Exar Corporation Updates Quarter Guidance
Friday September 19, 8:00 am ET
FREMONT, Calif., Sept. 19 /PRNewswire-FirstCall/ -- Exar Corporation (Nasdaq: EXAR - News), a leading provider of high-performance, mixed-signal silicon solutions for the worldwide communications infrastructure, today announced its intent to write down impaired assets in the September 2003 quarter. The Company also updated its prior guidance for its financial results (excluding such charges) for the second fiscal quarter ending September 30, 2003.
Business Outlook
For the second fiscal quarter ending September 30, 2003, Exar projects revenue to be flat with the prior quarter at approximately $16 million which would represent a three percent growth in product revenue. Excluding the impairment charges, the Company projects EPS to be between $0.03 and $0.04(A) per diluted share for the second fiscal quarter. Including the charges, Exar expects an EPS loss of $(0.11) to $(0.12) per basic share.
Exar expects to announce its fiscal 2004 second quarter results on or around October 15, 2003.
Asset Impairment
Following review of its strategic investments, Exar intends to recognize an impairment charge of approximately $6 million, thereby reducing its other long-term investments from $8.8 million as of June 30, 2003 to $2.8 million as of September 30, 2003, against the Company's current carrying value for such strategic investments. Of this total charge, $5 million is related to the Company's remaining equity investment in a private, development-stage company and the balance is related to a venture fund investment. The Company expects to take the charge against its earnings in the three months ending September 30, 2003. |
