 | Exhibit 99.1
PRESS RELEASE |
FOR IMMEDIATE RELEASE
AnalogicTech Reports Third Quarter 2005 Financial Results
Company Reports Record Revenue of $18.0 Million, Up 24% from Preceding Quarter
Sunnyvale, CA – October 27, 2005 – Advanced Analogic Technologies Incorporated (AnalogicTech) (Nasdaq: AATI), a developer of power management semiconductors for mobile consumer electronic devices, today reported financial results for the third quarter ended September 30, 2005.
Revenue for the third quarter of 2005 was $18.0 million, an increase of 16% over revenue of $15.5 million for the third quarter of 2004 and a 24% sequential increase over the second quarter 2005 revenue of $14.5 million. Revenue for the first nine months of 2005 was $46.7 million, an increase of 25% over revenue of $37.3 million from the same period in 2004.
Net income on a GAAP basis for the third quarter of 2005 was $0.2 million, or $0.01 per diluted share, compared to $2.7 million, or $0.08 per diluted share, for the third quarter of 2004, and compared to a net loss of $0.1 million, or $0.02 per diluted share, for the second quarter of 2005.
Stock-based compensation expense, after tax, reduced net income by $0.6 million, or $0.01 per diluted share, for the third quarter, compared to $0.4 million, or $0.01 per diluted share, for the third quarter of 2004 and compared to $0.6 million, or $0.02 per diluted share, for the second quarter of 2005.
AnalogicTech reported gross margins of 60.2% for the third quarter of 2005 compared to 65.4% for the third quarter of 2004 and compared to 56.8% for the second quarter of 2005. The Company ended the quarter with $117.2 million in cash and cash equivalents.
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“We are pleased to report record revenue for the third quarter, our first quarter as a public company,” stated Richard K. Williams, President, CEO, and CTO of AnalogicTech. “Our strong results demonstrate our continued success in delivering Total Power Management solutions for portable applications in three high-volume markets: communications, computing and consumer electronics products. In order to capitalize on this success in the power management market, our goal is to expand our broad product portfolio and increase our penetration rate with new and existing customers across the growing number of power management sockets in multiple end-market applications.”
Business Outlook
The following statements are based upon management’s current expectations. These statements are forward-looking, and actual results may differ materially. The company undertakes no obligation to update these statements.
For the fourth quarter ended December 31, 2005, AnalogicTech estimates revenue in the range of $20 to $22 million, which will yield second half revenues of approximately $38 to $40 million and quarterly earnings per diluted share on a GAAP basis of $0.01 to $0.03.
Conference Call Details
The AnalogicTech Third Quarter teleconference and webcast is scheduled to begin at 4:30 p.m. Eastern Time, on Thursday, October 27, 2005. To participate in the live call, analysts and investors should dial (800) 218-9073 at least ten minutes prior to the call. AnalogicTech will also offer a live and archived webcast of the conference call, accessible from the company’s investor relations website atwww.aati.com or via the corporate website atwww.analogictech.com. A telephonic replay of the conference call will also be available until 11:59 p.m. Pacific Time on Monday, October 31, 2005, by dialing (800) 405-2236 and entering the passcode: 11040764#. Callers outside the U.S. and Canada may access the replay by dialing (303) 590-3000 and entering the passcode 11040764#.
About AnalogicTech
Advanced Analogic Technologies Incorporated (AnalogicTech) is a supplier of power management semiconductors for mobile consumer electronic devices, such as wireless handsets, notebook and tablet computers, smartphones, digital cameras, and digital audio players. The company focuses its design and marketing efforts on the application-specific power management needs of consumer, communications, and computing applications in these rapidly evolving devices. AnalogicTech maintains offices in the United States, China, Europe, Japan, South Korea and Taiwan, as well as a worldwide network of sales representatives and distributors. For more information, please visit the AnalogicTech website:www.analogictech.com. (AnalogicTech - F)
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For More Information
Investor Contacts: Brian McDonald Chief Financial Officer AnalogicTech 408-737-4788 | Lisa Laukkanen The Blueshirt Group 415-217-4967 |
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
Statements contained in this release that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause AnalogicTech’s actual results to differ materially from our current expectations. Factors that could cause AnalogicTech’s results to differ materially from those set forth in these forward-looking statements include customers’ cancellation or modification of their orders; our failure to accurately forecast demand for our products; the loss of, or a significant reduction in orders from, any of our significant customers; fluctuations in our operating results; our inability to develop and sell new products; defects in or failures of our products; the expense and uncertainty involved in our customer design-win efforts; the financial viability of the distributors of our products; consumer demand for cellular phones and other mobile consumer electronic devices; worldwide economic and political conditions, particularly in Asia; fluctuations in our costs to manufacture our products; our reliance on third parties to manufacture, test, assemble and ship our products; our ability to retain and attract key personnel; our ability to compete with our competitors; and our ability to protect our intellectual property rights and not infringe the intellectual property rights of others. Other factors that may cause our actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect our prospects in general are described in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1 related to our initial public offering. AnalogicTech undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.
AnalogicTech and the AnalogicTech logo are trademarks of Advanced Analogic Technologies Incorporated. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.
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ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
| September 30, 2005 | December 31, 2004 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 117,210 | $ | 21,705 | ||||
Accounts receivable, net of allowances of $1,690 in 2005 and $385 in 2004 | 12,000 | 3,405 | ||||||
Inventories | 6,428 | 6,878 | ||||||
Prepaid expenses and other current assets | 1,867 | 727 | ||||||
Deferred income tax assets—current | 7,357 | 8,113 | ||||||
Total current assets | 144,862 | 40,828 | ||||||
Property and equipment, net | 2,440 | 2,700 | ||||||
Other assets | 389 | 396 | ||||||
Deferred income tax assets—noncurrent | 1,065 | 1,065 | ||||||
TOTAL ASSETS | $ | 148,756 | $ | 44,989 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 5,728 | $ | 2,936 | ||||
Accrued liabilities | 4,050 | 2,478 | ||||||
Income tax payable | 1,217 | 595 | ||||||
Current portion of capital lease obligations | — | 27 | ||||||
Total current liabilities | 10,995 | 6,036 | ||||||
Total liabilities | 10,995 | 6,036 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Convertible preferred stock, Series A, $0.001 par value—3,140,100 shares authorized; none and 1,570,050 shares designated and outstanding in 2005 and 2004 | — | 2 | ||||||
Convertible preferred stock, Series B, $0.001 par value—7,799,856 shares authorized; none and 3,899,929 shares designated and outstanding in 2005 and 2004 | — | 4 | ||||||
Convertible preferred stock, Series C, $0.001 par value—5,689,500 shares authorized; none and 2,844,750 shares designated and outstanding in 2005 and 2004 | — | 3 | ||||||
Convertible preferred stock, Series D, $0.001 par value—19,645,000 shares authorized; none and 8,844,591 shares designated and outstanding in 2005 and 2004 | — | 9 | ||||||
Convertible preferred stock, Series E, $0.001 par value—14,666,517 shares authorized; none and 7,291,313 shares designated and outstanding in 2005 and 2004 | — | 7 | ||||||
Common stock, $0.001 par value—121,666,517 shares authorized; 43,129,306 and 7,708,977 shares issued and outstanding in 2005 and 2004 | 43 | 7 | ||||||
Additional paid-in capital | 154,650 | 57,012 | ||||||
Deferred stock compensation | (5,995 | ) | (6,892 | ) | ||||
Accumulated other comprehensive loss | (498 | ) | (416 | ) | ||||
Accumulated deficit | (10,439 | ) | (10,783 | ) | ||||
Total stockholder’s equity | 137,761 | 38,953 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 148,756 | $ | 44,989 | ||||
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ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amount)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
NET SALES | $ | 17,964 | $ | 15,518 | $ | 46,711 | $ | 37,281 | ||||||||
Cost of revenues (including stock-based compensation of $28 and $84 for the three and nine months ended 2005; and $11 and $16 for the three and nine months ended 2004) | 7,152 | 5,369 | 18,804 | 13,530 | ||||||||||||
GROSS PROFIT | 10,812 | 10,149 | 27,907 | 23,751 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development (including stock-based compensation of $196 and $588 for the three and nine months ended 2005 and $82 and $144 for the three and nine months ended 2004) | 5,277 | 4,067 | 14,210 | 10,382 | ||||||||||||
Sales General and Administrative (including stock-based compensation of $352 and $1,084 for the three and nine months ended 2005 and $261 and $288 for the three and nine months ended 2004) | 4,914 | 3,251 | 12,762 | 7,731 | ||||||||||||
Total operating expenses | 10,191 | 7,318 | 26,972 | 18,113 | ||||||||||||
INCOME FROM OPERATIONS | 621 | 2,831 | 935 | 5,638 | ||||||||||||
OTHER INCOME (EXPENSES): | ||||||||||||||||
Interest and other income | 680 | 40 | 920 | 86 | ||||||||||||
Interest and other expense | (30 | ) | (1 | ) | (50 | ) | (3 | ) | ||||||||
Total other income, net | 650 | 39 | 870 | 83 | ||||||||||||
INCOME BEFORE INCOME TAXES | 1,271 | 2,870 | 1,805 | 5,721 | ||||||||||||
PROVISION FOR INCOME TAXES | 1,029 | 130 | 1,462 | 259 | ||||||||||||
NET INCOME | $ | 242 | $ | 2,740 | $ | 343 | $ | 5,462 | ||||||||
NET INCOME PER SHARE: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.61 | $ | 0.03 | $ | 1.30 | ||||||||
Diluted | $ | 0.01 | $ | 0.08 | $ | 0.01 | $ | 0.17 | ||||||||
WEIGHTED AVERAGE SHARES USED IN NET INCOME PER SHARE CALCULATION: | ||||||||||||||||
Basic | 27,683 | 4,472 | 13,650 | 4,196 | ||||||||||||
Diluted | 42,242 | 33,451 | 37,868 | 32,569 | ||||||||||||
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