Orbit Semiconductor, Inc. Comments on First Quarter Outlook.SUNNYVALE, Calif.--(BUSINESS WIRE)--March 18, 1996--Orbit Semiconductor, Inc. (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 : ORRA ORRA Orlando Regional Realtor Association ORRA Oak Ridge Rowing Association ORRA Off-Road Radio Association ORRA Ontario Road Riders Association ORRA Oriental Rug Retailers of America, Inc. ) today announced that, based on a preliminary assessment, the Company expects that revenues for the first quarter of 1996 will be in the range of approximately $14 to $15 million. Revenues reported in the first quarter of the prior year were approximately $14.9 million. The Company also announced that, while it expected to be profitable in the current quarter, earnings per share will be significantly below the $0.21 which was reported in the first quarter of 1995. The Company explained that the anticipated first quarter revenue and earnings shortfall was primarily attributed to a combination of order pushouts and a lower-than-expected rate of order bookings quarter to-date for product shipments within the current quarter. Quarterly fluctuations in operating results have occurred from time to time since the inception of the Company in 1985. "The shortfall appears to be due to customers adjusting their inventory levels by delaying their component orders," stated Gary Kennedy, President and Chief Executive Officer. "Given the economic climate that has adversely affected the customer base generally, and the resultant uncertainty in the semiconductor industry, visibility is not sufficient to permit projections of future results with any degree of certainty. We remain confident, however, about our future business prospects and feel that Orbit is well positioned to exploit existing and emerging opportunities in the high-reliability manufacturing and prototyping services market, the FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. conversion and mixed-signal gate array markets." "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: Certain matters discussed in this news release are forward-looking statements that involve risks and uncertainties including, but not limited to, economic conditions; timing, cancellation or delay of customer orders; gains or losses of significant customers; changes in revenues and product mix; variations in selling prices; variations in manufacturing yields; the timing and level of process development costs; change in inventory levels; change in manufacturing capacity and variations in the utilization of this capacity; availability and change in prices of raw materials incorporated into the Company's products; timing of announcement and introduction of new products and services by the Company and its competitors; market acceptance of the Company's and its customers' products; shifts in demand for the Company's processes, services, technologies and products; the successful integration of KMOS's operations with Orbit's, and other competitive factors. Orbit provides semiconductor design, manufacturing and engineering support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services that allow system designers to manage application specific integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for (ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. ) production, scheduling and inventory control effectively. Through Orbit's ENCORE! program, customers can convert their ASICs into Orbit gate arrays for more cost-effective solutions or accelerated delivery. The ENCORE! program, in conjunction with Orbit's independent manufacturing capability, addresses limitations associated with field programmable gate arrays (FPGAs) as well as mask programmable gate arrays (MPGAs). The advantages of ENCORE! gate arrays include low-volume requirements, low-unit cost, fast turnaround, high performance, design flexibility, programmable power supplies, packaging options and guaranteed functionality. Because Orbit has its own manufacturing facility, it can guarantee customers on-time delivery. A leader in FPGA-conversion services, Orbit has completed more than 735 design conversions since the inception of its ENCORE! program in late 1992. In June, Orbit acquired KMOS KMOS Kernel of a Multiprocess Operating System (UNIX clone) Semiconductor, a supplier of CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. mixed-signal (analog-digital) ASIC designs based on cost-effective gate arrays, in a transaction accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . All historical financial information has been restated to give effect to the transaction. The KMOS mixed-signal gate arrays and their low-voltage design methodology provide a significant opportunity in battery-operated products. Orbit also provides high-reliability manufacturing and prototyping services. The Company sells its products and services to designers of a wide variety of electronic systems and products for application in the medical, telecommunications, consumer, aerospace and military, computers and peripherals, and other industries. CONTACT: Orbit Semiconductor Orbit Semiconductor is a recognized and established player in FPGA to ASIC conversions and in ASIC to ASIC conversions, with a solid experience of thousands of successful conversions in the last 14 years. , Inc. Gary Kennedy/Joe Wai/Duncan Robertson, 408/744-1800 |
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