7/17/2002 - Exar Corporation (Nasdaq: EXAR), a leading provider of high-performance, mixed-signal silicon solutions for the worldwide communications infrastructure, today reported fiscal 2003 first quarter operating results. Revenue for the first quarter was $17.9 million, up 16% sequentially from $15.5 million in the fourth quarter of fiscal 2002 and up 45% from $12.4 million for the same period last year. First quarter operating loss was $0.4 million, a 74% improvement from the loss of $1.5 million for the previous quarter and an 88% improvement from the loss of $3.1 million for the same period last year. Net income for the quarter was $1.1 million, as compared to $0.9 million for the previous quarter and $1.3 million for the first quarter of fiscal 2002. For the quarter, EPS was $0.03 per diluted share compared to $0.02 for the previous quarter and $0.03 with the same period last year.
"Despite a challenging market environment, we were able to deliver our fourth consecutive quarter of sequential revenue growth, remain cash flow positive, maintain our R&D focus and continue to improve operating performance," said Donald L. Ciffone, chairman, president and chief executive officer. "Exar continues to execute on new product initiatives, adding over a dozen products to our transmission portfolio during the quarter. These new products complement our market-leading T3/E3 physical layer and emerging SONET data aggregation devices and should provide a solid foundation for our future growth."
During the quarter, Exar introduced a number of new physical interface and data aggregation solutions. With increased device channel density on the Company's already robust T3/E3 transceiver family, OEMs can now select 6 or 12-channel devices in addition to the existing 1, 2, 3 and 4-channel devices. In addition, Exar expanded its T3/E3 transceiver portfolio with two new product lines: an integrated transceiver with jitter attenuation and an integrated transceiver with desynchronization. These two families are composed of multi-channel configurations including 2, 3, 4, 6, and 12 channel devices. These channel density options provide OEMs' flexibility when designing with Exar's complementary framers and data aggregation mappers.
Exar also announced three SONET/SDH products: an OC-3 mapper, a 4 x OC-3/OC-12 framer and a 650MHz clock synthesizer. The OC-3 mapper is capable of aggregating three T3/E3/STS-1 into OC-3/STM-1 or providing payload mapping for ATM cells or IP packets (PPP) into OC-3/STM-1. The 4 x OC-3/OC-12 framer and clock synthesizer provide design options to OEMs that may reduce cost and save board space. The SONET/SDH products open new opportunities for Exar in access and metro networks. Key to Exar's success in data aggregation is its in-depth understanding of complex timing issues when mapping/de-mapping T3/E3 into SONET/SDH environments. Exar has incorporated into select products a unique desynchronization solution that addresses these issues.
Regulation Fair Disclosure/Current Business Outlook
Exar adheres to the Securities and Exchange Commission's Regulation Fair Disclosure. The Company intends to provide its investors and analysts with guidance each quarter in its earnings news release and its conference calls. Exar will not provide any further guidance or updates on its performance during the quarter unless it does so in a news release, such as this one, or in such other manner that is compliant with Regulation FD.
The Company's statements about its future financial performance are based on current information and expectations and the Company undertakes no duty to update such statements. The statements are forward-looking and actual results could differ materially due to the risks and uncertainties described below. For the second quarter fiscal 2003 ending September 30, 2002, Exar is forecasting revenue to increase 5% to 8% over the previous quarter. The Company expects EPS to be between $0.03 and $0.04.
Earnings Conference Call
Exar invites financial analysts, members of the media, and the general public to listen to its conference call discussing the Company's fiscal 2003 first quarter financial results, today, Tuesday, July 16, 2002 at 10:30 am PDT. To access the conference call, please dial 913-981-5507 by 10:20 am PDT. In addition, a live webcast will also be available. To access the webcast, please go to Exar's investors' homepage at http://www.exar.com . A replay of the call will be available starting at 1:30 pm PDT today until July 23, 2002 at 5:00 pm PDT. To access the replay, please dial 719-457-0820 and use the passcode 594816.
Safe Harbor Statement
In addition to the Company's statements about its future financial performance, this release contains forward-looking statements, including those concerning design win activity and the Company's positioning for future growth, that involve risks and uncertainties, including global economic and industry conditions, such as the level of capital spending, specifically in the telecommunications, data communications and video and imaging markets; possible disruption in commercial activities as a consequence of terrorist activity and armed conflict; eroding interests rates impacting the Company's Other Income; customer/contract manufacturer/distributor inventory levels and the rate at which these inventory levels decline; successful development, market acceptance and demand for the Company's products; competitive factors, such as pricing or competing solutions; and the Company's successful execution of internal performance plans, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended March 31, 2002.
Exar Corporation designs, develops and markets high-performance, analog and mixed-signal silicon solutions for the worldwide communications infrastructure. Leveraging its industry-proven analog design expertise, system-level knowledge and standard CMOS process technologies, Exar provides OEMs innovative, highly integrated ICs that facilitate the transport and aggregation of signals in access, metro and wide area networks. The Company's physical layer silicon solutions address transmission standards such as T/E carrier, ATM and SONET. Additionally, Exar offers ICs for both the serial communications and the video and imaging markets. The Company is based in Fremont, CA, had fiscal 2002 revenues of $55 million, and employs approximately 290 people worldwide. For more information about Exar, visit www.exar.com
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