I see no indication that MSCC ever lowered guidance:
MSCC News:
biz.yahoo.com
Last quarter's earnings release indicated margins would improve further:
biz.yahoo.com
Wednesday November 28, 4:05 pm Eastern Time
Press Release
SOURCE: Microsemi Corp.
Microsemi Announces Fiscal 2001 and Fourth Quarter Results
IRVINE, Calif.--(BUSINESS WIRE)--Nov. 28, 2001--
-- Fourth Quarter Pro Forma Earnings Per Share of $0.17 Beats
Consensus Estimate of $0.16 -- Fourth Quarter Net Income Increased 6% over Prior Year Fourth
Quarter -- Fourth Quarter Gross Margins Increase 170 Basis Points over Third
Quarter and 490 Basis Points over Prior Year Fourth Quarter -- Sales from Continuing Businesses for Fiscal Year 2001 Increased 7%
over Fiscal Year 2000 -- Fiscal Year 2001 Pro Forma Net Earnings Increased 63% over Fiscal
Year 2000 -- Fiscal Year 2001 Pro Forma Net Earnings Per Share of $0.65
Increased 38% from $0.47 in Fiscal Year 2000
Microsemi Corp. (Nasdaq:MSCC - news), today announced results for its fourth quarter and fiscal year ended Sept. 30, 2001.
For the fourth quarter ended Sept. 30, 2001, the company's net sales were $57.2 million, compared with net sales from continuing businesses of $62.9 million in the prior year fourth quarter. For the fiscal year ended Sept. 30, 2001 net sales from continuing businesses increased 7% to $238.2 million from net sales from continuing businesses of $223 million in the prior year.
James J. Peterson, president and CEO stated, ``We are very excited about the health of our business fundamentals relative to the challenging market conditions in the semiconductor industry today, as well as the business disruptions associated with the tragic events of September 11.''
Fourth quarter pro forma net income increased 6% to $5 million, or $0.17 per share (diluted) compared with $4.7 million or $0.16 per share (diluted) in the prior year's fourth quarter. All per share amounts for prior periods have been adjusted to reflect a two-for-one stock split effected by means of a stock dividend.
Fiscal year 2001 pro forma net income increased 63% to $19.2 million, or $0.65 per share (diluted), compared with $11.8 million, or $0.47 per share (diluted) in fiscal year 2000.
Gross margin in the fourth quarter of Fiscal Year 2001 increased 170 basis points over the third quarter, 490 basis points over the prior year fourth quarter and for the full fiscal year, increased 450 basis points over fiscal year 2000.
Peterson went on to say: ``These gross margin improvements result from our gross margin enhancement program. As part of this program, we have closed and/or consolidated three under-performing business units in the last year and are continuing to exit lower margin commodity business.
``However, and most importantly, these gross margin improvements also reflect a shift in our product mix to higher margin products developed over the last several years as a result of our expanded research and development programs. Our research and development spending has grown from 4.8% of sales in the fourth quarter of fiscal year 2000 to 8.5% of sales in this year's fourth quarter.
``With this spending, we also have added to our portfolio of patented and other proprietary products.''
The company's book-to-bill ratio for the fourth quarter of fiscal year 2001 was .91.
First Quarter Business Outlook
-- The company expects sales to be up as much as 2% over the fourth
quarter consistent with its actions to exit lower margin business
and the impact of both recent new product introductions and
acquisitions during the fourth quarter of fiscal year 2001. -- The company expects gross margin to increase 10 to 40 basis points
over the fourth quarter as a result of higher margin new products
and recent business consolidations. -- The company expects SG&A spending to be flat with the fourth
quarter. -- Research and development spending should increase approximately 20
basis points over the fourth quarter as a percentage of sales as
the company continue to expand its new product development
projects. -- Other income and expense will be impacted by higher interest
expense and lower interest income based on lower cash balances and
will fall to zero in the first quarter. -- The tax rate for the first quarter is estimated to be 33%.
About Microsemi
Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi products include individual components as well as complete circuit solutions that enhance customer designs by providing battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecommunications, medical, industrial/commercial, space/satellite and military.
Microsemi invites you to its Fourth Quarter and Fiscal Year-End 2001 Conference Call with management to discuss results for the quarter and fiscal year ended Sept. 30, 2001.
Date: Wednesday, Nov. 28, 2001
Time: 4:45 p.m. Eastern Standard Time
(1:45 p.m. Pacific Standard Time)
To access the webcast, log on to www.vcall.com. To listen to the live call, go to this Web site approximately 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on the Vcall Web site for 90 days.
To participate in the conference call by telephone, call 888/868-9083 or 973/628-9554 at approximately 4:35 p.m. EST (1:35 p.m. PST).
A telephonic digital replay will be available from 7 p.m. EST (4 p.m. PST) on Wednesday, Nov. 28 through 7 p.m. EST (4 p.m. PST) on Wednesday, Dec. 5. To access the replay, call 877/519-4471 or 973/341-3080. Enter the following PIN Number: 2970131.
More information may be obtained by contacting the company directly or by visiting its Web site at microsemi.com.
``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, 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 ability to realize cost savings or productivity gains, the ability to improve capacity utilization, potential cost increases, the strength and competitive pricing environment of the marketplace, demand for and acceptance of the company's products, the results of in-process or planned development, 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, business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, future effects of the tragic events of Sept. 11, customer order preferences, fluctuations in market prices of the company's common stock and availability of additional capital on favorable terms, difficulties in implementing company strategies, environmental matters, litigation, difficulties protecting patents and other proprietary rights, 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. 21, 2000, each of the subsequent Forms 10-Q filed Feb. 13, 2001, May 16, 2001 and Aug. 13, 2001 or the final prospectus on Form S-3 filed on June 1, 2000, each filed by the company with the Securities and Exchange Commission. The company does not undertake to supplement or correct any information in this release that is or becomes incorrect. Risks and certainties will also be contained in the upcoming filing of Form 10-K for the 2001 fiscal year.
Investor Inquiries: David R. Sonksen, Microsemi Corp., Irvine, Calif. 949/221-7101.
MICROSEMI CORP.
Pro Forma Consolidated Income Statements
Excluding Businesses Disposed of
and Acquisition Related IPR&D and Goodwill Charges
(In thousands, except per share amounts)
Quarters Ended Fiscal Years Ended
Oct. 1, Sept. 30, Oct. 1, Sept. 30,
2000 2001 2000 2001
(unaudited) (unaudited)
Sales from continuing
business $ 62,888 $ 57,163 $ 222,985 $ 238,157
Sales from closed
business 2,485 - 14,836 5,231
NET SALES 65,373 57,163 237,791 243,388
Cost of sales 45,193 36,699 168,767 161,931
GROSS MARGIN 20,180 20,464 69,024 81,457
Operating expenses:
Selling, general and
administrative 10,001 8,295 37,336 37,643
Research and
development 3,168 4,831 11,196 16,122
Total operating
expenses 13,169 13,126 48,532 53,765
OPERATING INCOME 7,011 7,338 20,492 27,692
Interest and other
income (expense), net 47 158 (2,872) 943
INCOME BEFORE PROVISION
FOR INCOME TAXES 7,050 7,496 17,618 28,635
Provision for income
taxes 2,329 2,474 5,817 9,450
NET INCOME $ 4,729 $ 5,022 $ 11,801 $ 19,185
Earnings per share:
Basic $ 0.17 $ 0.18 $ 0.49 $ 0.69
Diluted $ 0.16 $ 0.17 $ 0.47 $ 0.65
Common and common
equivalent shares
outstanding
(reflects 2-for-1
stock split):
Basic 27,560 28,193 24,018 27,906
Diluted 29,032 30,005 25,200 29,579
The above pro forma amounts have been adjusted to exclude the
following items:
Acquired in-process
research and
development $ - $ - $ 2,510 $ -
Amortization of
goodwill and other
acquisition-related
charges 737 801 2,359 2,830
Exclusion of a sold
business unit - - 466 -
737 801 5,335 2,830
Income tax effect (243) (264) (1,763) (934)
Net effect on net
income of pro
forma adjustments $ 494 $ 537 $ 3,572 $ 1,896
MICROSEMI CORP.
Consolidated Income Statements
(In thousands, except per share amounts)
Quarters Ended Fiscal Years Ended
Oct. 1, Sept. 30, Oct. 1, Sept. 30,
2000 2001 2000 2001
(unaudited) (unaudited) (unaudited)
NET SALES $ 65,373 $ 57,163 $ 247,577 $ 243,388
Cost of sales 45,193 36,699 177,602 161,931
GROSS MARGIN 20,180 20,464 69,975 81,457
Operating expenses:
Selling, general
and administrative 10,001 8,295 38,341 37,643
Research and
development 3,168 4,831 11,196 16,122
Amortization of
goodwill and other
intangible assets 737 801 2,359 2,830
Acquired in-process
research and
development - - 2,510 -
Total operating
expenses 13,906 13,927 54,496 56,595
OPERATING INCOME 6,274 6,537 15,479 24,862
Interest and other
income (expense), net 47 158 (3,196) 943
INCOME BEFORE PROVISION
FOR INCOME TAXES 6,321 6,695 12,283 25,805
Provision for income
taxes 2,086 2,209 4,054 8,516
NET INCOME $ 4,235 $ 4,486 $ 8,229 $ 17,289
Earnings per share:
Basic $ 0.15 $ 0.16 $ 0.34 $ 0.62
Diluted $ 0.15 $ 0.15 $ 0.33 $ 0.58
Common and common
equivalent shares
outstanding
(reflects 2-for-1
stock split):
Basic 27,560 28,193 24,018 27,906
Diluted 29,032 30,005 25,200 29,579
MICROSEMI CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 1, 2000 September 30, 2001
(unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $ 30,460 $ 24,808
Accounts receivable, net 33,029 37,950
Inventories 52,553 58,889
Other current assets 10,412 14,349
Total current assets 126,454 135,996
Property and equipment, net 55,458 63,270
Other assets 28,886 40,905
TOTAL ASSETS $ 210,798 $ 240,171
LIABILITIES AND SHAREHOLDERS'
EQUITY:
Current liabilities $ 46,297 $ 53,744
Long-term debt 9,651 6,078
Other long-term liabilities 5,160 4,960
Shareholders' equity 149,690 175,389
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 210,798 $ 240,171
--------------------------------------------------------------------------------
Contact:
Microsemi Corp., Irvine
David R. Sonksen (financial), 949/221-7101
or
Cliff Silver (editorial), 949/221-7112 |
