California Micro Devices.MILPITAS, Calif.--(BUSINESS WIRE)--May 22, 1995--California Micro Devices Corporation, headquartered in Milpitas, said today it expects to announce audited results for the third fiscal quarter and nine months stub A small software routine placed into a program that provides a common function. Stubs are used for a variety of purposes. For example, a stub might be installed in a client machine, and a counterpart installed in a server, where both are required to resolve some protocol, remote procedure period ended March 31, 1995 on or about June 1, 1995. The self imposed June 1 timetable had been established in connection with the company's efforts to relist its common stock on the Nasdaq National Stock Market. On March 20, 1995 the Board of Governors of the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. ruled that the company will be permitted to relist on the Nasdaq Stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. subject to providing a "stub audit" for the nine month period ended March 31, 1995 and compliance with all Nasdaq National market system requirements To be used efficiently, all computer software needs certain hardware components or other software resources to be present on a computer system. These pre-requisites are known as (computer) system requirements and are often used as a guideline as opposed to an absolute rule. except for bid price, which must be $1 or above. The company believes that it will be in compliance with all such requirements. For the previous quarter ended December 31, 1994, the company reported a loss of approximately $3.0 million, which included $1.5 million of unusual legal, accounting, consulting and other costs associated with previously announced accounting irregularities. Consequently, the company believes its real operating losses 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. were approximately $1.5 million during this period. The company said that comparable losses (exclusive of special charges) were greatly reduced during the March 31 quarter to approximately $100,000. Total revenues for the March 31 quarter declined slightly compared to the previous quarter, in line with prior estimates. Bookings for the quarter were strong, recovering some of the ground lost in the chaotic December 31, 1994 quarter. However, in connection with its efforts to put the past behind it, the company also expects to report very substantial one-time charges for the nine month stub period ended March 31, 1995. These charges principally relate to reserves to cover class action litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , specific reserves and write-downs for revised contractual relationships, the re-evaluation of accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. and write-downs of various company assets. On February 14, 1995, the company announced that it had reached a tentative settlement of the securities class actions pending against it in federal court in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . The aggregate value of the proposed settlement plus other contractual settlements are approximately $16.5 million. Although these settlements have not been finally approved, the company believes the full value should be written off. During the quarter ended March 31, the company incurred approximately $1.5 million of additional legal and other expenses associated with ongoing investigation and litigation. Taken together with the $4.6 million of losses in prior quarters, and additional balance sheet cleanup, the company currently expects to report a loss for the nine month stub period of about $23 to $24 million. By far, the greater part of these losses do not consume additional cash, and instead are made up of the issuance of common stock and the write down of certain assets. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jeffrey Kalb, CMD CMD cerebromacular degeneration. president and chief executive officer, "With the audit and the clean-up of the company's financial condition nearly behind us, California Micro Devices can focus more of its attention on the future prospects for the company. There are many milestones, investments and changes still to be completed before CMD will be the kind of company we all want it to be. Nonetheless, today CMD is a company that is clearly turning around. Our technology is being strengthened, our customer base has stayed with us despite the difficulties, our overall costs are coming down, and we continue to believe that the market opportunity we face in the months and years to come is very exciting." CONTACT: California Micro Devices Corp., Milpitas Jeffrey C. Kalb, 408/263-3214 or Equity Communications Ira Weingarten, 805/897-1880 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion