Micro Linear Announces Third Quarter 2006 Financial Results

SAN JOSE, California, Oct. 26 /PRNewswire-FirstCall/ -- Micro Linear Corporation (NASDAQ: MLIN), a leading digital wireless transceiver supplier, today announced financial results for the third quarter and nine months ended September 30, 2006.

Net revenue for the third quarter of 2006 was $5.7 million, compared to net revenue of $6.6 million for the second quarter of 2006 and net revenue of $3.7 million in the comparable third quarter of 2005. Gross margin for the third quarter of 2006 was $2.8 million, compared to $3.4 million for the second quarter of 2006 and $2.1 million for the comparable third quarter of 2005. The percentage gross margin was 50 percent for the third quarter of 2006 as compared to 51 percent for the second quarter of 2006 and 57 percent for the comparable third quarter of 2005.

The Company reported a net loss of ($0.7) million for the third quarter of 2006, or ($0.06) per share, compared to a net income of $0.4 million, or $0.03 per share, for the second quarter of 2006 and a net loss of ($1.8) million, or ($0.14) per share, for the comparable third quarter of 2005. The net loss in the third quarter of 2006 included $0.9 million in costs related to the proposed merger of Micro Linear with Sirenza Microdevices, Inc. and approximately $0.2 million of stock option expenses related to the adoption of SFAS 123R.

Net revenue for the nine months ended September 30, 2006 was $17.5 million, compared to $13.9 million for the first nine months of 2005. Gross margin for the first nine months of 2006 totaled $9.1 million compared to $7.9 million for the first nine months of 2005. The Company reported a net loss of $0.4 million, or ($0.03) per share, for the first nine months of 2006, compared to a net loss of $4.1 million, or ($0.33) per share, for the first nine months of 2005. Net loss for the first nine months of 2006 included $0.9 million in costs related to the proposed merger of Micro Linear with Sirenza Microdevices, Inc. and approximately $0.4 million of stock option expenses related to FAS 123R.

Cash, cash equivalents and short-term investments totaled $12.8 million at September 30, 2006, compared to $12.2 million at June 30, 2006 and $11.1 million as of December 31, 2005.

"During the third quarter, design activity by potential customers for the ML1905 continued, and we remain pleased with our progress to date," commented Tim Richardson, President and Chief Executive Officer of Micro Linear Corporation. "Although it is too early to determine the ML1905's contribution to revenue, we remain encouraged by the opportunities within the PHS market."

"More importantly, we are enthusiastic about the proposed merger with Sirenza Microdevices, as the combined company brings together a broad complementary product and market portfolio," Mr. Richardson continued. "In October, Institutional Shareholder Services and Glass Lewis both recommended voting FOR the proposed merger based on the terms of the transaction, noting the reasonable premium, as well as the rigorous sales process and unanimous support from each company's Board of Directors."

Mr. Richardson concluded, "We believe that the merger will result in a stronger, more competitive company that will be well positioned to build stockholder value and provide enhanced relationships with our customers and partners. Our special stockholders' meeting will be held on October 31, 2006. We encourage stockholders as of the record date, Monday, September 11, 2006, to vote FOR the merger."

Forward Looking Statements:

Except for the historical information contained herein, the statements in this press release, including, but not limited to statements. Additional risks are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Quarterly Report on Form 10-Q for the quarter ended July 2, 2006 and Annual Report on Form 10-K for the fiscal year ended January 1, 2006. Statements included in this release are based on information known to the Company as of the date of this release, and the Company assumes no obligation to update information contained in this release.

About Micro Linear:

Micro Linear Corporation is a fabless semiconductor company specializing in wireless integrated circuit solutions, which enable a variety of wireless products serving a global market. These transceivers can be used in many streaming wireless applications such as cordless phones, PHS handsets, wireless speakers and headphones, security cameras, game controllers, cordless headsets and other personal electronic appliances. Headquartered in San Jose, California, Micro Linear's products are available through its authorized representatives and distributors worldwide. For more information, please visit www.microlinear.com .

Additional Information and Where to Find It

This press release is not a proxy statement or a prospectus for the proposed transaction. Sirenza has filed a registration statement on Form S-4 (Registration No. 333-137086) in connection with Sirenza's proposed acquisition of Micro Linear, which includes Micro Linear's proxy statement and Sirenza's prospectus for the proposed transaction. Investors are urged to read the proxy statement/prospectus, which contains important information about the proposed transaction. The proxy statement/prospectus and other documents which are filed by Sirenza or Micro Linear with the Securities and Exchange Commission (SEC) are available free of charge at the SEC's website, www.sec.gov, or by directing a request when such a filing is made by Sirenza to Sirenza Microdevices, Inc., 303 S. Technology Court, Broomfield, CO 80021, Attention: Investor Relations or by directing a request when such a filing is made by Micro Linear to Micro Linear Corporation, 2050 Concourse Drive, San Jose, CA 95131, Attention: Investor Relations.

Micro Linear, its directors and certain of its executive officers, as well as Sirenza, its directors and certain of its executive officers, may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Micro Linear and their respective interests in the proposed transaction is set forth in the proxy statement/prospectus that Sirenza and Micro Linear have filed with the SEC in connection with the proposed transaction. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus.


                           MICRO LINEAR CORPORATION
                         CONSOLIDATED BALANCE SHEETS
                                  UNAUDITED
                                (IN THOUSANDS)


                                                      SEPT 30        DEC 31
                                                       2006           2005

    ASSETS

    CURRENT ASSETS
      CASH AND SHORT-TERM INVESTMENTS                $12,790        $11,137
      ACCOUNTS RECEIVABLE, NET                         2,405          2,638
      INVENTORIES                                                           1,660                    1,927
            OTHER  CURRENT  ASSETS                                                              315                        297
                      TOTAL  CURRENT  ASSETS                                              17,170                  15,999

        PROPERTY  &  EQUIPMENT,  NET                                                        232                        410

        OTHER  ASSETS                                                                                    17                          17

            TOTAL  ASSETS                                                                      $17,419                $16,426


        LIABILITIES  AND  STOCKHOLDERS'  EQUITY

        CURRENT  LIABILITIES
            ACCOUNTS  PAYABLE                                                                $2,925                  $1,269
            ACCRUED  LIABILITIES                                                            1,584                    2,280
                      TOTAL  CURRENT  LIABILITIES                                      4,509                    3,549

        STOCKHOLDERS'  EQUITY

            COMMON  STOCK                                                                                16                            16
            ADDITIONAL  PAID-IN  CAPITAL                                            63,722                    63,281
            ACCUMULATED  OTHER  COMPREHENSIVE  LOSS                                  2                            (4)
            ACCUMULATED  DEFICIT                                                        (30,597)                (30,183)
            TREASURY  STOCK                                                                  (20,233)                (20,233)
                TOTAL  STOCKHOLDERS'  EQUITY                                        12,910                    12,877

            TOTAL  LIABILITIES  AND  STOCKHOLDERS'  EQUITY          $17,419                  $16,426


                                                      MICRO  LINEAR  CORPORATION
                                        CONSOLIDATED  STATEMENTS  OF  OPERATIONS
                                                                    UNAUDITED
                                        (IN  THOUSANDS,  EXCEPT  PER  SHARE  DATA)


                                                        THREE  MONTHS  ENDED                  NINE  MONTHS  ENDED
                                                                          Sept  30,    Sept  30,    Sept  30,      Sept  30
                                                                              2006            2005          2006              2005


        NET  REVENUE                                              $5,660          $3,674      $17,538        $13,884

        COST  OF  GOODS  SOLD                                  2,847            1,589          8,435            5,962

        GROSS  MARGIN                                              2,813            2,085          9,103            7,922

        OPERATING  EXPENSES:

                RESEARCH  AND  DEVELOPMENT              1,342            2,350          4,474            7,013
                SELLING,  GENERAL  AND                      1,522            1,606          4,593            5,325
        ADMINISTRATIVE
          MERGER  COSTS                                                907                  --              907                  --

                        TOTAL  OPERATING                        3,771            3,956          9,974          12,338
        EXPENSES

        LOSS  FROM  OPERATIONS                                (958)                                (871)
                                                                                                  (1,871)                            (4,416)

        INTEREST  AND  OTHER  INCOME                        149                111              405                307
        INTEREST  AND  OTHER  EXPENSE                        (1)                (4)              (4)              (10)

        LOSS  BEFORE  INCOME  TAXES                        (810)        (1,764)          (470)        (4,119)

        (PROVISION  FOR)  BENEFIT  FROM                    62                  (8)              56                (15)
        INCOME  TAXES

        NET  LOSS                                                        (748)        (1,772)          (414)        (4,134)

        LOSS  PER  SHARE:

                BASIC                                                  $(0.06)        $(0.14)      $(0.03)        $(0.33)

                DILUTED                                              $(0.06)        $(0.14)      $(0.03)        $(0.33)

        WEIGHTED  AVERAGE  SHARES:

                BASIC                                                  12,996          12,906        12,992          12,652

                DILUTED                                              12,996          12,906        12,992          12,652

 

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




Review Article Be the first to review this article
CST Webinar Series

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
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Upcoming Events
2016 IEEE International Electron Devices Meeting at Hilton San Francisco Union Square 333 O’Farrell Street San Francisco CA - Dec 3 - 7, 2016
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