California Micro Devices Reports December Quarter Financial Results

February 01, 2009 by Jeff Shepard

California Micro Devices announced financial results for the third quarter of fiscal 2009, which ended December 31, 2008. Meeting revised guidance at the low end, revenue was $9.7 million compared to $15.0 million a year ago while EPS on a GAAP basis was a loss of ($0.38) compared to a profit of $0.01 a year ago. The loss included ($0.23) for the impairment of goodwill. Non-GAAP EPS, which was one cent lower than revised guidance, was a loss of ($0.13) compared to a profit of $0.04 a year ago and, for purposes of this release, was calculated excluding Arques Technology acquisition costs, employee stock-based compensation expenses, and goodwill and intangible asset impairment and using a cash basis tax rate.

"As expected, demand for our products in Q3 dropped sharply due to the weakening global economy compounded by a severe inventory correction downstream in the supply chain," said Robert V. Dickinson, President and CEO. He confirmed that demand for ESD protection devices for High Brightness LEDs showed the greatest%age 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 used in digital consumer electronics and personal computers were less affected.

"Although forward visibility for the semiconductor industry remains limited, we continue to believe that the current inventory correction is likely to end by mid-2009," said Dickinson. "Fortunately, our strong balance sheet will enable us to weather the current economic storm as we focus on improving operating cash flow and profitability and our initiatives to restore revenue growth."

Providing outlook for the March quarter, the company expects revenue to be between $8.5 and $10.0 million with a diluted EPS loss of between ($0.13) and ($0.15) on a GAAP basis, and between ($0.11) and ($0.13) on a non-GAAP basis. Factors affecting the March quarter outlook include the continuing weakness in the global economy and the seasonal weakness typical of this quarter, especially in the handset market.