Exar: Fiscal 4Q11 Financial Results

in US$ millions)	4Q10	4Q11	FY10	FY11
Revenues	38.5	33.8	134.9	146.0
*Growth*		-12%		8%
Net income (loss)	(3.3)	(18.8)	(28.1)	(35.7)

Exar Corporation reported financial results for its fiscal 2011 fourth quarter ended March 27, 2011.

Net sales for the fourth quarter of fiscal 2011 were $33.8 million
compared to net sales of $35.4 million for the prior quarter and $38.5
million for the fourth quarter of fiscal 2010.

The GAAP gross margin for the fourth quarter of fiscal 2011 was 35.0%
compared to 45.5% for the prior quarter and 50.4% in the fourth quarter
of fiscal 2010.

On a non-GAAP basis, the gross margin for the fourth quarter of fiscal
2011 was 46.1% compared to 50.0% for the prior quarter and 54.0% in the
fourth quarter of fiscal 2010.

The GAAP net loss for the fourth quarter of fiscal 2011 was $18.8
million, or $0.42 net loss per share, compared to a net loss of $5.0
million, or $0.11 net loss per share in the prior quarter, and a net
loss of $3.3 million, or $0.08 net loss per share, for the fourth
quarter of fiscal 2010.

On a non-GAAP basis, the net loss was $4.6 million for the fourth
quarter of fiscal 2011 or $0.10 net loss per share, compared to net loss
of $1.9 million, or $0.04 net loss per share in the previous quarter,
and the net income of $1.5 million, or $0.03 earnings per share, in the
fourth quarter of fiscal 2010.

The Company ended the fourth quarter of fiscal 2011 with cash, cash
equivalents and short-term marketable securities of $201 million.

"We completed fiscal 2011 with revenue growth of 8.2% year over year.
As the fourth quarter progressed we saw momentum in new orders and
shipments," said Pete Rodriguez, the Company’s president and chief executive officer. "During the period we exited the 10 Gigabit Ethernet Network Interface Card market
as announced on March 4, 2011. We reduced our quarterly operating
expenses by approximately $3 million, thereby significantly reducing our
revenue breakeven point."

For the first quarter of fiscal 2012 ending July 3, 2011, the Company
projects that net sales will be between $34 million and $36 million.
The non-GAAP gross margin is expected to be between 47% and 49%.
Operating expenses are expected to be between $18 million and $19
million on a non-GAAP basis.

The Company ended the fourth quarter of fiscal 2011 with cash, cash equivalents and short-term marketable securities of $201 million.

"We completed fiscal 2011 with revenue growth of 8.2% year over year. As the fourth quarter progressed we saw momentum in new orders and shipments," said Pete Rodriguez, the Company’s president and chief executive officer. "During the period we exited the 10 Gigabit Ethernet Network Interface Card market as announced on March 4, 2011. We reduced our quarterly operating expenses by approximately $3 million, thereby significantly reducing our revenue breakeven point."

For the first quarter of fiscal 2012 ending July 3, 2011, the Company projects that net sales will be between $34 million and $36 million. The non-GAAP gross margin is expected to be between 47% and 49%. Operating expenses are expected to be between $18 million and $19 million on a non-GAAP basis.