Product category:
Communications ICs (Wired)
News Release from: Zarlink Semiconductor
Edited by the Electronicstalk Editorial
Team on 23 July 2004
Zarlink on track for growing profits
Zarlink Semiconductor has released results for the fiscal 2005 first quarter ended 25th June 2004, prepared in accordance with US Generally Accepted Accounting Principles.
Zarlink Semiconductor has released results for the fiscal 2005 first quarter ended 25th June 2004, prepared in accordance with US Generally Accepted Accounting Principles First quarter revenue was US $55.8 million, a gain of 9% from US $51.2 million in the previous quarter, and up from US $53.7 million in the first quarter of fiscal 2004
This article was originally published on Electronicstalk on 7 Feb 2001 at 8.00am (UK)
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Zarlink reported a first quarter net profit of US $7.5 million, or US $0.05 per share.
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Included in this number is US $7.0 million in instalment payments from X-Fab Semiconductor Foundries of Erfurt, Germany, on a note receivable, and a US $1.0 million recovery of foreign and domestic income taxes as a result of settlements with tax authorities.
In comparison, Zarlink recorded a net loss of US $6.2 million, or US $0.05 per share for the same period in Fiscal 2004.
"We are on track to deliver sustained, profitable growth", said Patrick J Brockett, President and Chief Executive Officer, Zarlink Semiconductor.
"We have turned the company around by continuing our commitment to product development".
"At the same time, we have significantly reduced our costs and maintained a sound, debt-free financial structure".
"Today we are seeing the results of our employees' hard work".
Gross margin for the first quarter was 45% of revenue, compared with 46% in the Fis"cal "2004 fourth quarter.
Gross margins were affected by the mix of certain lower-margin consumer communications products.
In addition, the company was unable to ship certain higher-margin network communications products due to production issues at one of the company's foundry suppliers.
R and D expenses in the first quarter were US $14.9 million or 27% of revenue.
This was a decline from US $17.2 million, or 34% of revenue in the fourth quarter, and down from US $19.2 million, or 36% of revenue, in the first quarter in fiscal 2004.
Selling and administrative (S and A) expenses were US $10.6 million or 19% of revenue in the first quarter, compared with US $10.9 million or 21% of revenue in the fourth quarter, and US $11.6 million or 22% of revenue in the same period last year.
Zarlink is forecasting Fiscal 2005 second quarter revenue growth of 3 to 6% compared to the first quarter.
90-day opening order backlog at the beginning of the second quarter was US $44 million, up from US $39 million at the start of the first quarter.
Based on this guidance, Zarlink expects to record a second quarter net profit of approximately US $0.02 to US $0.03 per share.
Included in this number is a recovery of US $0.02 per share, relating to the receipt on 1st July 2004, of a note receivable payment of US $2.9 million from X-Fab.
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