Microsemi Reports Fourth Quarter and Fiscal Year 2011 Results

(PRNewswire) — Microsemi Corporation (Nasdaq: MSCC) today reported unaudited results for its fourth quarter and fiscal year 2011 ended Oct. 2, 2011.

 

  • Record Net Sales for Fourth Quarter of $227.3 Million, an Increase of 50.3 Percent Over Prior Year and 4.9 Percent Over Prior Quarter
  • Record GAAP Gross Margin for Fourth Quarter of 57.1 Percent, an Increase of 800 Basis Points Over Prior Year
  • Non-GAAP Operating Margin for Fourth Quarter of 26.3 Percent, an Increase of 420 Basis Points Over Prior Year
  • Non-GAAP Diluted EPS for Fourth Quarter of $0.53, an Increase of 51.4 Percent Over Prior Year
  • GAAP Operating Cash Flow for Fourth Quarter of $52.2 Million

 

Net sales for Microsemi's fourth quarter of 2011 achieved a record $227.3 million, up 50.3 percent from the fourth quarter of 2010 and up 4.9 percent from the third quarter of 2011. Net sales for fiscal year 2011 were a record $835.9 million, up 61.3 percent from fiscal year 2010.  

Non-GAAP gross margin in the fourth quarter of 2011, which included only the effect of non-cash purchase accounting adjustments, was a record 57.3 percent, up 810 basis points from the fourth quarter of 2010 and up 20 basis points from the third quarter of 2011.  For fiscal year 2011, non-GAAP gross margin was 56.1 percent, up 820 basis points from fiscal year 2010.  Non-GAAP operating margin was 26.3 percent in the fourth quarter of 2011, up 420 basis points from the fourth quarter of 2010 and up 10 basis points from the third quarter of 2011.  For fiscal year 2011, non-GAAP operating margin was 25.4 percent, an increase of 400 basis points from fiscal year 2010.  Non-GAAP net income for the fourth quarter of 2011 was $45.6 million or $0.53 per diluted share compared to $28.8 million or $0.35 per diluted share for the fourth quarter of 2010 and $42.0 million or $0.49 per diluted share in the third quarter of 2011.  For fiscal year 2011, non-GAAP net income was $157.1 million or $1.83 per diluted share compared to $92.8 million or $1.14 per diluted share in fiscal year 2010.  For the fourth quarter and fiscal year 2011, the non-GAAP effective tax rate was 17.5 percent and 19.2 percent, respectively.

On a GAAP basis, gross margin in the fourth quarter of 2011 was 57.1 percent, up 800 basis points from the fourth quarter of 2010 and up 10 basis points from the third quarter of 2011.  For fiscal year 2011, GAAP gross margin was 52.8 percent, up 490 basis points from fiscal year 2010.  GAAP operating margin was 12.7 percent in the fourth quarter of 2011, up 150 basis points from the fourth quarter of 2010 and down 30 basis points from the third quarter of 2011.  For fiscal year 2011, GAAP operating margin was 6.6 percent, a decrease of 420 basis points from fiscal year 2010.  The decreases in operating margin reflect the impact of increased acquisition costs and non-cash amortization expense.   GAAP net income for the fourth quarter of 2011 was $42.1 million or $0.49 per diluted share compared to net income of $6.6 million or $0.08 per diluted share for the fourth quarter of 2010 and net income of $30.6 million or $0.35 per diluted share in the third quarter of 2011.  For fiscal year 2011, GAAP net income was $54.4 million or $0.63 per diluted share compared to $59.0 million or $0.72 per diluted share in fiscal year 2010.  Adjustments to reconcile Microsemi's GAAP and non-GAAP results are further discussed below.  

"Microsemi delivered another record revenue quarter with improved profitability in Q4," stated James J. Peterson, president and chief executive officer of Microsemi. "Over the course of our fiscal 2011 we grew our business, successfully integrated our acquisitions, and improved profitability. As we look to December, we expect the business will feel the effects of the devastating floods in Thailand and the uncertain macroeconomic conditions worldwide, but we are excited about what we have accomplished and where we are going. In 2012, we look forward to a resumption of growth in the March quarter, driving profitability of Zarlink in line with our long term targets, and surpassing the $1 billion sales mark, all while delivering strong cash flow and bottom line results."

Business Outlook

Microsemi expects that for the first quarter of fiscal year 2012, our net sales will increase to between $238 million and $246 million. On a non-GAAP basis, the company expects earnings per diluted share for the first quarter of fiscal year 2012 to be $0.38 to $0.42.

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 to reflect subsequent events or circumstances. Please refer to the "SAFE HARBOR" STATEMENT below for risks that may affect future actual results.

Information for Fourth Quarter 2011 Earnings Conference Call and Webcast:

Date:

Thursday, Nov. 10, 2011

 

Time:

4:45 p.m. EST (1:45 p.m. PST)

 
   


To access the webcast, log on to www.microsemi.com, go to the Investors section and then to Events and Presentations. To listen to the live webcast, visit this website approximately 15 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, call (877) 264-1110 or (706) 634-1357 at approximately 4:35 p.m. EST (1:35 p.m. PST). Please provide the following ID Number: 22769763.

A telephonic replay will be available from 6 p.m. EST (3 p.m. PST) on Thursday, Nov. 10, 2011 through 11:59 p.m. EST (8:59 p.m. PST) on Thursday, Nov. 17.  To access the replay, call: (855) 859-2056 or (404) 537-3406. Please enter the following ID Number: 22769763.

Non-GAAP Adjustments

Our GAAP results for the fourth quarter of fiscal year 2011 included $2.6 million in restructuring and other charges and $3.1 million in acquisition costs, as well as non-cash expenses of $17.6 million in amortization of acquired intangibles, $7.3 million in stock-based compensation, $2.0 million change in fair value of our debt and derivative instruments, $0.3 million in manufacturing profit in acquired inventory and their related tax effects. GAAP results are reconciled to non-GAAP results in the accompanying financial tables.

1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy