|
|||||||||||||||||||||
|
Zilog Announces Second Quarter Fiscal 2010 Financial Results
SAN JOSE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Zilog, Inc. (NASDAQ: ZILG), a trusted supplier of application specific, embedded system-on-chip (SoC) solutions for industrial and consumer markets, today reported financial results for its three- and six-month periods ended September 26, 2009. Net sales from continuing operations for the fiscal 2010 second quarter ended September 26, 2009 were $8.1 million, a sequential increase of 12 percent and a year-over-year decrease of 23 percent. The sequential increase exceeded the previously announced guidance range. The increase over the first fiscal quarter sales levels reflected growth in all regions as well as a rise in ongoing licensing royalties. Sales included licensing royalties of $1.0 million in the second fiscal quarter, compared to $0.7 million in the previous quarter and $0.6 million in the second fiscal quarter a year ago. The year-over-year decline in sales reflects the worldwide fall in demand for end products as a result of the global economic downturn. On February 18, 2009, the Company sold its universal remote control and secured transaction processor businesses. In accordance with FASB ASC 205.2 (FAS 144), the comparative financial statements for the Company's previous fiscal periods ended September 27, 2008, have been restated to reflect the sold businesses as discontinued operations. GAAP net income for the fiscal second quarter ended September 26, 2009, was $1.6 million, or 9 cents per share, compared to GAAP net income of $0.4 million, or 2 cents per share, in the previous fiscal quarter and a GAAP net loss of $1.6 million, or 9 cents per share, for the fiscal second quarter a year ago. Net income for the fiscal 2010 second quarter includes a gain from discontinued operations reflecting a receipt of $1.55 million, or 50 percent of an escrow balance that was outstanding from the sale of the businesses in February 2009. The remainder of the escrow balance is expected to be received in February 2010. The previous fiscal quarter's results included $1.0 million in other income for the sale of certain patents and intellectual property rights. Additionally, the results for the second fiscal quarter a year ago included net income from discontinued operations of $2.1 million. "In the second quarter of fiscal 2010, we continued the improved performance we achieved in the opening quarter of this fiscal year, as once again we recorded profitability, sequential sales growth, increased cash and a positive book-to-bill ratio. Our second fiscal quarter results exceeded our guidance, reflecting higher margins, lower spending and increased revenues--including a sizeable increase in licensing revenue," said Darin G. Billerbeck, Zilog's president and chief executive officer. "As a result, the second quarter was our third consecutive fiscal quarter of GAAP net income. Even excluding the discontinued operations gain, we were non-GAAP profitable in the second fiscal quarter. These results, combined with our substantial progress in development of our new energy management solutions, gives us growing confidence as the global economy begins to recover." On a year-to-date basis for the six months ended September 26, 2009, sales were $15.3 million and GAAP net income was $2.0 million, or 12 cents per share, compared to sales of $20.1 million and a GAAP net loss of $3.3 million, or 19 cents per share, for the six months ended September 27, 2008. Net income for the fiscal 2010 first half includes net gains of $1.0 million for the sale of patents and intellectual property rights as well as a gain of $1.5 million for discontinued operations offset by special charges of $0.2 million. Additionally, excluding special charges and amortization of intangible assets, operating expenses for continuing operations for the fiscal first half of fiscal 2010 were $7.1 million, a 52 percent reduction from spending levels in the first half of fiscal 2009. Additionally, fiscal 2009 first half results included special charges of $1.1 million related to activities associated with consolidation and outsourcing of certain of the company's activities. The Company reported cash, cash equivalents and long-term investments of $36.4 million at September 26, 2009, compared to $34.7 million and $33.3 million at June 27, 2009 and March 31, 2009, respectively. Net cash provided by continuing operating activities was $0.2 million for the fiscal 2010 second quarter, as compared to net cash used in continuing operating activities of $3.4 million for the second quarter in the prior fiscal year and net cash provided by continuing operating activities of $2.0 million in the previous fiscal quarter. On a non-GAAP basis, adjusted EBITDA from continuing operations, as defined below, was positive $0.7 million for the fiscal 2010 second quarter, as compared to negative $2.3 million in the second fiscal quarter a year ago and positive $0.7 million in the prior fiscal quarter. "Our second quarter results reflected the benefits of our business rationalization, including a continued reduction in our overall spending. Our current cost structure scales to support revenue growth with minimal incremental spending. With the stabilization in our business model and the strength of our balance sheet, we are well positioned to take advantage of improvements in the global economy," said Perry J. Grace, Zilog's executive vice president and chief financial officer. "In the short term, we remain cautiously optimistic. December is historically a seasonally slower quarter, although beginning quarter backlog levels for the third quarter fiscal 2010 are higher than they were at the same time last quarter. We are not expecting the third quarter fiscal 2010 licensing royalties to be as high as they were last quarter, and distribution end-demand will be key to determining the final revenue levels for the third quarter," Grace concluded. The Company expects net sales for its fiscal 2010 third quarter ending December 27, 2009, to be lower by 3 percent to 5 percent, as compared to the second fiscal quarter ended September 26, 2009. At December 27, 2009 the Company anticipates to end with cash, cash equivalents and long-term investment levels consistent with those at September 26, 2009. NON-GAAP FINANCIAL INFORMATION (Unaudited) The Company may make reference to certain Non-GAAP financial measures. Management believes that these Non-GAAP measures are useful measures of operating performance and liquidity because they may exclude the impact of certain items, such as amortization of intangible assets, stock-based compensation, depreciation, non-operating interest, income taxes and special charges. However, these Non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net income (loss) and net cash provided by (used in) operating activities, or other financial measures prepared in accordance with GAAP.
Three Months Ended
Sep. 26, Jun. 27, Mar. 31, Dec. 27, Sep. 27,
2009 2009 2009 2008 2008
(in thousands)
Reconciliation of Non-GAAP
Net Income (Loss) to GAAP
Net Income (Loss)
Non-GAAP net income (loss)
from continuing operations $333 $394 ($1,776) ($2,871) ($2,563)
Non-GAAP adjustments on
continuing operations:
Special charges and
credits 77 135 3,478 1,696 554
Amortization of
intangible assets - - 174 209 209
Non-cash stock-based
compensation COS 19 19 21 44 30
Non-cash stock-based
compensation R&D 20 24 (24) 126 47
Non-cash stock-based
compensation SG&A 167 183 201 297 211
Total non-GAAP adjustments,
continuing operations 283 361 3,850 2,372 1,051
GAAP net income (loss) from
continuing operations $50 $33 ($5,626) ($5,243) ($3,614)
 Be the first to review this article
|
|
||||||||||||||||||||
|
|||||||||||||||||||||
|
|||||||||||||||||||||
