OTTAWA, Oct. 23 /CNW Telbec/ - Tundra Semiconductor Corporation (TSX:TUN), a leader in System Interconnect, today announced revised guidance for the second quarter of fiscal 2008, which ends October 28, 2007.
Revenue is expected to be in the range of $17.0 million to $18.0 million and pro forma diluted earnings per share are expected to be in the range of $0.00 to $0.04. At the close of the first fiscal 2008 quarter, the Company provided revenue guidance in the range of $19.0 million to $22.0 million and pro forma earnings per share guidance in the range of $0.05 to $0.09. The revised guidance is the result of two factors; softening of the communications market segment and strengthening of the Canadian dollar.
Softening of the overall communications infrastructure market is impacting the demand for all products that serve this market segment. Specifically, the slowed deployment of new wireless infrastructure is impacting the ramp of Tundra's new communications products. Demand for the Company's computing-storage products are in line with expectations for the quarter.
The strengthening of the Canadian dollar also continues to put pressure on Tundra's quarterly financial results. As the Company's revenue is generated in US dollars and subsequently reported in Canadian dollars, the USD/CAD dollar exchange rate has had a progressively negative impact on the Company's financial results for several quarters.
"We believe our mid to long term growth strategy is solid and we will continue to focus on its execution. Presently however, Tundra's revenues are impacted by the current end market environment. Although short-term visibility is limited we are confident in our long-term financial growth projections as our new product lines come to market" said Daniel Hoste, Tundra Semiconductor President and Chief Executive Officer.
On Thursday November 29th at 5 pm EST, the Company will provide further financial detail during its second quarter financial conference call, as well as guidance for the third quarter.
About Tundra
Tundra Semiconductor Corporation (TSX:TUN) supplies the world's leading communications, computing and storage companies with smart System Interconnect products and design services backed by world-class customer service and technical support. Tundra's track record of product leadership includes over a decade of bridges and switches enabling key industry standards: RapidIO(R), PCI, PCI-X, PCI Express(R), PowerPC(R), VME, HyperTransport(TM), Interlaken, and SPI4.2. Tundra's products deliver high functional quality and simplified board design and layout, with specific focus on system level signal integrity. Tundra's design services division, Silicon Logic Engineering, Inc., offers industry-leading ASIC and FPGA design services, semiconductor intellectual property and product development consulting. Tundra's smart technology connects critical components in high performance embedded systems around the world. 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 backlog associated with Tundra's acquisitions. Tundra uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan.
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 information in this release is based on certain assumptions made by the Company that may prove to be inaccurate. Assumptions made include, but are not limited to; customer demand for the Company's products and services, the Company's ability to maintain and enhance existing customer relationships, and leverage existing partnerships, as well as the Company's ability to bring to market the products currently under development.
Furthermore, 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, customer and partner relationships, new product development, new services offerings, product shipping schedules, product mix, competitive products and services, pricing pressure, exchange rate fluctuations, 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 are registered marks of Tundra Semiconductor Corporation in Canada, European Union, People's Republic of China and the United States Design.Connect.Go. is a trademark of Tundra Semiconductor Corporation. RapidIO is a trademark of the RapidIO Trade Association, Inc. Other registered and unregistered trademarks are the property of their respective owners.
(C) Copyright 2007 Tundra Semiconductor Corporation. All rights reserved.
Information subject to change without notice.