For further information, please contact:
S. Kelley MacDonald, Vice President,
Corporate Communications,
Unitrode Corporation,
7 Continental Boulevard
Merrimack, NH 03054
(603) 429-8767
e-mail: macdonald@unitrode.com
Unitrode Announces Record FY98 Net Up 46% on a 33% Sales Gain
Merrimack, NH (March 2, 1998) -- Unitrode Corporation (NYSE--UTR), a
manufacturer of analog/linear and mixed-signal integrated circuits, today
announced that net income for the year ended January 31, 1998 of $30.2
million, or $1.21 per diluted share, increased 46% from $20.7 million, or
$.87 per diluted share last year, adjusting the per share amounts to reflect the
October, 1997 two-for-one stock split. Net sales of $177.6 million in fiscal
year 1998 were up 33% from $133.5 million last year.
For the quarter ended January 31, 1998, net income of $6.7 million, or $.27
per diluted share, increased 17% from $5.7 million, or $.24 per diluted share
last year. Net sales were $40.0 million, up 8% from $37.2 million in last
year's fourth quarter.
Orders during the year were a record $184 million, up 35% from $136
million in fiscal year 1997. Backlog at year end stood at $47.6 million,
compared to $40.6 million a year ago.
Commenting on Unitrode's year-end results and the near-term outlook,
Robert J. Richardson, President and Chief Executive Officer of Unitrode,
said, "This year's growth was somewhat unevenly distributed. We started
with a significant influx of business and then demand slowed during the
second half of the year, primarily due to significant reduction in demand
from customers in the disk drive industry. It appears that this weakness is
continuing into the first quarter and will impact near-term revenues and
profits."
Richardson added, "Our balance sheet remains strong with $65 million in
cash and no long-term debt. We continue to qualify products and processes
in our new 6" BiCMOS fab and plan to initiate production from this facility
in the second quarter."
In a separate press release issued today, Unitrode and BENCHMARQ
Microelectronics, Inc. announced that the boards of directors of both
companies have unanimously approved and the companies have signed a
definitive agreement to merge the companies pursuant to which
BENCHMARQ Stockholders will receive one share of Unitrode Common
Stock for each share of BENCHMARQ stock outstanding, subject to
adjustment in certain circumstances. Based on the February 27, 1998
closing price of Unitrode Common Stock on the New York Stock Exchange,
the transaction is valued at approximately $135 million. The merger is
subject to the appropriate approvals, including the approval of certain
aspects of the transaction by the stockholders of each company."
Regarding the proposed merger with BENCHMARQ, Richardson
commented, "This merger accentuates the complementary strengths of each
company, many of which are detailed in the separate release. The
combination presents greater process flexibility and should accelerate growth
in certain key fast-growing markets, particularly portable power and
communications. The strategic combination of Unitrode and
BENCHMARQ will reduce the influence of the hard disk drive industry and
NVSRAM product lines on the combined companies."
Statements in this news release are made pursuant to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995. Except
for historical information, the matters set forth in this release are forward-
looking and involve risk and uncertainty, including such factors, among
others, the ability to book and ship within the quarter, the demand for
semiconductors generally and the specific demand for the Company's
products, production capacity constraints, the timely introduction of new
processes and products, and specifically the qualification and start-up of the
Company's new wafer fabrication facility, the impact of competitive
products and prices, unsettled conditions in the hard disk drive market, and
other risk factors described in the Company's filings with the Securities and
Exchange Commission.
Unitrode designs and manufactures analog/linear integrated and mixed
signal circuits, principally to perform power management, motion control,
and interface functions. Its products are sold throughout the world for a
variety of computer, tele- and data- communications, defense/aerospace,
industrial, and automotive applications. Further information about Unitrode
may be found at the Company's homepage site: unitrode.com.
The figures are as follows:
Unitrode Corporation and Consolidated Subsidiaries
Statements of Operations
(in thousands except per share data)
Three Months Ended Years Ended
Jan. 31, 1998 Jan. 31, 1997 Jan. 31, 1998 Jan. 31, 1997
Net sales $40,047 $37,222 $177,603 $133,526
Cost of sales 19,004 17,680 83,592 63,028
Gross profit 21,043 19,542 94,011 70,498
Research and development
expenses 3,721 5,229 17,096 17,976
Selling, general and
administrative expenses 6,942 6,265 28,749 23,435
New fab pre-operating expenses 1,638 - 6,289 -
Operating income 8,742 8,048 41,877 29,087
Royalty income 521 495 2,886 2,582
Other income, net 469 237 279 8
Interest income, net 742 649 2,769 1,985
Income before income
tax provision 10,474 9,429 47,811 33,662
Income tax provision 3,793 3,706 17,576 12,985
Net income $ 6,681 $ 5,723 $30,235 $20,677
Earnings per common share:
Basic $ .28 $ .25 $ 1.27 $ .90
Diluted $ .27 $ .24 $ 1.21 $ .87
Average common and common equivalent shares outstanding (Note)
Basic 24,288 23,171 23,806 23,061
Diluted 25,071 23,884 24,957 23,705
Note: Results are based on average common and common equivalent
shares outstanding adjusted for a two-for-one
stock split effective October 6, 1997.
Unitrode Corporation and Consolidated Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Jan. 31, 1998 Jan. 31, 1997
ASSETS
Cash & cash equivalents $ 65,074 $ 52,012
Accounts receivable, net 24,663 15,864
Inventory 13,042 10,950
Other current assets 10,491 8,637
Total current assets 113,270 87,463
Property, plant & equipment, net 78,165 41,688
Other assets 10,759 13,252
Total assets $202,194 $142,403
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 14,231 $ 8,768
Other current liabilities 25,680 16,112
Total current liabilities 39,911 24,880
Long-term liabilities 2,921 1,970
Stockholders' equity 159,362 115,553
Total liabilities & stockholders' equity $202,194 $142,403
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