MILPITAS, Calif., Aug. 4 /PRNewswire-FirstCall/ -- California Micro Devices (Nasdaq: CAMD) today announced financial results for the first quarter of fiscal 2010, which ended June 30, 2009. Revenue was $9.3 million, slightly above the midpoint of guidance, compared to $14.1 million a year ago. GAAP EPS was a loss of ($0.15) at the midpoint of guidance compared to ($0.04) a year ago. Non-GAAP EPS was a loss of ($0.13) also at the midpoint of guidance compared to ($0.02) a year ago. For purposes of this release, non-GAAP EPS is calculated excluding employee stock-based compensation expenses, acquisition-related intangible asset amortization, and using a cash basis tax rate.
"I am happy to say that we are seeing clear signs that business conditions are improving," said Robert. V. Dickinson, president and chief executive officer. "Revenue increased slightly in Q1 and we expect to see growth accelerate this quarter and continue in Q3 due to increased market share, a gradual replenishment in inventories from levels that remain low by historical standards, and modest economic growth. In particular, we expect to increase our market share in handset protection starting this quarter and continuing from there."
Fiscal Q1 Highlights
Dickinson noted that the company made progress on a number of fronts during the quarter:
- Bookings grew to $11.2 million, up 37 percent from Q4
- Book-to-bill increased to 1.2, up substantially from Q4
- Q2 beginning backlog was up 35 percent from Q1
- Non-GAAP OPEX was $200,000 less than in Q4 and $800,000 less than Q2 high point a year ago
- Net inventory decreased by $800,000 from Q4
- Operating cash consumption decreased by $1.2 million compared to Q4
- Praetorian(R) III filter design wins were secured at three Top 5 handset customers
- LuxGuard(TM) products were sampled to leading High Brightness LED (HBLED) suppliers
- PicoGuard(R) XS products were designed into 11 new Sharp Aquos(R) LCD TVs.
Dickinson added, "As part of our ongoing effort to secure the best return for shareholders, we have decided to focus on our core protection business going forward. Because of the impact of the downturn on current demand and changes in customer product roadmaps, revenue from our display controller products has not lived up to our expectations. While there are significant new opportunities, they are unlikely to materialize soon enough to justify continued investment in this product line in the current environment. By cutting back in this area we will be able to return to positive cash flow and profitability more quickly without compromising the investment in the new protection products needed to strengthen our position in that market."
Fiscal Q2 Outlook
The company anticipates that Q2 revenue will be between $9.5 and $11.0 million with a GAAP EPS loss of between ($0.11) and ($0.13), and non-GAAP EPS loss of between ($0.08) and ($0.10). The company also expects non-GAAP gross margin to rebound significantly to between 29 and 30 percent, up from 25 percent in Q1, and operating cash flow to be between a negative $500,000 and a positive $100,000, compared to a negative $1.2 million in Q1.
According to Dickinson, "Our goal is to return to positive cash flow and profitability this fiscal year. In addition to reducing spending on display controllers, we have identified other cost savings that we can make without jeopardizing critical projects and capabilities. We are moving to implement all of these cost savings before the end of Q2 and, as a result, expect to return to positive cash flow by Q3 and profitability by Q4."
Live Webcast and Phone Access
California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its financial results. The live webcast (audio-with-slides) may be accessed by connecting to: http://tinyurl.com/calmicro. To access the conference live by phone (audio only) within the USA, dial 877-941-1466; outside the USA, dial 480-629-9677. Subsequent replay of the webcast may be accessed by connecting to the company's Investor Relations link at www.cmd.com. The webcast replay will be available at about 4:00 p.m. Pacific Time on the day of the call and continue for one year.
About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, high brightness LED (HBLED), digital consumer electronics and personal computer markets. Key product lines include protection devices for mobile handsets, HBLEDs, digital consumer electronics products and personal computers. Detailed corporate and product information may be accessed at www.cmd.com.
All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates.
