Exar Corp. reported financial results for its fiscal 2009 third quarter ended December 28, 2008. Net sales for the third quarter of fiscal 2009 were $26.3 million compared to net sales of $32.7 million for the prior quarter and $25.2 million for the third quarter of fiscal 2008. On a GAAP basis, the gross margin for the third quarter of fiscal 2009 was 40.7% compared to 45.8% for the prior quarter and 30.0% in the third quarter of fiscal 2008. On a non-GAAP basis, the gross margin for the third quarter of fiscal 2009 was 45.3% compared to 49.3% for the prior quarter and 47.3% in the third quarter of fiscal 2008.
The GAAP net loss for the third quarter of fiscal 2009 was $63.8 million, or $1.49 net loss per share, compared to a net loss of $2.2 million, or $0.05 net loss per share in the prior quarter, and a net loss of $11.7 million, or $0.24 net loss per share, for the third quarter of fiscal 2008. On a non-GAAP basis, the net loss was $0.8 million, or $0.02 net loss per share, for the third quarter of fiscal 2009, compared to net income of $1.9 million, or $0.04 diluted earnings per share, in the previous quarter, and a net loss of $1.8 million, or $0.04 net loss per share, in the third quarter of fiscal 2008.
The results for the third quarter of fiscal 2009 include estimated non-cash charges of $60.9 million, which is related to the full impairment of goodwill, partial impairment of intangible assets, and acceleration of depreciation on abandoned equipment of $1.2 million. The impairment charges resulted from the evaluation of the company’s carrying value of goodwill and other intangible assets which is required under FASB statements No. 142 and No. 144 due to the impact of negative macroeconomic conditions on our business and our market capitalization which was below our net book value for an extended period. During the third quarter of fiscal 2009, the company’s cash, cash equivalents and short-term marketable securities decreased by $3.3 million to $257.5 million primarily as a result of the cycle time required to adjust inventory to the drop off in sales.
"We had a tough quarter in a very challenging semiconductor and macro-economic environment and our revenues declined approximately 20% quarter over quarter," said Pete Rodriguez, the company’s President and CEO. "As a result, we have accelerated our cost optimizing initiatives and have significantly reduced operating expenses while continuing to dedicate resources to develop winning products. As positive news, we have received the first commitment for our new digital power product for a set top box application. We will continue to do everything possible to focus on exemplary product development, while carefully managing our expenses, and we believe that we will come out of this economic downturn stronger in our core markets."
