>>>>< Sirf at 3.40, now below the inferred value. As suggested, impairment of goodwill 215MM. Etc.
Please see: Message 24297934
In one year sirf will be boguht out.
SiRF Technology Holdings, Inc. Announces Financial Results for Second Quarter 2008
Thursday July 24, 4:15 pm ET
SiRF reports revenue of $63 million
SAN JOSE, Calif., July 24 /PRNewswire-FirstCall/ -- SiRF Technology Holdings, Inc. (Nasdaq: SIRF - News), a leading provider of GPS-enabled silicon and premium software location platforms, today reported unaudited financial results for its second quarter ended June 30, 2008.
Net revenue in the second quarter of 2008 was $63.1 million, a decrease of 10.6 percent from $70.6 million reported in the second quarter of 2007. Gross margin in the second quarter of 2008 was 21.0 percent, as compared to 53.9 percent in the second quarter of 2007.
Net loss for the second quarter of 2008 was $332.6 million or ($5.41) per diluted share, based on 61.5 million diluted weighted average shares outstanding. This includes $215.7 million of goodwill impairment, $42.9 million in acquisition-related intangibles impairment and $34.2 million of provision for income taxes (includes valuation allowance on deferred tax assets of $38.0 million), $11.8 million of impairment on a note receivable, $10.3 million in stock-based compensation expense, $6.2 million in amortization of acquisition-related intangible assets, and $0.1 million in restructuring charges in the second quarter of 2008. This compares with net income of $2.1 million, or $0.04 per diluted share, based on 56.5 million diluted weighted average shares outstanding in the second quarter of 2007.
Net revenue in the first six months of 2008 was $125.1 million, a decrease of 9.3 percent from $137.9 million in the first six months of 2007. Gross margin in the first six months of 2008 was 31.7 percent, as compared to 53.9 percent in the first six months of 2007.
Net loss for the first six months of 2008 was $360.6 million, or ($5.92) per diluted share, based on 60.9 million diluted weighted averages shares outstanding. This includes $215.7 million of goodwill impairment, $42.9 million in acquisition-related intangibles impairment and $38.0 million of provision for income taxes (includes valuation allowance on deferred tax assets of $38.0 million), $11.8 million of impairment on a note receivable, $19.2 million in stock-based compensation expense, $12.4 million in amortization of acquisition-related intangible assets, $0.6 million in restructuring charges and $0.3 million in acquisition-related contingent payments in the first six months of 2008. This compares with net income of $4.9 million, or $0.09 per diluted share, based on 56.4 million diluted weighted average shares outstanding in the first six months of 2007.
SiRF reports net income (loss) and basic and diluted net income (loss) per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP gross profit, where applicable, excludes the effect of stock-based compensation expense and amortization and impairment of acquisition-related intangible assets. Non-GAAP gross profit for the second quarter of 2008 was $29.8 million or 47.2% of net revenue as compared to non-GAAP gross profit of $38.9 million or 55.0% of net revenue for the second quarter of 2007. Non-GAAP net income (loss), where applicable, excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, expenses related to acquisition-related contingent payments, restructuring and asset impairment charges, impairment on note receivable, goodwill impairment charge, acquisition-related intangibles impairment and adjustments to normalize the income tax provision. Non-GAAP net loss for the second quarter of 2008 was $11.4 million, or ($0.19) per diluted share, as compared to non- GAAP net income of $12.7 million, or $0.23 per diluted share for the second quarter of 2007. Non-GAAP net loss for the second quarter of 2008 excludes $10.3 million in stock-based compensation expense, $6.2 million in amortization of acquisition-related intangible assets, $0.1 million in restructuring charges, $11.8 million of impairment on note receivable, $215.7 million of goodwill impairment, $42.9 million in acquisition-related intangibles impairment and $34.2 million of provision for income taxes (includes valuation allowance on deferred tax assets of $38.0 million). Non-GAAP net income for the second quarter of 2007 excludes $8.8 million in stock-based compensation expense, $1.0 million in amortization of acquisition-related intangible assets $0.7 million of expenses related to acquisition-related contingent payments. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the second quarter of 2008 were 61.5 million, compared to 56.5 million for the second quarter of 2007. Refer to the itemized reconciliation between net income (loss) on a GAAP basis and non-GAAP basis for the second quarter of 2008 and 2007 as follows.
Non-GAAP gross profit, where applicable, excludes the effect of stock-based compensation expense and amortization and impairment of acquisition-related intangible assets. Non-GAAP gross profit for the first six months of 2008 was $60.1 million or 48.0% of net revenue as compared to non- GAAP gross profit of $75.8 million or 55.0% of net revenue for the first six months of 2007. Non-GAAP net income (loss), where applicable, excludes the effect of stock-based compensation expense, amortization of acquisition- related intangible assets, expenses related to acquisition-related contingent payments, restructuring and asset impairment charges, impairment on note receivable, goodwill impairment charge, acquisition-related intangibles impairment and adjustments to normalize the income tax provision. Non-GAAP net loss for the first six months of 2008 was $19.8 million, or ($0.32) per diluted share, as compared to non-GAAP net income of $24.7 million, or $0.44 per diluted share for the first six months of 2007. Non-GAAP net loss for the first six months of 2008 excludes $19.2 million in stock-based compensation expense, $12.4 million in amortization of acquisition-related intangible assets, $0.3 million of expenses related to acquisition-related contingent payments, $0.6 million of restructuring and asset impairment charges, $11.8 of impairment on note receivable, $215.7 million of goodwill impairment, $42.9 million on acquisition-related intangibles impairment and $38.0 million of provision for income taxes (includes valuation allowance on deferred tax assets of $38.0 million). Non-GAAP net income for the first six months of 2007 excludes $16.1 million in stock-based compensation expense, $2.1 million in amortization of acquisition-related intangible assets and $1.5 million of expenses related to acquisition-related contingent payments. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the first six months of 2008 were 60.9 million, compared to 56.4 million for the first six months of 2007. Refer to the itemized reconciliation between net income (loss) on a GAAP basis and non-GAAP basis for the first six months of 2008 and 2007 as follows.
Total cash, cash equivalents and short-term investments were $105.9 million at June 30, 2008, compared with $139.4 million at December 31, 2007. The Company had no long term investments at June 30, 2008 and December 31, 2007.
In response to the continued economic uncertainties and expected continuing demand weakness in the second half of 2008, the Company announced further reductions in force and reprioritizing of certain engineering projects. The reduction in force will result in reducing the Company's headcount by approximately 7-9% by September 30, 2008. SiRF expects to incur a total pre-tax restructuring charge in the range of $0.5 million and $1.0 million related to the severance for terminated employees.
Q2'2008 Highlights and Business Outlook:
This was a challenging quarter for SiRF with weakness in demand from our OEM and ODM customers, especially in the PND space, and continued competitive pressures that impacted both our revenue and margins.
In this quarter we saw continued design win traction for our SiRFprima multifunction Location platform in the portable navigation space. We have delivered both WindowsCE and Linux based development platforms to our customers in multiple geographies.
Our first host based-single die SiRFstarIII product, GSD3tw, is starting to gain traction with design wins at key handset and PND customers. We started pre-production shipments of GSD3tw to our lead customer this quarter.
Location capabilities are gaining increasing traction in wireless handsets. One of our key wireless customers continued to expand its GPS- enabled handset presence with the launch of an innovative handset, as well as increased global operator penetration for their existing product lines. Two Tier I handset customers launched SiRFstarIII based handsets in US and China markets this quarter. Based on our existing SiRFstarIII and SoC product families, many of our customers started to ramp-up their newer PND products that were launched earlier this year.
While our newer products are showing good design win traction, we continue to be cautious in our outlook due to economic uncertainties and challenging competitive environments |
