Benchmarq Reports Earnings and Revenue Increase for the Nine-Month Period; Record Battery Management Revenues.DALLAS--(BUSINESS WIRE)--Oct. 20, 1997--BENCHMARQ Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. , Inc. (Nasdaq:BMRQ), a Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. , Texas-based provider of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. (ICs) and electronic modules for portable and power-sensitive electronic systems, reported net income of $1,648,000 and $5,016,000 for the three- and nine-month periods ended September September: see month. 30, 1997, respectively, compared with $2,105,000 and $4,422,000, respectively, for the same periods in 1996. The Company indicated that pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. performance is a more meaningful comparison to last year because 1996 net income benefited materially from tax carryforwards Carryforwards Tax losses allowed to be applied to offset future income in some specified number of future years. . Pretax income for the third quarter and the nine-month period of 1997 was $2,497,000 and $7,760,000, respectively, compared with $2,079,000 and $4,562,000, respectively, for the same periods in 1996. This represents an increase in pretax income of 20% and 70%, respectively. The third quarter of 1997 was BENCHMARQ's fifteenth In music, a fifteenth (sometimes abbreviated 15ma) is the interval between one musical note and another with one-quarter or quadruple the frequency. It corresponds to two octaves. It is the fourth harmonic. consecutive profitable quarter. Net income per share for the three- and nine-month periods ended September 30, 1997 was 21 cents and 65 cents, respectively, compared with 29 cents and 61 cents, respectively, for the same periods in 1996. On a pro-forma basis to reflect application of the 1997 effective tax rate on the 1996 pretax income, net income per share for the third quarter and nine-month periods of 1996 would have been 19 cents and 40 cents, respectively. On this adjusted basis, net income per share would have increased 11% and 63%, respectively, in 1997. Total net revenue for the three- and nine-month periods ended September 30, 1997 was $10,810,000 and $33,979,000, respectively. This represents an increase in total net revenues of 3% and 21%, respectively, over the same periods in 1996. Al Schuele, president and chief executive officer of the Company, commented on the third quarter of 1997 by saying, "We continue to be very encouraged by the strength of our strategic battery management product line, where for the quarter we achieved solid sequential and year-over-year revenue growth and grew the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders to record new levels. Total revenues for the Company in the third quarter increased year-over-year but were slightly lower sequentially due primarily to a softness in 'turns' orders (orders that are received and shipped within the same quarter) for our NVSRAM NVSRAM Non-Volatile Static Random Access Memory NVSRAM Non Volatile Storage Ram products from a few manufacturers of networking and communications equipment, a condition that we believe is temporary. The third quarter increase in battery management revenues came on the strength of double-digit percentage growth in unit shipments of gas gauge products sequentially and year-over-year, which highlights the growth of SMBus implementations and the continuing transition to smart battery packs in the notebook personal computer marketplace. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we sampled or announced five new battery management products in the third quarter, including our newest gas gauge designed specifically for use in mobile communications products -- the bq2018 'Power Minder'(TM) IC. New product advances such as the 'Power Minder' are critical to building a solid foundation for future growth in battery management revenues." The Company reported that the backlog of orders for Battery Management Products at the end of the third quarter of 1997 was $8.0 million compared to $6.9 million at the end of the second quarter of 1997. Backlog for real-time clock A real-time clock (RTC) is a computer clock (most often in the form of an integrated circuit) that keeps track of the current time. Although the term often refers to the devices in personal computers, servers and embedded systems, RTCs are present in almost any electronic and NVSRAM products was $3.1 million, compared with $3.3 million at the end of the second quarter of 1997. The Company includes in its reported backlog all released written purchase orders scheduled for shipment within the next six months. -0-
BENCHMARQ Microelectronics, Inc.
Condensed Consolidated Statements of Operations
All data is in thousands, except per share data
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
--------------- ---------------
1997 1996 1997 1996
--------------- ---------------
Revenues:
Battery Management Products $ 6,167 $ 5,384 $16,201 $12,572
RTC Products 1,673 2,967 6,443 7,791
NVSRAM Products 2,893 2,125 11,105 7,422
RTC Royalties/Other 77 43 230 277
------- ------- ------- -------
Total Net Revenue 10,810 10,519 33,979 28,062
Cost of Sales 4,886 5,678 15,889 15,812
Gross Margin 5,924 4,841 18,090 12,250
Operating Expenses:
Research & Development 760 754 2,392 2,045
Sales, General & Admin. 2,798 2,122 8,253 5,967
------- ------- ------- -------
Total Operating Expenses 3,558 2,876 10,645 8,012
Income from Operations 2,366 1,965 7,445 4,238
Other Income, net 131 114 314 324
------- ------- ------- -------
Income Before Provision for Taxes 2,497 2,079 7,759 4,562
Income Tax Provision 849 (26) 2,743 140
------- ------- ------- -------
Net Income $ 1,648 $ 2,105 $ 5,016 $ 4,422
------- ------- ------- -------
Net Income Per Common and Common
Equivalent Share $ .21 $ .29 $ .65 $ .61
------- ------- ------- -------
Shares Used in Computing Net Income
Per Common and Common
Equivalent Share 7,902 7,334 7,745 7,299
------- ------- ------- -------
BENCHMARQ Microelectronics, Inc.
Condensed Consolidated Balance Sheets
All data is in thousands
Sept. 30, 1997 Dec. 31, 1996
-------------- -------------
Assets:
Cash & Investments $18,944 $15,454
Accounts Receivable, net 4,783 4,410
Inventory, net 4,243 4,035
Deferred Tax Asset 523 660
Prepaid Expenses/Other Assets 1,634 355
------- -------
Total Current Assets 30,127 24,914
Net Plant, Property & Equipment 5,591 5,708
Prepayment for Product Purchases/Other 5,084 6,187
------- -------
Total Assets $40,802 $36,809
------- -------
Liabilities and Stockholders' Equity:
Current Liabilities $7,417 $9,220
Non-Current Liabilities 1,014 1,260
Stockholders' Equity 32,371 26,329
------- -------
Total Liabilities and Stockholders'
Equity $40,802 $36,809
------- -------
BENCHMARQ's product lines include battery management ICs and modules, RTC See real time clock. ICs and modules, and NVSRAM products, which include NVSRAM modules and nonvolatile controller ICs and modules. BENCHMARQ markets its products worldwide through a network of distributors and independent manufacturers' representatives Manufacturers representatives (reps), also known as sales agents, are independently owned and managed sales companies that are an alternative to hiring a direct sales force. . The statements contained in this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc backlog, product demand, market conditions and trends, and the impact of new product announcements constitute 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. 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 and various factors may impact upon such statements, including, without limitation, (i) certain of the risks detailed from time-to-time in the Company's filings with the SEC, including, without limitation, its: prospectus, dated December 1, 1995, as supplemented on December 21, 1995; 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. for the fiscal year ended December 31, 1996; Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the three and six-months ended June 30, 1997; (ii) inability of the Company to satisfy its production/delivery obligations due to disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of production, (iii) inability to obtain raw materials, (iv) cancellation of orders by customers, (v) changes in the credit worthiness of customers, (vi) political and/or economic disruption in the markets for the Company's products, (vii) changes in demand for the Company's products, (viii) changes in pricing for the Company's products, (ix) obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of the Company's products, (x) expenses related to legal disputes and adverse legal rulings in such disputes, (xi) inability of the Company to timely complete the development of certain of its products, and (xii) inability of the Company to manage its effective income tax rate. Statements contained herein are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company assumes no responsibility for updating such information. -0- Note to Editors: Trademark: Power Minder is a trademark and BENCHMARQ is a registered trademark of BENCHMARQ Microelectronics, Inc. CONTACT: Media: BENCHMARQ Microelectronics, Inc., Dallas Patricia H. Smith, 972/437-9195 Ext. 1011 800/966-0011 E-mail: Patty_Smith@benchmarq.com Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : http://www.benchmarq.com Fax: 972/437-9198 or Investor Relations Investor relations The process by which the corporation communicates with its investors. BENCHMARQ Microelectronics, Inc. c/o Shelton Associates, Inc. Galleria Tower I 13355 Noel Rd., Ste. 1345, LB83 Dallas, TX 75240 USA Tel: 972/239-5119 Fax: 972/774-4577 |
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