AnalogicTech Reports Results For Third Quarter 2008 & Announces $30 Million Share Repurchase Program
Advanced Analogic Technologies, Inc. reported financial results for the third quarter ended September 30, 2008. Net revenue for the third quarter of 2008 was $25.4 million, a decrease of 17.0% over net revenue of $30.6 million for the third quarter of 2007 and a sequential increase of 19.8% from net revenue of $21.2 million for the second quarter of 2008.
Net loss for the third quarter of 2008 was $0.6 million, or $0.01 per diluted share. This compares to net income of $2.6 million, or $0.05 per diluted share, for the third quarter of 2007, and net loss of $3.8 million or $0.08 per diluted share, for the second quarter of 2008. On a non-GAAP basis, excluding stock-based compensation expense, amortization of acquired intangibles, and severance-related expenses, net of taxes, net income for the third quarter of 2008 was $0.5 million, or $0.01 per diluted share. This compares to non-GAAP net income of $4.1 million, or $0.09 per diluted share, for the third quarter of 2007 and non-GAAP net loss of $1.8 million, or $0.04 per diluted share, for the second quarter of 2008. Non-GAAP net income for the third quarter of 2007 excluded stock-based compensation expense and amortization of acquired intangibles, net of taxes. Non-GAAP net loss for the second quarter of 2008 excluded stock-based compensation expense, amortization of acquired intangibles, in-process research and development, and severance related charges, net of taxes.
AnalogicTech reported gross margins of 50.0% for the third quarter of 2008, compared to 53.6% for the third quarter of 2007 and 47.3% for the second quarter of 2008. Non-GAAP gross margin was 51.4% for the third quarter of 2008, compared to 54.6% for the third quarter of 2007 and 48.9% for the second quarter of 2008. The company ended the quarter with $110.9 million in cash, cash equivalents, and short-term investments.
AnalogicTech also announced that its Board of Directors has authorized the repurchase of up to $30 million of its common stock. The Company may repurchase shares in the open market, including through the use of a 10b5-1 trading plan or through privately negotiated transactions. The timing and actual number of shares repurchased will depend upon market conditions and other factors, in accordance with Securities and Exchange Commission requirements.
"We were pleased to deliver strong sequential revenue growth during the third quarter as sales rebounded, as expected, in Taiwan and China while sales in Korea remained robust," stated Richard K. Williams, President, CEO and CTO of AnalogicTech. "Importantly, we are seeing an increasing contribution from our ModularBCD products, which accounted for 19% of billings for the quarter.
"While we began the quarter with a strong backlog, order rates declined in October, and we remain cautious regarding the impact the macroeconomic environment will have on customer demand. We remain dedicated to the continued expansion of our product portfolio to strengthen our market position while retaining our strong discipline in cost control and cash management. In light of our current business outlook and the economic environment, we will continue to review our cost structure, and remain steadfast in our commitment to returning the Company to profitability."
