Micro Linear Corporation announces Financial Results for 4th Q
MLIN financial
results for the fourth quarter and year ended December 28, 1997.
Net revenues for fiscal 1997 were $65.8 million, a 22% increase, compared to net revenues of
$54.1 million reported for the year 1996. Gross margin increased to $34.2 million in 1997 from
$32.2 million in 1996. Gross margin, as a percent of net revenues, declined to 52% in fiscal 1997
from 60% in fiscal 1996 primarily as a result of increased pricing pressure. Net income for fiscal
1997 amounted to $7.0 million, or $0.54 per share, compared to net income of $6.7 million, or
$0.51 per share, for the prior year.
Net revenues for the fourth quarter ended December 28, 1997 were $15.1 million compared to
$13.4 million for the same period in 1996. Gross margin increased to $8.3 million in the fourth
quarter of 1997 from $6.9 million in the same period in the prior year. Net income totaled $1.6
million or $0.13 per share for the fourth quarter of 1997 compared to $1.3 million or $0.11 per
share for the fourth quarter of 1996. Net income in the fourth quarter of 1996 includes a $0.03 per
share favorable income tax adjustment.
Product orders were $17.6 million in the fourth quarter of 1997 compared to $13.4 million in the
third quarter of 1997 and $16.1 million in the second quarter of 1997. A majority of the fourth
quarter increase was reflected in additional turns business which resulted in higher than anticipated
shipments during the fourth quarter. Although product orders increased in the fourth quarter of
1997, the Company believes that soft market conditions will continue in the first quarter of 1998.
Micro Linear Corporation designs, develops and markets high performance analog and mixed signal
integrated circuits for a broad range of applications within the communications, computer and
industrial markets. The Company's products provide highly integrated system-level solutions for a
variety of applications, including local area networks, mass storage, telecommunications, power
management, motor control and data conversion.
This press release contains forward-looking statements that involve risks and uncertainties as the
term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to a number of risks and uncertainties which could cause actual results to
differ materially from those projected. Such risks and uncertainties include, the risks associated with
the cyclically of the semiconductor industry, changes in the average selling prices of the Company's
products, the level of product orders, the ability of customers to cancel, delay or otherwise change
orders without significant penalty, new product announcements or introductions by competitors and
other factors that may cause the Company's business or operating results to fluctuate in the future.
Additional risks are detailed in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1996 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 1997, June 30,
1997 and September 30, 1997.
MICRO LINEAR CORPORATION
BALANCE SHEETS
(THOUSANDS OF DOLLARS)
DEC. 28, DEC. 29,
1997 1996
ASSETS
CURRENT ASSETS
CASH AND SHORT-TERM
INVESTMENTS $25,863 $25,183
ACCOUNTS RECEIVABLE 10,367 4,372
INVENTORIES 7,823 10,456
OTHER CURRENT ASSETS 5,768 6,576
TOTAL CURRENT ASSETS 49,821 46,587
FIXED ASSETS
LAND 2,850 2,850
BUILDING & IMPROVEMENTS 9,353 9,345
MACHINERY & EQUIPMENT 30,193 25,900
42,396 38,095
LESS: DEPRECIATION (20,873) (16,441)
21,523 21,654
OTHER ASSETS 681 791
TOTAL ASSETS $72,025 $69,032
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE $3,612 $2,732
ACCRUED LIABILITIES 6,120 4,850
CURRENT LONG-TERM DEBT 167 209
TOTAL CURRENT LIABILITIES 9,899 7,791
LONG-TERM DEBT 2,805 2,972
STOCKHOLDERS' EQUITY
PREFERRED STOCK -- --
COMMON STOCK 13 13
ADDITIONAL PAID-IN CAPITAL 52,890 50,501
RETAINED EARNINGS 20,445 13,435
LESS: TREASURY STOCK (14,027) (5,680)
TOTAL STOCKHOLDERS' EQUITY 59,321 58,269
TOTAL LIABILITIES
& EQUITY $72,025 $69,032
MICRO LINEAR CORPORATION
STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED YEAR ENDED
DEC. 28, DEC. 29, DEC. 28, DEC. 29,
1997 1996 1997 1996
NET REVENUES $15,084 $13,386 $65,759 $54,057
COST OF REVENUES 6,755 6,444 31,554 21,905
GROSS MARGIN 8,329 6,942 34,205 32,152
OPERATING EXPENSE:
RESEARCH AND
DEVELOPMENT 3,237 2,638 11,962 11,157
SELLING, GENERAL
AND ADMINISTRATIVE 2,880 3,025 12,349 11,605
TOTAL OPERATING
EXPENSES 6,117 5,663 24,311 22,762
INCOME FROM OPERATIONS 2,212 1,279 9,894 9,390
INTEREST AND OTHER INCOME 342 324 1,336 1,392
INTEREST EXPENSE (68) (75) (278) (308)
INCOME BEFORE
INCOME TAXES 2,486 1,528 10,952 10,474
PROVISION FOR
INCOME TAXES 895 193 3,943 3,771
NET INCOME $1,591 $1,335 $7,009 $6,703
INCOME PER SHARE:
BASIC EARNINGS PER SHARE:
NET INCOME PER SHARE $0.14 $0.11 $0.59 $0.54
NUMBER OF SHARES USED
IN PER SHARE
COMPUTATION 11,651 12,152 11,822 12,320
DILUTED EARNINGS
PER SHARE:
NET INCOME PER SHARE $0.13 $0.11 $0.54 $0.51
NUMBER OF SHARES
USED IN PER
SHARE COMPUTATION 12,182 12,721 12,979 13,241
/CONTACT: Mr. J. Philip Russell, Chief Financial Officer of Micro Linear Corporation,
408-433-5200/ |
