development 5,793 4,825 10,947 9,788
Amortization of goodwill, in
2002,
and other intangible assets 844 390 1,936 713
Restructuring charges 3,735 -- 3,735 686
Gain on sales of assets, net -- (2,821) -- (2,393)
Asset impairment 1,607 -- 1,607 --
Total operating expenses 22,067 11,485 37,432 26,902
OPERATING INCOME (LOSS) (3,713) 3,242 2,741 854
Interest and other expense, net (220) (105) (314) (165)
INCOME (LOSS) BEFORE
INCOME TAXES (3,933) 3,137 2,427 689
Provision (Benefit) for income
taxes (1,298) 1,035 801 227
NET INCOME (LOSS) $ (2,635)$ 2,102 $ 1,626 $ 462
Earnings (Loss) per share:
Basic $ (0.09)$ 0.07 $ 0.06 $ 0.02
Diluted $ (0.09)$ 0.07 $ 0.06 $ 0.02
Common and common equivalent shares
outstanding:
Basic 28,607 28,934 28,469 28,920
Diluted 28,607 29,340 29,987 29,123
MICROSEMI CORP.
Condensed Unaudited Consolidated Balance Sheets
(in thousands)
Sept. March
29, 2002 30, 2003
ASSETS
Current Assets:
Cash and cash equivalents $ 23,060 $ 22,583
Accounts receivable, net 32,435 28,887
Inventories 52,040 50,407
Other current assets 6,434 6,182
Total current assets 113,969 108,059
Property and equipment, net 65,608 62,553
Other assets 37,191 39,146
TOTAL ASSETS $216,768 $209,758
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 29,922 $ 24,993
Long-term debt 4,356 494
Other long-term liabilities 4,044 3,993
Stockholders' equity 178,446 180,278
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $216,768 $209,758
--------------------------------------------------------------------------------
Contact:
Microsemi Corp., Irvine
David R. Sonksen, (For Investor Inquiries), 949/221-7101
or
Cliff Silver, (Editorial), 949/221-7112
--------------------------------------------------------------------------------
Source: Microsemi Corp.
|
