Brooktree Comments on Third Quarter Outlook.SAN DIEGO--(BUSINESS WIRE)--July 1, 1996--BROOKTREE CORPORATION (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 : BTRE BTRE Bureau of Transport and Regional Economics (formerly Bureau of Transport Economics; Australia) BTRE Broadcast Television Recording Engineers ) today announced that it expects net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and net income for its third fiscal quarter, which ended June 29, 1996, to be below current analysts' estimates. The company said it expects to report third quarter revenues in the $30 million to $32 million range, resulting in a pre-tax operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of between $2 million and $3 million. In addition, the company said it expects to record an $8 million to $10 million inventory write-down of multimedia products and other related assets. Brooktree also sold its remaining shares in PairGain Technologies, Inc., which resulted in a pre-tax gain of approximately $4 million. The company said the loss was driven primarily by lower than anticipated total revenue with misses in the graphics and communications businesses not fully offset by somewhat higher sales in multimedia and imaging products. Separately today Brooktree announced that it signed an agreement to be acquired by Rockwell at a price of $15 cash per share. The total value of the transaction is approximately $275 million. The transaction, which is expected to close later this year, is subject to normal government and regulatory approvals and subject to approval by Brooktree shareholders. The company's statements regarding the financial outlook for the third quarter constitute forward-looking information and actual results could vary as the company finalizes these preliminary numbers and closes the third quarter. Reasons that may cause the actual results for the third quarter ended June 29, 1996 to vary from these preliminary results include, among others, adjustments from estimated selling prices to actual prices, customer returns not yet identified, underutilized production capacity, timing in the accrual and recognition of costs and expenses, including reserves, mask sets and previous unanticipated yield variances resulting from the manufacture of products. In addition, further analysis and computation of the actual charge for the write-down of multimedia product inventory and certain other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. may reveal added inventory and costs and additional impaired assets or accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. not previously anticipated, identified and included in the preliminary estimate. Brooktree Corporation designs and markets high-performance digital and mixed-signal integrated circuits A mixed-signal integrated circuit combines analog circuits with digital signal processing (DSP) circuits on a single semiconductor die. An integrated circuit that includes both analog and digital circuitry (but no DSP), like a 555 timer, is generally not considered a mixed-signal for computer graphics, multimedia, imaging and communications applications. The company, which has its headquarters in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , employs approximately 575 people worldwide. Brooktree stock is traded on the NASDAQ National Market System under the symbol BTRE. More information on Brooktree Corp. is available from the company's SEC filings, or by contacting the company directly. CONTACT: Brooktree Corporation David Russian, 619/535-3205 or Stapleton Communications Inc. Deborah Stapleton, 415/988-9207 |
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