Microsemi Corp. reported unaudited results for its fourth quarter and fiscal year 2008. Net sales for Microsemi’s fourth quarter ended September 28, 2008, were $134.7 million, up 12.5% from net sales of $119.7 million in the fourth quarter of 2007, and up 4.2% from net sales of $129.3 million in the third quarter of 2008. Net sales for the full fiscal year 2008 were $514.1 million, up 16.2% from the net sales of $442.3 million for fiscal year 2007.
Non-GAAP gross margin in the fourth quarter was 52.5%, an increase of 150 basis points compared to 51.0% in the fourth quarter of 2007 and up 60 basis points from 51.9% in the third quarter of 2008. Non-GAAP operating margin was 28.3% in the fourth quarter compared to 24.2% in the fourth quarter of 2007 and 27.5% in the third quarter of 2008. For the fourth quarter, non-GAAP net income was $29.0 million, compared to $21.8 million in the fourth quarter of 2007 and $27.0 million in the third quarter of 2008. For the fourth quarter, the non-GAAP effective tax rate was 25.0%. Non-GAAP diluted earnings per share in the fourth quarter were $0.36 compared to $0.28 in the fourth quarter of 2007 and $0.34 in the third quarter of 2008. Non-GAAP net income for fiscal year 2008 was $105.8 million or $1.33 per diluted share, an increase of $28.6 million or 37% compared to $77.2 million or $1.01 per diluted share for fiscal year 2007.
GAAP gross margin for the fourth quarter was 46.8%, an increase of 720 basis points compared to 39.6% in the fourth quarter of 2007 and up 180 basis points from 45.0% in the third quarter of 2008. GAAP operating margin was 16.3% in the fourth quarter compared to 12.0% in the fourth quarter of 2007 and 14.0% in the third quarter of 2008. GAAP results in the fourth quarter included $7.6 million for transitional idle capacity, a reduction of $1.3 million from our previous quarter, and $0.6 million in restructuring and other charges. Also included were non-cash charges of $4.8 million related to stock based compensation and $3.1 million in amortization of acquisition-related intangibles. For the fourth quarter, GAAP net income was $17.3 million compared to $10.1 million in the fourth quarter of 2007 and $13.9 million in the third quarter of 2008. For the fourth quarter, the GAAP effective tax rate was 23.3%. GAAP diluted earnings per share in the fourth quarter were $0.21, compared to $0.13 in the fourth quarter of 2007, and $0.17 in the third quarter of 2008. GAAP net income for fiscal year 2008 was $49.7 million or $0.63 per diluted share, an increase of $39.9 million or 407% compared to $9.8 million or $0.13 per diluted share for fiscal year 2007.
James J. Peterson, President and Chief Executive Officer, stated, "2008 was a tremendous year for the company. We executed on our business plans growing revenues and profits to record levels and capitalizing on our diversification strategy which allowed us to grow each quarter with continued improvements in gross, operating and net margin metrics. Our growth in our September quarter continued to exceed overall industry performance with positive contributions, especially in our satellite, defense and implantable medical markets. Visibility into our customer demand is strong and we continue to make operational improvements in order to better service our customers."
