California Micro Devices Reports September Quarter Financial Results
California Micro Devices announced financial results for the second quarter of fiscal 2009, which ended September 30, 2008. Slightly above the midpoint of guidance, revenue increased to $16.3 million from $16.1 million a year ago while EPS on a GAAP basis was ($0.08) compared to $0.02 a year ago. Non-GAAP EPS was $0.01 compared to $0.05 a year ago and, for purposes of this release, was calculated excluding Arques Technology acquisition costs and employee stock-based compensation expenses, using a cash basis tax rate and including the approximately $1.1 million gain from the sale of LED Driver assets that had been acquired primarily from Arques Technology. Non-GAAP EPS exceeded guidance due to that gain while GAAP EPS was below guidance due to a decrease in the net deferred tax assets.
"Revenue in Q2 was up strongly from Q1 and up year-on-year for the second quarter in a row. A major highlight was that our new display controller contributed $2.0 million in revenue, up sharply from $0.5 million in Q1, as a top 5 handset supplier began shipping several handsets using this device in volume," said Robert V. Dickinson, President and CEO. "In addition, handset protection shipments to Top 5 OEMs were up 25 percent sequentially. Although we are pleased with our performance so far this fiscal year, we have become more cautious about our outlook due to the growing weakness in the global economy. Fortunately, our strong balance sheet provides us with the staying power to weather the economic storm and we have demonstrated the ability to compete successfully in the growth markets we are focused on."
Following CMD’s August 21st announcement that its board approved a program to purchase up to 1 million shares of common stock, the company purchased approximately 97,000 shares at an average price of $3.02 per share during the September quarter. The company’s cash position at the end of the quarter was $52.9 million and operating cash flow in Q2 was positive for the 16th consecutive quarter.
Looking ahead, Dickinson anticipates December quarter revenue between $12.0 and $15.0 million with diluted EPS of between ($0.08) and ($0.12) on a GAAP basis, and between ($0.05) and ($0.09) on a non-GAAP basis. He cited three factors affecting the December quarter outlook: soft demand from manufacturers in Greater China; lower protection device sales to Top 5 mobile handset manufacturers; and a one-time inventory adjustment at one of the company’s high-brightness LED ESD protection customers.
