CALIFORNIA MICRO DEVICES CORPORATION 
By MILPITAS, Calif., Jan. 21 /PRNewswire-FirstCall/ -- California Micro Devices (Nasdaq: CAMD) today announced financial results for the third quarter of fiscal 2010, which ended December 31, 2009. Revenue was $12.6 million, compared to $9.7 million a year ago. GAAP EPS was a loss of ($0.04) compared to a loss of ($0.38) a year ago. Non-GAAP EPS was a profit of $0.02 compared to a loss of ($0.13) a year ago. Both GAAP and non-GAAP gross margins were 35 percent for the quarter. Non-GAAP operating expenses were $4.0 million while GAAP operating expenses were higher at $5.3 million primarily due to acquisition-related transaction costs of approximately $1.2 million. Positive operating cash flow was $900,000.
All results were in line with estimates announced on January 11, 2010, except that acquisition-related transaction costs were $1.2 million instead of the estimated $1.0 million primarily due to yesterday's announced litigation settlement which was accrued for in the 2010 fiscal third quarter which in turn led to GAAP operating expenses being $5.3 million instead of the estimated $5.1 million which caused GAAP EPS loss to be one cent greater than the estimate. For purposes of this release, non-GAAP financial measures are calculated excluding employee stock-based compensation expenses and acquisition-related transactions costs and using a cash basis tax rate.
About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of protection devices for the mobile handset, high brightness LED (HBLED), digital consumer electronics and personal computer markets. Detailed corporate and product information may be accessed at www.cmd.com.
In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains non-GAAP financial measures that exclude the effects of employee share-based compensation as required by Accounting Standards Codification Topic Nos. 718 "Compensation - Stock Compensation" (ASC 718) and 260 "Earnings Per Share" (ASC 260). The non-GAAP financial measures, as used by management and disclosed by the company, exclude the income statement effects of all forms of employee share-based compensation and the effects of ASC 260 upon the number of diluted shares used in calculating non-GAAP earnings per share. They also exclude acquisition-related transaction costs and utilize a tax rate that is based upon the income taxes the company expects to actually pay relating to the activities and results for the relevant fiscal time period. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The GAAP financial measures, and the reconciliation to non-GAAP financial measures, should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding these non-GAAP financial measures, see the Form 8-K dated January 21, 2010 that the company has filed with the Securities and Exchange Commission.
California Micro Devices Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
(Unaudited)
December 31, March 31,
2009 2009
---- ----
ASSETS
Current assets:
Cash and cash equivalents $45,188 $45,605
Accounts receivable, net 4,791 4,168
Inventories 4,497 5,228
Prepaid expenses and other current
assets 549 1,272
--- -----
Total current assets 55,025 56,273
Property, plant and equipment, net 1,819 3,525
Other long-term assets 88 115
--- ---
TOTAL ASSETS $56,932 $59,913
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,640 $3,775
Accrued liabilities 1,382 1,585
Deferred margin on shipments to
distributors 1,211 974
----- ---
Total current liabilities 10,233 6,334
Other long-term liabilities 184 221
--- ---
Total liabilities 10,417 6,555
------ -----
Commitments and contingencies
Stockholders' equity:
Preferred stock -10,000,000 shares
authorized; none issued and
outstanding as of December 31, 2009
and March 31, 2009 - -
Common stock and additional paid-in
capital - $0.001 par value;
50,000,000 shares authorized;
23,751,460 shares issued and
22,897,221 shares outstanding as of
December 31, 2009 and 23,553,019
shares issued and 22,879,696 shares
outstanding as of March 31, 2009 121,929 120,383
Accumulated deficit (73,471) (65,602)
------- -------
48,458 54,781
Treasury stock, at cost; 854,239 shares
as of December 31, 2009 and 673,323
shares as of March 31, 2009 (1,943) (1,423)
------ ------
Total stockholders' equity 46,515 53,358
------ ------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $56,932 $59,913
======= =======
California Micro Devices Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
-------------------------------
2009 2008
---- ----
Net sales $12,571 $9,659
Cost of sales 8,192 7,184
----- -----
Gross Margin 4,379 2,475
Operating expenses:
Research and development 1,278 2,668
Selling, general and
administrative 2,876 3,508
Merger related transaction costs 1,156 -
Restructuring and asset impairment
charges - -
Proxy contest expenses - -
Goodwill impairment - 5,258
Amortization/Impairment of
intangible assets 6 71
--- ---
Total operating expenses 5,316 11,505
----- ------
Operating loss (937) (9,030)
Other income (expense), net (2) 129
--- ---
Loss before income taxes (939) (8,901)
Provision for income taxes 4 10
--- ---
Net loss $(943) $(8,911)
===== =======
Net loss per share-basic and
diluted $(0.04) $(0.38)
====== ======
Weighted average common shares
outstanding-basic and diluted 22,863 23,260
====== ======
Nine Months Ended December 31,
------------------------------
2009 2008
---- ----
Net sales $33,034 $40,101
Cost of sales 23,443 27,779
------ ------
Gross Margin 9,591 12,322
Operating expenses:
Research and development 5,206 7,838
Selling, general and
administrative 9,633 11,205
Merger related transaction costs 1,156 -
Restructuring and asset impairment
charges 717 -
Proxy contest expenses 686 -
Goodwill impairment - 5,258
Amortization/Impairment of
intangible assets 17 126
--- ---
Total operating expenses 17,415 24,427
------ ------
Operating loss (7,824) (12,105)
Other income (expense), net (18) 1,616
--- -----
Loss before income taxes (7,842) (10,489)
Provision for income taxes 27 1,305
--- -----
Net loss $(7,869) $(11,794)
======= ========
Net loss per share-basic and
diluted $(0.34) $(0.51)
====== ======
Weighted average common shares
outstanding-basic and diluted 22,882 23,339
====== ======
California Micro Devices Corporation
FINANCIAL SUMMARY (NON-GAAP)
(amounts in thousands, except per share data)
(Unaudited)
GAAP TO NON-GAAP RECONCILIATION:
Three Months Ended December 31,
-------------------------------
2009 2008
---- ----
Gross Margin:
GAAP Gross Margin $4,379 $2,475
GAAP Gross Margin % 35% 26%
Reconciling items:
Stock-based compensation expense,
net of tax $38 $66
NON-GAAP Gross Margin $4,417 $2,541
NON-GAAP Gross Margin % 35% 26%
Net Loss:
GAAP Net Loss $(943) $(8,911)
Reconciling items:
Merger related transaction costs 1,156 -
Stock-based compensation expense,
net of tax 237 471
Restructuring and asset impairment
charges - -
Goodwill impairment - 5,258
Amortization/Impairment of
intangible assets 6 71
Difference between effective tax
rate and cash basis tax rate 9 (27)
--- ---
Total Adjustments $1,408 $5,773
NON-GAAP Net Income (Loss) $465 $(3,138)
Net Loss Per Share -Basic and
diluted:
GAAP Net Loss Per Share -Basic and
diluted $(0.04) $(0.38)
Reconciling items:
Merger related transaction costs 0.05 -
Stock-based compensation expense,
net of tax 0.01 0.02
Restructuring and asset impairment
charges - -
Goodwill impairment - 0.23
Amortization/Impairment of
intangible assets - -
Difference between effective tax
rate and cash basis tax rate - -
--- ---
Total Adjustments $0.06 $0.25
NON-GAAP Net Income (Loss) Per
Share - Basic and diluted $0.02 $(0.13)
Weighted average common shares used
to calculate GAAP EPS -Basic and
diluted 22,863 23,260
Weighted average common shares used
to calculate NON-GAAP EPS -
Basic 22,863 23,260
Weighted average common shares and
share equivalents outstanding used
to calculate NON-GAAP EPS -
diluted 23,014 23,260
GAAP TO NON-GAAP RECONCILIATION:
Nine Months Ended December 31,
------------------------------
2009 2008
---- ----
Gross Margin:
GAAP Gross Margin $9,591 $12,322
GAAP Gross Margin % 29% 31%
Reconciling items:
Stock-based compensation expense,
net of tax $204 $266
NON-GAAP Gross Margin $9,795 $12,588
NON-GAAP Gross Margin % 30% 31%
Net Loss:
GAAP Net Loss $(7,869) $(11,794)
Reconciling items:
Merger related transaction costs 1,156 -
Stock-based compensation expense,
net of tax 1,141 1,627
Restructuring and asset impairment
charges 452 -
Goodwill impairment - 5,258
Amortization/Impairment of
intangible assets 17 237
Difference between effective tax
rate and cash basis tax rate 30 1,222
--- -----
Total Adjustments $2,796 $8,344
NON-GAAP Net Income (Loss) $(5,073) $(3,450)
Net Loss Per Share -Basic and
diluted:
GAAP Net Loss Per Share -Basic and
diluted $(0.34) $(0.51)
Reconciling items:
Merger related transaction costs 0.05 -
Stock-based compensation expense,
net of tax 0.05 0.07
Restructuring and asset impairment
charges 0.02 -
Goodwill impairment - 0.23
Amortization/Impairment of
intangible assets - 0.01
Difference between effective tax
rate and cash basis tax rate - 0.05
--- ----
Total Adjustments $0.12 $0.36
NON-GAAP Net Income (Loss) Per
Share - Basic and diluted $(0.22) $(0.15)
Weighted average common shares used
to calculate GAAP EPS -Basic and
diluted 22,882 23,339
Weighted average common shares used
to calculate NON-GAAP EPS -
Basic 22,882 23,339
Weighted average common shares and
share equivalents outstanding used
to calculate NON-GAAP EPS -
diluted 22,882 23,339
SOURCE California Micro Devices Corporation
