Q1-2009 RESULTS:
* Q1 Revenue: $18.0 million
* Q1 Pro forma earnings: $1.2 million
* Q1 Pro forma diluted earnings per share: $0.06
* Q1 GAAP Results: earnings of $0.4 million or $0.02 per diluted share
* Q1 Product Revenue: up 4% over previous quarter
Revenue for the first quarter of fiscal year 2009 was $18.0 million, comprised of $8.9 million in the Communications market segment, $6.8 million in the Computing/Storage market segment, and $2.3 million in Design Services. Quarterly revenue represents a 1% increase from the fourth quarter of fiscal year 2008 and a 10% decrease compared to the first quarter in fiscal year 2008. Pro forma earnings for the quarter were $1.2 million or $0.06 per share, compared to earnings of $1.5 million or $0.07 per share in the fourth quarter of fiscal year 2008 and compared to $1.9 million or $0.10 per share in the first quarter of fiscal year 2008. GAAP earnings for the quarter were $0.4 million or $0.02 per diluted share, compared to a loss of $3.9 million or $0.20 per diluted share in the fourth quarter of fiscal year 2008, and a loss of $1.0 million or $0.05 per diluted share in the first quarter fiscal year 2008.
“We are pleased with the financial results of the first quarter of fiscal 2009. Revenue and pro forma earnings were at the high end of the guidance we provided at the close of the fourth quarter, and we also achieved more than 4% growth in product revenue as projected. Our cash position remains strong at more than $58 million and our cash generated from operations was once again positive,” said Daniel Hoste , President and Chief Executive Officer, Tundra Semiconductor. “In the first quarter we adapted our growth strategy to focus on maintaining our leadership position in RapidIO and on addressing new, broader, larger markets by expanding our PCI Express portfolio. We are excited about this strategy, setting up Tundra for steady growth from both product lines, while we will continue to carefully manage our financial performance,” continued Hoste.
Management offers the following outlook for the second quarter of fiscal year 2009:
* Q2 Revenue is expected to be in the range of $16.5 million to $18.5 million
* Q2 Pro forma diluted earnings per share is expected to be in the range of $0.03 to $0.07
“Our outlook for the second quarter is expected to be consistent with first quarter resultsguidance, with a continued focus on delivering solid cash performance,” said David Long, Chief Financial Officer, Tundra Semiconductor.
Q1-2009 Highlights
* Tundra announced that it has been selected by ZTE Corporation, a leading global provider of telecommunications equipment and network solutions, to supply Tundra’s high performance PCI Express® (PCIe) product for ZTE’s Next Generation Platform System Graphics Card. ZTE selected Tundra’s high performance semiconductor to improve overall performance on its new Graphics Card. Tundra’s PCIe interconnect solution has typical power consumption of 1.3W, and incorporates power management to minimize power consumption during operation. In addition, Tundra’s PCIe product offers the flexibility, high performance, small footprint, low power consumption and drop-in compatibility that ZTE required for its new design.
* In the quarter Tundra introduced an evaluation platform centered on its Tsi620TM multi-standard RapidIO® Switch. In addition to the Tundra Tsi620, the multi-platform evaluation platform works in conjunction with Texas Instruments (TI) TMS320TCI6487 high performance multi-core DSP and an Altera® Stratix® III FPGA to enable prototyping and, ultimately, cost reduction in applications such as high performance wireless and video processing, medical imaging and military signal-processing solutions. The platform will allow customers to use the RapidIO protocol for DSP or processor aggregation, while leveraging the Tsi620’s hardware bridging to low cost PCI-enabled processors. The platform offers communication with a variety of cost competitive PCI-enabled microprocessors through a PMC connector, providing additional cost saving opportunities. TI’s 3GHz embedded DSP delivers exceptional performance in computationally challenging applications. On the evaluation platform, the Tsi620 interfaces with Altera’s Stratix III FPGA to leverage RapidIO over XGMII. This results in low latency while leveraging the RapidIO protocol and allows customers to access RapidIO processor clusters from an FPGA without SerDes. The complete solution allows customers to reduce their time-to-market, and the bill-of-materials (BOM) in end applications by over $100 compared to other solutions.
Finally, it is with deep regret that we announced in July that Mike Unger, a long-standing member of the Tundra Board of Directors, passed away after a short illness. Mike served on Tundra’s Board of Directors since 2001, after a long and successful career at Nortel Networks, his last role there being President of the Optical Networks Division. As a Director of Tundra’s business, and as Chair of the Board’s Human Resources, Corporate Governance and Nominating Committee, Mike demonstrated grace, balance, wisdom and good judgment in all that he did, and always had the best interests of Tundra’s Shareholders and Employees in mind. Mike’s positive attitude and good nature will be sorely missed.
Conference Call and Webcast
Tundra management will hold a conference call today August 28, 2008 at 5:00pm EST to discuss additional details regarding this earnings update. You can access the conference call via any of the following:
Teleconference: 1.416-644-3414
Replay: 1.416-640-1917, Passcode: 21280986#. (Available until Sept 4, 2008)
Web Cast: www.newswire.ca/en/webcast/viewEvent.cgi?eventI[…]
Access the PDF of the Q1 FY09 Financials
About Tundra
Tundra Semiconductor Corporation (TSX:TUN) supplies the world’s leading communications, computing and storage companies with System Interconnect products, intellectual property (IP) and design services backed by world-class customer service and technical support. Tundra’s track record of product leadership includes over a decade of bridges and switches enabling key industry standards: RapidIO®, PCI, PCI-X, PCI Express®, Power Architecture™, VME, HyperTransport™, Interlaken, and SPI4.2. Tundra’s products deliver high functional quality and simplified board design and layout, with specific focus on system level signal integrity. Tundra’s design services division, Silicon Logic Engineering, Inc., offers industry-leading ASIC and FPGA design services, semiconductor intellectual property and product development consulting. Tundra’s technology connects critical components in high performance embedded systems around the world. For more information, please visit www.tundra.com.
The difference between pro forma and GAAP earnings is due to stock-based compensation expense, restructuring charges, goodwill impairment charges and amortization of intangibles and other assets associated with Tundra’s acquisitions. Tundra uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan.
Tundra Semiconductor Corporation is a public company with common shares listed for trading on the Toronto Stock Exchange (TSX:TUN) in Canada. All figures, unless otherwise noted, are stated in Canadian dollars in accordance with accounting principles generally accepted in Canada.
Forward Looking Information
The Company cautions that the forward-looking information in this release is based on certain assumptions made by the Company that may prove to be inaccurate. Assumptions made include assumptions about: stability of the telecommunications market, appropriate customer inventory levels, minimal currency fluctuation, the movement of products from design wins to production within customer products, the Company’s ability to bring to market the products currently under development, as well as stability of customer need for design services.
Furthermore, the Company cautions that the forward-looking statements in this release are based on current expectations that are subject to risks and uncertainties. Actual results may differ due to variable factors such as customer demand and customer inventory management, customer relationships, product development, new services offerings, product shipping schedules, product mix, competitive products and services, pricing pressure, changes in the Company’s target markets, including but not limited to the telecommunications market, and currency fluctuation . The Company assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company’s filings with the various provincial securities commissions which are available online at www.sedar.com.
TUNDRA and the Tundra logo are registered marks of Tundra Semiconductor Corporation in Canada, the United States, the European Union and the People’s Republic of China. Design.Connect.Go. and Tsi620 are trademarks of Tundra Semiconductor Corporation. RapidIO is a trademark of the RapidIO Trade Association, Inc. The PowerPC name, Power Architecture name, and the PowerPC logotype are trademarks of International Business Machines Corporation, used under license therefrom. Other registered and unregistered trademarks are the property of their respective owners.
Development of the Tundra Tsi620 was made possible in part with the assistance of the Technology Partnerships Canada Program.