California Micro Devices Lowers December Quarter Guidance
December 10 2008 - 4:05PM
PR Newswire (US)
MILPITAS, Calif., Dec. 10 /PRNewswire-FirstCall/ -- California
Micro Devices (NASDAQ:CAMD) today lowered its financial outlook for
the third quarter of fiscal 2009, which ends December 31, 2008.
Compared to its prior revenue guidance of between $12.0 and $15.0
million, the company now expects revenue to be between $9.5 and
$11.0 million. The Non-GAAP EPS outlook has been lowered from
between ($0.05) and ($0.09) to between ($0.10) and ($0.12)
excluding Arques Technology acquisition costs, employee stock-based
compensation expenses, and the impact of both the likely impairment
of goodwill and the possible impairment of other assets, and using
a cash basis tax rate. The company is not providing a GAAP EPS
outlook at this time due to the variability associated with the
potential impairment. The company's cash position at the end of
September was $52.9 million. Following 16 consecutive quarters of
positive operating cash flow, the company expects negative
operating cash flow of between $3.4 and $3.8 million in the
December quarter. According to Robert V. Dickinson, president and
CEO of California Micro Devices, "We are continuing to see demand
softening compared to last quarter for all of our product lines in
just about every geographic region. This began in October and has
intensified in November and early December. The last time we saw
such a sharp slowdown was seven years ago when the dot-com bubble
burst and the telecommunications infrastructure market imploded.
There's no question that, together with the broader semiconductor
industry, we are being affected by a weakening global economy." He
noted that demand for ESD protection devices for High Brightness
LEDs has shown the greatest drop, due to a previously disclosed one
quarter inventory correction at a major customer, followed by
demand for handset protection devices, while the demand for display
controllers and the demand for low capacitance ESD devices and
mature products used in digital consumer electronics and personal
computers have been affected to a lesser degree. "Along with many
other industry observers, we believe that the sharp decline in
semiconductor demand is due to the weak global economy compounded
by a severe inventory contraction throughout the supply chain,"
added Dickinson. "Although our forward visibility remains poor, we
believe that it is likely the inventory contraction will end by
mid-2009." He concluded by saying, "Fortunately, our strong balance
sheet provides us with the staying power to weather the current
economic storm and emerge as a stronger company. Our near term
focus is on improving operating cash flow and profitability as
quickly as possible by reducing discretionary spending and
improving margins while at the same time working to secure new
design wins and continuing to invest in new products. We are also
keeping our eyes open for strategic opportunities that may present
themselves as a result of the current challenging environment."
Since August 21, 2008, when CMD's board approved a program to
purchase up to 1 million shares of common stock, the company has
purchased approximately 324,000 shares at an average price of $2.22
per share. Barclays Presentation Tomorrow in San Francisco
Dickinson together with CFO Kevin Berry will present at the
Barclays Capital Global Technology Conference tomorrow (Dec. 11th)
at 11:00 a.m. Pacific Time at the Fairmont Hotel in San Francisco.
Portfolio managers and analysts who wish to meet with them should
email their request to . A live webcast of the presentation may be
accessed tomorrow at http://www.cmd.com/ (Investor Relations Link)
at 11:00 a.m. Pacific Time. Access to the replay will be available
about an hour after the live webcast and continue for approximately
90 days thereafter. 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 expected revenues, non-GAAP loss per share, and negative
operating cash flow for the 2009 third fiscal quarter; the
expectation of impairment of goodwill and the potential for
impairment of other assets; our belief that the sharp decline in
semiconductor demand is due to the weak global economy compounded
by a severe inventory contraction throughout the supply chain and
that the inventory contraction will end by mid-2009; our belief
that our strong balance sheet provides us with the staying power to
weather the current economic storm and emerge as a stronger
company; our near term focus on improving operating cash flow and
profitability as quickly as possible by reducing discretionary
spending and improving margins while at the same time working to
secure new design wins and continuing to invest in new products;
and our anticipation that there may be strategic opportunities that
may present themselves as a result of the current challenging
environment . 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 our customers cancel any
existing orders scheduled for shipment during the balance of the
quarter, whether our distributor product resale and OEM hub
inventory draw-down are as we anticipate for the quarter, whether
we encounter any difficulty in obtaining without interruption or
unanticipated price increases the quantity of quality product from
our contract manufacturers, contract assemblers and test houses we
require for shipment during the balance of the quarter and in
calendar 2009, whether our customers experience increased demand
for their products during calendar 2009 , whether the designed
performance of our devices satisfies our customers' requirements so
that they continue to design our devices into their products,
whether our devices perform to their design specification, whether
competitors introduce devices at lower prices than our devices
causing price erosion and/or loss of market share for us, whether
we can reduce product cost faster than we lower prices to our
customers or introduce higher margin products, whether we are able
to reduce discretionary R&D spending and yet introduce the new
products we desire, whether there are strategic opportunities in
the markets we serve or in adjacent markets, and whether we incur
unexpected operating expenses 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. In providing guidance, the Company is not
determining its anticipated loss per share in accordance with
accounting principles generally accepted in the United States of
America (GAAP), due to the variability of the impact of both the
likely impairment of goodwill and the possible impairment of other
assets. Instead the Company is providing a non-GAAP financial
measures that excludes such impairment and the effects of employee
share-based compensation and the requirements of SFAS No. 123R,
"Share-based Payment" ("123R"). This non-GAAP financial measure
excludes the income statement effects of all forms of employee
share-based compensation and the effects of 123R upon the number of
diluted shares used in calculating non-GAAP earnings per share and
excludes Arques Technology acquisition related costs, including
amortization of acquisition-related intangible. In addition, this
non-GAAP measure utilizes 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
forecast non-GAAP financial measure disclosed by the company should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the financial
results ultimately calculated in accordance with GAAP and future
reconciliations to those financial statements should be carefully
evaluated. The non-GAAP financial measure used by the company may
be calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies. DATASOURCE:
California Micro Devices CONTACT: Kevin Berry, Chief Financial
Officer of California Micro Devices, +1-408-934-3144, Web site:
http://www.cmd.com/
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