EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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NEWS RELEASE

For More Information Contact:

Kevin Berry, Chief Financial Officer

(408) 934-3144

kevinb@cmd.com

California Micro Devices Reports September Quarter Financial Results

Revenue and earnings beat high end estimates

MILPITAS, Calif. – October 19, 2006 – California Micro Devices (Nasdaq: CAMD) today reported financial results for the second quarter of fiscal 2007, which ended September 30, 2006. Revenue was $18.7 million compared to high end guidance of $18.0 million, $16.1 million in the prior quarter, and $18.5 million in the year ago quarter. On a GAAP basis, diluted earnings per share were $0.06 compared to high end guidance of breakeven, a loss of $0.09 in the prior quarter, and earnings of $0.09 in the year ago quarter. On a non-GAAP basis, excluding Arques Technology acquisition costs and employee stock-based compensation expenses, and using a cash basis tax rate, diluted EPS was $0.11 compared to high end guidance of $0.05 and $0.05 in the prior quarter.

“I am pleased to report that Q2 revenue, gross margin and earnings all exceeded guidance, driven primarily by strong demand across our product lines,” said Robert V. Dickinson, president and CEO. “In addition, bookings were strong and design wins reached the second highest level ever.” He noted that personal computer and digital consumer electronics design wins set a new record with low capacitance ESD design wins nearly doubling compared to last quarter.

“Due to continuing competitive headwinds in the market for ASIP devices used in mobile handsets, we are taking a cautious position with respect to Q3 guidance and projecting revenue from that market to be down sequentially,” added Dickinson. “We believe, however, that we are making good progress on our strategic initiatives to counter competitive inroads and that we continue to have a good opportunity for solid growth in that market in the future.”

In providing outlook for the third quarter of fiscal 2007, which ends December 31, 2006, Dickinson estimated revenue will be between $16.5 and $18.5 million with diluted EPS of between ($0.02) and $0.01 on a GAAP basis, and between $0.03 and $0.06 on a non-GAAP basis. He added that an update of the third quarter forecast would be presented on December 14th.

Conference Call and Webcast Today

California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its September quarter results. Within the USA, interested parties can access the conference call by dialing 800-257-7087. International parties may gain access by dialing 303-275-2170. No password is necessary. A replay of the conference call will be available on the company’s web site at www.cmd.com (Investor Relations Link) beginning at approximately 4:00 p.m. Pacific Time today and continuing for about a year.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, personal computer and digital consumer electronics markets. Key products include Application Specific Integrated Passive™ (ASIP™) devices and selected high value mixed signal ICs. Detailed corporate and product information may be accessed at www.cmd.com.

California Micro Devices Corporation • 490 N. McCarthy Blvd. #100, Milpitas, CA 95035-5112

www.calmicro.com • Tel: 408.263-3214 • Fax: 408.263-7846

LOGO

All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. Forward-looking statements made in this release include our expected revenues, both overall and for certain markets and customers; our expected GAAP and non-GAAP earnings and loss per share; and our expectation for solid growth in ASIP device revenue from the mobile market in the future. These forward- looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether the designed performance of our devices satisfies our customers’ requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion and/or loss of market share for us, whether we encounter any difficulty in obtaining the requisite supply of quality product from our contract manufacturers, contract assemblers and test houses without interruption or unanticipated price increases, and whether we incur unexpected operating expenses as well as the risk factors detailed in the company’s Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company’s future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.

# # #

ASIP™ and Application Specific Integrated Passive™ are trademarks of California Micro Devices.

All other trademarks are property of their respective owners

California Micro Devices Corporation • 490 N. McCarthy Blvd. #100, Milpitas, CA 95035-5112

www.calmicro.com • Tel: 408.263-3214 • Fax: 408.263-7846

California Micro Devices Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

(Unaudited)

 

     September 30,
2006		     March 31,
2006		  

ASSETS

     

Current assets:

     

Cash and cash equivalents

    $ 16,580     $ 9,788  

Short-term investments

      31,977       39,958  

Accounts receivable, net

      10,253       10,667  

Inventories

      5,457       5,508  

Deferred income taxes

      2,561       2,711  

Prepaid expenses and other current assets

      959       1,078  
                

Total current assets

      67,787       69,710  

Property, plant and equipment, net

      4,514       3,961  

Goodwill

      5,316       —    

Purchased intangible assets, net

      514       —    

Other long-term assets

      98       61  
                

TOTAL ASSETS

    $ 78,229     $ 73,732  
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

    $ 8,128     $ 5,901  

Accrued liabilities

      3,777       3,185  

Deferred margin on shipments to distributors

      2,640       2,684  

Current maturities of long-term debt and capital lease obligations

      82       82  
                

Total current liabilities

      14,627       11,852  

Other long-term liabilities

      214       8  
                

Total liabilities

      14,841       11,860  
                

Commitments and contingencies

     

Stockholders’ equity:

     

Common stock and additional paid-in capital - $0.001 par value; 50,000,000 shares authorized; shares issued and outstanding: 23,009,031 and 22,855,223 as of September 30, 2006 and March 31, 2006, respectively

      112,880       110,673  

Accumulated other comprehensive income (loss)

      2       (5 )

Accumulated deficit

      (49,494 )     (48,796 )
                

Total stockholders’ equity

      63,388       61,872  
                

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 78,229     $ 73,732  
                

California Micro Devices Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

(On a GAAP basis)

 

    

Three Months Ended

September 30,

   

Six Months Ended

September 30,

     2006    2005    2006     2005

Net sales

    $ 18,733    $ 18,542    $ 34,805     $ 33,229

Cost and expenses:

           

Cost of sales

      11,228      11,511      21,217       21,131

Research and development

      2,171      1,850      4,226       3,284

Selling, general and administrative

      4,067      3,406      8,261       6,748

In-process research and development

      —        —        2,210       —  

Amortization of purchased intangible assets

      42      —        76       —  

Restructuring expense

      —        3      —         60
                            

Total costs and expenses

      17,508      16,770      35,990       31,223
                            

Operating income (loss)

      1,225      1,772      (1,185 )     2,006

Other income, net

      617      326      1,156       574
                            

Income (loss) before income taxes

      1,842      2,098      (29 )     2,580

Income taxes

      465      63      669       77
                            

Net income (loss)

    $ 1,377    $ 2,035    $ (698 )   $ 2,503
                            

Net income (loss) per share–basic

    $ 0.06    $ 0.09    $ (0.03 )   $ 0.12
                            

Weighted average common shares outstanding–basic

      23,006      21,707      22,953       21,676
                            

Net income (loss) per share–diluted

    $ 0.06    $ 0.09    $ (0.03 )   $ 0.11
                            

Weighted average common shares and share equivalents outstanding–diluted

      23,080      22,606      22,953       22,313
                            

Reconciliation of net income (loss) to non-GAAP net income:

           

Net income (loss)

    $ 1,377    $ 2,035    $ (698 )   $ 2,503
                            

Reconciling items:

           

In-process research and development

      —        —        2,210       —  

Amortization of purchased intangible assets

      42      —        76       —  

Stock-based compensation expense under SFAS 123(R), net of tax

      732      —        1,576       —  

Difference between effective tax rate and cash basis tax rate

      387      —        554       —  
                            

Non-GAAP net income

    $ 2,538    $ 2,035    $ 3,718     $ 2,503
                            

Non-GAAP:

           

Net income per share–basic

    $ 0.11    $ 0.09    $ 0.16     $ 0.12
                            

Net income per share–diluted

    $ 0.11    $ 0.09    $ 0.16     $ 0.11
                            

Shares used in calculation of non-GAAP:

           

Weighted average common shares outstanding–basic

      23,006      21,707      22,953       21,676
                            

Weighted average common shares and share equivalents outstanding–diluted

      23,083      22,606      23,126       22,313
                            

California Micro Devices Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

(On a non-GAAP basis)

 

    

Three Months Ended

September 30,

   

Six Months Ended

September 30,

     2006    2005    2006    2005

Net sales

    $ 18,733    $ 18,542    $ 34,805    $ 33,229

Cost and expenses:

            

Cost of sales

      11,125      11,511      20,983      21,131

Research and development

      2,011      1,850      3,878      3,284

Selling, general and administrative

      3,598      3,406      7,267      6,748

Restructuring expense

      —        3      —        60
                           

Total costs and expenses

      16,734      16,770      32,128      31,223
                           

Operating income

      1,999      1,772      2,677      2,006

Other income, net

      617      326      1,156      574
                           

Income before income taxes

      2,616      2,098      3,833      2,580

Income taxes

      78      63      115      77
                           

Net income

    $ 2,538    $ 2,035    $ 3,718    $ 2,503
                           

Net income per share–basic

    $ 0.11    $ 0.09    $ 0.16    $ 0.12
                           

Weighted average common shares outstanding–basic

      23,006      21,707      22,953      21,676
                           

Net income per share–diluted

    $ 0.11    $ 0.09    $ 0.16    $ 0.11
                           

Weighted average common shares and share equivalents outstanding–diluted

      23,083      22,606      23,126      22,313
                           

See accompanying reconciliation of GAAP measures to non-GAAP measures.

California Micro Devices Corporation

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited)

 

    

Three Months Ended

September 30,

   

Six Months Ended

September 30,

      2006    2005    2006     2005

Net income (loss) per share:

           

Basic:

           

GAAP net income (loss) per share

    $ 0.06    $ 0.09    $ (0.03 )   $ 0.12

Reconciling items:

           

In-process research and development

      —        —        0.10       —  

Amortization of purchased intangible assets

      0.00      —        0.00       —  

Stock-based compensation expense under SFAS 123(R), net of tax

      0.03      —        0.07       —  

Difference between effective tax rate and cash basis tax rate

      0.02      —        0.02       —  
                            

Non-GAAP net income per share

    $ 0.11    $ 0.09    $ 0.16     $ 0.12
                            

Diluted:

           

GAAP net income (loss) per share

    $ 0.06    $ 0.09    $ (0.03 )   $ 0.11

Reconciling items:

           

In-process research and development

      —        —        0.10       —  

Amortization of purchased intangible assets

      0.00      —        0.00       —  

Stock-based compensation expense under SFAS 123(R), net of tax

      0.03      —        0.07       —  

Difference between effective tax rate and cash basis tax rate

      0.02      —        0.02       —  
                            

Non-GAAP net income per share

    $ 0.11    $ 0.09    $ 0.16     $ 0.11
                            

Shares used in the per share-diluted calculation:

           

GAAP diluted shares

      23,080      22,606      22,953       22,313

Add back anti-dilutive shares under a GAAP loss

      —        —        173       —  

Effect of stock-based compensation expense under SFAS 123(R)

      3      —        (10 )     —  
                            

Non-GAAP diluted shares

      23,083      22,606      23,116       22,313