Standard Microsystems Corporation annouces revenues and net income for the fourth quarter and fiscal 1996.HAUPPAUGE Hauppauge can refer to:
SMC Santa Monica College SMC Solaris Management Console SMC Smooth Muscle Cell SMC Small Magellanic Cloud (also see LMC) SMC Safety Management Certificate (maritime shipping) )(R) (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 : SMSC SMSC Short Message Service Center SMSC Standard Microsystems Corporation (New York) SMSC Spiritual Moral Social Cultural (education) SMSC Stephenville Medical and Surgical Clinic ) announced results for the fourth quarter and the fiscal year ended February February: see month. 29, 1996. Revenues for the fourth quarter were $93.7 million, 8.0% below the revenues of $101.9 million which were reported for the fourth quarter of the previous fiscal year, but up by 3.5% from the $90.6 million reported in the third quarter of fiscal 1996. Primarily due to a $49.7 million pre-tax gain on the company's sale of its Enterprise Networks Business Unit (ENBU), net income was $26.4 million, or $1.94 per share, compared to $6.5 million, or $0.48 per share, in the fourth quarter of the last fiscal year. For the fiscal year, revenues declined 9.7% to $341.9 million, from revenues of $378.7 million in fiscal 1995. Net income decreased 52.1% to $11.6 million, or $0.86 per share, compared to net income of $24.2 million, or $1.82 per share, for the previous fiscal year. The Company's divisions experienced mixed results for the fiscal year. SMC's Component Products Division attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. record profits and revenues, while its System Products Division lost momentum, market share and revenue and, consequently, was unprofitable. However, due to the sale of the System Products Division's ENBU in the fourth quarter, the company achieved a substantial profit for the year and ended the year with the highest book value in its history. During the fourth quarter, the Component Products Division's revenues and profits increased, mainly because of its ability to obtain increased production from its semiconductor wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. suppliers. In addition, the Division's own Foundry Business Unit continued to increase production levels at its Hauppauge, New York Hauppauge (pronounced /hɔpɔg/) is a hamlet in the Town of Islip and the Town of Smithtown in Suffolk County, New York, United States. facility. In fiscal 1996, the Division strengthened its position as a leading supplier of personal computer (PC) input/output (I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output ) circuits by successfully delivering a line of advanced Ultra I/O devices See peripheral. that are now being used by the world's leading PC manufacturers. During the quarter just ended, the Component Products Division announced the acquisition of the assets and technology of EFAR EFAR Engineer Federal Acquisition Regulations (US Army Corps of Engineers) eFAR Electronic Federal Aviation Regulations Microsytems, Inc. (EFAR) of Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. . This acquisition will provide SMC with many critical technologies and patents in the personal computer systems logic field. Product technologies that SMC has obtained as part of the transaction include the UltraCore(TM) PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). Personal Computer Systems Logic Chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). , for Intel, Cyrix, and AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. 64-bit mircoprocessors, as well as the UltraCache(TM) PCI Core Logic Chipset with integrated cache memory See cache. cache memory - cache . The transaction included an initial payment of 240,000 shares of SMC common stock, the assumption of certain liabilities, and transaction fees, which together totaled approximately $5.6 million. SMC recorded a charge for purchased inprocess technology for substantially all of this $5.6 million during the fourth quarter of fiscal 1996. During the fourth quarter, the company's System Products Division continued to streamline and focus its efforts in areas where it has the most opportunities for success. SMC completed the sale of the Division's Enterprise Networks Business Unit to Cabletron Systems, Inc. of Rochester, New Hampshire Rochester is a city in Strafford County, New Hampshire, United States. As of the 2000 census, the city population was 28,461, the largest in New Hampshire's Seacoast region. for approximately $74 million. The company realized a pre-tax gain on the sale of $49.7 million. As a result of that transaction, the Division was able to eliminate its direct end-user sales force, stop the significant losses to the company incurred by the ENBU and refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. its sales and marketing efforts. The System Products Division is now concentrating on increasing sales of its leading-edge network adapters A printed circuit board that plugs into the bus of both user machines (clients) and servers in a local area network (LAN). Also commonly called a "network interface card" (NIC) or "LAN card," the network adapter transmits data onto the network and receives data from the network. , hubs and workgroups switches through the Value-Added Reseller A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VAR) channel, where it has traditionally been strong. These products are primarily targeted at the Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer and rapidly growing Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. networking markets. In addition, just recently, the Division introduced its first Asynchronous Transfer Mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM) product, the ATM Power155(TM) adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers. board. Although the market for ATM products is emerging slowly, it is expected to increase rapidly in the next several years. The personal computer industry has experienced an appreciable ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. decrease in its rate of growth during the past few months. SMC expects that like many other suppliers of components and systems to this industry, it may be adversely affected by this slower growth rate in the short term. However, the company believes that, as a result of SMC's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). this year, its operations are now positioned to take advantage of the future opportunities that are expected for this high technology industry over the next several years. Standard Microsystems Corportation, with headquarters in Hauppauge, NY, is a leading worldwide supplier of personal computer (PC) LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. system products and semiconductor very-large-scale-integrated (VLSI VLSI: see integrated circuit. (1) (Very Large Scale Integration) Between 100,000 and one million transistors on a chip. See SSI, MSI, LSI and ULSI. (2) (VLSI Technology, Inc., Tempe, AZ, www.semiconductors. ) circuits. SMC's Component Products Division supplies VLSI circuits for PC and embedded Inserted into. See embedded system. control systems. These include input/output (I/O) devices for disk drive control, communications interface and other PC motherboard  This article or section may be confusing or unclear for some readers.Please [improve the article] or discuss this issue on the talk page. functions, Ethernet and Fast Ethernet controllers for LAN applications and ARCNET (Attached Resource Computer NETwork) The first local area network (LAN) introduced in 1968 by Datapoint Corporation. It connects up to 255 nodes in a star topology at 2.5 Mbits/sec over twisted pair or coax. A 20 Mbits/sec version was introduced in 1989. controllers for embedded networking. SMC's System Products Division provides a broad range of networking solutions for scaling, managing and connecting LAN's. Its products include network interface cards, hubs and LAN switches A network device that cross-connects clients, servers and network devices. Also known as a "frame switch," stand-alone LAN switches are common in all Ethernet networks. A four-port switch is also typically built into a wired or wireless router for homes and small business (see wireless for interconnecting LAN's. SMC has an installed base of over 12 million nodes. SMC uses internally developed 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. to achieve lower costs and to enhance product performance. SMC and Standard Microsystems are registered trademarks of Standard Microsytems Corporation. Product names and company names are the trademarks of their respective holders. -0-
Standard Microsystems Corp. and Subsidiaries
Consolidated Highlights of Operations
(in 000's, except per share data)
Three Months Ended Twelve Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
1996 1995 1996 1995
Revenues $ 93,713 $101,916 $341,926 $378,671
Income before provision
for taxes $ 42,113 $ 10,853 $ 19,802 $ 41,107
Provision for income taxes $ 15,709 $ 3,448 $ 8,201 $ 15,940
Income before extraordinary
item $ 26,404 $ 7,405 $ 11,601 $ 25,167
Extraordinary item
Loss on extinguishment
of debt, net of applicable
income taxes of $600 $ -- $ (944) $ -- $ (944)
Net income $ 26,404 $ 6,461 $ 11,601 $ 24,223
Income (loss) per common
and common equivalent share:
Income before extraordinary
item $ 1.94 $ 0.55 $ 0.86 $ 1.89
Extraordinary item -- (0.07) -- (0.07)
Net income per share $ 1.94 $ 0.48 $ 0.86 $ 1.82
Weighted average number of
common and common
equivalent shares
outstanding 13,633 13,541 13,515 13,305
-0-
Standard Microsystems Corp. and Subsidiaries
Consolidated Balance Sheet Highlights
Feb. 29, Feb. 28,
1996 1995
Current assets $148,884 $162,776 Current liabilities 55,781 43,421 Working capital $ 93,103 119,355 Property, plant and equipment, net $ 60,208 $ 34,908 Other assets $ 51,567 $ 30,894 Minority interest in subsidiary $ 11,376 $ 11,174 Shareholders' equity $193,502 $173,983 Shareholders' equity per common share outstanding at end of period $ 14.11 $ 13.16 -0-
Standard Microsystems Corp. and Subsidiaries
Consolidated Statements of Income
(in 000's, except per share data)
Three Months Ended
Feb 29,
1996 1995
Revenues $ 93,713 $ 101,916 Cost of goods sold 59,803 58,079 Gross profit 33,910 43,837 Operating expenses: Research and development 7,729 7,689 Selling, general and administrative 26,678 25,079 Amortization of intangible assets 1,421 1,372 Purchase in-process technology 5,454 --
41,282 34,140
Income (loss) from operations (7,372) 9,697 Other income (expense): Interest income 331 2,939 Interest expense (294) (200) Gain on sale of business unit 49,663 -- Other income (expense), net (166) (1,570)
49,534 1,169
Income before minority interest and provision for income taxes 42,162 10,866 Minority interest in net income of subsidiary 49 13 Income before provision for income taxes 42,113 10,853 Provision for income taxes 15,709 3,448 Income before extraordinary item 26,404 7,405 Extraordinary item Loss on extinguishment of debt, net of applicable income taxes of $600 - 944 Net income $26,404 $6,461 Income (loss) per common and common equivalent share: Income before extraordinary item $1.94 $0.55 Extraordinary item - (0.07) Net income per common and common equivalent share $1.94 $0.48 Weighted average common and common equivalent shares outstanding 13,633 13,541 -0-
Twelve Months Ended
Feb 29,
1996 1995
Revenues $ 341,926 $ 378,671 Cost of goods sold 219,141 214,269 Gross profit 122,785 164,402
Operating expenses:
Research and
development 31,666 28,286
Selling, general and
administrative 106,337 90,005
Amortization of
intangible assets 8,237 5,489
Purchased in-process technology 5,454 --
151,694 123,780
Income (loss) from operations (28,909) 40,622 Other income (expense): Interest income 630 1,453 Interest expense (1,072) (1,255) Gain on sale of business unit 49,663 - Other income (expense), net (308) 472
48,913 670
Income before minority interest and provision for income taxes 20,004 41,292 Minority interest in net income of subsidiary 202 185 Income before provision for income taxes 19,802 41,107 Provision for income taxes 8,201 15,940 Income before extraordinary item 11,601 25,167 Extraordinary item Loss on extinguishment of debt, net of applicable income taxes of $600 - 944 Net income $11,601 $24,223 Income (loss) per common and common equivalent share: Income before extraordinary item $0.86 $1.89 Extraordinary item - (0.07) Net income per common and common equivalent share $0.86 $1.82 Weighted average common and common equivalent shares outstanding 13,515 13,305 -0-
Standard Microsystems Corp. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
Feb. 29, Feb. 28,
1996 1995
Assets
Current assets: Cash and cash equivalents $ 18,459 $ 29,478 Accounts receivable 55,976 75,826 Inventories 60,408 45,789 Deferred tax benefits 8,607 5,392 Other current assets 5,434 6,291
Total current assets 148,884 162,776
Property, plant and equipment: Land 3,832 3,832 Buildings and improvements 26,839 26,901 Machinery and equipment 109,235 77,639
139,906 108,372
Less: accumulated depreciation 79,698 73,464
Property, plant and equipment,
net 60,208 34,908
Other assets 51,567 30,894
$ 260,659 $ 228,578
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 30,801 $ 24,193
Accrued expenses and other
liabilities 23,884 15,527
Income taxes payable 1,096 3,701
Total current liabilities 55,781 43,421
Minority interest in subsidiary 11,376 11,174
Shareholders' equity:
Preferred stock -- --
Common stock 1,371 1,322
Additional paid-in capital 84,737 77,319
Retained earnings 100,217 88,616
Unrealized holding gain 2,226 718
Foreign currency translation
adjustment 4,951 6,008
Total shareholders' equity 193,502 173,983
$ 260,659 $ 228,578
CONTACT: Standard Microsystems Corporation John Tweedy, 516/434-4630 516/273-5550 (fax) |
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