Exar: Fiscal 3Q14 Financial Results
Networking and storage sales declined sequentially.
This is a Press Release edited by StorageNewsletter.com on February 7, 2014 at 3:00 pm| (in US$ million) | 3Q13 | 3Q14 | 9 mo. 13 | 9 mo. 14 |
| Revenues | 31.0 | 30.7 | 90.9 | 97.3 |
| Growth | -1% | 7% | ||
| Net income (loss) | 4.1 | 2.0 | 8.3 | 11.9 |
Exar Corporation announced financial results for the company’s third quarter of fiscal year 2014, ended December 29, 2013.
Revenue of $30.7 million for the third quarter of fiscal year 2014 decreased from $34.0 million in the previous quarter and $31.0 million in the same quarter a year ago.
On a non-GAAP basis, gross margin was 49% and non-GAAP net income was $2.0 million, or $0.04 per fully diluted share. On a GAAP basis, gross margin was 42% and net loss was $1.6 million, or $0.03 loss per share.
Louis DiNardo, the company’s president and CEO, commented: “As anticipated, our financial results for the quarter were impacted by supply chain inventory exceeding demand in the networking market. We expect the inventory to be consumed over the next several months and a return to growth in this vibrant market based on our strong position at major OEMs. Design win momentum for our compression and security products is robust and new customers are expected to begin production this quarter. As a result, we are building an outstanding diverse customer base in both the structured and unstructured data compression markets, as well as in network security.“
“Our core business in the industrial market remains strong and has been enhanced by the addition of new high performance analog products. Additionally, the products and revenue associated with our recent acquisition of Stretch, Inc. will provide meaningful new customer engagements and revenue in the large and growing surveillance market in the near-term,” concluded Mr. DiNardo.
For the fourth quarter of fiscal year 2014 the company expects total revenue to be in the range of $30.0 to $32.0 million and expects non-GAAP gross margin to be in the range of 48% to 50%.
Recent Product and Business Developments:
- Power Management Module XRP9710 and XR9711 provide a fully integrated multiple output power supply.
- Compression and Security Coprocessor XR9200 delivers 40Gb/s operation with a PCIe Gen 3 interface for compression and hardware-accelerated encryption.
- High Performance Low Drop Out Regulator XR6274 operates to down to 1 volt with less than 100mv dropout at 2 amps.
- Acquisition of Stretch, Inc. supports high definition video security solutions for high definition serial data interface.
Comments
Abstracts the earnings call transcript:
Ryan Benton, CFO:
"As anticipated, Networking & Storage sales declined sequentially. Third quarter sales decreased to $7.1 million or 23% of third quarter sales. This represents a decrease of $3.2 million from the $10.3 million reported last quarter. In the short term, we were clearly impacted by the supply chain inventory for our data compression products exceeding demand. On a year-to-date basis, even with the pause this quarter, Networking & Storage sales has grown to $27.3 million, up 17% or $3.9 million."
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