SEEQ TECHNOLOGY INC (SEEQ)
Quarterly Report (SEC form 10-Q)
is out.
sec.yahoo.com
RESULTS OF OPERATIONS
Revenues
Net revenues were $7,552,000 in the first quarter of fiscal 1998, an increase of $928,000 or 14% from net revenues of $6,624,000 for the first quarter of fiscal 1997. The change in revenue is primarily attributable to an increase in Fast Ethernet revenues partially offset by a decline in standard Ethernet revenues. In the first quarter of fiscal 1998, products servicing the Fast Ethernet market accounted for approximately 61% of revenues compared to 43% of revenues for the first quarter of fiscal 1997.
Gross Product Margins
The Company includes in cost of revenues all costs associated with subcontractor manufacturing, electrical testing, subcontractor assembly and final test of its integrated circuits and subsystems, warehousing, shipping, product returns and reserves for inventory obsolescence. Allowances for product returns are netted against revenues. Gross profit for the first quarter of fiscal 1998 was $3,369,000 or 45% of net revenues, an increase of $1,305,000 over the first quarter of fiscal 1997's gross profit of $2,064,000 or 31% of net revenues. The increase in gross profit margins is primarily attributable to changes in product mix, a decline in low margin 10Mbps transceiver revenues, a shift to higher margin products and lower production costs, all of which were partially offset by the under-utilization of manufacturing capacity. Gross margins in future periods will be affected primarily by revenue levels and changes in product mix, average selling prices, factory utilization, wafer yields, the introduction of new products, and changes in manufacturing costs.
Seems like a positive. |
