4/25/2003 - Exar Corporation (Nasdaq: EXAR), a leading provider of high-performance, mixed-signal silicon solutions for the worldwide communications infrastructure, reported fiscal 2003 fourth quarter and year end operating results. Revenue for the quarter ended March 31, 2003 was $15.0 million flat compared to the prior quarter and down from $15.5 million for the same period last year. The fourth quarter fiscal 2003 operating loss was $0.4 million improved from an operating loss of $1.2 million for the prior quarter and an operating loss of $1.5 million for the fourth quarter fiscal 2002. Net income for the March quarter was $1.1 million up sequentially from $0.8 million and up from $0.9 million in the same period last year. For the March quarter, EPS was $0.03 up from $0.02 for both the previous quarter and the fourth quarter fiscal 2002.
Revenue for fiscal year ended March 31, 2003 was $67.0 million up 22% from $55.0 million for fiscal year 2002. For fiscal year 2003, the operating loss was $4.2 million (the pro forma operating loss was $1.9 million) improved from an operating loss of $8.9 million for the previous fiscal year. The fiscal year 2003 pro forma operating results exclude a $2.3 million inventory write-down charge. A reconciliation of the pro forma adjustments to GAAP financial results for fiscal 2003 appears in the financial statements portion of this release. The net loss for fiscal year 2003 was $32.3 million (the pro forma net income was $4.7 million) as compared to a net income of $4.0 million for the previous fiscal year. Pro forma net income for fiscal 2003 excludes a charge of $35.4 million related to the impairment of Exar's investment in a private company and the $2.3 million inventory write-down, less the income tax effect of $0.7 million. For the fiscal year, EPS was ($0.81) down from $0.10 in fiscal year 2002. Pro forma EPS was $0.11 (diluted) for fiscal 2003.
"Despite last year's challenging market environment, Exar was able to generate year-over-year revenue growth, expand its product portfolio by introducing 28 new products, remain cash flow positive and win over 400 designs," said Donald L. Ciffone, chairman, president and chief executive officer. "We believe that Exar's strong balance sheet, new product execution and operational efficiency position the Company for growth as the economic environment improves."
Continuing a trend that began over 15 years ago, Exar remained cash flow positive from operations for fiscal year 2003. For the fiscal year, Exar increased cash, cash-equivalents, short-term and long-term marketable securities by $17.9 million from $404.2 million. For the March quarter, Exar increased cash, cash-equivalents, short-term and long-term marketable securities by $4.9 million to $422.1 million or $10.53 per outstanding share net of treasury shares. (The cash per outstanding share is calculated as follows: cash and cash equivalents plus short-term and long-term marketable securities divided by the total outstanding shares, net of treasury shares as of March 31, 2003.)
During the quarter, Exar introduced several new industry first products including 2, 4 and 8 channel universal I/O PCI UARTs which support 3.3V and 5V PCI bus version 2.3 signaling specifications. The devices provide a direct interface to the PCI bus, eliminating the PCI local bus bridge thus reducing system cost and board space requirements. The Company announced a 350 MHz clock synthesizer for use in Gigabit Ethernet, SONET/SDH and other low jitter applications. Exar recently announced sample availability for two 14 channel T1/E1/J1 LIU products which extends Exar's R(3) Technology (TM) (Reconfigurable, Relayless Redundancy) transceiver family. These differentiating features, reconfigurable termination and relayless redundancy, enable an OEM to use a single bill-of-material that can simplify board layout and inventory requirements thus reducing overall costs. Exar is the first to offer this level of integration, the channel density ideal for VT mapping applications.
Regulatory Compliance/Current Business Outlook
Exar adheres to the Securities and Exchange Commission's requirements governing public company reporting obligations. 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 and Regulation G, as the case may be.
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 various risks and uncertainties, some of which are described below. Visibility remains limited. For the first quarter fiscal 2004 ending June 30, 2003, Exar is forecasting revenue to be $14 million to $15 million. The Company projects EPS to be $0.01 to $0.03 per diluted share for the first fiscal quarter.
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 2003 revenues of $67 million, and employs approximately 265 people worldwide. For more information about Exar, visit www.exar.com.
R(3) Technology is a trademark of Exar Corporation.
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