Techwell Reports First Quarter 2010 Financial Results
April 21 2010 - 3:01PM
Techwell, Inc., (Nasdaq:TWLL), a leading designer of mixed signal
video solutions for the security surveillance and automotive
infotainment markets, today announced financial results for the
first quarter ended March 31, 2010.
First Quarter Highlights:
-
Reported net revenue of $20.1 million
-
Grew revenue 95% in Q1 2010 when compared to Q1 2009
-
Attained gross margin of 60.2 percent
First Quarter 2010 Results
Total revenue for the first quarter of 2010 was $20.1 million
compared to revenue of $10.3 million in the first quarter of 2009
and $22.8 million in the fourth quarter of 2009. Total revenue
consisted of $12.4 million in security surveillance, $5.9 million
in automotive infotainment and $1.8 million in consumer.
Gross margin for the first quarter was 60 percent as compared to
62 percent in the preceding quarter and 60 percent in the same
period a year ago. Operating expenses for the first quarter totaled
$11.3 million, or 56 percent of total revenue, including
approximately $1.8 million in acquisition-related operating
expenses associated with Techwell's agreement to be acquired by
Intersil Corporation. This compares to operating expenses of $9.5
million, or 42 percent of revenue, in the preceding quarter and
$7.8 million, or 76% percent of revenue, in the same period a year
ago.
Net income for the first quarter of 2010 was $312 thousand, or
$0.01 per diluted share. Net income includes pre-tax stock-based
compensation expenses of approximately $2.1 million, equating to a
$0.09 per diluted share charge. Net income was affected by a
higher than normal tax rate as most of the $1.8 million of
acquisition-related operating expenses are not deductible for tax
purposes. This compares to net income in the fourth quarter of
2009 of $3.6 million, or $0.16 per diluted share, and a loss of
$697 thousand, or a loss of $0.03 per diluted share in the first
quarter of 2009. Shares used to compute GAAP net income per diluted
share for the first quarter of 2010 totaled 22.7 million
shares.
Techwell also reports net income and net income per share on a
non-GAAP basis. Non-GAAP net income excludes stock-based
compensation expenses, net of taxes. Non-GAAP net income for the
first quarter of 2010 was $1.6 million, or $0.07 per share. This
compares to non-GAAP net income in the fourth quarter of 2009 of
$4.9 million, or $0.22 per share, and non-GAAP net income of $486
thousand, or $0.02 per diluted share in the first quarter of 2009.
The reconciliation between GAAP and non-GAAP results is provided
below in a table immediately following the GAAP Condensed
Consolidated Statement of Operations.
Cash and cash equivalents, short and long term investments
increased by approximately $607 thousand in the quarter, totaling
approximately $95.1 million as of March 31, 2010, compared to
approximately $94.5 million as of December 31, 2009.
Techwell will not be hosting a conference call in conjunction
with these results.
About Techwell
Techwell is a fabless semiconductor company that designs,
markets and sells mixed signal video semiconductor solutions for
the security surveillance and automotive infotainment markets.
Headquartered in San Jose, CA, Techwell currently has over 200
employees in the U.S., China, Japan, South Korea and Taiwan. Please
visit www.techwellinc.com for more information.
Techwell, Inc. and the Techwell, Inc. logo are trademarks of
Techwell, Inc. All other trademarks are the property of their
respective owners.
TECHWELL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2010
|
2009
|
|
|
|
Revenues
|
$ 20,132
|
$ 10,339
|
|
|
|
Cost of Revenues
|
8,017
|
4,101
|
|
|
|
Gross Profit
|
12,115
|
6,238
|
|
|
|
Operating Expenses
|
|
|
Research and development
|
5,362
|
4,314
|
Selling, general and administrative
|
5,926
|
3,533
|
Total operating expenses
|
11,288
|
7,847
|
|
|
|
Income/(loss) from operations
|
827
|
(1,609)
|
Interest income
|
308
|
368
|
|
|
|
Income/(loss) before income taxes
|
1,135
|
(1,241)
|
Provision/(benefit) for income taxes
|
823
|
(544)
|
|
|
|
Net Income/(Loss)
|
$ 312
|
$ (697)
|
|
|
|
Net income/(loss) per share
|
|
|
Basic
|
$ 0.01
|
$ (0.03)
|
Diluted
|
$ 0.01
|
$ (0.03)
|
|
|
|
|
|
|
Shares used in computing net income/(loss) per
share
|
Basic
|
22,092
|
21,383
|
Diluted
|
22,726
|
21,383
|
|
|
TECHWELL, INC.
|
RECONCILIATION OF GAAP NET INCOME/(LOSS)
TO NON-GAAP NET INCOME
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2010
|
2009
|
|
|
|
GAAP net income/(loss)
|
$ 312
|
$ (697)
|
|
|
|
Stock-based compensation expense:
|
|
|
Cost of revenues
|
146
|
122
|
Research and development
|
1,124
|
900
|
Selling, general and administrative
|
866
|
822
|
Total stock-based compensation expenses
|
2,136
|
1,844
|
|
|
|
Tax effect
|
(844)
|
(661)
|
|
|
|
Non-GAAP net income
|
$ 1,604
|
$ 486
|
|
|
|
Non-GAAP net income per share
|
|
|
Basic
|
$ 0.07
|
$ 0.02
|
Diluted
|
$ 0.07
|
$ 0.02
|
|
|
|
Shares used in computing Non-GAAP net income per share
|
|
|
Basic
|
22,092
|
21,383
|
Diluted
|
22,726
|
21,383
|
|
|
|
|
|
|
In addition to disclosing financial results calculated in
accordance with U. S. generally accepted accounting principles
(GAAP), the operating results presented contain non-GAAP financial
measures that exclude the income statement effects of stock-based
compensation expense.
|
|
|
|
We believe that the non-GAAP measures, excluding stock-based
compensation expense, when viewed in addition to and not in lieu of
our reported GAAP results, assist investors in understanding our
results of operations. We believe non-GAAP measures provide
useful supplemental information for investors to evaluate our
operating results in the same manner as the research analysts that
follow Techwell, all of whom present non-GAAP projections in their
published reports. As such, non-GAAP measures provided by
Techwell facilitate a more direct comparison of its performance
with the financial projections published by the
analysts. However, non-GAAP measures should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.
|
|
|
TECHWELL, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
March 31,
2010
|
December 31,
2009
|
|
(unaudited)
|
(audited)
|
Assets
|
|
|
Current Assets
|
|
|
Cash and cash equivalents
|
$ 12,408
|
$ 6,404
|
Short-term investments
|
50,214
|
53,093
|
Accounts receivable
|
1,547
|
926
|
Inventory
|
7,900
|
7,937
|
Deferred income tax assets
|
629
|
652
|
Prepaid expenses and other assets
|
2,107
|
2,066
|
Total Current Assets
|
74,805
|
71,078
|
|
|
|
Property and equipment - net
|
897
|
1,033
|
Long term-investments
|
32,448
|
34,967
|
Deferred income tax assets
|
4,944
|
4,796
|
Purchased intangible assets, net
|
2,850
|
2,996
|
Other assets
|
342
|
557
|
Total
|
$ 116,286
|
$ 115,427
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity:
|
|
|
Current Liabilities:
|
|
|
Accounts payable
|
$ 3,475
|
$ 5,529
|
Accrued expenses
|
6,133
|
6,009
|
Total Current Liabilities
|
9,608
|
11,538
|
|
|
|
Long-term Liabilities:
|
|
|
Other
|
325
|
72
|
Total Liabilities
|
9,933
|
11,610
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
Common stock
|
22
|
22
|
Additional paid-in capital
|
89,932
|
87,594
|
Accumulated other comprehensive gain
|
98
|
212
|
Retained earnings
|
16,301
|
15,989
|
Total Stockholders' Equity
|
106,353
|
103,817
|
|
|
|
Total
|
$ 116,286
|
$ 115,427
|
CONTACT: Techwell, Inc.
Company Contact:
Mark Voll, Chief Financial Officer
(408) 435-3888
Investor Relations
Investor Contact:
Tom Krause
(650) 799-7465
investor@techwellinc.com
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