Zarlink Third Quarter Fiscal 2010 Revenue Exceeds Guidance

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Canadian Securities Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.


Zarlink Semiconductor Inc.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA
(in thousands of U.S dollars, except per share amounts, U.S. GAAP)
(Unaudited)

                                                        Three Months Ended
                                      ------------------------------------
                                           Dec. 25,   Sept. 25,    Dec. 26,
                                              2009        2009        2008
                                      ------------------------------------
Revenue                                   $ 54,425    $ 53,596    $ 53,726
Cost of revenue                             26,074      26,665      27,215
                                      ------------------------------------
Gross margin                                28,351      26,931      26,511
                                      ------------------------------------
                                                                          
Expenses:                                                                 
  Research and development                  10,930      10,601      10,402
  Selling and administrative                11,219      10,124      10,877
  Amortization of intangible assets          1,803       1,803       1,846
  Contract impairment (recovery)               (94)          -         142
  Impairment (recovery) of current                                        
   asset                                         -        (768)      3,000
  Impairment of asset held for sale              -           -       1,200
  Gain on sale of assets                         -           -           -
                                      ------------------------------------
                                            23,858      21,760      27,467
                                      ------------------------------------
Operating income (loss)                      4,493       5,171        (956)
                                                                          
Gain (loss) on repurchase of                                                                                      
  convertible  debentures                                                    -                (316)            3,593
Interest  income                                                                  69                    43                  392
Interest  expense                                                            (985)              (973)              (978)
Amortization  of  debt  issue  costs                            (161)              (160)              (161)
Foreign  exchange  gain  (loss)                                (2,719)          (2,999)          10,302
                                                                            ------------------------------------
Net  income  before  income  taxes                                  697                  766            12,192
Income  tax  recovery  (expense)                                    (66)                (46)                (92)
                                                                                                                                                    
                                                                            ------------------------------------
Net  income                                                              $          631      $          720        $  12,100
                                                                            ------------------------------------
                                                                                                                                                    
Net  income  (loss)  attributable  to                                                                                  
  common      shareholders                                      $          112      $          135        $  11,642
                                                                            ------------------------------------
                                                                            ------------------------------------
                                                                                                                                                    
Net  income  (loss)  per  common  share:                                                                              
Basic                                                                        $        0.00      $        0.00        $      0.09
                                                                            ------------------------------------
                                                                            ------------------------------------
Diluted                                                                    $        0.00      $        0.00        $      0.08
                                                                            ------------------------------------
                                                                            ------------------------------------
                                                                                                                                                    
Weighted  average  number  of  common                                                                                  
  shares  outstanding  (thousands):                                                                                    
Basic                                                                            122,293          122,426          123,942
Diluted                                                                        123,652          123,510          154,297
                                                                                                                                                    
Percentage  of  revenue:                                                                                                        
    Gross  margin                                                                    52%                  50%                  49%
    Research  and  development                                            20%                  20%                  19%
    Selling  and  administrative                                        21%                  19%                  20%


                                                                                                                  Nine  Months  Ended
                                                                                          -----------------------------
                                                                                                          Dec.  25,            Dec.  26,
                                                                                                                2009                    2008
                                                                                          -----------------------------
Revenue                                                                                        $  161,629          $  176,064
Cost  of  revenue                                                                              79,484                91,386
                                                                                          -----------------------------
Gross  margin                                                                                    82,145                84,678
                                                                                          -----------------------------
                                                                                                                                                    
Expenses:                                                                                                                                  
    Research  and  development                                                        31,067                33,560
    Selling  and  administrative                                                    31,636                36,960
    Amortization  of  intangible  assets                                        5,431                  5,538
    Contract  impairment  (recovery)                                                  715                      142
    Impairment  (recovery)  of  current                                                                                
      asset                                                                                                (768)                3,000
    Impairment  of  asset  held  for  sale                                                -                  1,200
    Gain  on  sale  of  assets                                                                      -                    (936)
                                                                                          -----------------------------
                                                                                                            68,081                79,464
                                                                                          -----------------------------
Operating  income  (loss)                                                              14,064                  5,214
                                                                                                                                                    
Gain  (loss)  on  repurchase  of                                                                                            
  convertible  debentures                                                                  (316)                3,593
Interest  income                                                                                    157                  1,108
Interest  expense                                                                            (2,861)              (3,293)
Amortization  of  debt  issue  costs                                                (481)                  (529)
Foreign  exchange  gain  (loss)                                                    (9,598)              11,920
                                                                                          -----------------------------
Net  income  before  income  taxes                                                      965                18,013
Income  tax  recovery  (expense)                                                      (130)                2,419
                                                                                                                                                    
                                                                                          -----------------------------
Net  income                                                                                  $          835          $    20,432
                                                                                          -----------------------------
                                                                                                                                                    
Net  income  (loss)  attributable  to                                                                                  
  common      shareholders                                                          $        (758)        $    18,587
                                                                                          -----------------------------
                                                                                          -----------------------------
                                                                                                                                                    
Net  income  (loss)  per  common  share:                                                                              
Basic                                                                                            $      (0.01)        $        0.15
                                                                                          -----------------------------
                                                                                          -----------------------------
Diluted                                                                                        $      (0.01)        $        0.13
                                                                                          -----------------------------
                                                                                          -----------------------------
                                                                                                                                                    
Weighted  average  number  of  common                                                                                  
  shares  outstanding  (thousands):                                                                                    
Basic                                                                                                122,381              125,589
Diluted                                                                                            122,381              157,136
                                                                                                                                                    
Percentage  of  revenue:                                                                                                        
    Gross  margin                                                                                        51%                      48%
    Research  and  development                                                                19%                      19%
    Selling  and  administrative                                                            20%                      21%



Zarlink  Semiconductor  Inc.
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  DATA
(in  thousands  of  U.S.  dollars,  U.S.  GAAP)
(Unaudited)

                                                                                                                Three  Months  Ended
                                                                            ------------------------------------
                                                                                      Dec.  25,      Sept.  25,        Dec.  26,
                                                                                            2009                2009                2008
                                                                            ------------------------------------
CASH  PROVIDED  BY  (USED  IN)                                                                                                
--------------------------------------                                                                        
Operating  activities:                                                                                                          
    Net  income                                                            $        631        $        720        $  12,100
    Depreciation  of  fixed  assets                                  939                  949              1,205
    Amortization  of  other  assets                              1,964              1,963              2,007
    Stock  compensation  expense                                      475                  325                  575
    Other  non-cash  changes  in  operating                                                                          
      activities                                                                2,802              2,665            (9,153)
    Deferred  income  taxes                                                162                  (71)            1,248
    Decrease  (increase)  in  working                                                                                    
      capital:                                                                                                                              
        Trade  accounts  and  other                                                                                            
          receivables                                                        (6,615)            2,692              8,836
        Inventories                                                            3,809                (878)              (383)
        Prepaid  expenses  and  other                                  951                (247)            2,175
        Payables  and  other  accrued                                                                                        
          liabilities                                                          1,671                (796)        (11,492)
        Deferred  revenue                                                  1,770              1,898            (1,084)
                                                                            ------------------------------------
Total                                                                                8,559              9,220              6,034
                                                                            ------------------------------------
                                                                                                                                                    
Investing  activities:                                                                                                          
    Expenditures  for  fixed  assets                              (998)              (411)              (806)
    Proceeds  from  disposal  of  fixed                                                                                  
      assets                                                                                -                      -                      -
                                                                            ------------------------------------
Total                                                                                  (998)              (411)              (806)
                                                                            ------------------------------------
                                                                                                                                                    
Financing  activities:                                                                                                          
    Repurchase  of  convertible  debentures                      -                  (13)          (2,594)
    Payment  of  dividends  on  preferred                                                                              
      shares                                                                          (474)              (466)              (437)
    Repurchase  of  preferred  shares                            (144)              (433)              (290)
    Repurchase  of  common  shares                                  (642)                    -                (887)
                                                                            ------------------------------------
Total                                                                              (1,260)              (912)          (4,208)
                                                                            ------------------------------------
Effect  of  currency  translation  on  cash                (102)                672            (1,613)
                                                                            ------------------------------------
                                                                                                                                                    
Increase  (decrease)  in  cash  and  cash                                                                            
  equivalents                                                                  6,199              8,569                (593)
                                                                                                                                                    
Cash  and  cash  equivalents,  beginning                                                                            
  of  period                                                                    55,706            47,137            45,872
                                                                            ------------------------------------
                                                                                                                                                    
Cash  and  cash  equivalents,  end  of                                                                                  
  period                                                                      $  61,905        $  55,706        $  45,279
                                                                            ------------------------------------
                                                                            ------------------------------------

                                                                                                                  Nine  Months  Ended
                                                                                                    ------------------------
                                                                                                              Dec.  25,        Dec.  26,
                                                                                                                    2009                2008
                                                                                                    ------------------------
CASH  PROVIDED  BY  (USED  IN)                                                                                                
--------------------------------------                                                                        
Operating  activities:                                                                                                          
    Net  income                                                                                    $        835        $  20,432
    Depreciation  of  fixed  assets                                                      2,864              3,588
    Amortization  of  other  assets                                                      5,912              6,067
    Stock  compensation  expense                                                          1,163              1,575
    Other  non-cash  changes  in  operating                                                                          
      activities                                                                                        9,857          (10,789)
    Deferred  income  taxes                                                                        245              2,181
    Decrease  (increase)  in  working                                                                                    
      capital:                                                                                                                              
        Trade  accounts  and  other                                                                                            
          receivables                                                                                (5,536)            3,091
        Inventories                                                                                    1,286                  685
        Prepaid  expenses  and  other                                                          634              3,744
        Payables  and  other  accrued                                                                                        
          liabilities                                                                                    (208)        (16,270)
        Deferred  revenue                                                                          3,685                  857
                                                                                                    ------------------------
Total                                                                                                      20,737            15,161
                                                                                                    ------------------------
                                                                                                                                                    
Investing  activities:                                                                                                          
    Expenditures  for  fixed  assets                                                  (1,984)          (3,070)
    Proceeds  from  disposal  of  fixed                                                                                  
      assets                                                                                                        -                  984
                                                                                                    ------------------------
Total                                                                                                      (1,984)          (2,086)
                                                                                                    ------------------------
                                                                                                                                                    
Financing  activities:                                                                                                          
    Repurchase  of  convertible  debentures                                          (13)          (2,594)
    Payment  of  dividends  on  preferred                                                                              
      shares                                                                                              (1,417)          (1,522)
    Repurchase  of  preferred  shares                                                    (849)          (1,180)
    Repurchase  of  common  shares                                                          (642)          (2,707)
                                                                                                    ------------------------
Total                                                                                                      (2,921)          (8,003)
                                                                                                    ------------------------
Effect  of  currency  translation  on  cash                                      1,067            (2,154)
                                                                                                    ------------------------
                                                                                                                                                    
Increase  (decrease)  in  cash  and  cash                                                                            
  equivalents                                                                                        16,899              2,918
                                                                                                                                                    
Cash  and  cash  equivalents,  beginning                                                                            
  of  period                                                                                            45,006            42,361
                                                                                                    ------------------------
                                                                                                                                                    
Cash  and  cash  equivalents,  end  of                                                                                  
  period                                                                                              $  61,905        $  45,279
                                                                                                    ------------------------
                                                                                                    ------------------------



Zarlink  Semiconductor  Inc.
CONSOLIDATED  BALANCE  SHEETS  DATA
(in  thousands  of  U.S.  dollars,  U.S.  GAAP)
(Unaudited)

                                                                  Dec.  25,                Sept.  25,                March  27,
                                                                        2009                          2009                          2009
                                                ----------------  ----------------  ----------------
ASSETS                                                                                                                                        
                                                                                                                                                    
Current  assets:                                                                                                                      
    Cash  and  cash                                                                                                                      
      equivalents                                  $    61,905                $    55,706                $    45,006
    Restricted  cash  and                                                                                                          
      cash  equivalents                              14,704                      15,455                      13,145
    Trade  accounts                                                                                                                    
      receivable  -  net                              30,352                      23,209                      24,556
    Other  accounts                                                                                                                    
      receivable  -  net                                3,987                        4,568                        4,300
    Inventories  -  net                              26,535                      30,344                      27,821
    Prepaid  expenses  and                                                                                                        
      other                                                      2,048                        2,998                        2,681
    Current  assets  held                                                                                                          
      for  sale                                                1,935                        1,935                        1,935
                                                ----------------  ----------------  ----------------
                                                                  141,466                    134,215                    119,444
Fixed  assets  -  net                                11,528                      11,803                      12,530
Deferred  income  tax                                                                                                              
  assets  -  net                                            5,561                        5,723                        5,800
Intangible  assets  -  net                      43,674                      45,477                      49,106
Other  assets                                              2,081                        2,283                        2,655
                                                ----------------  ----------------  ----------------
                                                              $  204,310                $  199,501                $  189,535
                                                ----------------  ----------------  ----------------
                                                ----------------  ----------------  ----------------
                                                                                                                                                    
LIABILITIES  AND                                                                                                                      
  SHAREHOLDERS'  EQUITY                                                                                                          
                                                                                                                                                    
Current  liabilities:                                                                                                            
    Trade  accounts  payable              $    11,885                $    12,513                $    12,018
    Employee-related                                                                                                                
      payables                                              10,269                        8,918                        9,478
    Income  and  other  taxes                                                                                                    
      payable                                                      746                            657                            482
    Current  portion  of                                                                                                            
      provisions  for  exit                                                                                                        
      activities                                            1,574                        1,826                        3,645
    Other  accrued                                                                                                                      
      liabilities                                          8,332                        6,972                        6,454
    Deferred  revenue                                  4,546                        2,776                            861
    Deferred  income  tax                                                                                                          
      liabilities  -  current                                                                                                    
      portion                                                        31                              31                              28
                                                ----------------  ----------------  ----------------
                                                                    37,383                      33,693                      32,966
                                                                                                                                                    
Long-term  debt  -                                                                                                                    
  convertible  debentures                      67,567                      64,923                      57,203
Long-term  portion  of                                                                                                            
  provisions  for  exit                                                                                                            
  activities                                                    323                            558                            200
Pension  liabilities                              16,208                      17,075                      14,690
Deferred  income  tax                                                                                                              
  liabilities  -  long-term                                                                                                    
  portion                                                            31                              31                              28
Long-term  accrued  income                                                                                                    
  taxes                                                          2,192                        2,350                        2,408
Other  long-term                                                                                                                      
  liabilities                                                  545                            833                            830
                                                ----------------  ----------------  ----------------
                                                                  124,249                    119,463                    108,325
                                                ----------------  ----------------  ----------------
                                                                                                                                                    
Redeemable  preferred                                                                                                            
  shares,  unlimited                                                                                                                
  shares  authorized;                                                                                                              
  1,006,600  shares  issued                                                                                                    
  and  outstanding  as  at                                                                                                        
  December  25,  2009                                12,884                      12,984                      13,558
                                                ----------------  ----------------  ----------------
                                                                                                                                                    
Shareholders'  equity:                                                                                                          
Common  shares,  unlimited                                                                                                    
  shares  authorized;  no                                                                                                        
  par  value;  121,683,182                                                                                                      
  shares  issued  and                                                                                                                
  outstanding  as  at                                                                                                                
  December  25,  2009                              734,337                    738,818                    738,818
Additional  paid-in                                                                                                                
  capital                                                    38,795                      34,526                      33,969
Deficit                                                  (670,454)                (670,611)                (669,872)
Accumulated  other                                                                                                                  
  comprehensive  loss                            (35,501)                  (35,679)                  (35,263)
                                                ----------------  ----------------  ----------------
                                                                    67,177                      67,054                      67,652
                                                ----------------  ----------------  ----------------
                                                              $  204,310                $  199,501                $  189,535
                                                ----------------  ----------------  ----------------
                                                ----------------  ----------------  ----------------



Zarlink  Semiconductor  Inc.
SUPPLEMENTARY  SCHEDULES
(in  thousands  of  U.S.  dollars,  U.S.  GAAP)
(Unaudited)  Geographic  Information:

Revenue,  based  on  the  geographic  location  of  Zarlink's  customers,  was
distributed  as  follows:  

                              Three                              Three                              Three                    
                            Months                            Months                            Months                    
                              Ended                              Ended                              Ended            
                          Dec.  25,        %  of      Sept.  25,        %  of        Dec.  26,        %  of  
                                2009        Total              2009        Total              2008        Total  
                    ----------  --------  ----------  --------  ----------  --------  
                                                                                                                                            
Asia  -                                                                                                                            
  Pacific        $  26,487              49%    $  29,143              54%    $  26,925              50%
Europe                16,617              31          13,379              25          14,482              27  
Americas            11,321              20          11,074              21          12,319              23  
                    ----------  --------  ----------  --------  ----------  --------  
                      $                                      $                                                                            
                            54,425            100%        53,596            100%    $  53,726            100%
                    ----------  --------  ----------  --------  ----------  --------  
                    ----------  --------  ----------  --------  ----------  --------  


                                                                        Nine                                Nine                    
                                                                    Months                            Months                    
                                                                      Ended                              Ended          
                                                                  Dec.  25,        %  of        Dec.  26,        %  of  
                                                                        2009        Total              2008        Total  
                                                            ----------  --------  ----------  --------  
                                                                                                                                            
Asia  -  Pacific                                                                                                            
                                                                $  84,059              52%  $  89,225              51%
Europe                                                        44,302              27          46,617              26  
Americas                                                    33,268              21          40,222              23  
                                                            ----------  --------  ----------  --------  
                                                                $161,629            100%    $176,064            100%
                                                            ----------  --------  ----------  --------  
                                                            ----------  --------  ----------  --------  



Product  Group  Information:

Revenue,  based  on  product  group,  was  distributed  as  follows:  

                                      Three                                Three                                Three                  
                                    Months                              Months                              Months                  
                                      Ended                                Ended                                Ended          
                                  Dec.  25,        %  of        Sept.  25,        %  of          Dec.  26,      %  of  
                                        2009        Total                2009        Total                2008      Total  
                          -----------  --------  -----------  --------  -----------  -------  
                                                                                                                                                      
Communication                                                                                                                            
  Products              $  33,818              62%      $  34,196              64%      $  33,682            63%
Medical                                                                                                                                        
  Products                    7,937              15              7,799              15              8,217            15  
Optical                                                                                                                                        
  Products                    4,463                8              3,830                7              5,443            10  
Custom  &                                                                                                                                      
  Other                          8,207              15              7,771              14              6,384            12  
                          -----------  --------  -----------  --------  -----------  -------  
                                                                                                                                                  
                                $  54,425            100%      $  53,596            100%      $  53,726          100%
                          -----------  --------  -----------  --------  -----------  -------  
                          -----------  --------  -----------  --------  -----------  -------  


                                                                    Nine  Months                    Nine  Months                  
                                                                                Ended                                Ended          
                                                                            Dec.  25,        %  of          Dec.  26,      %  of  
                                                                                  2009        Total                2008      Total  
                                                                    -----------  --------  -----------  -------  
                                                                                                                                                      
Communication  Products                            $  100,662              62%    $  112,464            64%
Medical  Products                                              24,720              15            25,195            14  
Optical  Products                                              12,246                8            18,491            11  
Custom  &  Other                                                  24,001              15            19,914            11  
                                                                    -----------  --------  -----------  -------  
                                                                        $  161,629            100%    $  176,064          100%
                                                                    -----------  --------  -----------  -------  
                                                                    -----------  --------  -----------  -------  

 
Non-GAAP Measures
« Previous Page 1 | 2 | 3 | 4  Next Page »



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
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
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