Microsemi's Positive Momentum Continues.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--April 24, 2001 -- Performance In Line With Original Guidance -- Revenues Up 10% From Last Year -- Gross Margins Increase 90 Basis Points Sequentially and 340 Basis Points Over Last Year -- Net Earnings Up 104% From Last Year Microsemi Corp. (Nasdaq:MSCC MSCC Motlow State Community College (Lynchburg, TN) MSCC Morgan Sports Car Club MSCC Manila Sports Car Club MSCC Mission Springs Community Church (Fremont, CA) MSCC Mazda Sports Car Club ) today reported results for its fiscal 2001 second quarter in line with its original guidance. Revenues for the quarter ended April 1, 2001 increased 10% to $63.1 million, up from $57.3 million in the second quarter of 2000, and were also slightly better than the first quarter of fiscal 2001, which was $63 million. Second quarter 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 net income increased 104% to $4.7 million, or $0.32 per share 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. , up from $2.3 million, or $0.19 per share diluted, in the second quarter of last year, and slightly better than $4.6 million, or $0.31 per share diluted, in the first quarter of this fiscal year. James J. Peterson, 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. , stated: "We are very pleased with our second quarter results, which are in line with our original guidance. Microsemi has benefited from its strong design win activity over the last 18 months, strategic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. into new markets and integration of some worldwide manufacturing facilities with more focus on overall production efficiencies." Revenues for the first six months of fiscal 2001 increased 16% from $108.3 million last fiscal year to $126.1 million this year. Pro forma net income for the first six months of fiscal 2001 totaled $9.3 million, or $0.63 per share diluted, up 166% from $3.5 million, or $0.31 per share diluted, in the first half of fiscal 2000. Peterson went on to say: "Based on current 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. and forecasts from customers, we expect third quarter revenues to buck Buck after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild] See : Dogs Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] See : Resourcefulness the current trends in the industry, which has announced expected declines of up to 40%. "Our superior performance, as reflected in our .97 book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can for the quarter, over most other semiconductor companies demonstrates that our strategy to address higher-margin application-specific products has been effective." Business Outlook -- The recent shift in revenues from lower-margin commodity products in the computer/peripherals and industrial markets to higher-margin application-specific products in the mobile connectivity, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , medical and commercial satellite markets is expected to continue for the remainder of the year. -- Revenues for the third quarter will be impacted by the closure on March 31, 2001 of the company's lower-margin PPC See Pocket PC, PowerPC and pay-per-click. PPC - PowerPC unit, which had revenues of $1.6 million in the second quarter. Despite the PPC revenue loss and general market conditions, the company expects revenues in the third quarter to be in the range of $60 million to $65 million. -- Gross margins are expected to continue to improve by 25 to 75 basis points in the third quarter. -- SG&A expenses are expected to remain essentially flat as a percentage of revenues at 15% to 16%. -- R&D expenses are expected to increase as a percentage of revenues by 20 to 40 basis points in the third quarter. -- The tax rate for the third quarter is estimated to be 33%. About Microsemi Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and regulate power, protect against transient A malfunction that occurs at random intervals and lasts for a short duration such as a spike or surge in a power line or a memory cell that intermittently fails. See spike and power surge. transient - 1. voltage spikes In electrical engineering, spikes are fast, short duration electrical transients in voltage (voltage spikes), current (current spike), or transferred energy (energy spikes) in an electrical circuit. and transmit To send data over a communications line. See transfer. , receive and amplify signals. Microsemi products include individual components as well as complete circuit solutions that enhance customer designs by providing battery optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecommunications, medical, industrial/commercial, space/satellite and military. More information may be obtained by contacting the company directly or by visiting its Web site at http://www.microsemi.com. Microsemi will conduct a conference call at 1:45 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT today, April 24, 2001. You can participate in the call by dialing 888/868-9083 or 973/628-9554 10 minutes prior to the scheduled call. A replay of the conference call will be available at approximately 4 p.m. PDT on Tuesday, April 24 until 4 p.m. PDT on May 1. You may hear the replay of the conference call by calling 877/519-4471, or 973/341-3080. Enter the following PIN Number: 2557315. This call will also be broadcast live over the 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 and can be accessed by all interested parties at www.vcall.com. To listen to the live call, go the Web site at least 15 minutes prior to the start of the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. There will be a replay available shortly after the call on the VCall Web site for 90 days. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: Any statements set forth in the news release that are not entirely historical and factual in nature are 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. . For instance, all statements of belief and expectations are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Potential risks and uncertainties include, but are not limited to, such factors as the difficulties regarding the making of estimates and projections, hiring and retention of qualified technical personnel in a competitive labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience , rapidly changing technology and product 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. , the ability to realize cost savings or productivity gains, the ability to improve capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. , potential cost increases, the strength and competitive pricing environment of the marketplace, demand for and acceptance of the company's products, the results of planned development, marketing and promotional campaigns, changes in demand for products, difficulties of foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, business and economic conditions or adverse changes in current industry conditions, customer order preferences, and fluctuations in market prices of the company's stock, difficulties in implementing company strategies, environmental matters, 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. , difficulties protecting proprietary rights, and inventory obsolescence. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties and risks identified in the company's most recent 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. filed on Dec. 21, 2000, and the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. on Form S-3 filed on June 1, 2000 by the company with the Securities and Exchange Commission. The company does not undertake to supplement or correct any information in this release that is or becomes incorrect. Investor Inquiries: David R. Sonksen, Microsemi Corp., Irvine, Calif., 949/221-7100.
MICROSEMI CORP.
Pro Forma Consolidated Income Statements
Excluding Business Operations Sold and
Acquisition-Related Goodwill Charges
(In thousands, except per share data)
Three Months Ended Six Months Ended
April 2, April 1, April 2, April 1,
2000 2001 2000 2001
NET SALES $ 57,259 $ 63,131 $108,315 $126,136
Cost of sales 40,561 42,578 78,578 85,609
GROSS MARGIN 16,698 20,553 29,737 40,527
Operating expenses:
Selling, general and
administrative 9,318 9,944 17,317 19,884
Research and development 2,730 3,774 5,075 7,197
Total operating expenses12,048 13,718 22,392 27,081
OPERATING INCOME 4,650 6,835 7,345 13,446
Interest and other (expense)
income, net (1,238) 222 (2,045) 402
INCOME BEFORE PROVISION
FOR INCOME TAXES 3,412 7,057 5,300 13,848
Provision for
income taxes 1,129 2,329 1,752 4,570
NET INCOME $ 2,283 $ 4,728 $ 3,548 $ 9,278
Earnings per share:
Basic $ 0.21 $ 0.34 $ 0.32 $ 0.67
Diluted $ 0.19 $ 0.32 $ 0.31 $ 0.63
Common and common equivalent shares outstanding:
Basic 11,118 13,915 11,019 13,913
Diluted 11,809 14,689 11,418 14,679
The above pro forma amounts have been adjusted to exclude the
following items:
In-process research
and development $ 2,510 $ -- $ 2,510 $ --
Amortization of goodwill and other
related charges 509 686 903 1,359
Exclusion of a sold
business unit 103 -- 155 --
3,122 686 3,568 1,359
Income tax effect (1,033) (226) (1,180) (448)
Effect of pro forma adjustments on
net income $ 2,089 $ 460 $ 2,388 $ 911
MICROSEMI CORP.
Condensed Unaudited Consolidated Income Statements
(In thousands, except per share data)
Three months ended Six months ended
April 2, April 1, April 2, April 1,
2000 2001 2000 2001
NET SALES $ 60,972 $ 63,131 $115,560 $126,136
Cost of sales 43,813 42,578 84,833 85,609
GROSS MARGIN 17,159 20,553 30,727 40,527
Operating expenses:
Selling, general and
administrative 9,722 9,944 18,148 19,884
Research and
development 2,730 3,774 5,075 7,197
Amortization of goodwill and other
intangible assets 509 686 903 1,359
Acquired in-process R&D 2,510 -- 2,510 --
OPERATING INCOME 1,688 6,149 4,091 12,087
Interest and other (expenses)
income, net (1,398) 222 (2,359) 402
INCOME BEFORE PROVISION 290 6,371 1,732 12,489
FOR INCOME TAXES
Provision for income taxes 96 2,102 572 4,121
NET INCOME $ 194 $ 4,269 $ 1,160 $ 8,368
Earnings per share:
Basic $ 0.02 $ 0.31 $ 0.11 $ 0.60
Diluted $ 0.02 $ 0.29 $ 0.10 $ 0.57
Common and common equivalent shares outstanding:
Basic 11,118 13,915 11,019 13,913
Diluted 11,809 14,689 11,418 14,679
MICROSEMI CORP.
Condensed Unaudited Consolidated Balance Sheets
(In thousands)
Oct. 1, April 1,
2000 2001
ASSETS
Cash and cash equivalents $ 30,460 $ 34,100
Accounts receivable, net 33,029 34,980
Inventories 52,553 51,090
Other current assets 10,412 12,046
Property, plant & equipment, net 55,458 57,111
Other assets 28,886 25,456
TOTAL ASSETS $210,798 $214,783
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 46,297 $ 41,032
Long-term borrowings 9,651 8,980
Other long-term liabilities 5,160 5,030
Stockholders' equity 149,690 159,741
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $210,798 $214,783
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion