California Micro Devices Reports December Quarter Results

Jan 21, 2010, 19:58 ET from California Micro Devices Corporation

MILPITAS, Calif., Jan. 21 /PRNewswire-FirstCall/ -- California Micro Devices (Nasdaq: CAMD) today announced financial results for the third quarter of fiscal 2010, which ended December 31, 2009. Revenue was $12.6 million, compared to $9.7 million a year ago. GAAP EPS was a loss of ($0.04) compared to a loss of ($0.38) a year ago. Non-GAAP EPS was a profit of $0.02 compared to a loss of ($0.13) a year ago. Both GAAP and non-GAAP gross margins were 35 percent for the quarter. Non-GAAP operating expenses were $4.0 million while GAAP operating expenses were higher at $5.3 million primarily due to acquisition-related transaction costs of approximately $1.2 million. Positive operating cash flow was $900,000.  

All results were in line with estimates announced on January 11, 2010, except that acquisition-related transaction costs were $1.2 million instead of the estimated $1.0 million primarily due to yesterday’s announced litigation settlement which was accrued for in the 2010 fiscal third quarter which in turn led to GAAP operating expenses being $5.3 million instead of the estimated $5.1 million which caused GAAP EPS loss to be one cent greater than the estimate. For purposes of this release, non-GAAP financial measures are calculated excluding employee stock-based compensation expenses and acquisition-related transactions costs and using a cash basis tax rate.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of protection devices for the mobile handset, high brightness LED (HBLED), digital consumer electronics and personal computer markets. Detailed corporate and product information may be accessed at www.cmd.com.

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains non-GAAP financial measures that exclude the effects of employee share-based compensation as required by Accounting Standards Codification Topic Nos. 718 "Compensation - Stock Compensation" (ASC 718) and 260 "Earnings Per Share" (ASC 260). The non-GAAP financial measures, as used by management and disclosed by the company, exclude the income statement effects of all forms of employee share-based compensation and the effects of ASC 260 upon the number of diluted shares used in calculating non-GAAP earnings per share. They also exclude acquisition-related transaction costs and utilize a tax rate that is based upon the income taxes the company expects to actually pay relating to the activities and results for the relevant fiscal time period. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The GAAP financial measures, and the reconciliation to non-GAAP financial measures, should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding these non-GAAP financial measures, see the Form 8-K dated January 21, 2010 that the company has filed with the Securities and Exchange Commission.

California Micro Devices Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

(Unaudited)

December 31,

March 31,

2009

2009

ASSETS

Current assets:

Cash and cash equivalents

$             45,188 

$             45,605 

Accounts receivable, net

4,791 

4,168 

Inventories

4,497 

5,228 

Prepaid expenses and other current assets

549 

1,272 

Total current assets

55,025 

56,273 

Property, plant and equipment, net

1,819 

3,525 

Other long-term assets

88 

115 

TOTAL ASSETS

$             56,932 

$             59,913 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$               7,640 

$               3,775 

Accrued liabilities

1,382 

1,585 

Deferred margin on shipments to distributors

1,211 

974 

Total current liabilities

10,233 

6,334 

Other long-term liabilities

184 

221 

Total liabilities

10,417 

6,555 

Commitments and contingencies

Stockholders' equity:

Preferred stock - 10,000,000 shares authorized; none issued and outstanding as of December 31, 2009 and March 31, 2009

Common stock and additional paid-in capital - $0.001 par value; 50,000,000 shares authorized; 23,751,460 shares issued and 22,897,221 shares outstanding as of December 31, 2009 and 23,553,019 shares issued and 22,879,696 shares outstanding as of March 31, 2009

121,929 

120,383 

Accumulated deficit

(73,471)

(65,602)

48,458 

54,781 

Treasury stock, at cost; 854,239 shares as of December 31, 2009 and 673,323 shares as of March 31, 2009

(1,943)

(1,423)

Total stockholders' equity

46,515 

53,358 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$             56,932 

$             59,913 

California Micro Devices Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

Nine Months Ended December 31,

2009

2008

2009

2008

Net sales

$              12,571 

$                9,659 

$              33,034 

$              40,101 

Cost of sales

8,192 

7,184 

23,443 

27,779 

Gross Margin

4,379 

2,475 

9,591 

12,322 

Operating expenses:

Research and development

1,278 

2,668 

5,206 

7,838 

Selling, general and administrative

2,876 

3,508 

9,633 

11,205 

Merger related transaction costs

1,156 

1,156 

Restructuring and asset impairment charges

717 

Proxy contest expenses

686 

Goodwill impairment

5,258 

5,258 

Amortization/Impairment of intangible assets

71 

17 

126 

Total operating expenses

5,316 

11,505 

17,415 

24,427 

Operating loss

(937)

(9,030)

(7,824)

(12,105)

Other income (expense), net

(2)

129 

(18)

1,616 

Loss before income taxes

(939)

(8,901)

(7,842)

(10,489)

Provision for income taxes

10 

27 

1,305 

Net loss

$                 (943)

$              (8,911)

$              (7,869)

$            (11,794)

Net loss per share–basic and diluted

$                (0.04)

$                (0.38)

$                (0.34)

$                (0.51)

Weighted average common shares outstanding–basic and diluted

22,863 

23,260 

22,882 

23,339 

California Micro Devices Corporation

FINANCIAL SUMMARY (NON-GAAP)

(amounts in thousands, except per share data)

(Unaudited)

GAAP TO NON-GAAP RECONCILIATION:

Three Months Ended December 31,

Nine Months Ended December 31,

2009

2008

2009

2008

Gross Margin:

GAAP Gross Margin

$                          4,379   

$                 2,475   

$                     9,591   

$                     12,322   

GAAP Gross Margin %

35%

26%

29%

31%

Reconciling items:

Stock-based compensation expense, net of tax

$                               38   

$                      66   

$                        204   

$                          266   

NON-GAAP Gross Margin

$                          4,417   

$                 2,541   

$                     9,795   

$                     12,588   

NON-GAAP Gross Margin %

35%

26%

30%

31%

Net Loss:

GAAP Net Loss

$                           (943)  

$               (8,911)  

$                   (7,869)  

$                   (11,794)  

Reconciling items:

Merger related transaction costs

1,156   

-   

1,156   

-   

Stock-based compensation expense, net of tax

237   

471   

1,141   

1,627   

Restructuring and asset impairment charges

-   

-   

452   

-   

Goodwill impairment

-   

5,258   

-   

5,258   

Amortization/Impairment of intangible assets

6   

71   

17   

237   

Difference between effective tax rate and cash basis tax rate

9   

(27)  

30   

1,222   

Total Adjustments

$                          1,408   

$                 5,773   

$                     2,796   

$                       8,344   

NON-GAAP Net Income (Loss)

$                             465   

$               (3,138)  

$                   (5,073)  

$                     (3,450)  

Net Loss Per Share - Basic and diluted:

GAAP Net Loss Per Share - Basic and diluted

$                          (0.04)  

$                 (0.38)  

$                     (0.34)  

$                       (0.51)  

Reconciling items:

Merger related transaction costs

0.05   

-   

0.05   

-   

Stock-based compensation expense, net of tax

0.01   

0.02   

0.05   

0.07   

Restructuring and asset impairment charges

-   

-   

0.02   

-   

Goodwill impairment

-   

0.23   

-   

0.23   

Amortization/Impairment of intangible assets

-   

-   

-   

0.01   

Difference between effective tax rate and cash basis tax rate

-   

-   

-   

0.05   

Total Adjustments

$                            0.06   

$                   0.25   

$                       0.12   

$                         0.36   

NON-GAAP Net Income (Loss) Per Share - Basic and diluted

$                            0.02   

$                 (0.13)  

$                     (0.22)  

$                       (0.15)  

Weighted average common shares used to calculate GAAP EPS - Basic and diluted

22,863   

23,260   

22,882   

23,339   

Weighted average common shares used to calculate NON-GAAP EPS - Basic

22,863   

23,260   

22,882   

23,339   

Weighted average common shares and share equivalents outstanding used to calculate NON-GAAP EPS - diluted

23,014   

23,260   

22,882   

23,339   

SOURCE California Micro Devices Corporation



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http://www.cmd.com