Microsemi Announces Fiscal 2003 First Quarter Results In Line with Guidance
Thursday January 23, 4:03 pm ET
IRVINE, Calif.--(BUSINESS WIRE)--Jan. 23, 2003--Microsemi Corp. (Nasdaq:MSCC - News) today announced results for the first quarter of its fiscal year 2003.
For the first quarter ended Dec. 29, 2002, the company's net sales were $45.9 million, compared with net sales of $57 million in the prior year period and $49.2 million in the fourth quarter of last fiscal year.
Pro forma net income for the first quarter was $0.3 million, or $0.01 per diluted share compared with $5 million, or $0.17 per diluted share, in the prior year's first quarter and $0.8 million or, $0.03 per diluted share, in the fourth quarter of last fiscal year. Pro forma earnings are explained in the attached Notes.
James J. Peterson, president and CEO stated, "We are very pleased with our first quarter results, which reflect the positive steps we have taken in improving factory utilizations, as well as across the board cost cutting."
Peterson further stated, "We are looking forward to building momentum with our new products and a potential recovery in our profitable traditional markets."
Business Outlook
The book-to-bill ratio for the first quarter was 1.0. The sales outlook for the second quarter is expected to be up 1 to 3 percent from the first quarter. Diluted pro forma earnings per share for the second quarter are expected to be between $0.01 and $0.03.
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.
Please 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, 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.
Microsemi Corp.
Pro Forma Consolidated Income Statements
(In thousands, except per share amounts)
Quarters ended
Dec. 30, Dec. 29,
2001 2002
Net sales $57,018 $45,869
Cost of sales 35,198 31,579
Gross margin 21,820 14,290
Operating expenses:
Selling, general and administrative 9,119 8,877
Research and development 5,154 4,963
Total operating expenses 14,273 13,840
OPERATING INCOME 7,547 450
Interest and other expense, net (96) (60)
INCOME BEFORE PROVISION FOR INCOME
TAXES 7,451 390
Provision for income taxes 2,459 129
PRO FORMA NET INCOME $ 4,992 $ 261
Pro Forma earnings per share:
Basic $ 0.18 $ 0.01
Diluted $ 0.17 $ 0.01
Common and common equivalent shares outstanding:
Basic 28,331 28,905
Diluted 30,120 29,150
Microsemi Corp.
Notes to Unaudited Consolidated Income Statements
The above pro forma amounts have been adjusted to exclude the
following items:
Quarters ended
Dec. 30, Dec. 29,
2001 2002
Amortization of goodwill and other intangible assets $(1,092) $ (323)
Restructuring and related charges:
Inventory abandonments - (200)
Workforce reduction - (686)
Facility and asset abandonment - (477)
Excess capacity cost - (584)
(1,092) (2,270)
Income tax effect 360 749
Net effect of pro forma adjustments on net income $ (732) $(1,521)
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)
Quarters ended
Dec. 30, Dec. 29,
2001 2002
NET SALES $57,018 $45,869
Cost of sales 35,198 32,840
GROSS MARGIN 21,820 13,029
Operating expenses:
Selling, general and administrative 9,119 8,877
Research and development 5,154 4,963
Restructuring charges - 686
Amortization of goodwill and other intangible
assets 1,092 323
Total operating expenses 15,365 14,849
OPERATING INCOME (LOSS) 6,455 (1,820)
Interest and other expense, net (96) (60)
INCOME (LOSS) BEFORE PROVISION
(BENEFIT) FOR INCOME TAXES 6,359 (1,880)
Provision (benefit) for income taxes 2,099 (620)
NET INCOME (LOSS) $ 4,260 $(1,260)
Earnings (loss) per share:
Basic $ 0.15 $ (0.04)
Diluted $ 0.14 $ (0.04)
Common and common equivalent shares outstanding:
Basic 28,331 28,905
Diluted 30,120 28,905
Microsemi Corp.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
Sept. 29, Dec.29,
2002 2002
ASSETS:
Current assets:
Cash and cash equivalents $ 23,060 $ 27,159
Accounts receivable, net 32,435 28,155
Inventories 52,040 50,594
Other current assets 6,434 6,381
Total current assets 113,969 112,289
Property and equipment, net 65,608 64,795
Other assets 37,191 35,596
TOTAL ASSETS $216,768 $212,680
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities $ 29,922 $ 27,008
Long-term debt 4,356 4,338
Other long-term liabilities 4,044 4,058
Shareholders' equity 178,446 177,276
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $216,768 $212,680
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Contact:
Microsemi Corp., Irvine
David R. Sonksen (investors), 949/221-7101
or
Cliff Silver (editorial), 949/221-7112
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Source: Microsemi Corp. |
