California Micro Devices Reports September Quarter Financial Results

Revenue and earnings beat high end estimates

MILPITAS, Calif., Oct. 19 /PRNewswire-FirstCall/ -- California Micro Devices (NASDAQ: CAMD) today reported financial results for the second quarter of fiscal 2007, which ended September 30, 2006. Revenue was $18.7 million compared to high end guidance of $18.0 million, $16.1 million in the prior quarter, and $18.5 million in the year ago quarter. On a GAAP basis, diluted earnings per share were $0.06 compared to high end guidance of breakeven, a loss of $0.09 in the prior quarter, and earnings of $0.09 in the year ago quarter. On a non-GAAP basis, excluding Arques Technology acquisition costs and employee stock-based compensation expenses, and using a cash basis tax rate, diluted EPS was $0.11 compared to high end guidance of $0.05 and $0.05 in the prior quarter.

"I am pleased to report that Q2 revenue, gross margin and earnings all exceeded guidance, driven primarily by strong demand across our product lines," said Robert V. Dickinson, president and CEO. "In addition, bookings were strong and design wins reached the second highest level ever." He noted that personal computer and digital consumer electronics design wins set a new record with low capacitance ESD design wins nearly doubling compared to last quarter.

"Due to continuing competitive headwinds in the market for ASIP devices used in mobile handsets, we are taking a cautious position with respect to Q3 guidance and projecting revenue from that market to be down sequentially," added Dickinson. "We believe, however, that we are making good progress on our strategic initiatives to counter competitive inroads and that we continue to have a good opportunity for solid growth in that market in the future."

In providing outlook for the third quarter of fiscal 2007, which ends December 31, 2006, Dickinson estimated revenue will be between $16.5 and $18.5 million with diluted EPS of between ($0.02) and $0.01 on a GAAP basis, and between $0.03 and $0.06 on a non-GAAP basis. He added that an update of the third quarter forecast would be presented on December 14th.

Conference Call and Webcast Today

California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its September quarter results. Within the USA, interested parties can access the conference call by dialing 800-257-7087. International parties may gain access by dialing 303-275-2170. No password is necessary. A replay of the conference call will be available on the company's web site at www.cmd.com (Investor Relations Link) beginning at approximately 4:00 p.m. Pacific Time today and continuing for about a year.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, personal computer and digital consumer electronics markets. Key products include Application Specific Integrated Passive(TM) (ASIP(TM)) devices and selected high value mixed signal ICs. 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. Forward-looking statements made in this release include our expected revenues, both overall and for certain markets and customers; our expected GAAP and non-GAAP earnings and loss per share; and our expectation for solid growth in ASIP device revenue from the mobile market in the future. These forward- looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether the designed performance of our devices satisfies our customers' requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion and/or loss of market share for us, whether we encounter any difficulty in obtaining the requisite supply of quality product from our contract manufacturers, contract assemblers and test houses without interruption or unanticipated price increases, and whether we incur unexpected operating expenses as well as the risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company's future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.

NOTE: ASIP(TM) and Application Specific Integrated Passive(TM) are trademarks of California Micro Devices.

    All other trademarks are property of their respective owners


                      California Micro Devices Corporation
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    (amounts in thousands, except share data)
                                  (Unaudited)

                                                September 30,       March 31,
                                                    2006              2006

    ASSETS
    Current assets:
    Cash and cash equivalents                      $16,580            $9,788
    Short-term investments                          31,977            39,958
    Accounts receivable, net                        10,253            10,667
    Inventories                                      5,457             5,508
    Deferred income taxes                            2,561             2,711
    Prepaid expenses and other current
     assets                                            959                    1,078
        Total  current  assets                                                        67,787                        69,710
        Property,  plant  and  equipment,  net                              4,514                          3,961
        Goodwill                                                                                  5,316                              -
        Purchased  intangible  assets,  net                                      514                              -
        Other  long-term  assets                                                            98                                61
        TOTAL  ASSETS                                                                      $78,229                      $73,732

        LIABILITIES  AND  STOCKHOLDERS'  EQUITY
        Current  liabilities:
        Accounts  payable                                                                $8,128                        $5,901
        Accrued  liabilities                                                            3,777                          3,185
        Deferred  margin  on  shipments  to
          distributors                                                                        2,640                          2,684
        Current  maturities  of  long-term  debt
          and  capital  lease  obligations                                            82                                82
        Total  current  liabilities                                              14,627                        11,852
        Other  long-term  liabilities                                                214                                  8
        Total  liabilities                                                              14,841                        11,860
        Commitments  and  contingencies
        Stockholders'  equity:
        Common  stock  and  additional  paid-in
          capital  -  $0.001  par  value;
          50,000,000  shares  authorized;  shares
          issued  and  outstanding:  23,009,031
          and  22,855,223  as  of  September  30,
          2006  and  March  31,  2006,
          respectively                                                                    112,880                      110,673
        Accumulated  other  comprehensive
          income  (loss)                                                                              2                                (5)
        Accumulated  deficit                                                        (49,494)                    (48,796)
        Total  stockholders'  equity                                            63,388                        61,872
        TOTAL  LIABILITIES  AND  STOCKHOLDERS'
          EQUITY                                                                                $78,229                      $73,732


                                          California  Micro  Devices  Corporation
                              CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
                                (amounts  in  thousands,  except  per  share  data)
                                                                  (Unaudited)
                                                            (On  a  GAAP  basis)

                                                                                  Three  Months  Ended    Six  Months  Ended
                                                                                        September  30,          September  30,
                                                                                        2006          2005          2006          2005

        Net  sales                                                            $18,733    $18,542    $34,805    $33,229
        Cost  and  expenses:
        Cost  of  sales                                                      11,228      11,511      21,217      21,131
        Research  and  development                                  2,171        1,850        4,226        3,284
        Selling,  general  and  administrative            4,067        3,406        8,261        6,748
        In-process  research  and  development                    -                -        2,210                -
        Amortization  of  purchased  intangible
          assets                                                                          42                -              76                -
        Restructuring  expense                                                -                3                -              60
        Total  costs  and  expenses                                17,508      16,770      35,990      31,223
        Operating  income  (loss)                                    1,225        1,772      (1,185)      2,006
        Other  income,  net                                                    617            326        1,156            574
        Income  (loss)  before  income  taxes                1,842        2,098            (29)      2,580
        Income  taxes                                                              465              63            669              77
        Net  income  (loss)                                              $1,377      $2,035        $(698)    $2,503

        Net  income  (loss)  per  share-basic                $0.06        $0.09      $(0.03)      $0.12
        Weighted  average  common  shares
          outstanding-basic                                            23,006      21,707      22,953      21,676

        Net  income  (loss)  per  share-diluted            $0.06        $0.09      $(0.03)      $0.11
        Weighted  average  common  shares  and
          share  equivalents  outstanding-diluted    23,080      22,606      22,953      22,313

        Reconciliation  of  net  income  (loss)  to
          non-GAAP  net  income:
        Net  income  (loss)                                              $1,377      $2,035        $(698)    $2,503
        Reconciling  items:
        In-process  research  and  development                -                -            2,210            -
        Amortization  of  purchased  intangible
          assets                                                                          42            -                  76            -
        Stock-based  compensation  expense  under
          SFAS  123(R),  net  of  tax                                      732            -            1,576            -
        Difference  between  effective  tax  rate
          and  cash  basis  tax  rate                                      387            -                554            -
        Non-GAAP  net  income                                          $2,538      $2,035      $3,718      $2,503

        Non-GAAP:
        Net  income  per  share-basic                              $0.11        $0.09        $0.16        $0.12
        Net  income  per  share-diluted                          $0.11        $0.09        $0.16        $0.11

        Shares  used  in  calculation  of  non-GAAP:
        Weighted  average  common  shares
          outstanding-basic                                            23,006      21,707      22,953      21,676
        Weighted  average  common  shares  and
          share  equivalents  outstanding-diluted    23,083      22,606      23,116      22,313


                                          California  Micro  Devices  Corporation
                              CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
                                (amounts  in  thousands,  except  per  share  data)
                                                                  (Unaudited)
                                                        (On  a  non-GAAP  basis)

                                                                                  Three  Months  Ended    Six  Months  Ended
                                                                                        September  30,          September  30,
                                                                                        2006          2005          2006          2005

        Net  sales                                                            $18,733    $18,542    $34,805    $33,229
        Cost  and  expenses:
        Cost  of  sales                                                      11,125      11,511      20,983      21,131
        Research  and  development                                  2,011        1,850        3,878        3,284
        Selling,  general  and  administrative            3,598        3,406        7,267        6,748
        Restructuring  expense                                                -                3                -              60
        Total  costs  and  expenses                                16,734      16,770      32,128      31,223
        Operating  income                                                  1,999        1,772        2,677        2,006
        Other  income,  net                                                    617            326        1,156            574
        Income  before  income  taxes                              2,616        2,098        3,833        2,580
        Income  taxes                                                                78              63            115              77
        Net  income                                                            $2,538      $2,035      $3,718      $2,503

        Net  income  per  share-basic                              $0.11        $0.09        $0.16        $0.12
        Weighted  average  common  shares
          outstanding-basic                                            23,006      21,707      22,953      21,676

        Net  income  per  share-diluted                          $0.11        $0.09        $0.16        $0.11
        Weighted  average  common  shares  and
          share  equivalents  outstanding-diluted    23,083      22,606      23,116      22,313

        See  accompanying  reconciliation  of  GAAP  measures  to  non-GAAP  measures.


                                                California  Micro  Devices  Corporation
                              RECONCILIATION  OF  GAAP  MEASURES  TO  NON-GAAP  MEASURES
                                                                      (Unaudited)


                                                                Three  Months  Ended                    Six  Months  Ended
                                                                      September  30,                          September  30,
        Net  income  (loss)
          per  share:                                  2006                  2005                  2006                  2005

        Basic:
        GAAP  net  income  (loss)
          per  share                                  $0.06                $0.09              $(0.03)              $0.12
        Reconciling  items:
        In-process  research
          and  development                              -                        -                  0.10                        -
        Amortization  of  purchased
          intangible  assets                          -                        -                        -                        -
        Stock-based  compensation
          expense  under  SFAS
          123(R),  net  of  tax                  0.03                        -                  0.07                        -
        Difference  between
          effective  tax  rate
          and  cash  basis  tax  rate        0.02                        -                  0.02                        -
        Non-GAAP  net  income
          per  share                                  $0.11                $0.09                $0.16                $0.12

        Diluted:
        GAAP  net  income  (loss)
          per  share                                  $0.06                $0.09              $(0.03)              $0.11
        Reconciling  items:
        In-process  research
          and  development                              -                        -                  0.10                        -
        Amortization  of  purchased
          intangible  assets                          -                        -                        -                        -
        Stock-based  compensation
          expense  under  SFAS
          123(R),  net  of  tax                  0.03                        -                  0.07                        -
        Difference  between
          effective  tax  rate
          and  cash  basis  tax  rate        0.02                        -                  0.02                        -
        Non-GAAP  net  income
          per  share                                  $0.11                $0.09                $0.16                $0.11


        Shares  used  in  the  per  share-diluted  calculation:

        GAAP  diluted  shares              23,080              22,606              22,953              22,313
        Add  back  anti-dilutive
          shares  under  a  GAAP  loss            -                        -                    173                        -
        Effect  of  stock-based
          compensation  expense
          under  SFAS  123(R)                          3                        -                    (10)                      -
        Non-GAAP  diluted  shares      23,083              22,606              23,116              22,313

 

Web site: http://www.calmicro.com//


Reviews:
Review Article
  • October 09, 2008
    Reviewed by 'justin'
    where's the downside on this stock? current assets - tot liabs > 60%. +ve cashflow? 73% volatily gotta mean risk asymmetrical to upside?

      22 of 22 found this review helpful.
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