AMIS Holdings, Inc. Reports Fourth Quarter and Full Year 2007 Financial Results.* Record Annual Revenue of $615.8 million * GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Q407 Gross Margin of 46.0%, Non-GAAP 46.2% * GAAP Q407 Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 10.1%, Non-GAAP 16.8% POCATELLO, Idaho Pocatello (IPA: [po kə tɛ lo]) is the county seat and largest city of Bannock CountyGR6 -- AMIS A·mis , Kingsley 1922-1995. British writer best known for his novels, including Lucky Jim (1954) and Jake's Thing (1978). Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMIS), parent company of AMI Semiconductor AMI Semiconductor is a company engaged the design and manufacture of customer specific integrated circuit solutions, including solutions for the automotive, medical and industrial markets. Among its products are products that integrate processing of analog and digital signals. , a leader in the design and manufacture of integrated mixed-signal solutions, today reported its financial results for the fourth quarter and year ended December 31, 2007. Financial Results Fourth quarter 2007 revenue was $153.8 million, representing a sequential decline of less than one percent. Gross margin for the fourth quarter of 2007 was 46.0 percent, up 200 basis points sequentially and 130 basis points year over year. On a non-GAAP basis, gross margin for the fourth quarter was 46.2 percent, up 200 basis points sequentially and 130 basis points compared to the same period in 2006. Non-GAAP gross margin for the fourth quarter of 2007 and 2006 excludes stock-based compensation expense. Operating margin was 10.1 percent in the fourth quarter 2007, up 180 basis points sequentially, and 30 basis points year over year. On a non-GAAP basis, operating margin for the fourth quarter of 2007 was 16.8 percent, up 110 basis points both sequentially and year over year. The sequential increase in non-GAAP operating margin was driven by improved gross margins, savings realized from restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). initiatives during the first half of 2007, and spending controls during the fourth quarter. Non-GAAP operating margin for the fourth quarter of 2007 and 2006 excludes amortization of acquisition-related intangibles, restructuring and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and stock-based compensation expense. In addition, fourth quarter 2007 non-GAAP operating margin excludes approximately $1.3 million of fees associated with the Audit Committee accounting review. Net income for fourth quarter 2007 was $10.0 million, or $0.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, which compares to net income of $12.1 million, or $0.13 per diluted share, for the same period in 2006. Non-GAAP net income for fourth quarter 2007 was $18.3 million, or $0.20 per diluted share, compared to non-GAAP net income of $19.1 million, or $0.21 per diluted share, in fourth quarter 2006. Fourth quarter 2007 and 2006 non-GAAP net income exclude amortization of acquisition-related intangibles, restructuring and impairment charges and stock-based compensation expense, net of taxes. In addition, fourth quarter 2007 non-GAAP net income also excludes $0.8 million in fees associated with the Audit Committee accounting review and $0.6 million for acquisition expenses related to the previously announced pending merger with ON Semiconductor, both net of taxes. Revenue for 2007 was $615.8 million, an increase of two percent over 2006. Net income for 2007 was $29.4 million, or $0.33 per diluted share, compared to $37.4 million, or $0.42 per diluted share, in 2006. Non-GAAP net income for 2007 was $65.0 million, or $0.72 per diluted share, compared to non-GAAP net income of $63.5 million, or $0.71 per diluted share, in 2006. Full year 2007 and 2006 non-GAAP net income excludes amortization of acquisition-related intangibles, restructuring and impairment charges, and stock-based compensation expense, net of taxes. Non-GAAP net income for 2007 also excludes $0.5 million for charges related to the secondary offering conducted in the first quarter, $0.8 million in fees associated with the Audit Committee accounting review, and $0.6 million for the previously identified acquisition related expenses, all net of tax effects. The Company generated operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. during the quarter of $38.7 million and $87.5 million during the full year 2007. Cash at the end of the quarter was $117.4 million, an increase of $28.1 million sequentially, due primarily to improved working capital management. Capital expenditures during fourth quarter 2007 were $9.0 million, bringing full year capital expenditures to $50.0 million or approximately eight percent of revenue. "I am pleased that we completed 2007 with fourth quarter non-GAAP gross margins of over 46 percent, which exceeded our target set in early June," stated Christine King Christine Elizabeth King is a British historian and university administrator. She is currently Vice-Chancellor and Chief Executive of Staffordshire University.[1] , chief executive officer. "This along with aggressive expense control during the fourth quarter enhanced non-GAAP operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. to the highest operating margin in over two years at nearly 17 percent. We also achieved record design wins during the year and are entering 2008 with our most robust design pipeline ever. In addition, during 2007 we successfully generated over $120 million in revenue from new products introduced during the year." Business Outlook * Revenue is expected to be between $145 million and $150 million, * Gross margin is expected to be roughly flat sequentially, * GAAP diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is expected to be in the range of $0.07 to $0.10. Excluding amortization of acquisition related intangibles, restructuring and impairment charges, stock-based compensation expense and any acquisition related expenses, non-GAAP diluted earnings per share is expected to be in the range of $0.15 to $0.17. Conference Call and Webcast Information Christine King, chief executive officer, along with Joe Passarello, senior vice president and chief financial officer, will host a conference call on January 29, 2008 at 5 p.m. ET, to discuss the Company's fourth quarter and full year financial results and its updated business outlook. The web simulcast of this call will be available under the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's web site at http://www.amis.com. A webcast replay will be available at that same location until close of business February 12, 2008. About AMI Semiconductor AMI Semiconductor (AMIS) is a leader in the design and manufacture of silicon solutions for the real world. As a widely recognized innovator in state-of-the-art mixed-signal and digital products, AMIS is committed to providing customers in the automotive, medical, industrial, mil/aero, and communication markets with the optimal value, quickest time-to-market semiconductor solutions. AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European corporate offices in Oudenaarde, Belgium, and a network of sales and design centers located in the key markets of the North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and the Asia Pacific region. For more information, please visit the AMIS Web site at www.amis.com. Additional Information Regarding Non-GAAP Financial Measures Management provides the non-GAAP financial measures presented in this release because we use them as an additional measure of our operating performance and we believe that excluding these items enhances comparability between current and prior periods. Please see the reconciliation of each of these non-GAAP financial measures to its closest GAAP financial measure in the financial statements that accompany this release. Non-GAAP net income and non-GAAP earnings per share should not be considered as alternatives to net income, earnings per share or other consolidated operational data prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, , as indicators of our operating performance or as a measure of liquidity. Forward Looking Statements Statements in this press release other than statements of historical fact are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include first quarter 2008 guidance on revenue, gross margin, and GAAP and non-GAAP earnings per share. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. These risks include unexpected expenses associated with the proposed merger with ON Semiconductor, customer and/or employee losses as a result of the proposed merger, failure to maintain and improve the quality and effectiveness of our internal controls over financial reporting, failure to properly and efficiently operate our manufacturing facilities and to take the actions necessary to increase our gross margins and avoid manufacturing defects and unnecessary scrap, inability to sell the inventories of products on hand, inability to protect our proprietary technology and operate without infringing the proprietary rights of others, our ability to manage the availability, capacity and quality of our subcontractors, the failure to properly execute on anticipated restructuring plans, fluctuations in customer demand, timing and success of new products, loss of key personnel, general economic and political uncertainty, conditions in our target markets or the semiconductor industry, and other risks and uncertainties that we identified in reports filed from time to time with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. . We do not intend to revise or update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this press release. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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