CAMD California Micro Devices Corp. (MM)

MILPITAS, Calif., Nov. 5 /PRNewswire-FirstCall/ -- California Micro Devices (NASDAQ:CAMD) today announced that it expects the recent power outage at one of its foundry partners, Advanced Semiconductor Manufacturing Corporation (ASMC), to have an adverse impact on its results for the December quarter. The company indicated that it is still assessing the situation but that its revenue in the quarter could be reduced by up to $1 million and its net income by up to $500,000, or approximately $0.02 per diluted share. "ASMC has informed us that it expects to complete repairs to damaged equipment and resume processing wafers within the next four to six weeks," said Robert V. Dickinson, president and CEO of California Micro Devices. "In addition we are taking other steps to try to minimize the effect on our customers and on our fiscal Q3 and Q4. We believe that some of the revenue and net income that we lose this quarter will be deferred to fiscal Q4." He noted that events such as these are included in the company's periodic assessment of enterprise risk and that its response is in accordance with its contingency plans. Due to the unexpected loss of in-process wafers caused by the Shanghai foundry's power outage, California Micro Devices has revised its December quarter guidance. Expected revenue of between $15.0 and $17.5 million will now range between $14.0 and $17.0 million. Diluted EPS on a GAAP basis, which was previously estimated to be between a loss of $0.03 and a profit of $0.01, is now expected to be between a loss of $0.05 and breakeven. On a non-GAAP basis, excluding Arques Technology acquisition costs and employee stock-based compensation expenses, and using a cash basis tax rate, the diluted EPS that was previously estimated to be between breakeven and a profit of $0.04 is now expected to be between a loss of $0.02 and a profit of $0.03. About California Micro Devices Corporation California Micro Devices Corporation is a leading supplier of application specific analog and mixed signal semiconductor products for the mobile handset, digital consumer electronics and personal computer markets. Key products include protection devices for mobile handsets, digital consumer electronics products such as digital TVs, and personal computers as well as analog and mixed signal ICs for mobile handset displays. Detailed corporate and product information may be accessed at http://www.cmd.com/. All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. Forward-looking statements made in this release include our potential revenue and earnings reductions and expected revenues and GAAP and non-GAAP diluted earnings per share for the fiscal 2008 third quarter; and the possibility of that some of the reductions will be deferred to the fourth quarter rather than not recovered. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether the production lines we use at ASMC will be back on line in four to six weeks as expected by ASMC, the extent to which our customers can defer some of their demand due to available inventories or use alternate product of ours in the interim, whether and when we can start making certain product at other fabs, our potential exposure to customer claims and the availability of reimbursement for such claims or our lost profit from ASMC or its or our insurance carriers as well as the risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company's future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise DATASOURCE: California Micro Devices Corporation CONTACT: Kevin Berry, Chief Financial Officer of California Micro Devices Corporation, +1-408-934-3144, Web site: http://www.cmd.com/

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