IRVINE, Calif., July 23, 2009 (GLOBE NEWSWIRE) -- Microsemi Corporation (Nasdaq:MSCC) today reported unaudited results for its third quarter of fiscal year 2009.
* Net Sales for Third Quarter Totaled $107.0 Million
* GAAP Gross Margin Increased 1,120 Basis Points Over Prior Quarter
* Non-GAAP Gross Margin Increased 10 Basis Points Over Prior Quarter
* GAAP Operating Expenses Reduced 16.4 Percent Over Prior Quarter
* Non-GAAP Operating Expenses Reduced 7.9 Percent Over Prior Quarter
* Operating Cash Flow for Third Quarter Increased 20.5 Percent Over
Prior Quarter to $29.0 Million
Net sales for Microsemi's third quarter ended June 28, 2009 were $107.0 million, down 17.2 percent from net sales of $129.3 million in the third quarter of 2008, and up 1.2 percent from net sales of $105.7 million in the second quarter of 2009.
Non-GAAP gross margin in the third quarter of 2009 was 47.2 percent, compared to 51.9 percent in the third quarter of 2008 and 47.1 percent in the second quarter of 2009. Non-GAAP operating margin was 20.0 percent in the third quarter of 2009 compared to 27.5 percent in the third quarter of 2008 and 17.2 percent in the second quarter of 2009. For the third quarter of 2009, non-GAAP net income was $16.7 million, compared to $27.0 million in the third quarter of 2008 and $14.8 million the second quarter of 2009. For the third quarter of 2009, the non-GAAP effective tax rate was 21.5 percent. Non-GAAP diluted earnings per share in the third quarter of 2009 were $0.21 compared to $0.34 in the third quarter of 2008 and $0.19 in the second quarter of 2009.
GAAP gross margin for the third quarter of 2009 was 42.2 percent compared to 45.0 percent in the third quarter of 2008 and 31.0 percent in the second quarter of 2009. GAAP operating margin was 3.5 percent in the third quarter of 2009 compared to 14.0 percent in the third quarter of 2008 and compared to a loss of 15.9 percent in the second quarter of 2009. GAAP results in the third quarter of 2009 included $5.3 million for transitional idle capacity, a reduction of $1.0 million from the previous quarter, acquisition-related charges of $1.3 million for in process research and development and $0.5 million in restructuring and other charges and a net gain of $0.4 million related to exceptional legal matters. Also included in the third quarter of 2009 were $5.7 million related to stock based compensation and $4.2 million in amortization of acquisition-related intangibles. For the third quarter of 2009, GAAP net income was $7.8 million compared to $13.9 million in the third quarter of 2008 and a GAAP net loss of $16.6 million in the second quarter of 2009. For the third quarter of 2009, the GAAP effective tax rate benefit was 65.3 percent. The effective tax benefit was primarily due to higher tax benefit from losses incurred in higher tax rate jurisdictions relative to tax expense from income generated in lower tax rate jurisdictions. GAAP diluted earnings per share in the third quarter of 2009 were $0.10, compared to $0.17 per share in the third quarter of 2008, and a GAAP diluted loss per share of $0.21 in the second quarter of 2009.
James J. Peterson, President and Chief Executive Officer, stated, "We are pleased with the results of our third quarter. Our net sales increased from last quarter and, coupled with our enhanced factory utilization, improved operational efficiencies and focus on spending controls, allowed us to show meaningful improvement in our gross, operating and net margin metrics. These improvements were reflected in a meaningful increase to operating cash flow, which reached $29.0 million, giving us increased leverage for continued strategic initiatives."
Business Outlook
Microsemi expects that for the fourth quarter of fiscal year 2009, our net sales will increase between a range of 1 percent and 4 percent, sequentially. On a non-GAAP basis, we expect earnings for the fourth quarter of fiscal year 2009 to be $0.22 to $0.23 per diluted share.
Microsemi regularly announces a quarterly outlook in the form of issuing a news release and does not undertake to update any of this information between such public announcements. Please refer to the "SAFE HARBOR" STATEMENT below for risks that may affect future actual results.
Non-GAAP results are explained and reconciled to GAAP results in the attached tables. Non-GAAP financial measures exclude items such as transitional idle capacity, inventory reserves due to restructuring activities, impairment of restructuring related fixed assets, effects of manufacturing profit in acquired inventory, amortization of acquisition-related intangible assets, stock based compensation, in process research and development, restructuring, exceptional legal matters and other special charges or credits.
About Microsemi Corporation
Microsemi, with corporate headquarters in Irvine, California, is a leading designer, manufacturer and marketer of high performance analog and mixed signal integrated circuits and high reliability semiconductors. Microsemi's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive, and amplify signals.
Microsemi's products include individual components as well as integrated circuit solutions that enhance customer designs by improving performance and reliability, optimizing battery performance, reducing size or protecting circuits. The principal markets Microsemi serves include defense, commercial air, satellite, medical, notebook computers, LCD TVs, mobile, and connectivity applications. More information may be obtained by contacting Microsemi directly or by visiting its website at http://www.microsemi.com.
The Microsemi Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1233
Information for Third Quarter 2009 Earnings Conference Call and Webcast
Date: Thursday, July 23, 2009
Time: 4:45 pm Eastern Daylight Time (1:45 pm Pacific Daylight Time)
To access the webcast, please log on to: http://www.microsemi.com and go to Investors and then to Events and Presentations. To listen to the live webcast, please go to this website approximately fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live webcast, a replay will be available shortly after the call on the website for 90 days.
To participate in the conference call by telephone, please call: (877) 264-1110 or (706) 634-1357 at approximately 4:35 pm EDT (1:35 pm PDT). Please provide the following ID Number: 20793714.
A telephonic replay will be available from 6:00 pm EDT (3:00 pm PDT) on Thursday, July 23, 2009 through 11:59 pm EDT (8:59 pm PDT) on Thursday, July 30th. To access the replay, please call (800) 642-1687 or (706) 645-9291. Please enter the following ID Number: 20793714.
PLEASE READ THE FOLLOWING FACTORS THAT CAN MATERIALLY AFFECT MICROSEMI'S FUTURE RESULTS.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements, including without limitation statements concerning our expectations regarding our business outlook, our performance and competitive position during the coming quarter and year, expectation regarding the change in our end markets, our belief that we will continue to make operational and efficiency improvements in order to better service our customers, our expectation that the increase in our operating cash flow will give us increased leverage for continued strategic initiatives, and any other statements of belief or about our plans or expectations. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The potential risks and uncertainties include, but are not limited to, such factors as the uncertainty of litigation, the costs and expenses of litigation, the potential material adverse effect litigation could have on Microsemi's business and results of operations, if an adverse determination in litigation is made, and the time and attention required of management to attend to litigation, changes in generally accepted accounting principles, the difficulties regarding the making of estimates and projections, the hiring and retention of qualified personnel in a competitive labor market, acquiring, managing and integrating new operations, businesses or assets, uncertainty as to the future profitability of acquired businesses, delays in the realization of any accretion from acquisition transactions, any circumstances that adversely impact the end markets of acquired businesses, difficulties in closing or disposing of operations or assets, difficulties in transferring work from one plant to another, rapidly changing technology and product obsolescence, difficulties predicting the timing and amount of plant closure costs, the potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of Microsemi's products, adverse circumstances in any of our end markets, results of in process or planned development or marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, product returns, product liability, and other potential unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, epidemics, health advisories, disasters, national emergencies, wars or potential future effects of the tragic events of September 11, 2001, political instability, currency fluctuations, principal and liquidity risks associated with our investments including auction rate securities, variations in customer order preferences, fluctuations in market prices of Microsemi's common stock and potential unavailability of additional capital on favorable terms, difficulties in implementing company strategies, dealing with environmental or other regulatory matters or litigation, or any matters involving litigation, contingent liabilities or other claims, difficulties and costs imposed by law, including under the Sarbanes-Oxley Act of 2002, difficulties in determining the scope of, and procuring and maintaining, adequate insurance coverage, difficulties and costs of protecting patents and other proprietary rights, work stoppages, labor issues, inventory obsolescence and difficulties regarding customer qualification of products, manufacturing facilities and processes, and other difficulties managing consolidation or growth, including in the maintenance of internal controls, the implementation of information systems, and the training of personnel.
