EX-99.1 3 dex991.txt NEWS RELEASE RELATED TO REGISTRANT'S EARNINGS FINANCIAL CONTACT: David R. Sonksen Executive Vice President and Chief Financial Officer Tel: (949) 221-7101 EDITORIAL CONTACT: Cliff Silver Manager, Corporate Communications Tel: (949) 221-7112 Microsemi Reports Improved Sales and Profits Over Prior Quarter o Second Quarter Results beat Consensus Estimates o Revenues Increase 5% over First Quarter o Positive Book-to-Bill Ratio of 1.06 for Second Quarter Irvine, CA - (BusinessWire) - April 24, 2003 - Microsemi Corporation (Nasdaq: MSCC) today reported results for its fiscal 2003 second quarter. Net sales for the quarter ended March 30, 2003 were $48.2 million, down 12% compared to net sales of $55.0 million in the second quarter of 2002, but up 5% from net sales of $45.9 million in the first quarter. Second quarter pro forma net income was $0.8 million, or $0.03 per share diluted, down 69% compared to $2.6 million, or $0.09 per share diluted, in the second quarter of last year but up 385% from the $0.2 million, or $0.01 per share diluted, in our first quarter of fiscal year 2003. Pro forma earnings are explained in the attached tables. James J. Peterson, President and CEO, stated that, "we are very pleased with our second quarter results which reflect a 5% sequential quarter over quarter increase in sales and a $0.02 sequential increase in pro forma earnings per share diluted." Revenues for the first six months of fiscal 2003 were $94.1 million compared to the first six months of last fiscal year of $112.0 million. Pro forma net income for the first six months of fiscal year 2003 totaled $1.0 million, or $0.03 per share diluted, compared to $7.6 million, or $0.25 per share diluted, in the first half of fiscal year 2002. The book-to-bill ratio for the quarter was 1.06. Our earnings as calculated under Generally Accepted Accounting Principles for the second quarter were $2.1 million, or $0.07 per share diluted, compared to losses of $2.6 million, or $0.09 per share diluted in the second quarter of last year and $1.6 million, or $0.06 per share diluted in our first quarter of fiscal year 2003. Our earnings as calculated under Generally Accepted Accounting Principles for the first six months of fiscal year 2003 were $0.5 million, or $0.02 per share diluted, compared to $1.6 million, or $0.06 per share diluted in the first six months of last year. Business Outlook The book-to-bill ratio for the first two quarters has seen positive change. Based upon this and other factors, the sales outlook for the third quarter is expected to be up 2 to 4 percent over the second quarter. Pro forma earnings per share diluted for the third quarter are expected to be between $0.03 and $0.05. Non pro forma (or GAAP) based earnings are expected to be $0.02 to $0.04 per share diluted reflecting the $0.3 million after tax charge for amortization of acquisition-related intangible costs. The gross margin percentage for the third quarter is expected to increase 20 to 50 basis points over the second quarter. About Microsemi Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive and amplify signals. Microsemi's products include individual components as well as complete circuit solutions that enhance customer designs by improving reliability, battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecom/datacom, medical, industrial, automotive, digital media, space/satellite and military. More information may be obtained by contacting the company directly or by visiting its web site at http://www.microsemi.com. Please read the following factors that can materially affect Microsemi's future results. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements. For instance, all statements of belief and expectations are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Potential risks and uncertainties include, but are not limited to, such factors as the difficulties regarding the making of estimates and projections, the hiring and retention of qualified technical personnel in a competitive labor market, acquiring and integrating new operations or assets, closing or disposing of operations or assets, rapidly changing technology and product obsolescence, the potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, results of in-process or planned development or marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, future effects of the tragic events of September 11, variations in customer order preferences, fluctuations in market prices of the company's common stock and potential unavailability of additional capital on favorable terms, difficulties in implementing company strategies, dealing with environmental matters or litigation, difficulties in determining and maintaining adequate insurance coverage, difficulties protecting patents and other proprietary rights, and inventory obsolescence. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K filed on December 19, 2002, and the Form 10-Q filed on February 12, 2003, filed by Microsemi with the Securities and Exchange Commission. Additional risk factors may be identified from time to time in Microsemi's future filings. Microsemi does not undertake to supplement or correct any information in this release that is or becomes incorrect. Investor Inquiries: David R. Sonksen, Microsemi Corporation, Irvine, CA (949) 221-7101. (Financial Tables Follow) - (more) - MICROSEMI CORPORATION Pro Forma Consolidated Income Statements (In thousands, except per share amounts)
Quarter ended Six months ended ----------------------------- ----------------------------- March 31, March 30, March 31, March 30, 2002 2003 2002 2003 NET SALES $ 54,969 $ 48,217 $ 111,987 $ 94,086 Cost of sales 35,035 32,981 70,234 64,560 ------------ ------------ ------------ ------------ GROSS MARGIN 19,934 15,236 41,753 29,526 Operating expenses: Selling, general and administrative 10,088 9,091 19,207 18,108 Research and development 5,793 4,825 10,947 9,788 ------------ ------------ ------------ ------------ Total operating expenses 15,881 13,916 30,154 27,896 ------------ ------------ ------------ ------------ OPERATING INCOME 4,053 1,320 11,599 1,630 Interest and other expense, net (220) (105) (314) (165) ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES 3,833 1,215 11,285 1,465 Provision for income taxes 1,265 401 3,724 483 ------------ ------------ ------------ ------------ PRO FORMA NET INCOME $ 2,568 $ 814 $ 7,561 $ 982 ============ ============ ============ ============ Pro Forma Earnings per share: Basic $ 0.09 $ 0.03 $ 0.27 $ 0.03 Diluted $ 0.09 $ 0.03 $ 0.25 $ 0.03 Common and common equivalent shares outstanding: Basic 28,607 28,934 28,469 28,920 Diluted 29,855 29,340 29,987 29,244
- more - MICROSEMI CORPORATION Schedule Reconciling Pro Forma Earnings to GAAP Earnings (in thousands, except per share amounts) The pro forma amounts have been adjusted to exclude the following items:
Quarter ended Six months ended ----------------------------------- ---------------------------------- March 31, March 30, March 31, March 30, 2002 2003 2002 2003 Amortization of goodwill, in fiscal year 2002, and other intangible assets $ (844) $ (390) $ (1,936) $ (713) Restructuring charges: Inventory write-off (1,580) - (1,580) (200) Workforce reduction (2,047) - (2,047) (686) Facility and asset abandonment (1,688) - (1,688) (477) Excess manufacturing cost - - - (584) Reorganization charges - (509) - (509) Assets impairment (1,607) - (1,607) - Gain on sales of assets, net - 2,821 - 2,393 -------------- ---------------- --------------- --------------- (7,766) 1,922 (8,858) (776) Income tax effect 2,563 634 2,923 (256) -------------- ---------------- --------------- --------------- Net effect of pro forma adjustments on net income $ (5,203) $ 1,288 $ (5,935) $ (520) ============== ================ =============== =============== Adjustments on (Loss) Earnings per share: Basic $ (0.18) $ 0.04 $ (0.21) $ (0.01) Diluted $ (0.18) $ 0.04 $ (0.21) $ (0.01) Common and common equivalent shares outstanding: Basic 28,607 28,934 28,469 28,920 Diluted 28,607 29,340 28,469 28,920
Microsemi provides unaudited pro forma results as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP) and may be different from pro forma measures used by other companies. - more - MICROSEMI CORPORATION Unaudited Consolidated Income Statements (In thousands, except per share amounts)
Quarter ended Six months ended -------------------------------------- --------------------------------- March 31, March 30, March 31, March 30, 2002 2003 2002 2003 NET SALES $ 54,969 $ 48,217 $ 111,987 $ 94,086 Cost of sales 36,615 33,490 71,814 66,330 ---------------- ------------------ ------------- -------------- GROSS MARGIN 18,354 14,727 40,173 27,756 Operating expenses: Selling, general and administrative 10,088 9,091 19,207 18,108 Research and development 5,793 4,825 10,947 9,788 Amortization of goodwill, in 2002, and other intangible assets 844 390 1,936 713 Restructuring charges 3,735 - 3,735 686 Gain on sales of assets, net - (2,821) - (2,393) Asset impairment 1,607 - 1,607 - ---------------- ------------------ ------------- -------------- Total operating expenses 22,067 11,485 37,432 26,902 ---------------- ------------------ ------------- -------------- OPERATING INCOME (LOSS) (3,713) 3,242 2,741 854 Interest and other expense, net (220) (105) (314) (165) ---------------- ------------------ ------------- -------------- INCOME (LOSS) BEFORE INCOME TAXES (3,933) 3,137 2,427 689 Provision (Benefit) for income taxes (1,298) 1,035 801 227 ---------------- ------------------ ------------- -------------- NET INCOME (LOSS) $ (2,635) $ 2,102 $ 1,626 $ 462 ================ ================== ============= ============== Earnings (Loss) per share: Basic $ (0.09) $ 0.07 $ 0.06 $ 0.02 Diluted $ (0.09) $ 0.07 $ 0.06 $ 0.02 Common and common equivalent shares outstanding: Basic 28,607 28,934 28,469 28,920 Diluted 28,607 29,340 29,987 29,123
- more - MICROSEMI CORPORATION Condensed Unaudited Consolidated Balance Sheets (in thousands)
September 29, 2002 March 30, 2003 ------------------ -------------- ASSETS Current Assets: Cash and cash equivalents $ 23,060 $ 22,583 Accounts receivable, net 32,435 28,887 Inventories 52,040 50,407 Other current assets 6,434 6,182 ------------- ---------------- Total current assets 108,059 113,969 Property and equipment, net 65,608 62,553 Other assets 37,191 39,146 ------------- ---------------- TOTAL ASSETS $ 216,768 $ 209,758 ============= ================ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 29,922 $ 24,993 Long-term debt 4,356 494 Other long-term liabilities 4,044 3,993 Stockholders' equity 178,446 180,278 ------------- ---------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 216,768 $ 209,758 ============= ================