SANTA CLARA, Calif.,
Aug. 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 second quarter ended June 30,
2011.
(Logo:
http://photos.prnewswire.com/prnh/20050829/SFTU089LOGO)
Net revenue for the second quarter of 2011 was $24.1 million, compared to net revenue of
$23.1 million for the second quarter
of 2010, and $20.5 million for the
first quarter of 2011.
In accordance with U.S. generally accepted accounting principles
(GAAP), net loss for the second quarter of 2011 was $3.1 million, or $0.07 per diluted share, including non-recurring
charges for acquisition-related expenses. This compares to a GAAP
net loss of $3.9 million, or
$0.09 per diluted share, for the
second quarter of 2010 and a GAAP net loss of $7.7 million, or $0.18 per diluted share, for the first quarter of
2011.
On a non-GAAP basis, net income for the second quarter of 2011
was break even, or $0.00 per diluted
share. This compares to a non-GAAP net loss of $2.7 million, or $0.06 per diluted share, for the second quarter
of 2010, and a non-GAAP net loss of $4.7
million, or $0.11 per diluted
share, for the first quarter of 2011.
Please refer to the tables below for reconciliation between GAAP
and non-GAAP financial measures.
AnalogicTech reported gross profit of 44.9% for the second
quarter of 2011, compared to 45.5% for the second quarter of 2010
and 42.8% for the first quarter of 2011. Non-GAAP gross
profit was 45.2% for the second quarter of 2011, compared to 45.8%
for the second quarter of 2010 and 43.0% for the first quarter of
2011. The Company ended the quarter with $86.8 million in cash, cash equivalents, and
short-term investments.
"We delivered strong operating results for the second quarter,
reaching break even on a non-GAAP basis and increasing gross
margins by more than 200 basis points from the first quarter,"
stated Richard K. Williams,
President, CEO and CTO of AnalogicTech. "While we remained
disciplined in our financial management, we continued to advance
our diversification strategy. Our design win momentum
continued across our newer end markets - low-power computing, LCD
TVs, and GreenPower. Low-power computing revenue grew
strongly sequentially and comprised 13% of net revenue for the
second quarter, fueled by robust demand for our power management
units and voltage regulator products that are used in ebooks and
tablets. In the handset and handheld end markets, our
transition from single function products to highly integrated
lighting management units (LMUs) resulted in these products
representing an increasing contribution to net revenue, due to
design wins in high and mid-end smartphones.
"During the quarter, we introduced our first flash-centric LMU
targeting mid-tier smartphones and our first low-cost boost-based
backlight solution. In LCD TV's, we successfully demonstrated
and sampled our next generation LCD backlight drivers, which will
allow customers to significantly reduce their system cost and
simplify their PCB designs. We began experiencing a notable
increase in design win activity around a number of our TV backlight
platforms, which we expect will lead to meaningful revenue in 2012
and beyond. In GreenPower, we released a family of high
precision current limited SmartSwitches targeted at the set-top box
market," continued Mr. Williams.
On May 26, 2011, Skyworks
Solutions, Inc. ("Skyworks") and AnalogicTech announced a
definitive agreement for Skyworks to acquire AnalogicTech.
"The AnalogicTech team is excited about the opportunity to
combine its knowledge and expertise in analog power management with
Skyworks' leadership in a broad range of markets and applications,"
concluded Mr. Williams.
Business Outlook
The following statements are based upon management's current
expectations. These statements are forward-looking, and actual
results may differ materially. AnalogicTech undertakes no
obligation to update these statements.
For the third quarter of 2011, AnalogicTech estimates net
revenue in the range of $21 million to $25
million, and a net loss in the range of $0.08 to $0.04 per basic share on a GAAP basis,
including approximately $1 million of
M&A related expenses. The third quarter 2011 estimates
include pre-tax quarterly stock-based compensation expense of
approximately $1.1 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.
Conference Call Details
The AnalogicTech second quarter 2011 teleconference and webcast
is scheduled to begin at 4:30 p.m. Eastern
Time on Tuesday, August 9,
2011. To participate in the live call, analysts and
investors should dial 877-941-4776 or 480-629-9666 at least ten
minutes prior to the call. AnalogicTech will also offer a live and
archived webcast of the conference call, accessible from the
company's investor relations website at http://www.aati.com
in the "Webcasts" section. A telephonic replay of the
conference call will also be available through August 16, 2011, by dialing 800-406-7325 and
entering the passcode 4464338#. Callers outside the U.S. and
Canada may access the replay by
dialing 303-590-3030 and entering the passcode 4464338#.
About Advanced Analogic Technologies, Inc.:
Advanced Analogic Technologies, Inc. (AATI) 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, and netbooks/notebooks, 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. (AnalogicTech -
F)
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,
including, but not limited to, the ability of the parties to
consummate the proposed merger, satisfaction of closing conditions
precedent to the consummation of the proposed merger, the ability
of Skyworks Solutions, Inc. ("Skyworks") to successfully integrate
AATI's operations and employees, the ability to yield benefits for
customers and employees, expected timing of closing the merger, the
ability of the combined company to address AATI's customer's
demands, expected growth of the analog market, the complementary
nature of the two companies' products, Skyworks' revenue growth and
other financial metrics, and such other risks as identified in
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, which contain and identify important factors that could cause
the actual results to differ materially from those contained in the
forward-looking statements. 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.
Additional Information and Where to Find It
Skyworks filed a Registration Statement on Form S-4 containing a
Preliminary Proxy Statement/Prospectus and other documents
concerning the proposed merger with the Securities and Exchange
Commission ("SEC") and also plans to file with the SEC a
Registration Statement on Form S-8 in connection with the
transaction and AATI plans to file with the SEC and mail to its
stockholders a definitive Proxy Statement/Prospectus in connection
with the transaction. The Registration Statements and the Proxy
Statement/Prospectus contain (or will contain when each becomes
available) important information about Skyworks, AATI, the
transaction and related matters. INVESTORS AND SECURITY HOLDERS ARE
URGED TO READ THE REGISTRATION STATEMENTS AND PROXY
STATEMENT/PROSPECTUS CAREFULLY WHEN EACH BECOMES AVAILABLE.
Investors and security holders may currently obtain a copy of the
Registration Statement on Form S-4 and Preliminary Proxy
Statement/Prospectus and will be able to obtain free copies of the
Registration Statements and the definitive Proxy
Statement/Prospectus (when each becomes available) and other
documents filed with the SEC by Skyworks and AATI through the
website maintained by the SEC at http://www.sec.gov. In
addition, investors and security holders may also obtain free
copies of the Registration Statements and Proxy
Statement/Prospectus from Skyworks by contacting Skyworks' Investor
Relations at (949) 231-4700, or by accessing Skyworks' investor
relations website at http://www.skyworksinc.com; or from AATI by
contacting AATI's Investor Relations at The Blueshirt Group,
Lisa Laukkanen, at (415) 217-4967 or
by accessing AATI's investor relations website at
http://www.analogictech.com.
Participants in the Solicitation
Skyworks and AATI, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies in respect of the transactions contemplated by the merger
agreement. Information about the directors and executive officers
of Skyworks and AATI are set forth in Skyworks' and AATI's most
recent Form 10-K/A, which were filed with the SEC on January 31, 2011 and May
2, 2011, respectively, as well as Skyworks' proxy statement
dated, and filed with the SEC on, April 7,
2011. Investors may obtain additional information regarding
the interest of Skyworks and its directors and officers, and AATI
and its directors and executive officers in the proposed
transaction, by reading the Registration Statements and Proxy
Statement/Prospectus regarding the transaction when each becomes
available.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun.
30,
|
|
Dec.
31,
|
|
|
|
|
|
2011
|
|
2010
(*)
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 25,569
|
|
$ 37,158
|
|
|
|
Short-term
investments
|
61,192
|
|
50,245
|
|
|
|
|
Total cash, cash equivalents and
short term investments
|
86,761
|
|
87,403
|
|
|
|
Accounts receivable, net of
allowances
|
14,387
|
|
13,629
|
|
|
|
Inventories
|
12,136
|
|
11,390
|
|
|
|
Prepaid expenses and other
current assets
|
1,773
|
|
1,803
|
|
|
|
|
Total current assets
|
115,057
|
|
114,225
|
|
|
Property and equipment,
net
|
4,855
|
|
5,061
|
|
|
Other assets
|
3,056
|
|
3,182
|
|
|
Deferred income taxes
|
188
|
|
188
|
|
|
Intangible assets,
net
|
17
|
|
50
|
|
|
Goodwill
|
|
16,116
|
|
16,116
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$ 139,289
|
|
$ 138,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Accounts payable
|
$ 11,720
|
|
$ 9,315
|
|
|
|
Accrued liabilities
|
5,132
|
|
4,481
|
|
|
|
Income tax payable
|
148
|
|
146
|
|
|
|
|
Total current
liabilities
|
17,000
|
|
13,942
|
|
|
Long-term income tax
payable
|
2,433
|
|
2,221
|
|
|
Other long-term
liabilities
|
299
|
|
297
|
|
|
|
|
Total liabilities
|
19,732
|
|
16,460
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
119,557
|
|
122,362
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$ 139,289
|
|
$ 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
|
|
Six Months
Ended
|
|
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$ 24,050
|
|
$ 23,146
|
|
$ 20,486
|
|
$ 44,536
|
|
$ 45,064
|
|
|
Cost of revenue
|
13,255
|
|
12,609
|
|
11,723
|
|
24,978
|
|
23,924
|
|
GROSS PROFIT
|
10,795
|
|
10,537
|
|
8,763
|
|
19,558
|
|
21,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
6,588
|
|
7,836
|
|
6,468
|
|
13,056
|
|
14,938
|
|
|
Sales, general and
administrative
|
7,072
|
|
6,109
|
|
7,604
|
|
14,676
|
|
12,270
|
|
|
Patent litigation
|
5
|
|
245
|
|
2,183
|
|
2,188
|
|
1,329
|
|
Total operating
expenses
|
13,665
|
|
14,190
|
|
16,255
|
|
29,920
|
|
28,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS
|
(2,870)
|
|
(3,653)
|
|
(7,492)
|
|
(10,362)
|
|
(7,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND OTHER INCOME
(EXPENSE), NET
|
(7)
|
|
15
|
|
(31)
|
|
(38)
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
(2,877)
|
|
(3,638)
|
|
(7,523)
|
|
(10,400)
|
|
(7,313)
|
|
PROVISION FOR INCOME
TAXES
|
175
|
|
273
|
|
171
|
|
346
|
|
802
|
|
NET LOSS
|
$ (3,052)
|
|
$ (3,911)
|
|
$ (7,694)
|
|
$ (10,746)
|
|
$ (8,115)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ (0.07)
|
|
$ (0.09)
|
|
$ (0.18)
|
|
$
(0.25)
|
|
$ (0.19)
|
|
|
Diluted
|
$ (0.07)
|
|
$ (0.09)
|
|
$ (0.18)
|
|
$
(0.25)
|
|
$ (0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED
IN
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE
CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
43,229
|
|
42,887
|
|
42,517
|
|
42,875
|
|
42,923
|
|
|
Diluted
|
43,229
|
|
42,887
|
|
42,517
|
|
42,875
|
|
42,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Stock-based compensation
recorded
|
|
|
|
|
|
|
|
|
|
|
|
in each expense classification
above is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
$
65
|
|
$
65
|
|
$
54
|
|
$
119
|
|
$
138
|
|
|
Research and
development
|
475
|
|
559
|
|
465
|
|
940
|
|
1,137
|
|
|
Sales, general and
administrative
|
489
|
|
635
|
|
1,450
|
|
1,939
|
|
1,299
|
|
|
|
$ 1,029
|
|
$ 1,259
|
|
$ 1,969
|
|
$ 2,998
|
|
$ 2,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Summary (Non-GAAP)
|
|
(unaudited)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
GAAP TO NON-GAAP
RECONCILIATION
|
Jun.
30,
|
|
Jun.
30,
|
|
Mar.
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
GROSS MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP GROSS MARGIN
|
$ 10,795
|
|
$ 10,537
|
|
$
8,763
|
|
GAAP GROSS MARGIN %
|
44.9%
|
|
45.5%
|
|
42.8%
|
|
Stock-based
compensation
|
65
|
|
65
|
|
54
|
|
NON-GAAP GROSS MARGIN
|
10,860
|
|
10,602
|
|
8,817
|
|
NON-GAAP GROSS MARGIN
%
|
45.2%
|
|
45.8%
|
|
43.0%
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ON GAAP
BASIS:
|
$
(3,052)
|
|
$ (3,911)
|
|
$
(7,694)
|
|
|
Stock-based
compensation
|
1,029
|
|
1,259
|
|
1,969
|
|
|
Acquisition-related
charges
|
2,033
|
|
-
|
|
-
|
|
|
Restructuring and other
severance expenses
|
-
|
|
-
|
|
1,070
|
|
|
Total adjustments
|
3,062
|
|
1,259
|
|
3,039
|
|
NET INCOME (LOSS) ON NON-GAAP
BASIS:
|
$
10
|
|
$ (2,652)
|
|
$
(4,655)
|
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS, DILUTED
|
$
(0.07)
|
|
$ (0.09)
|
|
$
(0.18)
|
|
NON-GAAP EPS, DILUTED
|
$
0.00
|
|
$ (0.06)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used to
calculate Non-GAAP diluted EPS:
|
45,036
|
|
42,887
|
|
42,517
|
|
|
|
|
|
|
|
|
SOURCE Advanced Analogic Technologies, Inc.