Exhibit 99.1
(BW)(CA-MICROSEMI)(MSCC) Microsemi's Operating Momentum Continues
IRVINE, Calif.--(BUSINESS WIRE)--April 25, 2002--
- -- Second Quarter Results in Line with Guidance
- -- Gross Margins up 370 Basis Points over Prior Year Second Quarter
- -- Positive Book-to-Bill Ratio of 1.02 for Second Quarter
Microsemi Corp. (Nasdaq:MSCC) today reported results for its
fiscal 2002 second quarter.
Net sales for the quarter ended March 31, 2002 were $55 million, compared
with net sales from continuing business of $60.7 million in the second quarter
of 2001, which excluded net sales of $2.4 million from businesses closed. Second
quarter pro forma net income (pro forma excludes items as indicated in attached
table) was $2.6 million, or $0.09 per share diluted, compared with $4.7 million,
or $0.16 per share diluted, in the second quarter of last year.
James J. Peterson, president and CEO, stated that: "We are very pleased with
our second quarter results, being within our guidance. Microsemi has benefited
from its strong design win activity over the last 18 months and our strategic
diversification."
Revenues for the first six months of fiscal 2002 were $112 million compared
with last fiscal year of $121.5 million which excludes $4.6 million from
businesses closed. Pro forma net income for the first six months of fiscal year
2002 totaled $7.6 million, or $0.25 per share diluted, compared with $9.3
million, or $0.32 per share diluted, in the first half of fiscal year 2001.
The company also reported previously announced Asset Impairments and
Restructuring charges. The total of the charges, which is not reflected in the
pro forma results reported above totaled $6.9 million. The Asset Impairment
charges of $1.6 million relate to component assembly equipment at its Watertown,
Mass. facility.
The Restructuring charges of $5.3 million are associated with the company's
Capacity Optimization and Profit Enhancement Program. The objectives of this
program are to increase companywide capacity utilization and operating
efficiencies through consolidations and realignments of operations. The program,
when completed over the next 12 months, is expected to result in annual pre-tax
cost savings of $5 million to $7 million.
The book-to-bill ratio for the quarter was 1.02.
Peterson said that: "The strength of our book-to-bill ratio and
the modest decline in our revenues from a year ago demonstrate the value of our
strategies. We have withstood this down cycle better than most."
Business outlook for the third quarter is improved over the second quarter.
Although the anticipated improvement in military orders has been slower to
develop than anticipated, military order rates are expected to accelerate in the
next two quarters. This is based upon contract awards and expectations reported
by prime and second tier government suppliers as well as expectations for the
2003 defense budget.
The positive book-to-bill ratio for the quarter is essentially due to growth
in commercial markets. Revenues in the third quarter are expected to be $56
million to $58 million and diluted pro forma EPS is
expected to be $0.09 to $0.11.
About Microsemi
Microsemi is a leading designer, manufacturer and marketer of analog,
mixed-signal and discrete semiconductors. The company's semiconductors manage
and regulate power, protect against transient voltage spikes and transmit,
receive and amplify signals.
Microsemi products include individual components as well as complete circuit
solutions that enhance customer designs by providing battery optimization,
reducing size or protecting circuits. Markets the company serves include mobile
connectivity, computer/peripherals, telecommunications, medical,
industrial/commercial, space/satellite and military.
More information may be obtained by contacting the company directly or by
visiting its Web site at http://www.microsemi.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Any statements set forth in the news release that are not entirely
historical and factual in nature are forward-looking statements. For instance,
all statements of belief and expectations are forward-looking statements.
Forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Potential risks and
uncertainties include, but are not limited to, such factors as the difficulties
regarding the making of estimates and projections, hiring and retention of
qualified technical personnel in a competitive labor market, acquiring and
integrating new operations or assets, closing or disposing of operations or
assets, rapidly changing technology and product obsolescence, the ability to
realize cost savings or productivity gains, the ability to improve capacity
utilization, potential cost increases, the strength and competitive pricing
environment of the marketplace, demand for and acceptance of the company's
products, the results of in-process or planned development, marketing and
promotional campaigns, changes in demand for products, difficulties foreseeing
future demand, effects of limited visibility of future sales, potential
non-realization of expected orders or non-realization of backlog, business and
economic conditions or adverse changes in current or expected industry
conditions, business disruptions, future effects of the tragic events of Sept.
11, customer order preferences, fluctuations in market prices of the company's
common stock and availability of additional capital on favorable terms,
difficulties in implementing company strategies, environmental matters,
litigation, difficulties protecting patents and other proprietary rights,
inventory obsolescence. In addition to these factors and any other factors
mentioned elsewhere in this news release, the reader should refer as well to the
factors, uncertainties or risks identified in the company's most recent Form
10-K filed on Dec. 24, 2001, the Form 10-Q filed on Feb. 13, 2002, and the final
prospectus on Form S-3 filed on June 1, 2000, each filed by the company with the
Securities and Exchange Commission. The company does not undertake to supplement
or correct any information in this release that is or becomes incorrect.
MICROSEMI CORP.
Pro Forma Consolidated Income Statements
Excluding Restructuring, Asset Impairments and
Acquisition Related Amortization
(In thousands, except per share data)
Quarter Ended Six Months Ended
April 1, March 31, April 1, March 31,
2001 2002 2001 2002
NET SALES $ 63,131 $ 54,969 $ 126,136 $ 111,987
Cost of sales 42,578 35,035 85,609 70,234
GROSS MARGIN 20,553 19,934 40,527 41,753
Operating expenses:
Selling, general and administrative 9,944 10,088 19,884 19,207
Research and development 3,774 5,793 7,197 10,947
Total operating expenses 13,718 15,881 27,081 30,154
OPERATING INCOME 6,835 4,053 13,446 11,599
Interest and other income (expense), net 222 (220) 402 (314)
INCOME BEFORE PROVISION FOR INCOME TAXES 7,057 3,833 13,848 11,285
Provision for income taxes 2,329 1,265 4,570 3,724
PRO FORMA NET INCOME $ 4,728 $ 2,568 $ 9,278 $ 7,561
Pro Forma Earnings per share:
Basic $ 0.17 $ 0.09 $ 0.33 $ 0.27
Diluted $ 0.16 $ 0.09 $ 0.32 $ 0.25
Common and common equivalent shares outstanding:
Basic 27,830 28,607 27,826 28,469
Diluted 29,378 29,855(a) 29,358 29,987
(a) Adjusted to include dilutive effect of common stock equivalents since
pro-forma results are income.
The above pro forma amounts have been adjusted to exclude the following items:
Restructuring charges for:
Inventory write-off $ -- $ 1,580 $ -- $ 1,580
Work force reductions -- 2,047 -- 2,047
Facility abandonments -- 1,688 -- 1,688
Asset impairments -- 1,607 -- 1,607
Amortization of goodwill and other intangible assets 686 844 1,359 1,936
686 7,766 1,359 8,858
Income tax effect 226 2,563 448 2,923
Effect of pro forma adjustments on net income $ 460 $ 5,203 $ 911 $ 5,935
MICROSEMI CORP.
Condensed Unaudited Consolidated Income Statements
(In thousands, except per share data)
Quarter ended Six months ended
April 1, March 31, April 1, March 31,
2001 2002 2001 2002
NET SALES $ 63,131 $ 54,969 $ 126,136 $ 111,987
Cost of sales (including inventory
write-off due to restructuring) 42,578 36,615 85,609 71,814
GROSS MARGIN 20,553 18,354 40,527 40,173
Operating expenses:
Selling, general and administrative 9,944 10,088 19,884 19,207
Research and development 3,774 5,793 7,197 10,947
Amortization of goodwill and other
intangible assets 686 844 1,359 1,936
Restructuring charges -- 3,735 -- 3,735
Asset impairments -- 1,607 -- 1,607
Total operating expenses 14,404 22,067 28,440 37,432
OPERATING INCOME (LOSS) 6,149 (3,713) 12,087 2,741
Interest and other income (expense), net 222 (220) 402 (314)
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES 6,371 (3,933) 12,489 2,427
Provision (benefit) for income taxes 2,102 (1,298) 4,121 801
NET INCOME $ 4,268 $ (2,635) $ 8,368 $ 1,626
Earnings (loss) per share:
Basic $ 0.15 $ (0.09) $ 0.30 $ 0.06
Diluted $ 0.15 $ (0.09) $ 0.29 $ 0.06
Common and common equivalent shares outstanding:
Basic 27,830 28,607 27,826 28,469
Diluted 29,378 28,607 29,358 29,987
MICROSEMI CORP.
Condensed Unaudited Consolidated Balance Sheets
(In thousands)
Sept. 30 March 31,
2001 2002
ASSETS
Current assets:
Cash and cash equivalents $ 24,808 $ 15,822
Accounts receivable, net 37,950 35,156
Inventories 58,889 60,028
Other current assets 14,349 15,257
Total current assets 135,996 126,263
Property and equipment, net 63,380 68,084
Other assets 40,795 39,163
TOTAL ASSETS $ 240,171 $ 233,510
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 53,744 $ 41,698
Long-term debt 6,078 5,282
Other long-term liabilities 4,960 4,645
Stockholders' equity 175,389 181,885
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 240,171 $ 233,510
CONTACT: Microsemi Corp., Irvine
David R. Sonksen (investor inquiries), 949/221-7101
Cliff Silver (editorial), 949/221-7112