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Microsemi Reports “Impressive” Third Quarter

July 27, 2015 by Jeff Shepard

Microsemi Corporation reported unaudited results for its third quarter of fiscal year 2015 ended June 28, 2015, including: Net sales for Microsemi's third quarter of fiscal year 2015 were $317.1 million, up 8.5 percent from the third quarter of 2014. GAAP gross margin for the third quarter of 2015 was 54.3 percent, inclusive of the effect of non-cash purchase accounting charges of $8.6 million, and improved 180 basis points from 52.5 percent reported in the third quarter of 2014. GAAP operating income for the third quarter of 2015 was $25.2 million, up $18.9 million over the third quarter of 2014. GAAP operating margin was 7.9 percent for the third quarter of 2015 and improved 570 basis points from 2.2 percent reported in the third quarter of 2014.

GAAP net income for the third quarter of 2015 was $14.7 million or $0.15 per diluted share compared to a loss of $4.3 million or $0.05 per diluted share for the third quarter of 2014. Operating and free cash flow for the third quarter of 2015, which included payments for restructuring and transaction costs of $20.1 million, were $55.1 million and $44.6 million, respectively.

"We delivered an impressive fiscal third quarter," said James J. Peterson, chairman and CEO of Microsemi. "We completed our acquisition of Vitesse Semiconductor, delivered on organic growth and secured record bookings. Based on our robust revenue, profitability and cash flow outlook, we are pleased to announce a sizable increase to our stock repurchase program and look forward to delivering shareholder value through our continued execution."

Microsemi currently expects net sales in the fourth quarter of fiscal year 2015 to be $328 million, plus or minus 2 percent, and expects non-GAAP diluted earnings per share of between $0.71 and $0.75.