Revenue Increases 3% Year-Over-Year
Q1-2008 RESULTS: - Q1 Revenue: $20.1 million - Q1 Pro forma earnings: $1.9 million - Q1 Pro forma diluted earnings per share: $0.10 - Q1 GAAP results: loss of $1.0 million or $0.05 per diluted share
Revenue for the first quarter of fiscal year 2008 was $20.1 million, a 3% increase over the first quarter in fiscal year 2007, and a 9% decrease from the fourth quarter of fiscal year 2007. Pro forma earnings of $1.9 million represent a 2% decrease compared to the first quarter of fiscal year 2007, and a 42% decrease over the fourth quarter of fiscal year 2007. On a GAAP basis the company had a loss for the quarter of $1.0 million or $0.05 per diluted share, compared to a loss of $0.7 million or $0.03 per diluted share in the first quarter of fiscal year 2007, down from a gain of $1.7 million or $0.08 per diluted share in the fourth quarter of fiscal year 2007. The loss on a GAAP basis reflects the one time restructuring charge of $1.7 million which was announced in May, in conjunction with an organizational realignment.
"The first quarter of 2008 concluded with 3% year-over-year revenue growth and included key customer announcements from Huawei and RadiSys, two examples of the continued adoption of our industry-leading Serial RapidIO solutions," said Daniel Hoste, President and Chief Executive Officer, Tundra Semiconductor. "Our products business remains solid and our outlook for Q2-2008 is steady. The Design Services business however, fell short of our expectations as the transition of resources from a large project in the fourth quarter to a number of smaller projects in the first quarter proved to be challenging," continued Hoste.
"Performance of our products business in the first quarter, in US dollars, was slightly ahead of our expectations. However, the strength of the Canadian dollar had a negative impact on our results, both top and bottom line," said David Long, Chief Financial Officer, Tundra Semiconductor.
Management offers the following outlook for the second quarter of fiscal year 2008:
- Revenue is expected to be in the range of $19.0 million and $22.0 million - Pro forma diluted earnings per share are expected to be in the range of $0.05 to $0.09 Q1-2008 Highlights: - Tundra was selected by Huawei Technologies Co. Ltd. (Huawei), a leader in next generation telecommunications networks, to provide Serial RapidIO(R) Switches to enable Huawei's next generation production systems. Huawei selected Tundra's first-to-market Serial RapidIO Switch because the solution solved their design requirement to cluster many Digital Signal Processor's (DSPs) while keeping processor overhead at an industry-low. Tundra's Tsi568A(TM) Switch offers high inter-processor bandwidth, with up to 10 Gbps per link. Tundra's Tsi568A is the ideal solution for Huawei's design as it offers; low power at 120-200mW per port, a large port count with 16x1 solution in a small 27x27mm form factor, as well as ports individually configurable by width and speed to optimize intra component connectivity. - Tundra recently announced the release of a Serial RapidIO development platform that combines the industry's highest performing programmable digital signal processors (DSPs) and the lowest power Serial RapidIO Switch available. The platform leverages Serial RapidIO interconnect technology, using Tundra's Tsi578(TM) switch to cluster four Freescale MSC8144 multi-core DSPs in an AMC single-width form factor. Tundra and Freescale created the solution to address interconnect bandwidth requirements of up to 10 Gbps between on-board components in key applications such as wireless base stations, radio network controllers, media gateways, video conferencing and radar signal processing. These processing-intensive applications require high performance DSPs and the high throughput, low latency characteristics of a RapidIO solution. - Tundra now offers customers a complete portfolio of proven, high performance, low-cost PCI and PCI-X bridges. In Q1-FY2008, Tundra launched the new Tsi352(TM) PCI-to-PCI Bridge which offers designers the opportunity to extend a system's load capability limit beyond that of a single PCI bus by allowing motherboard designers to add more PCI devices or more PCI option card slots than a single PCI bus can support. The Tsi352 joins the Tsi340(TM) and Tsi350(TM) to complete Tundra's PCI-to-PCI bridge portfolio. Similar in features and functionality, the three PCI Bridge solutions offered by Tundra provide compatible footprints for most standard 32-bit PCI bridges on the market today. - RadiSys Corporation, a leading global provider of advanced embedded solutions, has selected the Tundra Tsi578 Serial RapidIO Switch for its Promentum(TM) ATCA-9100 Media Resource Module. RadiSys recently launched the Advanced Telecommunications Computing Architecture (ATCA) Digital Signal Processing (DSP) blade, which uses the Tsi578 as its Serial RapidIO interconnection for large-scale DSP aggregation. The Promentum ATCA-9100 responds to increasing customer demand for high performance solutions that address the growing number of applications requiring media processing. RadiSys selected Tundra's Tsi578 with multicast because the Switch offered large-scale DSP aggregation capabilities with proven interoperability, lower power and minimal latency - all critical requirements for the highly intensive network applications that the ATCA-9100 targets. Corporate Announcements: - In August, Tundra signed a strategic agreement to acquire a new product from a leading global solutions and engineering services provider. The agreement is a significant first step in executing Tundra's previously announced smart interconnect solutions strategy. This product represents a new product line and new market opportunity for Tundra. Based on strong I/O management experience, Tundra intends to use its existing design teams to develop future products in this new product line and in the broader smart interconnect solutions product portfolio. - Mr. Tracy Richardson joined the Tundra Leadership Team in the first quarter of fiscal 2008, in the role of Vice President Marketing. Tracy is responsible for development and deployment of Tundra's global market driven strategy and is responsible for the strategic and product marketing, architecture and applications engineering teams. With over 20 years of executive management in semiconductors and computing systems notably at Digital Equipment, Intel and as Chief Executive Officer of Stargen, and with experience in business development, sales and marketing, engineering and strategy development, Tracy will play a central role in augmenting the Company's leadership position in System Interconnect. - Mr. Cesar Cesaratto has been appointed to the Tundra Semiconductor Board of Directors, effective July 2007. Cesar's career has included more than 30 years with Nortel Networks, spanning product development, business development, operations, and sales and marketing in both North America and Europe. The experience and depth of background that Cesar gained during his executive tenure at Nortel will be a significant asset to Tundra's governing Board. CONFERENCE CALL AND WEBCAST