Xicor Announces First Quarter Earnings
Xicor, Inc. announced revenue for the first quarter of fiscal 2003 was $9.6 million compared to $9.3 million in the prior quarter. Mixed-signal sales were $6.9 million up 5% from $6.6 million in the prior quarter and up 44% from $4.8 million in the same quarter a year ago.
OEM bookings for the quarter exceeded billings, resulting in a book-to-bill ratio of greater than 1:1. OEM bookings were up 8% for the quarter and the Company reported an increase in backlog for mixed-signal products.
On a GAAP basis the company reported a loss of $1.4 million or $0.06 per share compared to a loss of $3.5 million or $0.15 per share in the prior quarter. The loss for the first quarter of 2003 includes $225,000 for amortization of intangible assets related to the purchase of Analog Integration Partners (AIP) in April of 2002. The loss for the fourth quarter of 2002 includes $256,000 for amortization of intangible assets related to the purchase of AIP and a $1.2 million restructuring charge.
According to Xicor President and CEO, Lou DiNardo, "The first quarter unfolded as we expected. We had growth in mixed-signal product sales and bookings as well as continued success with design wins and new product introductions. Our gross margin grew nicely this quarter to 51% and we continued to reduce our operating expenses. The combination of revenue growth in mixed-signal products, gross margin expansion and spending controls allowed us to minimize our loss for the quarter."
"Our product announcements made so far this year have been impressive and are a reflection of the progress we have made in transforming Xicor into a high performance analog and mixed-signal company. We continued the expansion of our Power Management Product line with the introduction of our first Power Supply Sequencing devices. We introduced several general-purpose analog products including our first Digitally Controlled Capacitor as well as a High Voltage Digitally Controlled Potentiometer (DCP) for industrial applications. These are all portfolio products that give Xicor a strong base of fundamental analog and mixed-signal functions to address the needs of customers in a broad range of end markets."
Mr. DiNardo continued, "Based on our current backlog and customer activity, we expect to grow total sales in the range of 3% to 5% for the second quarter while we maintain our gross margin percentage and spending controls."
"As we noted in our press release of April 16, 2003, we continue to invest in our future with the repurchase of our subordinated convertible notes issued in November of 2001. The face value of the notes repurchased is $35 million. We repurchased the notes at a blended exchange rate of 79% or approximately $27.5 million, consisting of approximately 2.9 million shares of common stock and $14.4 million of cash. This repurchase results in a gain of approximately $2.7 million that will be included as other income in our second quarter results. The repurchase reduces our quarterly interest and related amortization expense by approximately $0.8 million."