Exhibit 99.1
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 | | PRESS RELEASE |
FOR RELEASE 2/2/06 @ 1:05PM
AnalogicTech Reports Fourth Quarter and Full Year 2005 Financial Results
Company Reports Record Quarterly Revenue of $21.6 Million, Up 20% Sequentially,
and Record Annual Revenue of $68.3 Million, Up 33% Year-Over-Year
Sunnyvale, CA – February 2, 2006 – Advanced Analogic Technologies Incorporated (AnalogicTech) (Nasdaq: AATI), a developer of power management semiconductors for mobile consumer electronic devices, today reported financial results for the fourth quarter and year ended December 31, 2005.
Revenue for the fourth quarter of 2005 was $21.6 million, an increase of 53% over revenue of $14.1 million for the fourth quarter of 2004 and a 20% sequential increase over the third quarter 2005 revenue of $18.0 million. Revenue for the year ended December 31, 2005, was $68.3 million, an increase of 33% over revenue of $51.3 million from the same period in 2004.
Net income on a GAAP basis for the fourth quarter of 2005 was $1.7 million, or $0.04 per diluted share, compared to $9.7 million, or $0.28 per diluted share, for the fourth quarter of 2004, and compared to $0.2 million, or $0.01 per diluted share, for the third quarter of 2005. Net income for the full year 2005 on GAAP basis was $2.1 million, or $0.05 per diluted share, compared to $15.2 million, or $0.46 per diluted share for the full year 2004.
Stock-based compensation expense, after tax, reduced net income by $0.6 million, or $0.01 per diluted share, for the fourth quarter, compared to $0.5 million, or $0.01 per diluted share, for the fourth quarter of 2004 and compared to $0.6 million, or $0.01 per diluted share, for the third quarter of 2005.
For the full year 2005, stock-based compensation expense, after tax, reduced net income by $2.4 million, or $0.06 per diluted share, compared to $0.9 million, or $0.03 per diluted share, for the full year 2004.
© Advanced Analogic Technologies Incorporated
AnalogicTech reported gross margins of 62.2% for the fourth quarter of 2005, compared to 60.3% for the fourth quarter of 2004 and compared to 60.2% for the third quarter of 2005. The company ended the quarter with $124.4 million in cash and cash equivalents.
“The fourth quarter capped a successful year for AnalogicTech,” stated Richard K. Williams, President, CEO, and CTO of AnalogicTech. “Growth in the fourth quarter was driven by strong sales of our Total Power Management products, which grew by 20% during the quarter. In 2005, we made solid progress in broadening our product portfolio as we introduced 72 new products, including a new line of battery management ICs. We also expanded our customer base and increased penetration with existing accounts. The development of products on our new ModularBCD process technology is on track, and we are enthusiastic about the broader market opportunities this technology addresses.”
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 first quarter ended March 31, 2006, AnalogicTech estimates revenue in the range of $19 to $21 million, and, on a GAAP basis, earnings per share of $0.02 to $0.04 per diluted share. The first quarter fiscal 2006 estimates include quarterly stock based compensation expenses (after tax) of $0.02 to $0.04. For the first half of 2006, AnalogicTech estimates revenue in the range of approximately $41 to $44 million.
AnalogicTech will be required to adopt FAS 123R during the first quarter of fiscal 2006. This will have a significant impact on future GAAP reported results as the company continues to grant stock options and other stock based compensation awards to individuals. FAS 123R requires companies to estimate the value of stock options by using the Black Scholes or other option valuation techniques. These techniques will require management to make certain assumptions such as volatility, dividend yield rates, risk-free rates and expected option term.
Lock-up Expiration
As a result of the timing of this earnings announcement, and consistent with AnalogicTech’s obligations to the underwriters of its initial public offering, the restrictions imposed by lock-up agreements entered into by AnalogicTech and its stockholders in connection with the initial public offering will expire on February 20, 2006.
Conference Call Details
The AnalogicTech fourth quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time on Thursday, February 2, 2006. 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,www.analogictech.com.
© Advanced Analogic Technologies Incorporated
A telephonic replay of the conference call will also be available until 11:59 p.m. Pacific Time on Monday, February 6, 2006, by dialing (800) 405-2236 and entering the passcode: 11051280#. Callers outside the U.S. and Canada may access the replay by dialing (303) 590-3000 and entering the passcode 11051280#.
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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 is headquartered in Sunnyvale, California, with offices in Beijing, Hong Kong, Japan, Shanghai, Shenzhen, South Korea, Sweden, and Taiwan, as well as a worldwide network of sales representatives and distributors. For more information, please visit the AnalogicTech website:www.analogictech.com.
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| For More Information | | |
| Investor Contacts: | | |
| Brian McDonald | | Lisa Laukkanen |
| Chief Financial Officer | | The Blueshirt Group |
| AnalogicTech | | 415-217-4967 |
| 408-737-4788 | | |
“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.
© Advanced Analogic Technologies Incorporated
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.
© Advanced Analogic Technologies Incorporated
ADVANCED ANALOGIC TECHNOLOGIES INCORPORATES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
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| | | December 31,
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| | | 2005
| | | 2004
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ASSETS | | | | | | | | |
CURRENT ASSETS | | | | | | | | |
Cash and cash equivalents | | $ | 124,377 | | | $ | 21,705 | |
Accounts receivable, net of allowances | | | 10,496 | | | | 3,405 | |
Inventories | | | 6,561 | | | | 6,878 | |
Prepaid expenses and other current assets | | | 1,656 | | | | 727 | |
Deferred income tax assets—current | | | 3,780 | | | | 8,113 | |
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Total current assets | | | 146,870 | | | | 40,828 | |
Property and equipment, net | | | 2,257 | | | | 2,700 | |
Other assets | | | 384 | | | | 396 | |
Deferred income tax assets—noncurrent | | | 1,812 | | | | 1,065 | |
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TOTAL ASSETS | | $ | 151,323 | | | $ | 44,989 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | |
Accounts payable | | $ | 5,196 | | | $ | 2,936 | |
Accrued liabilities | | | 4,738 | | | | 2,478 | |
Income tax payable | | | 963 | | | | 595 | |
Current portion of capital lease obligations | | | — | | | | 27 | |
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Total current liabilities | | | 10,897 | | | | 6,036 | |
Other long term liabilities | | | 24 | | | | — | |
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Total liabilities | | | 10,921 | | | | 6,036 | |
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STOCKHOLDERS’ EQUITY: | | | | | | | | |
Convertible preferred stock | | | — | | | | 25 | |
Common stock | | | 43 | | | | 7 | |
Additional paid-in capital | | | 155,001 | | | | 57,012 | |
Deferred stock compensation | | | (5,444 | ) | | | (6,892 | ) |
Accumulated other comprehensive loss | | | (501 | ) | | | (416 | ) |
Accumulated deficit | | | (8,697 | ) | | | (10,783 | ) |
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Total stockholders’ equity | | | 140,402 | | | | 38,953 | |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 151,323 | | | $ | 44,989 | |
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© Advanced Analogic Technologies Incorporated
ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amount)
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| | | Three Months Ended
December 31,
| | | Years Ended
December 31,
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| | | 2005
| | | 2004
| | | 2005
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NET SALES | | $ | 21,587 | | | $ | 14,064 | | | $ | 68,298 | | | $ | 51,345 | |
Cost of revenues (including stock-based compensation of $28, $26, $112 and $42 in the three months ended December 31, 2005, 2004 and for the years ended 2005 and 2004, respectively) | | | 8,160 | | | | 5,585 | | | | 26,964 | | | | 19,115 | |
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GROSS PROFIT | | | 13,427 | | | | 8,479 | | | | 41,334 | | | | 32,230 | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
Research and development (including stock-based compensation of $196, $156, $784 and $300 in the three months ended December 31, 2005, 2004 and for the years ended 2005 and 2004, respectively) | | | 5,269 | | | | 3,924 | | | | 19,479 | | | | 14,306 | |
Sales, general and administrative (including stock-based compensation of $384, $288, $1,468 and $576 in the three months ended December 31, 2005, 2004 and for the years ended 2005 and 2004, respectively) | | | 4,889 | | | | 3,510 | | | | 17,651 | | | | 11,241 | |
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Total operating expenses | | | 10,158 | | | | 7,434 | | | | 37,130 | | | | 25,547 | |
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INCOME FROM OPERATIONS | | | 3,269 | | | | 1,045 | | | | 4,204 | | | | 6,683 | |
OTHER INCOME (EXPENSES): | | | | | | | | | | | | | | | | |
Interest and other income | | | 1,138 | | | | 71 | | | | 2,058 | | | | 157 | |
Interest and other expense | | | (71 | ) | | | (40 | ) | | | (121 | ) | | | (43 | ) |
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Total other income, net | | | 1,067 | | | | 31 | | | | 1,937 | | | | 114 | |
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INCOME BEFORE INCOME TAXES | | | 4,336 | | | | 1,076 | | | | 6,141 | | | | 6,797 | |
PROVISION FOR INCOME TAXES | | | 2,594 | | | | (8,640 | ) | | | 4,056 | | | | (8,381 | ) |
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NET INCOME | | $ | 1,742 | | | $ | 9,716 | | | $ | 2,085 | | | $ | 15,178 | |
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NET INCOME PER SHARE: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.04 | | | $ | 1.68 | | | $ | 0.10 | | | $ | 3.43 | |
Diluted | | $ | 0.04 | | | $ | 0.28 | | | $ | 0.05 | | | $ | 0.46 | |
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WEIGHTED AVERAGE SHARES USED IN NET INCOME PER SHARE CALCULATION: | | | | | | | | | | | | | | | | |
Basic | | | 42,699 | | | | 5,801 | | | | 21,025 | | | | 4,420 | |
Diluted | | | 46,883 | | | | 35,081 | | | | 40,147 | | | | 33,214 | |
© Advanced Analogic Technologies Incorporated
