Product category:
Communications ICs (Wired)
News Release from: Zarlink Semiconductor
Edited by the Electronicstalk Editorial
Team on 25 July 2005
Zarlink stays in the red
Zarlink Semiconductor has released results for the fiscal 2006 first quarter ended 24th June 2005.
Zarlink Semiconductor has released results for the fiscal 2006 first quarter ended 24th June 2005, prepared in accordance with US generally accepted accounting principles As expected, first quarter revenue was US $45.5 million, compared with US $48.4 million in the previous quarter, and US $55.8 million in the first quarter of fiscal 2005
This article was originally published on Electronicstalk on 7 Feb 2001 at 8.00am (UK)
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Zarlink recorded a first quarter net loss of US $3.6 million or US $0.03 per share.
This figure includes a US $1.9 million gain relating to the receipt of the final installment on a note receivable payment from X-Fab Semiconductor Foundries and a US $1.5 million gain from foreign exchange transactions.
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In the fiscal 2005 first quarter, the company reported a net profit of US $7.5 million, or US $0.05 per share, which included a US $7.0 million gain on a note receivable.
Gross margin in the first quarter was 38% of revenue, compared with 27% in the fiscal 2005 fourth quarter and 45% in the first quarter a year ago.
The company's gross margin in the prior quarter was affected by severance costs associated with restructuring, inventory and other production charges.
"We are pleased that we met our first quarter financial guidance, and anticipate a modest improvement in second quarter revenues", said Kirk K Mandy, President and Chief Executive Officer, Zarlink Semiconductor.
"This company is clearly in an extended turnaround situation".
"Our primary short-term goal is to further reduce our fixed costs, begin generating positive cash flow and return to profitability".
"We are continuing the task of fundamentally repositioning the business on growth markets where we can win with world-class technology, and continue to review all strategic alternatives for the company".
Subsequent to quarter end, Zarlink announced the appointment of Dr Stan Swirhun as Senior Vice President and General Manager, Opto Electronics.
Well known as a founder and CEO of Picolight, Dr Swirhun will focus on developing fibre optic modules and components for niche markets, and boosting profits through operational improvements.
Based on an opening order backlog of US $33 million, compared with US $31 million in the first quarter, Zarlink is forecasting that revenues will be between US $45 million and US $47 million in the second quarter of fiscal 2006.
As a result, Zarlink expects to record a second quarter net loss of US $0.04 to US $0.05 per share.
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