"...Centillium Communications Announces Second Quarter 2008 Financial Results Combination with TranSwitch Corporation will Create a New Leader in Communications IC
FREMONT, Calif., Aug 05, 2008 /PRNewswire-FirstCall via COMTEX/ -- Centillium Communications, Inc. (Nasdaq: CTLM), a leading provider of highly innovative communications processing technology, today announced financial results for the second quarter ended June 30, 2008.
Net revenues for the second quarter of 2008 were $6.3 million, compared with $6.1 million during the first quarter of 2008 and $10.0 million during the second quarter of 2007.
The GAAP gross margin was 57.6 percent for the second quarter of 2008, compared with 56.7 percent for the first quarter of 2008 and 55.1 percent for the second quarter of 2007.
GAAP results were a net loss of $1.8 million, or $0.04 per share, for the second quarter of 2008, compared with net income of $1.4 million, or $0.03 per share, for the first quarter of 2008 and a net loss of $8.9 million, or $0.22 per share, for the second quarter of 2007. The GAAP net loss for the second quarter of 2008 includes a $2.0 million benefit from the gain on legal settlement, restructuring expense of $643,000, and a benefit of $990,000 due to the reversal of accrued royalties. The GAAP net income for the first quarter of 2008 included an $8.1 million benefit from the gain on sale of our DSL related assets, restructuring expense of $2.3 million, and a benefit of $850,000 due to the reversal of accrued royalties. The GAAP net loss for the second quarter of 2007 included a charge for $2.5 million from the loss on legal settlement and restructuring expense of $308,000. The GAAP results for all periods include charges for stock-based compensation due to the adoption of SFAS 123R, effective January 1, 2006.
Non-GAAP results were a net loss of $3.9 million, or $0.09 per share, for the second quarter of 2008, compared with a net loss of $5.0 million, or $0.12 per share, for the first quarter of 2008 and a net loss of $5.6 million, or $0.14 per share, for the second quarter of 2007. The non-GAAP results for the second quarter exclude a $2.0 million benefit from the gain on legal settlement, restructuring expense of $643,000, a benefit of $990,000 due to the reversal of accrued royalties and stock-based compensation of $273,000. The non-GAAP results for the first quarter excluded the effect of the $8.1 million benefit from the gain on sale of our DSL related assets, restructuring expense of $2.3 million, a benefit of $850,000 due to the reversal of accrued royalties and stock-based compensation of $277,000. The non-GAAP results for the second quarter of 2007 excluded the effect of loss on settlement of $2.5 million, restructuring expense of $308,000 and stock-based compensation of $495,000. Further information about non-GAAP measures is provided below.
Total cash, short-term investments and restricted cash were $36.8 million at June 30, 2008, compared with $41.7 million at March 31, 2008. The restricted cash included in the $36.8 million was $1.8 million at June 30, 2008.
"We recently announced that we have entered into a definitive agreement to be acquired by TranSwitch Corporation and the transaction is expected to close during the fourth quarter of 2008," said Faraj Aalaei, co-founder and CEO. "We are excited about this partnership, and we believe that the combined company will be a strong leader in the communications IC sector. We also believe that this partnership will lead to exciting new opportunities for our Optical and VoIP businesses, and enable the combined company to better serve its customers and increase shareholder value." |
