SANTA CLARA, Calif.,
Nov. 9, 2011 /PRNewswire/ -- Advanced
Analogic Technologies, Inc. ("AnalogicTech" or the "Company")
(Nasdaq: AATI), an analog semiconductor company focused
on powering innovative solutions in consumer electronics,
computing, and communications markets, today reported financial
results for the third quarter ended September 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20050829/SFTU089LOGO)
Net revenue for the third quarter of 2011 was $22.1 million, compared to net revenue of
$25.0 million for the third quarter
of 2010, and $24.1 million for the
second quarter of 2011.
In accordance with U.S. generally accepted accounting principles
(GAAP), net loss for the third quarter of 2011 was $3.7 million, or $0.08 per diluted share. This compares to a
GAAP net loss of $1.3 million, or
$0.03 per diluted share, for the
third quarter of 2010 and a GAAP net loss of $3.1 million, or $0.07 per diluted share, for the second quarter
2011. Third and second quarter 2011 GAAP net loss includes
non-recurring charges for acquisition-related expenses.
On a non-GAAP basis, net loss for the third quarter of 2011 was
$0.4 million or $0.01 per diluted share. This compares to a
non-GAAP net loss of $2.4 million, or
$0.06 per diluted share, for the
third quarter of 2010, and break even, or $0.00 per diluted share for the second quarter of
2011.
Please refer to the tables below for reconciliation between GAAP
and non-GAAP financial measures.
AnalogicTech reported gross profit of 42.6% for the third
quarter of 2011, compared to 43.5% for the third quarter of 2010
and 44.9% for the second quarter of 2011. Non-GAAP gross
profit was 42.8% for the third quarter of 2011, compared to 44.2%
for the third quarter of 2010 and 45.2% for the second quarter of
2011. The Company ended the quarter with $84.3 million in cash, cash equivalents, and
short-term investments.
"We are pleased to deliver results that are in line with our
guidance for the third quarter," stated Richard K. Williams, President, CEO and CTO of
AnalogicTech. "Achieving the performance objectives that we
set for the third quarter is even more notable in light of the
challenging operating environment that semiconductor companies are
currently facing. Given the state of the macroeconomic
environment, we will continue to carefully manage our expense
structure with a focus on investing prudently in the resources that
support our growth and product innovation.
"During the third quarter, we continued to make progress
expanding our penetration and increasing our content at leading
smartphone manufacturers. In LCD TVs, we booked our first
order from one of the top TV manufacturers, with production
expected to begin ramping up in the fourth quarter. In
GreenPower, we introduced a new DC/DC converter that regulates
power in USB peripherals. We are pleased with the solid
momentum of our product offerings, particularly in LCD TVs and
low-power computing," concluded Mr. Williams.
In light of the pending transaction with Skyworks Solutions,
Inc. ("Skyworks") (Nasdaq: SWKS), AnalogicTech will not be hosting
a conference call in conjunction with this third quarter earnings
release.
Business Outlook
The Company is providing a fourth quarter business outlook as
part of the normal course of its business and doing so has no
bearing on the Company's view of its pending transaction with
Skyworks.
For the fourth quarter of 2011, AnalogicTech estimates net
revenue in the range of $20 million to $22
million, and a net loss in the range of $0.15 to $0.13 per basic share on a GAAP basis.
On a non-GAAP basis, net loss is expected to be in the range
of $0.06 to $0.04 per basic share.
The fourth quarter 2011 estimates include acquisition-related
expenses of approximately $3 million
and pre-tax quarterly stock-based compensation expense of
approximately $1 million. Tax
expense is expected to be approximately $0.2
million.
Non-GAAP Reporting
In addition to GAAP reporting, AnalogicTech reports net loss,
gross profit and net loss per diluted share on a non-GAAP basis.
This non-GAAP earnings information excludes certain items and their
tax-related effects. AnalogicTech believes this non-GAAP earnings
information provides meaningful insight into the Company's ongoing
operational performance and has therefore chosen to provide this
information to investors as an additional dimension of
comparability to similar companies. AnalogicTech also uses this
information internally to evaluate and manage company operations
and to determine incentive compensation. Reconciliation between
GAAP and non-GAAP net loss, gross profit and loss per diluted share
is included in the tables below.
The non-GAAP information included in this press release is not
necessarily comparable to non-GAAP information of other companies.
Non-GAAP information should not be viewed as a substitute for, or
superior to, net income or other data prepared in accordance with
GAAP as measures of our profitability or liquidity. Users of this
financial information should consider the types of events and
transactions for which adjustments have been made.
Timing of Quarterly Report on Form 10-Q
AnalogicTech also announced today that it expects to file a
Notification of Late Filing on Form 12b-25 with the Securities and
Exchange Commission with respect to its Quarterly Report on Form
10-Q for the quarter ended September 30,
2011. The due date for this Form 10-Q filing is
November 9, 2011. Skyworks has made certain allegations
regarding AnalogicTech's accounting practices in connection with
the arbitration proceeding in the Delaware Court of Chancery. The
arbitration is set to begin November 28,
2011. Although the outcome of the arbitration is
uncertain, AnalogicTech stands behind its financial statements and
accounting practices and believes Skyworks' allegations are without
merit. However, out of an abundance of caution, the
Audit Committee of AnalogicTech's Board of Directors will conduct
an internal review of the allegations prior to the filing of the
Company's Form 10-Q.
About Advanced Analogic Technologies, Inc.:
Advanced Analogic Technologies Incorporated (AATI), or
AnalogicTech, develops advanced semiconductor system solutions that
play a key role in the continuing evolution of feature-rich, energy
efficient electronic devices. The company focuses on addressing the
application-specific power management needs of consumer devices
such as mobile handsets, digital cameras, tablets, notebooks, TV
and LCD displays as well as devices in a broad range of industrial,
medical and telecom applications. AATI also licenses device,
process, package, and application-related technologies.
Headquartered in Silicon Valley, AATI has design centers in
Santa Clara and Shanghai, and Asia-based operations and logistics. For more
information, please visit www.analogictech.com.
Safe Harbor Statement
This communication contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934 and the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current
expectations and beliefs and are subject to a number of
uncertainties and risks that could cause actual results to differ
materially from those indicated in such forward-looking statements.
Factors that could cause AATI's results to differ materially
from those set forth in these forward-looking statements include
customers' cancellation or modification of their orders; AATI's
failure to accurately forecast demand for its products; the loss
of, or a significant reduction in orders from, any of AATI's
significant customers; consumer demand for cellular phones and
other mobile consumer electronic devices; worldwide economic and
political conditions, particularly in Asia; AATI's ability to manage inventory
levels; fluctuations in AATI's operating results; AATI's inability
to develop and sell new products; defects in or failures of AATI's
products; the expense and uncertainty involved in AATI's customer
design-win efforts; the financial viability of the distributors of
AATI's products; fluctuations in AATI's costs to manufacture its
products; AATI's reliance on third parties to manufacture, test,
assemble and ship its products; AATI's ability to retain and
attract key personnel; AATI's ability to compete with our
competitors; and AATI's ability to protect its intellectual
property rights and not infringe the intellectual property rights
of others. Other factors that may cause AATI's actual results to
differ from those set forth in the forward-looking statements
contained in this press release and that may affect AATI's
prospects in general are described in filings with the Securities
and Exchange Commission, including, AATI's most recent Annual
Report on Form 10-K, as amended, and subsequent Quarterly Reports
on Form 10-Q, each as filed with the SEC. Any statements that are
not statements of historical fact (including statements containing
the words "believes," "should," "plans," "anticipates," "expects,"
"estimates" and similar expressions) should also be considered to
be forward-looking statements. These statements are not
guarantees of future performance, involve certain risks,
uncertainties and assumptions that are difficult to predict, and
are based upon assumptions as to future events that may not prove
accurate. Therefore, actual outcomes and results may differ
materially from what is expressed herein. AATI assumes no
obligation to update any forward-looking statement contained in
this document.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep.
30,
|
|
Dec.
31,
|
|
|
|
|
|
|
2011
|
|
2010
(*)
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
55,283
|
|
$
37,158
|
|
|
|
Short-term
investments
|
|
28,989
|
|
50,245
|
|
|
|
|
Total cash, cash equivalents and
short term investments
|
|
84,272
|
|
87,403
|
|
|
|
Accounts receivable, net of
allowances
|
|
15,284
|
|
13,629
|
|
|
|
Inventories
|
|
12,542
|
|
11,390
|
|
|
|
Prepaid expenses and other
current assets
|
|
2,093
|
|
1,803
|
|
|
|
|
Total current assets
|
|
114,191
|
|
114,225
|
|
|
Property and equipment,
net
|
|
4,578
|
|
5,061
|
|
|
Other assets
|
|
2,148
|
|
3,182
|
|
|
Deferred income taxes
|
|
202
|
|
188
|
|
|
Intangible assets,
net
|
|
-
|
|
50
|
|
|
Goodwill
|
|
|
16,116
|
|
16,116
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
137,235
|
|
$
138,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
12,131
|
|
$
9,315
|
|
|
|
Accrued liabilities
|
|
4,570
|
|
4,481
|
|
|
|
Income tax payable
|
|
74
|
|
146
|
|
|
|
|
Total current
liabilities
|
|
16,775
|
|
13,942
|
|
|
Long-term income tax
payable
|
|
2,471
|
|
2,221
|
|
|
Other long-term
liabilities
|
|
298
|
|
297
|
|
|
|
|
Total liabilities
|
|
19,544
|
|
16,460
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
117,691
|
|
122,362
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
137,235
|
|
$
138,822
|
|
|
|
|
|
|
|
|
|
|
* Amounts as of December 31,
2010 were derived from the December 31, 2010 audited consolidated
financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(in
thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
Sep.
30,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
Sep.
30,
|
|
Sep.
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
|
$
22,145
|
|
$
24,982
|
|
$
24,050
|
|
$
66,681
|
|
$
70,046
|
|
|
Cost of revenue
|
|
12,711
|
|
14,111
|
|
13,255
|
|
37,689
|
|
38,035
|
|
GROSS PROFIT
|
|
9,434
|
|
10,871
|
|
10,795
|
|
28,992
|
|
32,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
6,003
|
|
8,679
|
|
6,588
|
|
19,059
|
|
23,617
|
|
|
Sales, general and
administrative
|
|
6,236
|
|
6,546
|
|
7,072
|
|
20,912
|
|
18,816
|
|
|
Patent litigation
|
|
-
|
|
41
|
|
5
|
|
2,188
|
|
1,370
|
|
Total operating
expenses
|
|
12,239
|
|
15,266
|
|
13,665
|
|
42,159
|
|
43,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS
|
|
(2,805)
|
|
(4,395)
|
|
(2,870)
|
|
(13,167)
|
|
(11,792)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND OTHER INCOME
(EXPENSE), NET
|
|
(787)
|
|
(12)
|
|
(7)
|
|
(825)
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
(3,592)
|
|
(4,407)
|
|
(2,877)
|
|
(13,992)
|
|
(11,720)
|
|
PROVISION FOR (BENEFIT FROM)
INCOME TAXES
|
|
86
|
|
(3,114)
|
|
175
|
|
432
|
|
(2,312)
|
|
NET LOSS
|
|
$
(3,678)
|
|
$
(1,293)
|
|
$
(3,052)
|
|
$
(14,424)
|
|
$
(9,408)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.08)
|
|
$
(0.03)
|
|
$
(0.07)
|
|
$
(0.33)
|
|
$
(0.22)
|
|
|
Diluted
|
|
$
(0.08)
|
|
$
(0.03)
|
|
$
(0.07)
|
|
$
(0.33)
|
|
$
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED
IN
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE
CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
44,163
|
|
42,156
|
|
43,229
|
|
43,309
|
|
42,665
|
|
|
Diluted
|
|
44,163
|
|
42,156
|
|
43,229
|
|
43,309
|
|
42,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Stock-based compensation
recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
in each expense classification
above is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
37
|
|
$
120
|
|
$
65
|
|
$
156
|
|
$
257
|
|
|
Research and
development
|
|
434
|
|
832
|
|
475
|
|
1,374
|
|
1,969
|
|
|
Sales, general and
administrative
|
|
606
|
|
825
|
|
489
|
|
2,545
|
|
2,125
|
|
|
|
|
$
1,077
|
|
$
1,777
|
|
$
1,029
|
|
$
4,075
|
|
$
4,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Summary (Non-GAAP)
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
GAAP TO NON-GAAP
RECONCILIATION
|
|
Sep.
30,
|
|
Sep.
30,
|
|
Jun.
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
GROSS MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP GROSS MARGIN
|
|
$
9,434
|
|
$
10,871
|
|
$ 10,795
|
|
GAAP GROSS MARGIN %
|
|
42.6%
|
|
43.5%
|
|
44.9%
|
|
Stock-based
compensation
|
|
37
|
|
120
|
|
65
|
|
Restructuring and other
severance expenses
|
|
-
|
|
49
|
|
-
|
|
NON-GAAP GROSS MARGIN
|
|
9,471
|
|
11,040
|
|
10,860
|
|
NON-GAAP GROSS MARGIN
%
|
|
42.8%
|
|
44.2%
|
|
45.2%
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ON GAAP
BASIS:
|
|
$
(3,678)
|
|
$
(1,293)
|
|
$ (3,052)
|
|
|
Stock-based
compensation
|
|
1,077
|
|
1,777
|
|
1,029
|
|
|
Acquisition-related
charges
|
|
1,412
|
|
-
|
|
2,033
|
|
|
Impairment of non-marketable
securities
|
|
833
|
|
-
|
|
-
|
|
|
Reserve release due to
settlement of an IRS audit
|
|
-
|
|
(3,407)
|
|
-
|
|
|
Restructuring and other
severance expenses
|
|
-
|
|
532
|
|
-
|
|
|
Total adjustments
|
|
3,322
|
|
(1,098)
|
|
3,062
|
|
NET INCOME (LOSS) ON NON-GAAP
BASIS:
|
|
$
(356)
|
|
$
(2,391)
|
|
$
10
|
|
|
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS, DILUTED
|
|
$
(0.08)
|
|
$
(0.03)
|
|
$
(0.07)
|
|
NON-GAAP EPS, DILUTED
|
|
$
(0.01)
|
|
$
(0.06)
|
|
$
0.00
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used to
calculate Non-GAAP diluted EPS:
|
|
44,163
|
|
42,156
|
|
45,036
|
|
|
|
|
|
|
|
|
|
SOURCE Advanced Analogic Technologies, Inc.