OTTAWA, ON, Aug. 30 /CNW Telbec/ - Tundra Semiconductor Corporation
(TSX:TUN), the leader in System Interconnect, today reported financial results
for the first quarter of fiscal 2006, which ended July 31, 2005.
Q1-2006 RESULTS:
- Q1-2006 revenue of $18.2M (up 6% quarter-over-quarter but down 20%
compared to Q1-2005)
- Pro forma earnings of $1.8M (up from $1.4M in Q4-2005 but down
compared to pro forma earnings of $3.8M in Q1-2005)
- Pro forma diluted earnings per share were $0.09 (up compared to
pro forma diluted earnings per share of $0.07 in Q4-2005 but down
compared to pro forma diluted earnings per share of $0.19 in Q1-2005)
- GAAP earnings for Q1-2006 were $1.0M or $0.05 per diluted share
(up compared to $641K or $0.03 per diluted share in Q4-2005)
"We are pleased with the performance in the quarter, with the return of
sequential revenue growth and with the solid earnings results," said
Jim Roche, President and CEO of Tundra. "We are also encouraged by the
customer interest and early revenue traction for our recently launched new
products, which indicates that our product roadmaps are well positioned to
achieve our future growth objectives."
"Revenues for the quarter were above guidance, while margins remained
steady, as expected," said Norm Paquette, Chief Financial Officer of Tundra.
"We continue to deliver solid earnings, balancing the investments to drive
future growth, with the financial discipline to deliver on our short term
commitments."
GUIDANCE FOR Q2-2006:
- Revenue will remain steady in the range of $17.0M to $18.5M
- Pro forma diluted earnings per share will be in the range of $0.07 to
$0.10
- Gross margins will remain in the low-to-mid sixties
NEW PRODUCTS
Following closely after the launch of the Tsi108(TM) in March, Tundra
announced the addition of the Tsi108A(TM) to its family of host bridges for
PowerPC(R). The Tsi108A, an advanced host bridge with patent-pending
technology, offers multiprocessor support with power management and integrated
features such as spread spectrum clock generation and DDR2 memory support. It
is the ideal companion chip for both Freescale MPC74xx and IBM PPC 750xx
PowerPC processors. With a decade of investment and expertise in PowerPC,
Tundra's current portfolio of host bridges delivers industry-leading system
performance, system cost, system power, and signal integrity for customers in
the communications, pervasive computing, military and industrial automation
markets. In June, Tundra strengthened its leadership position with the
introduction of its roadmap and vision for next-generation host bridges
supporting PowerPC processor-based designs.
Also in the quarter, Tundra announced the availability of the Tsi148(TM),
the industry's leading PCI/X-to-VMEbus bridge, with a full industrial
temperature rating. The availability of an industrial temperature- rated
Tsi148 allows Tundra's customers with challenging thermal environments in
military and communications applications to perform system qualification at
higher ambient temperatures. Tundra continues to demonstrate its investment in
its VMEbus bridge product line, confirming its commitment to both customers
and partners. The addition of this Tsi148 variant strengthens Tundra's market
leadership position as the leading supplier of VME System Interconnect. The
Tsi148 is the successful next-generation offering to the
Tundra Universe(TM) II, the leading VMEbus bridge for embedded systems
customers.
RAPIDIO TECHNOLOGY AND ECOSYSTEM GAIN MOMENTUM IN 2005
Tundra continues to provide leadership in the development of the
RapidIO(R) standard and is the first to bring serial RapidIO switches to
market. RapidIO is the leading serial interconnect standard for embedded
systems and is supported by industry leaders such as: Lucent, Freescale,
Alcatel, AMCC, EMC Corp, and Ericsson.
A key element of the success of RapidIO technology is the breadth and
depth of the RapidIO ecosystem, which ensures that the RapidIO standard
continually meets the collective needs of the embedded marketplace. In the
quarter, Tundra announced the availability of the Tundra serial RapidIO
development platform - the first of its kind in the RapidIO ecosystem.
Continuing its commitment to provide comprehensive design support tools,
Tundra has partnered with Silicon Turnkey Express (STx) to supply the
reference design platform using the Tsi568A(TM) serial RapidIO switch. This
development platform combined with other easily accessible design support
tools for the Tundra RapidIO System Interconnect product family will
facilitate the flexibility and rapid prototyping capability needed to design
next-generation systems faster.
DRIVING THE GROWTH STRATEGY
Tundra recently announced the appointment of Mr. Ray Burgess to the
position of Vice President of Strategy and Marketing. The role will focus on
driving the growth strategy for the company and positioning Tundra for
continued success in its target markets. Mr. Burgess comes to the position
with more than 24 years of leadership experience in the semiconductor
industry, including strategy formulation, marketing and general management.
Most recently, he was the Senior Vice President of Strategy, Marketing and
Communications at Freescale Semiconductor, Inc. helping that company through
its successful Initial Public Offering (IPO) in 2004.
CONFERENCE CALL DETAILS
Tundra will host an analyst conference call and audio web cast on
August 30, 2005 at 5:00 pm (EST) to discuss this earnings update. Please visit
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)1212420 to
access the web cast. To listen by phone, call 416-640-4127. Media are invited
as "listen only" participants of the call. Replay of the call will be
available two hours following the call until September 8, 2005. To listen to
the conference call replay call 416-640-1917 and enter pass code number:
21133778(pound key).
ABOUT TUNDRA
Tundra Semiconductor Corporation delivers standards-based System
Interconnect for use by the world's leading vendors of wireless
infrastructure, networking, storage and pervasive computing systems.
Tundra System Interconnect allows customers to link critical system components
while compressing development cycles and maximizing performance. For more
information, please visit www.tundra.com .
The difference between pro forma and GAAP earnings is due to stock-based
compensation expense, goodwill impairment charges and amortization of
intangibles and other assets associated with Tundra's acquisitions. Tundra
uses pro forma measures internally to evaluate and manage operating
performance as well as to forecast and plan.
Comment respecting any Forward Looking Statement in this release
Tundra Semiconductor Corporation is a public company with common shares
listed for trading on The Toronto Stock Exchange (TSX:TUN) in Canada. All
figures, unless otherwise noted, are stated in Canadian dollars in accordance
with accounting principles generally accepted in Canada. The Company cautions
that the forward-looking statements in this release are based on current
expectations that are subject to risks and uncertainties. Actual results may
differ due to factors such as customer demand, product shipping schedules,
product mix, competitive products, pricing pressure, and changes in the
embedded systems market specifically. Additional information identifying risks
and uncertainties is contained in the Company's filings with the various
provincial securities commissions.
TUNDRA is a registered trademark of Tundra Semiconductor Corporation
(Canada, U.S. and U.K.). TUNDRA and the Tundra logo is a registered mark of
Tundra Semiconductor Corporation (Canada - registration in the United States,
European Union, and People's Republic of China pending). Other registered and
unregistered trademarks are the property of their respective owners. The
PowerPC name, Power Architecture name, and the PowerPC logotype are trademarks
of International Business Machines Corporation, used under license therefrom.
(C) Copyright 2005 Tundra Semiconductor Corporation. All rights reserved.
Information subject to change without notice.
<<
TUNDRA SEMICONDUCTOR CORPORATION
PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS
(Canadian dollars, amounts in thousands except per share data)
For the
fiscal quarter ended
--------------------
July 31 August 1
2005 2004
(Unaudited) (Unaudited)
Revenue $ 18,196 $ 22,641
Cost of revenue 6,366 8,106
-------------------------------------------------------------------------
Gross margin 11,830 14,535
-------------------------------------------------------------------------
Expenses
Sales and marketing 2,766 2,547
General and administration 1,422 1,636
Research and development 5,039 4,762
-------------------------------------------------------------------------
9,227 8,945
Pro forma earnings from operations 2,603 5,590
Interest and other income 225 323
-------------------------------------------------------------------------
Pro forma earnings before income taxes 2,828 5,913
Income tax recovery (provision) (1,012) (2,162)
-------------------------------------------------------------------------
PRO FORMA EARNINGS $ 1,816 $ 3,751
-------------------------------------------------------------------------
Pro forma earnings per share
Basic $ 0.09 $ 0.19
Diluted $ 0.09 $ 0.19
Weighted average number of common
shares outstanding
Basic 19,502 19,440
Diluted 19,664 19,886
-------------------------------------------------------------------------
TUNDRA SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS AND DEFICIT
(Canadian dollars, amounts in thousands except per share data)
For the
fiscal quarter ended
--------------------
July 31 August 1
2005 2004
(Unaudited) (Unaudited)
Revenue $ 18,196 $ 22,641
Cost of revenue 6,366 8,106
-------------------------------------------------------------------------
Gross margin 11,830 14,535
-------------------------------------------------------------------------
Expenses
Sales and marketing 2,766 2,547
General and administration 1,422 1,636
Research and development 5,039 4,762
Stock based compensation expense 458 327
Amortization of purchased intangibles and backlog 546 624
-------------------------------------------------------------------------
10,231 9,896
Earnings from operations 1,599 4,639
Interest and other income 225 323
-------------------------------------------------------------------------
Earnings before income taxes 1,824 4,962
Income tax recovery (provision) (815) (1,934)
-------------------------------------------------------------------------
NET EARNINGS 1,009 3,028
-------------------------------------------------------------------------
Deficit, beginning of period (37,608) (44,530)
Adjustment for change in accounting policy
related to stock based compensation 0 (570)
Deficit, beginning of period as restated (37,608) (45,100)
-------------------------------------------------------------------------
DEFICIT, END OF PERIOD $ (36,599) $ (42,072)
-------------------------------------------------------------------------
Earnings per share
Basic $ 0.05 $ 0.16
Diluted $ 0.05 $ 0.15
Weighted average number of common
shares outstanding
Basic 19,502 19,440
Diluted 19,664 19,886
-------------------------------------------------------------------------
TUNDRA SEMICONDUCTOR CORPORATION
CONSOLIDATED BALANCE SHEETS
(Canadian dollars, amounts in thousands)
July 31 April 30
2005 2005
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $ 26,291 $ 68,190
Short term investments 47,618 7,167
Accounts receivable 4,814 6,076
Inventories 4,311 4,629
Prepaid expenses and other current assets 3,761 4,774
Future income tax asset 1,209 901
-------------------------------------------------------------------------
88,004 91,737
Capital assets 22,050 20,132
Purchased intangibles 2,703 3,249
Goodwill 37,325 37,325
Future income tax asset 3,489 3,287
-------------------------------------------------------------------------
$ 153,571 $ 155,730
-------------------------------------------------------------------------
CURRENT LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 8,629 $ 11,116
Income tax payable 301 1,452
Note payable 1,370 1,404
-------------------------------------------------------------------------
10,300 13,972
Shareholders' equity
Share capital 177,458 177,412
Contributed surplus 2,412 1,954
Deficit (36,599) (37,608)
-------------------------------------------------------------------------
143,271 141,758
-------------------------------------------------------------------------
$ 153,571 $ 155,730
-------------------------------------------------------------------------
TUNDRA SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Canadian dollars, amounts in thousands)
For the
fiscal quarter ended
--------------------
July 31 August 1
2005 2004
(Unaudited) (Unaudited)
Operating activities
Net earnings $ 1,009 $ 3,028
Items not affecting cash:
Amortization of capital assets and
asset impairments 930 1,420
Amortization of purchased intangibles
and backlog 546 624
Stock-based compensation 458 327
Future income taxes (510) 1,554
-------------------------------------------------------------------------
2,433 6,953
Cash effect of changes in:
Accounts receivable 1,262 727
Income tax payable (1,151) 881
Inventories 318 (119)
Prepaid expenses and other current assets 1,013 (2,835)
Accounts payable and accrued liabilities (2,589) (5,783)
-------------------------------------------------------------------------
1,286 (176)
Investing activities
Acquisition of capital assets (2,780) (879)
Proceeds on disposal of capital assets 0 201
Acquisition of short term investments (40,451) (55,983)
Acquisition of business 0 (3,389)
-------------------------------------------------------------------------
(43,231) (60,050)
Financing activities
Net proceeds on the issue of common shares 46 1,259
-------------------------------------------------------------------------
46 1,259
Increase (decrease) in cash and cash equivalents (41,899) (58,967)
Cash and cash equivalents, beginning of period 68,190 70,630
-------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 26,291 $ 11,663
-------------------------------------------------------------------------
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