Product category:
Communications ICs (Wired)
News Release from: Zarlink Semiconductor
Edited by the Electronicstalk Editorial
Team on 29 January 2007
Zarlink remains in black despite
industry slowdown
Zarlink Semiconductor has released results for the fiscal 2007 third quarter ended 29th December 2006, prepared in accordance with US generally accepted accounting principles (GAAP).
Zarlink Semiconductor has released results for the fiscal 2007 third quarter ended 29th December 2006, prepared in accordance with US generally accepted accounting principles (GAAP) In line with guidance, third quarter revenue was US $34.1 million, compared with second quarter revenue of US $38.1 million and US $37.4 million in the third quarter of fiscal 2006
This article was originally published on Electronicstalk on 7 Feb 2001 at 8.00am (UK)
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Zarlink earned third quarter net income of US $5.6 million or US $0.04 per share.
This compares with second quarter fiscal 2007 net income of US $6.9 million or US $0.05 per share.
In fiscal 2006 third quarter the company recorded a net loss from continuing operations of US $4.8 million or US $0.04 per share.
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As previously announced in the quarter, Zarlink sold its packet switching product line to Conexant Systems.
The sale resulted in a gain of US $4.1 million, reduced by a charge of US $0.5 million related to idle space under lease contract for this facility.
These two items resulted in US $0.03 of earnings in the third quarter.
"I am pleased to advise that we met quarterly guidance in what has proven to be a very challenging market", said Kirk K Mandy, President and Chief Executive Officer, Zarlink Semiconductor.
"In line with our industry peers, we expect to see this market slowdown continue into the fourth quarter".
"However, as we continue to focus on opportunities in optoelectronics, network communications, low-power wireless telemetry and analogue foundry, I am confident that when the semiconductor market rebounds we are well-positioned for long-term success".
Gross margin in the third quarter was 50% of revenue, compared with 53% in the fiscal 2007 second quarter.
Lower gross margin was due primarily to weaker product mix, as well as severance costs of US $0.3 million.
Gross margin in the third quarter last year was 52%.
R and D expenses in the third quarter were US $7.9 million or 23% of revenue, compared with US $7.5 million or 20% of revenue in the previous quarter.
Included in the third quarter R and D expenses was severance of US $1.0 million, partially offset by lower spending.
R and D expenses were US $9.1 million or 24% of revenue in the fiscal 2006 third quarter.
S and A expenses in the third quarter were US $8.5 million or 25% of revenue, compared with S and A expenses of US $9.6 million or 25% of revenue in the previous quarter.
Included in the third quarter S and A expenses was the reduction of a provision for estimated loss contingencies of US $0.8 million.
S and A expenses were US $10.2 million or 27% of revenue in the third quarter of fiscal 2006.
On 25th January 2007, Zarlink Semiconductor declared a quarterly dividend of CDN $0.50 per share on its preferred shares, payable on 30th March 2007, to preferred shareholders of record as of 9th March 2007.
The opening order backlog at the start of the Fiscal 2007 fourth quarter was US $22 million, compared with the US $23 million opening backlog in the third quarter.
Zarlink is forecasting fourth quarter revenues will be between US $32 million and US $34 million.
As a result, Zarlink expects fourth quarter earnings will be between a loss of US $0.01 to breakeven.
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