Microsemi's first quarter
of fiscal 09 revenue slid only by 3% in comparison to 4Q 08
Power supply IC and discrete semiconductor vendor, Microsemi's
net sales for first quarter of fiscal 2009 ended December
28, 2008, were $130.6 million, up 5.7 percent from net sales
of $123.5 million in the first quarter of 2008, and down
3.0 percent from net sales of $134.7 million in the fourth
quarter of 2008.
Non-GAAP gross margin in the first quarter was 51.8 percent,
an increase of 50 basis points compared to 51.3 percent
in the first quarter of 2008 and down 70 basis points from
52.5 percent in the fourth quarter of 2008. Non-GAAP operating
margin was 26.9 percent in the first quarter compared to
26.2 percent in the first quarter of 2008 and 28.3 percent
in the fourth quarter of 2008. For the first quarter, non-GAAP
net income was $28.7 million, compared to $24.4 million
in the first quarter of 2008 and $29.0 million in the fourth
quarter of 2008. For the first quarter, the non-GAAP effective
tax rate was 19.8 percent. The non-GAAP effective tax rate
was favorably impacted, in part, by reinstatement of the
research and development tax credit, retroactive to January
1, 2008, amounting to approximately $0.01 of diluted earnings
per share. Non-GAAP diluted earnings per share in the first
quarter were $0.36 compared to $0.31 in the first quarter
of 2008 and $0.36 in the fourth quarter of 2008.
GAAP gross margin for the first quarter was 46.2 percent,
an increase of 370 basis points compared to 42.5 percent
in the first quarter of 2008 and down 60 basis points from
46.8 percent in the fourth quarter of 2008. GAAP operating
margin was 10.6 percent in the first quarter compared to
8.9 percent in the first quarter of 2008 and 16.3 percent
in the fourth quarter of 2008. GAAP results in the first
quarter included $6.9 million for transitional idle capacity,
a reduction of $0.7 million from the previous
quarter and $2.9 million in restructuring and other charges.
Also included were non-cash charges of $7.9 million related
to stock based compensation, $3.2 million in amortization
of acquisition-related intangibles and $0.2 million from
manufacturing profit in acquired inventory. For the first
quarter, GAAP net income was $13.2 million compared to $8.6
million in the first quarter of 2008 and $17.3 million in
the fourth quarter of 2008. For the first quarter, the GAAP
effective tax rate was 9.6 percent. The GAAP effective tax
rate was favorably impacted, in part, by reinstatement of
the research and development tax credit, retroactive to
January 1, 2008, amounting to approximately $0.01 of diluted
earnings per share. GAAP diluted earnings per share in the
first quarter were $0.16, compared to $0.11 in the first
quarter of 2008, and $0.21 in the fourth quarter of 2008.
James J. Peterson, President and Chief Executive Officer,
stated, "Our performance in our first quarter continued
to exceed overall industry performance with positive contributions,
especially in our satellite, defense and implantable medical
markets. We continue to make company-wide operational and
efficiency improvements in order to better service our customers.
These improvements are also reflected in our cash flow,
giving us increased leverage for continued strategic initiatives."
The book-to-bill ratio for the quarter was 1.00 to 1.00.
Microsemi expects that for the second quarter of fiscal
year 2009, its sales will decline within a range of 16 to
20 percent, sequentially. On a non-GAAP basis, compnay expects
earnings for the second quarter of fiscal year 2009 to be
$0.15 to $0.20 per diluted share.
