Showcases progress in extending broadcast market leadership and
capitalizing on significant expansion of high speed networks
BURLINGTON, ON, Oct. 27 /PRNewswire-FirstCall/ - Gennum Corporation (TSX: GND) (the "Company" or "Gennum") today is holding an investor day event in Toronto to provide investors with a business update and its vision of the Company's growth strategy, prospects and future potential.
At the investor day event, Dr. Franz Fink, President and Chief Executive Officer, is addressing Gennum's leadership position in the market for high speed optical and mixed-signal ICs for broadcast, networking, storage and telecommunications applications.
The general managers of Gennum's three product groups - Analog & Mixed Signal Products, Optical Products and Snowbush IP, are addressing the compelling offerings of their product portfolios. With focused strategy and execution, each product group has developed a strong foundation for growth with their differentiated products and is expanding customer relationships, achieving leading market positioning in their product categories.
"We continue to make excellent progress in executing our strategy of extending our broadcast market leadership, expanding into new, high growth markets and investing for the next market inflection of 40Gbps and 100Gbps," said Dr. Fink. "With clear and differentiated technology leadership in these markets, we believe we are well positioned to grow faster than the semiconductor industry and deliver profitable growth in 2011 and beyond."
In addition to addressing its broader strategy and vision, at its investor day event the Company is reporting that:
- Design wins and open opportunities remain strong for the Company's new products
- The Company's Q4 order book is similar to recent quarters' order levels at this time
- For Q4, the Company expects to achieve another solid quarter of operating income
- For its 2010 financial year, the Company expects to achieve better than industry revenue growth, a strengthened cash position, and operating results in line with the Company's business model
- The Company expects that the percentage of the Company's revenue from data communications products, currently approximately 40%, will continue to grow in the future
With respect to its business model, at the investor day event the Company is reiterating its previously disclosed business model targets, including above-industry average revenue growth, greater than 70% gross margins and operating income as a percentage of revenue of greater than 20%. The Company is also addressing its business model targets for cash flow from ongoing operating activities as a percentage of revenue of approximately 26% to 30%, and for net cash flow after dividends as a percentage of revenue of approximately 14%.
Copies of the presentations from the investor day event, which include the information noted above, are being posted to Gennum's web site at http://www.gennum.com/investors/events. These presentations, together with an audio replay of the event, will be available on Gennum's web site until November 30, 2010.
Gennum Corporation Investor Event October 27, 2010 8:30 AM ET
To listen to this event, please visit http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3235540
Gennum Corporation (TSX: GND) designs innovative semiconductor solutions and intellectual property (IP) cores to serve the rising global demand for high-speed data transmission products in the broadcast, networking, storage and telecommunications markets. Gennum offers proven optical, analog and mixed-signal solutions with uncompromising signal integrity to support standards such as high-definition (HD) video, Fibre Channel, InfiniBand®, Ethernet, SONET and PCI Express®. The company is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Taiwan, Germany, United States, India and the United Kingdom. www.gennum.com.
Caution Regarding Forward-Looking Statements
This news release contains statements which constitute forward-looking statements. These forward-looking statements are not descriptive of historical matters and may refer to management's expectations or plans. These statements include but are not limited to statements concerning: Gennum's business objectives and plans including Gennum's corporate strategy and strategic priorities; Gennum's future financial performance and prospects including revenues, gross margins and earnings and ability to achieve operating earnings, cash flow and other business model targets; future trends in the semiconductor and intellectual property licensing industries and, in particular, market trends for analog and mixed-signal products, optical products and intellectual property products and licensing; Gennum's expectations for sales and licensing of its products in these markets including anticipated costs, sales, size, duration, growth or decline of market opportunities and competitive and pricing pressures in these markets; Gennum's product roadmap and the speed at which Gennum is able to introduce new products; the adoption of new standards in the markets in which Gennum competes and the ability of Gennum to anticipate these changes and successfully address new opportunities; sales and capital spending plans and estimates, shipment levels and operating expenses; exchange rate fluctuations in, and the relative values of, the Canadian dollar, the U.S. dollar and the Japanese yen; Gennum's ability to finance its growth plans and make necessary investments; and litigation in which Gennum is involved or might become involved in. Inherent in forward-looking statements are risks and uncertainties beyond Gennum's ability to predict or control including, but not limited to, risks associated with: competitive and pricing pressures in the increasingly competitive environment in which Gennum operates; economic cycles in the semiconductor industry including downturns which can result from adverse general economic conditions; our ability to anticipate needs for future products and successfully execute our product roadmap, including the possibility of the emergence of disruptive technologies which negatively impact our positioning in the marketplace; the risk that unforeseen factors may arise that result in us not being able to achieve our operating income, cash flow and other business model targets; possible impairments of assets which could be required in the future; fluctuations in foreign exchange rates and their potential adverse impact upon our financial results; our reliance on external foundries and suppliers and the potential adverse effects of disruptions in any of these arrangements; the successful integration of acquisitions and the ability to achieve expected synergies and operating efficiencies within expected time-frames (or at all); our ability to attract and retain key personnel necessary for our business; our ability to successfully protect our intellectual property rights; and the initiation and outcome of legal proceedings. Please also refer to the sections entitled "Risks and Uncertainties" in our 2009 annual report and "Risk Factors" in our most recent annual information form, copies of which may be viewed at www.sedar.com. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect including, but not limited to, the following assumptions: there is no material deterioration in the business and economic conditions in the marketplace for Gennum's products; Gennum's expectations regarding market trends for analog and mixed-signal products, optical products and intellectual property products and licensing are not materially incorrect; Gennum is able to execute its product roadmap without delays or disruptions having a material impact on Gennum; Gennum's expectations relating to the needs and direction of the marketplace for its products are within reasonable bounds of accuracy and Gennum is able to introduce products and capitalize on new opportunities generally as expected; Gennum's expectations relating to its future operating expenses, as well as the capital required to conduct its business in the future, are not materially incorrect; significant impairments of assets will not be required; material disruptions in the manufacture and supply of products and services to Gennum by foundries and suppliers will not materialize; Gennum's expectations relating to competitive pressures, including pricing pressures, are not materially incorrect; significant fluctuations in foreign exchange rates which materially adversely affect Gennum's financial results do not arise; customer demand for Gennum's products remains generally as anticipated; Gennum is able to successfully integrate acquisitions and to achieve synergies generally as anticipated; and Gennum is able to continue to retain and attract technical and other key employees. The foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause Gennum's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. This information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. We disclaim any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.
SOURCE Gennum Corporation