Product category:
Communications ICs (Wired)
News Release from: Zarlink Semiconductor
Edited by the Electronicstalk Editorial
Team on 12 May 2004
Profitability beckons for Zarlink
Zarlink Semiconductor has released fourth quarter and fiscal 2004 results for the year ended 26th March 2004.
Zarlink Semiconductor has released fourth quarter and fiscal 2004 results for the year ended 26th March 2004 Fourth quarter revenue was US $51.2 million, compared with US $47.0 million in the third quarter, and US $52.8 million in the fourth quarter of fiscal 2003
This article was originally published on Electronicstalk on 7 Feb 2001 at 8.00am (UK)
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Improvements from the previous quarter were driven by strength in the company's Network Communications and Ultra Low-Power Communications business units.
Zarlink recorded a fourth quarter net loss of US $2.3 million, or US $0.02 per share.
For the fourth quarter in fiscal 2003, the company recorded a net loss of US $23.6 million, or US $0.19 per share.
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"During the quarter we achieved strong order activity across the business", said Patrick J Brockett, President and Chief Executive Officer, Zarlink Semiconductor.
"Both our Consumer and Ultra Low Power businesses are seeing accelerating demand for new products while Network Communications bookings showed a strong uptick".
The company recorded revenue of US $198.5 million in fiscal 2004, an increase of 2% from fiscal 2003.
The company's net loss in fiscal 2004 was US $38.6 million, or US $0.32 per share, an improvement on the net loss of US $57.9 million, or US $0.47 per share, in fiscal 2003.
Gross margin for the fourth quarter was 46% of revenue, up from 45% in the third quarter and 42% in the second quarter.
Cash (the company's cash is composed of cash, cash equivalents, short-term investments and restricted cash) at the end of the fourth quarter was US $92 million, up from US $88 million in the third quarter.
R and D expenses in the fourth quarter were US $17.2 million, or 34% of revenue.
R and D expenses were US $19.5 million, or 41% of revenue, in the third quarter, and US $20.7 million, or 39% of revenue, in the fourth quarter of fiscal 2003.
Selling and administrative (S and A) expenses were US $10.9 million in the fourth quarter, as compared with US $11.8 million in the third quarter, and US $13.0 million in the fourth quarter of Fiscal 2003.
Included in the above results for the fourth quarter of fiscal 2004, were an impairment charge of US $4.1 million against the company's patent assets, and a reduction in the Company's tax assets and liabilities resulting in a tax recovery of US $3.9 million.
Zarlink is forecasting first quarter revenue growth of 8 to 11% compared with the fourth quarter of fiscal 2004.
First quarter revenues are expected to be higher due to a larger opening backlog and continued strength in key products and geographic markets.
Zarlink expects to record a first quarter net profit of approximately US $0.02 to US $0.03 per share as a result of higher revenues and lower operating costs.
Included in this number is US $0.02 per share, relating to the receipt of an early payment of US $3.0 million from X-FAB.
This is a partial payment of the US $10 million note receivable due in the second quarter of fiscal 2005.
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