SiRF Technology Holdings, Inc. Announces Record Financial Results for Third Quarter 2005

SAN JOSE, Calif., Oct. 25 /PRNewswire-FirstCall/ -- SiRF Technology Holdings, Inc. (NASDAQ: SIRF), a leading provider of GPS-enabled silicon and premium software location platforms, today reported financial results for its third quarter ended September 30, 2005.

Net revenue in the third quarter of fiscal 2005 was $48.3 million, an increase of 56 percent from $31.0 million reported in the third quarter of 2004. Net revenue in the first nine months of fiscal 2005 was $110.8 million, an increase of 23 percent from $89.8 million in the prior year period. Gross margin in the third quarter and first nine months of fiscal 2005 was 55.6 percent and 55.8 percent, respectively, as compared to 56.2 percent and 56.4 percent in the corresponding prior year periods.

Net income for the third quarter of fiscal 2005 was $14.3 million, or $0.26 per diluted share, on 54.5 million weighted average shares outstanding. This compares with net income of $5.0 million, or $0.10 per diluted share, on 50.8 million weighted average shares outstanding in the third quarter of fiscal 2004. Net income for the first nine months of fiscal 2005 was $19.8 million, or $0.38 per diluted share, on 52.8 million weighted average shares outstanding. This compares with net income of $13.6 million, or $0.29 per diluted share, on 47.2 million weighted average shares outstanding in the first nine months of fiscal 2004.

SiRF reports net income and basic and diluted net income per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the pre-tax effect of amortization of stock compensation expense, amortization of acquisition-related intangibles, in-process research and development, tax benefit from research and development tax credits and a reversal of a litigation settlement obligation. Non-GAAP net income for the third quarter of 2005 was $13.5 million, or $0.25 per diluted share, as compared to non-GAAP net income of $7.5 million, or $0.15 per diluted share, for the third quarter of 2004. Non-GAAP net income for the third quarter of 2005 excludes $2.1 million in stock compensation expense, $1.6 million in amortization of acquisition-related intangibles, tax benefit from research and development tax credits of $3.2 million and a reversal of a litigation settlement obligation of $1.2 million. Non-GAAP net income for the third quarter of 2004 excludes $1.4 million in stock compensation expense and $1.2 million in amortization of acquisition-related intangibles. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the third quarter of fiscal 2005 were 54.5 million, compared with 50.8 million for the third quarter of 2004.

Non-GAAP net income for the first nine months of fiscal 2005 was $24.3 million, or $0.46 per diluted share, as compared to non-GAAP net income of $22.1 million, or $0.47 per diluted share, for the first nine months of fiscal 2004. Non-GAAP net income for the first nine months of fiscal 2005 excludes $4.1 million in stock compensation expense, $4.0 million in amortization of acquisition-related intangibles, $760,000 of acquired in-process research and development, tax benefit from research and development tax credits of $3.2 million and a reversal of a litigation settlement obligation of $1.2 million. Non-GAAP net income for the first nine months of fiscal 2004 excludes $5.0 million in stock compensation expense and $3.5 million in amortization of acquisition-related intangibles. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the first nine months of fiscal 2005 were 52.8 million, compared with 47.2 million weighted average shares outstanding used in computing diluted non-GAAP net income per share for the first nine months of fiscal 2004.

Total cash, cash equivalents and short-term investments were $101 million at September 30, 2005 and December 31, 2004. Long-term investments were $22 million at September 30, 2005, compared with $44 million at December 31, 2004.

"This has been a very strong quarter for SiRF. We are reporting record revenue and record EPS on what we believe is a rapidly growing and sustained demand for GPS-enabled location products driven by our market leading GPS technology," said Mr. Michael Canning, President and CEO. "I am also very pleased to note that during this quarter we added Garmin to our long and growing list of prestigious customers and end-customers."

Quarterly conference call details

SiRF will host a conference call on Tuesday, October 25, 2005, at approximately 4:30 PM EDT/1:30 PM PDT to discuss third quarter fiscal 2005 results. The conference call will be webcast live via the Internet in the investor relations section of the SiRF website at http:www.sirf.com . Interested parties should access the site, downloading any necessary audio software, at least ten minutes prior to the call. An archived webcast replay of the call will be available at the website for twelve months.

To listen to the call, please dial 800-540-0559 (domestic) or 785-832-1508 (international) approximately 10 minutes prior to the start time. The pass code is: SIRF. A telephonic replay will be available approximately two hours following the earnings call and will remain available for one week. To access the replay, dial 800-753-5212.

About SiRF Technology Holdings, Inc.

SiRF Technology Holdings, Inc. develops and markets semiconductor and premium software products that are designed to enable location-awareness utilizing GPS and other location technologies in high-volume mobile consumer devices and commercial applications. SiRF's technology has been integrated into mobile consumer devices, such as automobile navigation systems, mobile phones, PDAs, GPS-based peripherals and handheld GPS navigation devices, and into commercial applications, such as asset tracking devices and fleet management systems. SiRF markets and sells its products in four target platforms: automotive, consumer electronics, mobile computing, and wireless devices. Founded in 1995, SiRF is headquartered in San Jose, Calif., and has sales offices, design centers and research facilities around the world. The company trades on the Nasdaq Stock Exchange under the symbol SIRF. Additional information about SiRF and its Location Technology solutions can be found at www.sirf.com.

USE OF NON-GAAP FINANCIAL INFORMATION

To supplement the company's condensed consolidated financial statements presented on a GAAP basis, SiRF uses non-GAAP additional measures of operating results, net income and net income per share adjusted to exclude certain expenses it believes appropriate to enhance an overall understanding of SiRF's past financial performance and also its prospects for the future. These adjustments to SiRF's GAAP results are made with the intent of providing both management and investors a more complete understanding of the underlying operational results and trends and the company's marketplace performance. The non-GAAP results are an indication of SiRF's baseline performance before stock compensation expense, amortization of acquisition-related intangibles, in-process research and development, tax benefit from research and development tax credits and a reversal of a litigation settlement obligation that are considered by management to be outside of the company's business operational results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States.

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release, including but not limited to statements regarding the rapidly growing and sustained demand for GPS-enabled location products, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "expects," "plans," "will," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and reported results should not be considered as an indication of future performance. SiRF's actual results could differ materially from those discussed in these forward-looking statements as a result of risks and uncertainties, including, among others, we may not realize the anticipated benefits of having Garmin as a customer, our market leadership and competitive position, our ability to continue to be a preferred supplier to Motorola, the market for GPS-based location awareness capabilities, our ability to keep pace with rapid technological change, market demand for and acceptance of our current and future products and those of our customers, the semiconductor industry, international operations, our ability to compete, and other risks and uncertainties discussed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 and from time to time in SiRF's SEC reports. These forward-looking statements speak only as of the date hereof. We do not undertake any obligation to update forward-looking statements.

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