MILPITAS, Calif., Aug. 4 /PRNewswire-FirstCall/ -- California Micro
Devices (NASDAQ:CAMD) today announced financial results for the
first quarter of fiscal 2010, which ended June 30, 2009. Revenue
was $9.3 million, slightly above the midpoint of guidance, compared
to $14.1 million a year ago. GAAP EPS was a loss of ($0.15) at the
midpoint of guidance compared to ($0.04) a year ago. Non-GAAP EPS
was a loss of ($0.13) also at the midpoint of guidance compared to
($0.02) a year ago. For purposes of this release, non-GAAP EPS is
calculated excluding employee stock-based compensation expenses,
acquisition-related intangible asset amortization, and using a cash
basis tax rate. "I am happy to say that we are seeing clear signs
that business conditions are improving," said Robert. V. Dickinson,
president and chief executive officer. "Revenue increased slightly
in Q1 and we expect to see growth accelerate this quarter and
continue in Q3 due to increased market share, a gradual
replenishment in inventories from levels that remain low by
historical standards, and modest economic growth. In particular, we
expect to increase our market share in handset protection starting
this quarter and continuing from there." Fiscal Q1 Highlights
Dickinson noted that the company made progress on a number of
fronts during the quarter: -- Bookings grew to $11.2 million, up 37
percent from Q4 -- Book-to-bill increased to 1.2, up substantially
from Q4 -- Q2 beginning backlog was up 35 percent from Q1 --
Non-GAAP OPEX was $200,000 less than in Q4 and $800,000 less than
Q2 high point a year ago -- Net inventory decreased by $800,000
from Q4 -- Operating cash consumption decreased by $1.2 million
compared to Q4 -- Praetorian III filter design wins were secured at
three Top 5 handset customers -- LuxGuard(TM) products were sampled
to leading High Brightness LED (HBLED) suppliers -- PicoGuard XS
products were designed into 11 new Sharp Aquos LCD TVs. Dickinson
added, "As part of our ongoing effort to secure the best return for
shareholders, we have decided to focus on our core protection
business going forward. Because of the impact of the downturn on
current demand and changes in customer product roadmaps, revenue
from our display controller products has not lived up to our
expectations. While there are significant new opportunities, they
are unlikely to materialize soon enough to justify continued
investment in this product line in the current environment. By
cutting back in this area we will be able to return to positive
cash flow and profitability more quickly without compromising the
investment in the new protection products needed to strengthen our
position in that market." Fiscal Q2 Outlook The company anticipates
that Q2 revenue will be between $9.5 and $11.0 million with a GAAP
EPS loss of between ($0.11) and ($0.13), and non-GAAP EPS loss of
between ($0.08) and ($0.10). The company also expects non-GAAP
gross margin to rebound significantly to between 29 and 30 percent,
up from 25 percent in Q1, and operating cash flow to be between a
negative $500,000 and a positive $100,000, compared to a negative
$1.2 million in Q1. According to Dickinson, "Our goal is to return
to positive cash flow and profitability this fiscal year. In
addition to reducing spending on display controllers, we have
identified other cost savings that we can make without jeopardizing
critical projects and capabilities. We are moving to implement all
of these cost savings before the end of Q2 and, as a result, expect
to return to positive cash flow by Q3 and profitability by Q4."
Live Webcast and Phone Access California Micro Devices will hold a
conference call today at 2:00 p.m. Pacific Time to discuss its
financial results. The live webcast (audio-with-slides) may be
accessed by connecting to: http://tinyurl.com/calmicro. To access
the conference live by phone (audio only) within the USA, dial
877-941-1466; outside the USA, dial 480-629-9677. Subsequent replay
of the webcast may be accessed by connecting to the company's
Investor Relations link at http://www.cmd.com/. The webcast replay
will be available at about 4:00 p.m. Pacific Time on the day of the
call and continue for one year. About California Micro Devices
Corporation California Micro Devices Corporation is a leading
supplier of application specific analog semiconductor products for
the mobile handset, high brightness LED (HBLED), digital consumer
electronics and personal computer markets. Key product lines
include protection devices for mobile handsets, HBLEDs, digital
consumer electronics products and personal computers. 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, GAAP and non-GAAP loss per
share, non-GAAP gross margin, and operating cash flow for the
second quarter of fiscal 2010; our expectation that our growth will
accelerate during the second quarter and continue in third quarter
due to increased market share (particularly in the handset
protection market), a gradual replenishment in inventories from
levels that remain low by historical standards, and modest economic
growth; our goal to return to positive cash flow and profitability;
and our ability to cut back our display controller product line and
make other cost savings before the end of Q2 without jeopardizing
critical projects and capabilities which we believe will enable us
to return to positive cash flow by Q3 and profitability by Q4 .
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 experience the demand we
anticipate for their products based in part upon their input and
our order backlog, whether there is increasing economic stability
in end demand as we have assumed in our demand forecast, 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 encounter any difficulty in obtaining the
requisite supply of quality product from our contract
manufacturers, contract assemblers and test houses without
interruption or unanticipated price increases, whether we are able
to make expense cuts as rapidly as we expect and not jeopardize
critical projects; 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 addition to disclosing financial results calculated
in accordance with U.S. generally accepted accounting principles
(GAAP), the company's earnings release contains non-GAAP financial
measures that exclude the effects of employee share-based
compensation and the requirements of SFAS No. 123R, "Share-based
Payment" ("123R"). The non-GAAP financial measures used by
management and disclosed by the company exclude 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. The non-GAAP financial
measures also exclude amortization of acquisition-related
intangible assets. In addition, these non-GAAP measures utilize 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 non-GAAP financial measures
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 calculated in accordance with GAAP
and reconciliations to those financial statements should be
carefully evaluated. The non-GAAP financial measures used by the
company may be calculated differently from, and therefore may not
be comparable to, similarly titled measures used by other
companies. Set forth below are reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures. For additional information regarding these non-GAAP
financial measures, see the Form 8-K dated August 4, 2009 that the
company has filed with the Securities and Exchange Commission.
California Micro Devices Corporation CONDENSED CONSOLIDATED BALANCE
SHEETS (amounts in thousands, except share data) (Unaudited) June
30, March 31, 2009 2009 ---- ---- ASSETS Current assets: Cash and
cash equivalents $44,330 $45,605 Accounts receivable, net 4,569
4,168 Inventories 4,416 5,228 Deferred tax assets 184 183 Prepaid
expenses and other current assets 956 1,089 --- ----- Total current
assets 54,455 56,273 Property, plant and equipment, net 2,994 3,525
Intangible assets, net 17 23 Other long-term assets 85 92 --- ---
TOTAL ASSETS $57,551 $59,913 ======= ======= LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,704
$3,775 Accrued liabilities 1,329 1,585 Deferred margin on shipments
to distributors 1,038 974 ----- --- Total current liabilities 7,071
6,334 Other long-term liabilities 207 221 --- --- Total liabilities
7,278 6,555 ----- ----- Commitments and contingencies Stockholders'
equity: Preferred stock - 10,000,000 shares authorized; none issued
and outstanding as of June 30, 2009 and March 31, 2009 - - Common
stock and additional paid-in capital - $0.001 par value; 50,000,000
shares authorized; 23,677,738 shares issued and 22,917,914 shares
outstanding as of June 30, 2009 and 23,553,019 shares issued and
22,879,696 shares outstanding as of March 31, 2009 120,988 120,383
Accumulated deficit (69,054) (65,602) ------- ------- 51,934 54,781
Treasury stock, at cost; 759,824 shares as of June 30, 2009 and
673,323 shares as of March 31, 2009 (1,661) (1,423) ------ ------
Total stockholders' equity 50,273 53,358 ------ ------ TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $57,551 $59,913 =======
======= California Micro Devices Corporation CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (amounts in thousands, except per share
data) (Unaudited) Three Months Ended June 30, --------------- 2009
2008 ---- ---- Net sales $9,348 $14,099 Cost of sales 7,067 9,355
----- ----- Gross Margin 2,281 4,744 Operating expenses: Research
and development 2,117 2,284 Selling, general and administrative
3,617 3,865 Amortization of intangible assets 6 34 --- --- Total
operating expenses 5,740 6,183 ----- ----- Operating loss (3,459)
(1,439) Other income (expense), net (11) 294 --- --- Loss before
income taxes (3,470) (1,145) Income tax benefit (18) (226) --- ----
Net loss $(3,452) $(919) ======= ===== Net loss per share-basic and
diluted $(0.15) $(0.04) ====== ====== Weighted average common
shares outstanding-basic and diluted 22,892 23,366 ====== ======
California Micro Devices Corporation FINANCIAL SUMMARY (NON-GAAP)
(amounts in thousands, except per share data) (Unaudited) GAAP TO
NON-GAAP RECONCILIATION: Three Months Ended June 30,
--------------- 2009 2008 ---- ---- Gross Margin: GAAP Gross Margin
$2,281 $4,744 GAAP Gross Margin % 24% 34% Reconciling items:
Stock-based compensation expense under SFAS 123(R), net of tax $60
$80 NON-GAAP Gross Margin $2,341 $4,824 NON-GAAP Gross Margin % 25%
34% Net Loss: GAAP Net Loss $(3,452) $(919) Reconciling items:
Amortization of intangible assets 6 34 Stock-based compensation
expense under SFAS 123(R), net of tax 396 564 Difference between
effective tax rate and cash basis tax rate (21) (257) --- ----
Total Adjustments $381 $341 NON-GAAP Net Loss $(3,071) $(578) Net
Loss Per Share - Basic and diluted: GAAP Net Loss Per Share - Basic
and diluted $(0.15) $(0.04) Reconciling items: Amortization of
intangible assets - - Stock-based compensation expense under SFAS
123(R), net of tax 0.02 0.03 Difference between effective tax rate
and cash basis tax rate - (0.01) --- ----- Total Adjustments $0.02
$0.02 NON-GAAP Net Loss Per Share - Basic and diluted $(0.13)
$(0.02) Weighted average shares used to calculate GAAP EPS - Basic
and diluted 22,892 23,366 Weighted average shares used to calculate
NON-GAAP EPS - Basic and diluted 22,892 23,366 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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