Exar Announces Revenue Up 24%
Exar Corporation announced financial results for the Company's first fiscal quarter of 2016, which ended on June 28, 2015. For the first fiscal quarter, the Company reported revenue of $40.4 million, an increase of 24% versus the same quarter in the prior year. Prior year revenue has been adjusted to eliminate the impact of deferred revenue write-down under business combination accounting. On a non-GAAP basis, gross margin was 49.5%, and operating income was $5.3 million, or 13.0% of revenue. Non-GAAP earnings per diluted share (EPS) was $0.10, up from $0.02 in the prior year. GAAP gross margin was 43.1% and net operating loss was $2.3 million. GAAP loss per diluted share was $0.05.
Louis DiNardo, Exar's President and CEO, commented, "Clearly the semiconductor industry was impacted in the June quarter by a weakening demand environment and resulting inventory correction, however we were able to meet our expectations for the quarter." Mr. DiNardo continued, "While the near-term will likely be impacted by global uncertainties, we are confident in what we have achieved with new product development and innovative mixed signal solutions. This is evident as the new design wins for our advanced products are strong."
In the first quarter of fiscal 2016, the Company continued to introduce new products and win major opportunities, including the XR76203/05/08 additions to the PowerBloxâ„¢ family, extending the input voltage of the portfolio to 40V to address industrial and automotive applications. The PowerBlox portfolio of dc-dc regulators offers exceptional line regulation and efficiency, using Exar's proprietary emulated current mode Constant On-Time (COT) control loop and addressing industrial and computing markets. Mr. DiNardo commented, "We have secured our first major server design win with a 15 and 20A PowerBlox solution and expect production to begin during the second half of the year."
Mr. DiNardo continued, "While we see modest growth in end customer demand, our outlook in the near term reflects the macro economic uncertainties and resulting inventory correction."
For the second quarter ending September 27, 2015, the Company expects revenue to decline sequentially 5% to 9%, non-GAAP Gross Margin to be in the range of 48% to 50%, and non-GAAP EPS on a fully diluted basis to be in the range of $0.06 to $0.09.