AMIS Holdings, Inc. Reports Third Quarter 2005 Financial Results; Pro Forma EPS of $0.17; Revenue up 3% Sequentially; Gross Margin of 49.0%.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: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 third quarter ended October October: see month. 1, 2005. Financial Results Third quarter 2005 revenue was $125.6 million, an increase of three percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen but a decline of four percent compared to the third quarter of 2004. Excluding revenues associated with the recently acquired semiconductor business of Flextronics, third quarter revenue was $121.9 million, down slightly as compared to $122.5 million in second quarter 2005. Gross margin for third quarter 2005 was 49.0 percent, down 10 basis points sequentially, but an increase of 50 basis points year over year. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 13.8 percent in third quarter 2005, which was down 200 basis points sequentially and down 590 basis points year over year. Excluding amortization of acquisition-related intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , an in-process research and development charge for the Flextronics acquisition, and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis operating margin for third quarter 2005 was 16.6 percent, which was down 100 basis points sequentially, and down 330 basis points year over year. Net income for third quarter 2005 was $11.7 million, or $0.13 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 $16.2 million or $0.19 per diluted share for the same period in 2004. Pro forma net income for third quarter 2005 was $14.8 million or $0.17 per diluted share, compared to pro forma net income of $16.3 million or $0.19 per diluted share in third quarter 2004. Revenue for the first nine months of 2005 was $364.0 million, a decrease of eight percent compared to the first nine months of 2004. Net income for the first nine months of 2005 was $12.0 million, or $0.14 per diluted share, compared to $45.0 million or $0.52 per diluted share in the first nine months of 2004. Pro forma net income for the first nine months of 2005 was $38.2 million, or $0.43 per diluted share, compared to pro forma net income of $45.4 million, or $0.53 per diluted share in the first nine months of 2004. Pro forma net income excludes amortization of acquisition-related intangibles, in-process research and development, and restructuring charges, net of tax effects. In addition, the first nine months of 2005 also excludes charges related to debt refinancing Refinancing An extension and/or increase in amount of existing debt. activities in the first quarter 2005. "Despite a challenging quarter, I am pleased that we were able to deliver solid bottom line results," 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] , president and chief executive officer. "During the quarter we completed the acquisition of the semiconductor business of Flextronics, demonstrated our cash generation capabilities and moved closer to completing our test and sort consolidation. We are looking forward to solid revenue growth overall in the fourth quarter, including a full quarter of the Flextronics semiconductor business." Cash at the end of the third quarter was $73.8 million, a decrease of $2.0 million sequentially. Capital expenditures during third quarter 2005 were $6.3 million. Business Outlook "Despite a revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , third quarter operating results exceeded my expectations," said David Henry
David Henry (b.February 24, 1975 in Denver, Colorado)is an IFBB professional bodybuilder. , senior vice president and chief financial officer. "I am particularly pleased that we were able to fund the internal cash used for the Flextronics acquisition from operations in the quarter. Our guidance for the fourth quarter of 2005 is as follows: --Revenue is expected to be up 12 to 15 percent sequentially, which includes a full quarter of Flextronics revenue, --Gross margin is expected to be in the range of 47 to 48 percent, --On a pro forma basis, operating margin is expected to be in the range of 16.5 to 17.5 percent, --Interest expense is expected to be between $4.0 and $4.3 million, --Effective tax rate is expected to be between 23 to 25 percent, --Pro forma forma, adj/n minor elements between the members of a botanical species. 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 $0.17 to $0.19, --Full year capital expenditures are expected to remain at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. seven percent of annual revenues, --Depreciation and amortization is expected to be about $15.0 million." Conference Call and Webcast Information Christine King, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , along with Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Tong tong 1 tr.v. tonged, tong·ing, tongs To seize, hold, or manipulate with tongs. [Back-formation from tongs. , senior vice president of the medical and wireless product line, and David Henry, senior vice president and CFO See Chief Financial Officer. , will host a conference call on October 27, 2005 at 5 p.m. ET, to discuss the Company's third quarter financial results and its updated business outlook. Details on how to connect to the conference call or the web simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. are 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 November November: see month. 10, 2005. 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 integrated mixed-signal products and structured digital products, AMIS is committed to providing customers with the optimal value, quickest time-to-market semiconductor solutions. Offering unparalleled manufacturing flexibility and dedication to customer service, AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. corporate offices in Oudenaarde Oudenaarde (ou'dənär`də), Fr. Audenarde, commune (1991 pop. 27,162), East Flanders prov., W Belgium, on the Scheldt River. It is a textile center and a rail junction. , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. , and a network of sales and design centers located in the key markets of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the Asia Pacific region.
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. Statements in this press release other than statements of historical fact are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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 include the outlook for solid revenue growth overall in the fourth quarter; guidance on fourth quarter 2005 revenue, gross margin, pro forma operating margin, interest expense, effective tax rate, pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share, capital expenditures, and depreciation and amortization; and the anticipated timing of and planned agenda for the conference call. 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 general economic and political uncertainty, conditions in the semiconductor industry, changes in the conditions affecting our target markets, manufacturing underutilization, fluctuations in customer demand, raw material costs, exchange rates, timing and success of new products, competitive conditions in the semiconductor industry, risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , the Company's ability to successfully integrate the acquired Flextronics business and employees, product delays, loss of key personnel, and other risks and uncertainties identified in reports filed from time to time by the Company with the Securities and Exchange Commission, including its most recent Form 10-Q Form 10-Q See 10-Q. and 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. . The Company does 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.
AMIS Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions - Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
October September October September
1, 25, 1, 25,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $125.6 $131.2 $364.0 $394.0
Cost of revenue 64.0 67.6 188.4 208.3
--------- --------- --------- ---------
Gross profit 61.6 63.6 175.6 185.7
Operating expenses:
Research & development 21.2 19.5 63.9 57.8
Selling, general and
administrative 19.6 18.0 52.7 54.1
Amortization of acquisition-
related intangibles 2.5 0.2 4.9 0.5
In-process research and
development 0.8 -- 0.8 --
Restructuring and impairment
charges 0.2 -- 1.5 --
--------- --------- --------- ---------
44.3 37.7 123.8 112.4
--------- --------- --------- ---------
Operating income 17.3 25.9 51.8 73.3
Non-operating expenses, net 2.9 4.5 44.5 14.3
--------- --------- --------- ---------
Income before income taxes 14.4 21.4 7.3 59.0
Provision (benefit) for income
taxes 2.7 5.2 (4.7) 14.0
--------- --------- --------- ---------
Net income $11.7 $16.2 $12.0 $45.0
========= ========= ========= =========
Earnings per share
Basic $0.14 $0.20 $0.14 $0.55
Diluted $0.13 $0.19 $0.14 $0.52
Weighted average shares
Basic 85.9 82.9 85.6 82.5
Diluted 88.1 86.4 88.0 86.4
Key Ratios & Information:
------------------------------
Gross margin 49.0% 48.5% 48.2% 47.1%
Operating margin 13.8% 19.7% 14.2% 18.6%
AMIS Holdings, Inc.
Reconciliation of Operating Income to Pro Forma Operating Income
(In millions - Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
October September October September
1, 25, 1, 25,
2005 2004 2005 2004
--------- --------- --------- ---------
Operating income $17.3 $25.9 $51.8 $73.3
Adjustments to reconcile
operating income to pro forma
operating income:
Amortization of acquisition-
related intangible assets 2.5 0.2 4.9 0.5
In-process research and
development 0.8 -- 0.8 --
Restructuring and impairment
charges 0.2 -- 1.5 --
--------- --------- --------- ---------
Pro forma operating income $20.8 $26.1 $59.0 $73.8
========= ========= ========= =========
AMIS Holdings, Inc.
Reconciliation of Net Income to Pro Forma Net Income
(In millions - Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
October September October September
1, 25, 1, 25,
2005 2004 2005 2004
--------- --------- --------- ---------
Net income $11.7 $16.2 $12.0 $45.0
Adjustments to reconcile net
income to pro forma net
income:
Amortization of acquisition-
related intangible assets 2.5 0.2 4.9 0.5
In-process research and
development 0.8 -- 0.8 --
Restructuring and impairment
charges 0.2 -- 1.5 --
Costs associated with the
tender of 10 3/4% notes -- -- 28.0 --
Write-off of deferred
financing and other costs -- -- 6.8 --
Related tax effects (0.4) (0.1) (15.8) (0.1)
--------- --------- --------- ---------
Pro forma net income $14.8 $16.3 $38.2 $45.4
========= ========= ========= =========
AMIS Holdings, Inc.
Pro forma Condensed Consolidated Statements of Operations
(In millions - Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
October September October September
1, 25, 1, 25,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $125.6 $131.2 $364.0 $394.0
Cost of revenue 64.0 67.6 188.4 208.3
--------- --------- --------- ---------
Gross profit 61.6 63.6 175.6 185.7
Operating expenses:
Research & development 21.2 19.5 63.9 57.8
Selling, general and
administrative 19.6 18.0 52.7 54.1
--------- --------- --------- ---------
40.8 37.5 116.6 111.9
--------- --------- --------- ---------
Pro forma operating income 20.8 26.1 59.0 73.8
Non-operating expenses, net 2.9 4.5 9.8 14.3
--------- --------- --------- ---------
Income before income taxes 17.9 21.6 49.2 59.5
Provision for income taxes 3.1 5.3 11.0 14.1
--------- --------- --------- ---------
Pro forma net income $14.8 $16.3 $38.2 $45.4
========= ========= ========= =========
Pro forma earnings per share
Basic $0.17 $0.20 $0.45 $0.55
Diluted $0.17 $0.19 $0.43 $0.53
Weighted average shares
Basic 85.9 82.9 85.6 82.5
Diluted 88.1 86.4 88.0 86.4
Key Pro Forma Ratios
------------------------------
Pro forma gross margin 49.0% 48.5% 48.2% 47.1%
Pro forma operating margin 16.6% 19.9% 16.2% 18.7%
Pro forma condensed consolidated statements of operations are
presented because we use them as an additional measure of our
operating performance and we believe that these excluded charges
enhance comparability between current and prior periods. Pro forma
net income and pro forma earnings per share should not be considered
as alternatives to net income, earnings per share or other
consolidated operations data prepared in accordance with accounting
principles generally accepted in the United States of America, as
indicators of our operating performance or as a measure of liquidity.
AMIS Holdings, Inc.
Condensed Consolidated Balance Sheets
(In Millions)
October 1, December 31,
2005 2004
(unaudited)
----------- ------------
Assets
---------------------------------------------
Current assets:
Cash and cash equivalents $73.8 $161.7
Accounts receivable, net 94.5 78.6
Inventories 60.8 52.2
Deferred tax assets 7.7 6.5
Prepaid expenses and other current assets 32.7 30.1
----------- ------------
Total current assets 269.5 329.1
Property, plant and equipment, net 192.6 199.2
Goodwill, net 72.3 16.9
Other intangibles, net 95.3 35.1
Deferred tax assets 50.9 39.6
Other long-term assets 29.3 23.3
----------- ------------
Total assets $709.9 $643.2
=========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $3.2 $1.3
Accounts payable 35.2 37.6
Accrued expenses 56.3 62.4
Income taxes payable 2.2 1.3
----------- ------------
Total current liabilities 96.9 102.6
Long-term debt, less current portion 315.5 252.2
Other long-term liabilities 9.0 2.4
----------- ------------
Total liabilities 421.4 357.2
Stockholder's equity:
Common stock 0.9 0.8
Additional paid-in capital 534.1 530.6
Accumulated deficit (258.6) (270.6)
Deferred stock-based compensation (0.2) (0.4)
Accumulated other comprehensive income 12.3 25.6
----------- ------------
Total stockholders' equity 288.5 286.0
Total liabilities and stockholders' equity $709.9 $643.2
=========== ============
AMIS Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In Millions)
Nine Months Ended:
--------------------------
October 1, September 25,
2005 2004
(unaudited) (unaudited)
----------- --------------
Cash flows from operating activities
Net income $12.0 $45.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 36.9 32.2
Write-off of deferred financing costs 6.7 --
Amortization of deferred financing costs 0.6 0.9
Stock-based compensation expense 0.2 0.9
In-process research and development 0.8 --
Provision for (benefit from) deferred
income taxes (10.0) 4.9
Loss on disposition of property, plant
and equipment -- 0.1
Changes in operating assets and
liabilities:
Accounts receivable (9.9) (13.4)
Inventories (7.4) (0.3)
Prepaid expenses and other assets 4.7 1.1
Accounts payable and other accrued
expenses (17.1) (5.6)
----------- --------------
Net cash provided by operating activities 17.5 65.8
Cash flows from investing activities
Purchases of property, plant and equipment (20.4) (21.1)
Proceeds from sale of property, plant and
equipment -- 0.1
Purchase of business (136.5) --
Change in restricted cash (1.2) 1.0
Change in other assets (4.2) (1.6)
----------- --------------
Net cash used in investing activities (162.3) (21.6)
Cash flows from financing activities
Payments on long-term debt (254.8) (0.6)
Proceeds from bank borrowings 320.0 --
Deferred financing costs (4.5) --
Payment on derivative (0.1) --
Proceeds from exercise of stock options 3.6 2.2
----------- --------------
Net cash provided by financing activities 64.2 1.6
Effect of exchange rate changes on cash and
cash equivalents (7.3) (0.5)
----------- --------------
Net increase (decrease) in cash and cash
equivalents (87.9) 45.3
Cash and cash equivalents at beginning of
period 161.7 119.1
----------- --------------
Cash and cash equivalents at end of period $73.8 $164.4
=========== ==============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion