SANTA CLARA, Calif., Feb. 5 /PRNewswire-FirstCall/ -- Advanced
Analogic Technologies, Inc. ("AnalogicTech" or the "Company")
(NASDAQ:AATI), a developer of total power management semiconductors
for consumer electronic devices, today reported financial results
for the fourth quarter and the fiscal year ended December 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO)
Net revenue for the fourth quarter of 2008 was $18.6 million, a
decrease of 42.1% over net revenue of $32.1 million for the fourth
quarter of 2007 and a sequential decrease of 26.8% from net revenue
of $25.4 million for the third quarter of 2008. Revenue for the
fiscal year ended December 31, 2008, was $90.3 million, down from
revenue of $109.6 million for 2007. Net loss for the fourth quarter
of 2008 was $(14.4) million, or $(0.32) per diluted share. Net loss
for the fourth quarter includes a $0.8 million intangible asset
impairment charge, a $0.5 million restructuring charge, and a $0.5
million impairment loss on a private equity investment. Net loss
for the fourth quarter also includes a non-recurring, non-cash
charge of $8.6 million due to a valuation allowance against
deferred tax assets in accordance with GAAP. The Company's deferred
tax assets are derived primarily from net operating loss and
R&D tax credit carryforwards. This valuation allowance does not
affect the characteristics of the Company's NOLs and tax credits or
the ability of the Company to use them against future income. Net
income for the fourth quarter of 2007 was $3.0 million, or $0.06
per diluted share, and net loss for the third quarter of 2008 was
$(0.6) million or $(0.01) per diluted share. Net loss for fiscal
year 2008 was $(18.4) million, or $(0.40) per diluted share,
compared to net income of $1.9 million, or $0.04 per diluted share
for fiscal year 2007. On a non-GAAP basis, excluding stock-based
compensation expense, amortization of acquired intangibles, the
intangible asset impairment charge, an impairment loss on a private
equity investment, restructuring and other severance-related
expenses, and the charge to increase the deferred tax asset
valuation allowance, net loss for the fourth quarter of 2008 was
$(3.3) million, or $(0.07) per diluted share. This compares to
non-GAAP net income of $4.8 million, or $0.10 per diluted share,
for the fourth quarter of 2007 and non-GAAP net income of $0.5
million, or $0.01 per diluted share, for the third quarter of 2008.
Non-GAAP net income for the fourth quarter of 2007 excluded
stock-based compensation expense, amortization of acquired
intangibles, and an impairment loss on a private equity investment,
net of taxes. Non-GAAP net income for the third quarter of 2008
excluded stock-based compensation expense, amortization of acquired
intangibles, and severance-related expenses, net of taxes. Non-GAAP
net loss for fiscal year 2008 was $(2.5) million, or $(0.06) per
diluted share compared to non-GAAP net income of $8.6 million, or
$0.18 per diluted share for fiscal year 2007. Non-GAAP net loss for
fiscal year 2008 excludes stock-based compensation expense,
amortization of acquired intangibles, the intangible asset
impairment charge, in-process research and development expense, an
impairment loss on a private equity investment, restructuring and
other severance related expenses, and the charge to increase the
deferred tax asset valuation allowance. Non-GAAP net income for
fiscal year 2007 excluded stock-based compensation expense,
amortization of acquired intangibles, an impairment loss on a
private equity investment and the loss on liquidation of a foreign
branch office, net of taxes. AnalogicTech reported gross margins of
38.2% for the fourth quarter of 2008, compared to 52.6% for the
fourth quarter of 2007 and 50.0% for the third quarter of 2008.
Non-GAAP gross margin was 43.3% for the fourth quarter of 2008,
compared to 53.6% for the fourth quarter of 2007 and 51.4% for the
third quarter of 2008. For fiscal year 2008, gross margin was
48.3%, compared to 53.5% for fiscal year 2007. Non-GAAP gross
margin was 50.4% for fiscal year 2008, compared to 54.7% for fiscal
year 2007. The Company ended the quarter with $109.5 million in
cash, cash equivalents, and short-term investments. "The worldwide
economic crisis weakened customer demand for our products across
our end markets during the fourth quarter," stated Richard K.
Williams, President, CEO and CTO of AnalogicTech. "We responded
swiftly to the downturn with broad-based cost reduction actions. As
we take prudent measures to lower expenses, our fundamental
business strategies are more focused than ever. We remain dedicated
to continuing our product design momentum and strong customer
support. "We are pleased that during 2008 we made significant
progress on our product diversification strategy. We continued to
see an increasing contribution from our ModularBCD products, which
comprised 19% of sales during the fourth quarter. Our strong
balance sheet combined with the streamlining of our operations
position AnalogicTech for long-term growth opportunities." Business
Outlook The following statements are based upon management's
current expectations. These statements are forward-looking, and
actual results may differ materially. AnalogicTech undertakes no
obligation to update these statements. For the first quarter ending
March 31, 2009, AnalogicTech estimates revenue in the range of $13
million to $16 million, and net loss in the range of $0.15 to $0.12
per diluted share on a GAAP basis. The first quarter 2009 estimates
include pre-tax quarterly share-based compensation expense in the
range of $1.5 to $1.7 million. Non-GAAP Reporting In addition to
GAAP reporting, AnalogicTech reports net income (loss), gross
margin and earnings/loss per share on a non-GAAP basis. This
non-GAAP earnings information excludes certain items and their
tax-related effects. AnalogicTech believes this non-GAAP earnings
information provides meaningful insight into the Company's ongoing
operational performance and has therefore chosen to provide this
information to investors as an additional dimension of
comparability to similar companies. AnalogicTech also uses this
information internally to evaluate and manage company operations
and to determine incentive compensation. A reconciliation between
GAAP and non-GAAP net income (loss), gross margin and earnings/loss
per share is included in the tables below. The non-GAAP information
included in this press release is not necessarily comparable to
non-GAAP information of other companies. Non-GAAP information
should not be viewed as a substitute for, or superior to, net
income or other data prepared in accordance with GAAP as measures
of our profitability or liquidity. Users of this financial
information should consider the types of events and transactions
for which adjustments have been made. Conference Call Details The
AnalogicTech fourth quarter and fiscal year 2008 teleconference and
webcast is scheduled to begin at 4:30 p.m. Eastern Time on
Thursday, February 5, 2009. To participate in the live call,
analysts and investors should dial 800-218-8862 or 303-262-2162 at
least ten minutes prior to the call. AnalogicTech will also offer a
live and archived webcast of the conference call, accessible from
the company's investor relations website at http://www.aati.com/ in
the "Webcasts" section. A telephonic replay of the conference call
will also be available through February 12, 2009, by dialing
800-405-2236 and entering the passcode 11125021#. Callers outside
the U.S. and Canada may access the replay by dialing 303-590-3000
and entering the passcode 11125021#. About AnalogicTech Advanced
Analogic Technologies, Inc. (AnalogicTech) is a supplier of Total
Power Management(TM) semiconductor solutions for mobile consumer
electronic devices, such as wireless handsets, notebook and tablet
computers, smartphones, digital cameras, wireless LAN, and personal
media players. The company focuses its design and marketing efforts
on the application-specific power management needs of consumer,
communications, and computing applications in these rapidly
evolving devices. AnalogicTech also develops and licenses device,
process, package, and application-related technology. AnalogicTech
is headquartered in Santa Clara, California and Macau, S.A.R., with
offices in China (Beijing, Shanghai and Shenzhen), Hong Kong,
Taiwan, Japan, South Korea, and United Kingdom, as well as a
worldwide network of sales representatives and distributors. The
company is listed on the NASDAQ exchange under the ticker symbol
AATI. For more information, please visit the AnalogicTech website:
http://www.analogictech.com/. (AnalogicTech - F) "Safe Harbor"
Statement Under the Private Securities Litigation Reform Act of
1995 Statements contained in this release that are not historical
facts are forward-looking statements, as that term is defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, including financial projections and
forecasts, involve risks and uncertainties that could cause
AnalogicTech's actual results to differ materially from our current
expectations. Factors that could cause AnalogicTech's results to
differ materially from those set forth in these forward-looking
statements include customers' cancellation or modification of their
orders; our failure to accurately forecast demand for our products;
the loss of, or a significant reduction in orders from, any of our
significant customers; consumer demand for cellular phones and
other mobile consumer electronic devices; worldwide economic and
political conditions, particularly in Asia; our ability to manage
inventory levels, fluctuations in our operating results; our
inability to develop and sell new products; defects in or failures
of our products; the expense and uncertainty involved in our
customer design-win efforts; the financial viability of the
distributors of our products; fluctuations in our costs to
manufacture our products; our reliance on third parties to
manufacture, test, assemble and ship our products; our ability to
retain and attract key personnel; our ability to compete with our
competitors; and our ability to protect our intellectual property
rights and not infringe the intellectual property rights of others.
Other factors that may cause our actual results to differ from
those set forth in the forward-looking statements contained in this
press release and that may affect our prospects in general are
described in our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2007. AnalogicTech undertakes no obligation to
update or revise forward-looking statements to reflect subsequent
events or changed assumptions or circumstances. AnalogicTech and
the AnalogicTech logo are trademarks of Advanced Analogic
Technologies, Inc. All other brand and product names appearing in
this document are registered trademarks or trademarks of their
respective holders. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands) Dec. 31, Dec. 31, 2008 2007 (*) ASSETS
CURRENT ASSETS Cash and cash equivalents $54,594 $53,779 Short-term
investments 54,943 60,448 Total cash, cash equivalents and short
term investments 109,537 114,227 Accounts receivable, net of
allowances 6,654 14,428 Inventories 9,016 12,214 Prepaid expenses
and other current assets 2,100 2,273 Notes receivable - 2,000
Deferred income taxes - current - 591 Total current assets 127,307
145,733 Property and equipment, net 5,050 4,699 Other assets 4,060
1,377 Deferred income taxes - noncurrent 326 6,815 Intangible
assets, net 395 2,127 Goodwill 16,116 15,717 TOTAL ASSETS $153,254
$176,468 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES
Accounts payable $4,601 $7,938 Accrued liabilities 3,739 8,623
Income tax payable 28 1,367 Total current liabilities 8,368 17,928
Long-term income tax payable 3,326 1,053 Long-term debt and capital
lease obligations - 41 Other long-term liabilities 228 155 Total
liabilities 11,922 19,177 Total stockholders' equity 141,332
157,291 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $153,254
$176,468 * Amounts as of December 31, 2007 were derived from the
December 31, 2007 audited consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands,
except per share amounts) (unaudited) Three Months Ended Years
Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2008 2007 2008 2007 NET
REVENUE $18,628 $32,065 $90,339 $109,610 Cost of revenue 11,508
15,186 46,739 50,934 GROSS PROFIT 7,120 16,879 43,600 58,676
OPERATING EXPENSES: Research and development 7,010 8,368 29,921
30,991 Sales, general and administrative 5,922 6,585 24,681 25,757
Patent litigation 764 136 1,751 3,793 Total operating expenses
13,696 15,089 56,353 60,541 INCOME (LOSS) FROM OPERATIONS (6,576)
1,790 (12,753) (1,865) OTHER INCOME, NET 42 1,221 2,675 5,070
INCOME (LOSS) BEFORE INCOME TAXES (6,534) 3,011 (10,078) 3,205
PROVISION FOR INCOME TAXES 7,832 60 8,309 1,319 NET INCOME (LOSS)
$(14,366) $2,951 $(18,387) $1,886 NET INCOME (LOSS) PER SHARE:
Basic 45,183 45,158 45,535 44,728 Diluted 45,183 47,767 45,535
47,007 WEIGHTED AVERAGE SHARES USED IN NET INCOME (LOSS) PER SHARE
CALCULATION: Basic $(0.32) $0.07 $(0.40) $0.04 Diluted $(0.32)
$0.06 $(0.40) $0.04 Note: FAS123R was adopted at the beginning of
fiscal 2006. Stock compensation recorded in each expense
classification above is as follows: Cost of revenues $80 $72 $362
$282 Research and development 426 735 2,875 2,766 Sales, general
and administrative 537 1,012 3,095 3,845 $1,043 $1,819 $6,332
$6,893 Financial Summary (Non-GAAP) (in thousands, except per share
amounts) (unaudited) Three Three Months Months GAAP TO NON-GAAP
Ended Ended Years Ended RECONCILIATION Dec. 31, Dec. 31, Sep. 30,
Dec. 31, Dec. 31, 2008 2007 2008 2008 2007 GROSS MARGIN: GAAP GROSS
MARGIN 7,120 16,879 12,723 43,600 58,676 GAAP GROSS MARGIN % 38.2%
52.6% 50.0% 48.3% 53.5% Amortization of acquired intangibles 242
242 242 968 968 Intangible asset impairment charge 627 - - 627 -
Stock-based compensation 80 73 110 362 282 NON-GAAP GROSS MARGIN
8,069 17,194 13,075 45,557 59,926 NON-GAAP GROSS MARGIN % 43.3%
53.6% 51.4% 50.4% 54.7% NET INCOME (LOSS): NET INCOME (LOSS) ON
GAAP BASIS: $(14,366) $2,951 $(637) (18,387) 1,886 Stock-based
compensation 1,043 1,819 1,660 6,332 6,893 Amortization of acquired
intangibles 290 290 290 1,160 1,160 Intangible asset impairment
charge 755 - - 755 - In-process research and development - - - 255
- Impairment loss on private equity investment 508 200 - 508 200
Restructuring and other severance expenses 482 - 16 665 - Loss on
liquidation of foreign branch office - - - - 266 Associated tax
effects of above adjustments (603) (462) (831) (2,441) (1,822)
Deferred tax asset valuation allowance 8,632 - - 8,632 - Total
adjustments 11,107 1,847 1,135 15,866 6,697 NET INCOME (LOSS) ON
NON-GAAP BASIS: $(3,259) $4,798 $498 $(2,521) $8,583 EPS: GAAP EPS,
DILUTED $(0.32) $0.06 $(0.01) $(0.40) $0.04 NON-GAAP EPS, DILUTED
$(0.07) $0.10 $0.01 $(0.06) $0.18 Weighted average shares used to
calculate Non-GAAP diluted EPS: 45,183 47,767 47,198 45,535 47,007
http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO
http://photoarchive.ap.org/ DATASOURCE: Advanced Analogic
Technologies, Inc. CONTACT: Investors, Brian McDonald, Chief
Financial Officer of AnalogicTech, +1-408-737-4788; or Lisa
Laukkanen of The Blueshirt Group, +1-415-217-4967, for AnalogicTech
Web site: http://www.analogictech.com/
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