OTTAWA, March 4 /PRNewswire-FirstCall/ - Tundra Semiconductor Corporation (Tundra, or "the Company") (TSX: TUN), a leader in System Interconnect, today reported financial results for the third quarter of fiscal 2009, which ended February 1, 2009.
- Q3 Revenue: $14.6 million
- Q3 Pro forma earnings: $0.1 million
- Q3 Pro forma diluted earnings per share: $0.00
- Q3 GAAP results: loss of $1.1 million or $0.06 per diluted share
Revenue for the third quarter of fiscal year 2009 was $14.6 million, comprised of $14.1 million in product revenue and $0.5 million in services revenue. The Communications market segment generated $8.0 million in the third quarter and the Computing/Storage market segment generated $6.1 million. Overall, the products business performed beyond our expectations in the quarter and was positively impacted by foreign exchange. Design Services revenue was significantly lower than expected as a result of the cancellation of a large project during the quarter. Overall quarterly revenue represents a 20% decrease from the second quarter of fiscal year 2009 and a 1% decrease compared to the third quarter of fiscal year 2008. Pro forma earnings for the quarter were $0.1 million or $0.00 per diluted share, compared to earnings of $2.4 million or $0.12 per diluted share in the second quarter of fiscal year 2009 and compared to $0.3 million or $0.02 per diluted share in the third quarter of fiscal year 2008. GAAP loss for the quarter was $1.1 million or $0.06 per diluted share, compared to earnings of $1.7 million or $0.09 per diluted share in the second quarter of fiscal year 2009, and a loss of $54.0 million or $2.73 per diluted share in the third quarter of fiscal year 2008.
"Third quarter results were within the guidance we provided at the close of the second quarter. Quarter over quarter, our cash position increased by more than $1 million and we generated more than $2 million in cash from operations during the quarter. Our cash position at the close of the quarter was more than $63 million and we remain debt free," said Daniel Hoste, President and Chief Executive Officer, Tundra Semiconductor. "Considering the current global economic environment we are satisfied with, but not complacent about, the results of the products business during the quarter," continued Hoste.
Management offers the following outlook for the fourth quarter of fiscal year 2009: - Q4 Revenue is expected to be in the range of $13.0 million to $15.5 million - Q4 Pro forma diluted earnings per share is expected to be in the range of a loss of $0.04 to earnings of $0.01 "Although we expect revenue to be flat to slightly down quarter over quarter, we expect to add to our cash balance during the quarter," said David Long, Chief Financial Officer. Q3-2009 Highlights - In February, RMI Corporation and Tundra announced interoperability of Tundra's Tsi578(TM) RapidIO(R) Switch with RMI's high performance XLS multi-core multi-threaded processor. The combined switch-processor solution enables high performance 3G and 4G wireless infrastructure systems. By using Tundra's Serial RapidIO Development Platform, that includes the Tsi578 RapidIO Switch, with RMI's XLS Processor(R) evaluation platform, Tundra and RMI successfully completed testing for interoperability between their two products. The comprehensive testing validates that the Tsi578, with multi-cast capability, and RMI's multi- core and multi-threaded XLS Processor are interoperable and can be quickly deployed as a turnkey solution in wireless infrastructure applications such as WiMAX, WCDMA, TD-SCDMA, and LTE. - Tundra was recently presented with a supplier excellence award from Huawei, in recognition of Tundra's outstanding support for delivering technology excellence, world-class customer service and support, and on-time delivery rates. Tundra's global teams: Sales, Research and Development, Supply Chain Management and Field Applications Engineers, adhere to Tundra's customer-first-commitment by constantly providing an outstanding level of service to customers around the world. Tundra has been a supplier to Huawei for many years, delivering System Interconnect solutions that enable Huawei's next generation production systems. Huawei's supplier excellence award is given only when a supplier meets a strict set of guidelines by which Huawei measures supplier performance throughout the year. - Tundra recently announced that its PCI Express(R) (PCIe) products have been selected by Axiomtek, EFI and Nortel for their latest designs, based on the high quality and performance which the PCIe bridges offer. AXIOMTEK selected Tundra's Tsi381(TM) Bridge because the product was the best solution for their network appliance platform design. "Tundra's PCIe bridges offer the best performance in the networking vertical appliance and their expert technical team delivers a new, higher standard of customer service and support to our engineers," said, Philip Wei, Product Management, AXIOMTEK. Noam Rabin, Senior Engineering Manager at EFI said, "EFI selected the Tundra Tsi384(TM) for our print solutions, because of its proven, industry-leading performance. The Tsi384 offered us the high quality, reliable performance required to help deliver cutting-edge digital printing solutions to our customers." Nortel's Senior Design Engineer, Karl Reinke said, "customers continue to rely on Nortel's longstanding commitment to quality and reliability. The new Nortel Passport switch/routers take advantage of the proven reliability of the Tundra Tsi381(TM), which offers the highest performance connection between PCI and PCI Express." - MUSILAND, China's well known computer sound card manufacturer, recently announced that it selected Tundra's PCIe bridge to be used in its X-SWORDS II High Definition Audio System. Musiland selected the Tsi382 for its high performance and support of a single lane configuration providing 2.5 Gbps throughput capacity. The PCI port of the device works at frequencies as high as 66 MHz and supports three types of addressing modes; transparent, opaque and non-transparent providing the designer with excellent flexibility. The Tsi382 has a highly efficient buffering mechanism and provides low latency and high throughput capacity. - Tundra recently signed a representative agreement with StarBridge Inc., a leading provider of design services and integration of switch fabric technology for embedded system OEMs in Japan. This agreement will bring new opportunities for customers to take advantage of Tundra's Serial RapidIO and PCI Express products in the Japanese market. StarBridge's existing partnerships with OEMs in the embedded industry, and their long standing expertise and experience in system integration and design services of switch fabric technology, will offer Tundra's customers another level of world-class support and service. "This partnership is important for StarBridge's new and existing customers, as we can now offer the proven results of Tundra's industry-leading RapidIO and PCI Express products through our extensive network in Japan," said Akira Sato, President and Chief Executive Officer, StarBridge. Conference Call and Webcast Tundra management will hold a conference call today March 4, 2009 at 5:30 pm EST to discuss additional details regarding this earnings update. You can access the conference call via any of the following: Teleconference: 1.416.644.3422 Replay: 1.416.640.1917, Passcode: 21287849#. (Available until March 11, 2009) Web Cast: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2482920