AnalogicTech Reports Financial Results for the Fourth Quarter and Fiscal Year 2010

News provided by

Advanced Analogic Technologies, Inc.

Feb 03, 2011, 04:15 ET

SANTA CLARA, Calif., Feb. 3, 2011 /PRNewswire/ -- Advanced Analogic Technologies, Inc. (AnalogicTech,™Nasdaq: AATI), an analog semiconductor company focused on powering innovative solutions in consumer electronics, computing, and communications markets, today reported financial results for the fourth quarter and fiscal year ended December 31, 2010.

(Logo: http://photos.prnewswire.com/prnh/20050829/SFTU089LOGO)

Net revenue for the fourth quarter of 2010 was $24.0 million, an increase of 15.2% over net revenue of $20.8 million for the fourth quarter of 2009, and a decrease of 3.9% from net revenue of $25.0 million for the third quarter of 2010. Net revenue for the fiscal year ended December 31, 2010, was $94.1 million, up 8.7% from net revenue of $86.5 million for 2009.

In accordance with U.S. generally accepted accounting principles (GAAP), net loss for the fourth quarter of 2010 was $3.3 million, or $0.08 per diluted share. This compares to a GAAP net loss of $4.0 million, or $0.09 per diluted share, for the fourth quarter of 2009 and a GAAP net loss of $1.3 million, or $0.03 per diluted share, for the third quarter of 2010.  The results for the third quarter of 2010 included a one-time tax benefit of $3.4 million as a result of a settlement with the IRS for the 2005 and 2006 tax years.  Net loss for fiscal year 2010 was $12.8 million, or $0.30 per diluted share, compared to net loss of $12.7 million, or $0.29 per diluted share, for fiscal year 2009.

On a non-GAAP basis, net loss for the fourth quarter of 2010 was $1.8 million, or $0.04 per diluted share. This compares to a non-GAAP net loss of $2.0 million, or $0.05 per diluted share, for the fourth quarter of 2009, and a non-GAAP net loss of $2.4 million, or $0.06 per diluted share, for the third quarter of 2010.  

Non-GAAP net loss for fiscal year 2010 was $9.7 million, or $0.23 per diluted share, compared to non-GAAP net loss of $5.4 million, or $0.13 per diluted share, for fiscal year 2009.

Please refer to the tables below for a reconciliation between GAAP and non-GAAP financial measures.  

AnalogicTech reported gross profit of 42.8% for the fourth quarter of 2010, compared to 47.6% for the fourth quarter of 2009 and 43.5% for the third quarter of 2010.  Non-GAAP gross profit was 43.1% for the fourth quarter of 2010, compared to 48.1% for the fourth quarter of 2009 and 44.2% for the third quarter of 2010. The Company ended the quarter with $87.4 million in cash, cash equivalents, and short-term investments.  

"Our fourth quarter results were in line with expectations," stated Richard K. Williams, President, CEO and CTO of AnalogicTech. "Our product momentum continued with significant design-in and design-win activities in the fourth quarter.  We experienced continued strong interest in our products across our end markets, including newer segments such as large screen LCD TVs, low-power computing, handheld devices and, our newest market segment, GreenPower.  We are encouraged by the promising market opportunities in these new segments and believe we are well positioned to capture future growth."  

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially.  AnalogicTech undertakes no obligation to update these statements.

For the first quarter of 2011, AnalogicTech estimates net revenue in the range of $21 million to $23 million, and a net loss in the range of $0.09 to $0.07 per diluted share on a GAAP basis.  The first quarter 2011 estimates include pre-tax quarterly stock-based compensation expense of approximately $1.1 million.  

Non-GAAP Reporting

In addition to GAAP reporting, AnalogicTech reports net loss, gross profit and net loss per diluted share on a non-GAAP basis. This non-GAAP earnings information excludes certain items and their tax-related effects. AnalogicTech believes this non-GAAP earnings information provides meaningful insight into the Company's ongoing operational performance and has therefore chosen to provide this information to investors as an additional dimension of comparability to similar companies. AnalogicTech also uses this information internally to evaluate and manage company operations and to determine incentive compensation. A reconciliation between GAAP and non-GAAP net loss, gross profit and loss per diluted share is included in the tables below.

The non-GAAP information included in this press release is not necessarily comparable to non-GAAP information of other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.

Conference Call Details

The AnalogicTech fourth quarter and fiscal year 2010 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time on Thursday, February 3, 2011.  To participate in the live call, analysts and investors should dial 877-941-8416 or 480-629-9808 at least ten minutes prior to the call. AnalogicTech will also offer a live and archived webcast of the conference call, accessible from the company's investor relations website at http://www.aati.com in the "Webcasts" section.  A telephonic replay of the conference call will also be available through February 10, 2011, by dialing 800-406-7325 and entering the passcode 4406383#. Callers outside the U.S. and Canada may access the replay by dialing 303-590-3030 and entering the passcode 4406383#.

About Advanced Analogic Technologies, Inc.:

Advanced Analogic Technologies, Inc. (AATI) develops advanced semiconductor system solutions that play a key role in the continuing evolution of feature-rich, energy efficient electronic devices. The company focuses on addressing the application-specific power management needs of consumer devices such as mobile handsets, digital cameras, and netbooks/notebooks, as well as devices in a broad range of industrial, medical and telecom applications. AATI also licenses device, process, package, and application-related technologies. Headquartered in Silicon Valley, AATI has design centers in Santa Clara and Shanghai, and Asia-based operations and logistics. For more information, please visit www.analogictech.com. (AnalogicTech - F)

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

Statements contained in this release that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause AnalogicTech's actual results to differ materially from our current expectations. Factors that could cause AnalogicTech's results to differ materially from those set forth in these forward-looking statements include customers' cancellation or modification of their orders; our failure to accurately forecast demand for our products; the loss of, or a significant reduction in orders from, any of our significant customers; consumer demand for cellular phones and other mobile consumer electronic devices; worldwide economic and political conditions, particularly in Asia; our ability to manage inventory levels, fluctuations in our operating results; our inability to develop and sell new products; defects in or failures of our products; the expense and uncertainty involved in our customer design-win efforts; the financial viability of the distributors of our products; fluctuations in our costs to manufacture our products; our reliance on third parties to manufacture, test, assemble and ship our products; our ability to retain and attract key personnel; our ability to compete with our competitors; and our ability to protect our intellectual property rights and not infringe the intellectual property rights of others. Other factors that may cause our actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect our prospects in general are described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2009. AnalogicTech undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.

AnalogicTech and the AnalogicTech logo are trademarks of Advanced Analogic Technologies, Inc.  All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)













Dec. 31,


Dec. 31,





2010

2009 (*)

ASSETS





CURRENT ASSETS





Cash and cash equivalents

$   37,158

$   36,120


Short-term investments

50,245

65,883



Total cash, cash equivalents and short term investments

87,403

102,003


Accounts receivable, net of allowances

13,629

9,348


Inventories

11,390

7,234


Prepaid expenses and other current assets

1,803

4,291



Total current assets

114,225

122,876

Property and equipment, net

5,061

4,607

Other assets

3,182

3,110

Deferred income taxes


188

318

Intangible assets, net

50

117

Goodwill

16,116

16,116








TOTAL ASSETS

$ 138,822

$ 147,144
















LIABILITIES AND STOCKHOLDERS' EQUITY




CURRENT LIABILITIES





Accounts payable

$     9,315

$     6,614


Accrued liabilities

4,481

3,726


Income tax payable

146

114



Total current liabilities

13,942

10,454

Long-term income tax payable

2,221

4,365

Other long-term liabilities

297

275



Total liabilities

16,460

15,094









Total stockholders' equity

122,362

132,050








TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 138,822

$ 147,144








* Amounts as of December 31, 2009 were derived from the December 31, 2009 audited consolidated financial

 statements included in our Form 10-K.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)















Three Months Ended

Three Months Ended

Years Ended



Dec. 31,


Dec. 31,


Sep. 30,


Dec. 31,


Dec. 31,




2010

2009

2010

2010

2009












NET REVENUE

$ 24,015

$ 20,845

$           24,982

$  94,061

$  86,512

Cost of revenue

13,725

10,923

14,111

51,760

44,686

GROSS PROFIT

10,290

9,922

10,871

42,301

41,826












OPERATING EXPENSES:










Research and development

6,709

7,149

8,679

30,326

27,468

Sales, general and administrative

6,237

6,085

6,546

25,053

24,132

Patent litigation

125

1,346

41

1,495

3,045

Total operating expenses

13,071

14,580

15,266

56,874

54,645












LOSS FROM OPERATIONS

(2,781)

(4,658)

(4,395)

(14,573)

(12,819)












INTEREST AND OTHER INCOME (EXPENSE), NET

(2)

106

(12)

70

915












LOSS BEFORE INCOME TAXES

(2,783)

(4,552)

(4,407)

(14,503)

(11,904)

PROVISION FOR (BENEFIT FROM) INCOME TAXES

561

(592)

(3,114)

(1,751)

769

NET LOSS

$ (3,344)

$ (3,960)

$           (1,293)

$ (12,752)

$ (12,673)












NET LOSS PER SHARE:










Basic


$   (0.08)

$   (0.09)

$             (0.03)

$     (0.30)

$     (0.29)

Diluted

$   (0.08)

$   (0.09)

$             (0.03)

$     (0.30)

$     (0.29)












WEIGHTED AVERAGE SHARES USED IN












NET LOSS PER SHARE CALCULATION:










Basic


42,252

42,947

42,156

42,561

42,973

Diluted

42,252

42,947

42,156

42,561

42,973













Note: Stock-based compensation expense












recorded in each expense classification above










is as follows:






















Cost of revenue

$        68

$        83

$                120

$       325

$       309

Research and development

469

963

832

2,438

3,163

Sales, general and administrative

688

942

825

2,813

3,456



$   1,225

$   1,988

$             1,777

$    5,576

$    6,928

Financial Summary (Non-GAAP)

(in thousands, except per share amounts)

(unaudited)
















Three Months Ended

Three Months Ended

Years Ended

GAAP TO NON-GAAP RECONCILIATION

Dec. 31,


Dec. 31,



Sep. 30,



Dec. 31,


Dec. 31,




2010

2009

2010

2010

2009

GROSS PROFIT:

























GAAP GROSS PROFIT

$ 10,290

$  9,922

$      10,871

$  42,301

$  41,826

GAAP GROSS PROFIT %

42.8%

47.6%

43.5%

45.0%

48.3%

Amortization of acquired intangibles

-

18

-

-

176

Stock-based compensation

68

83

120

325

309

Restructuring and other severance expenses

-

-

49

49

-

NON-GAAP GROSS PROFIT

10,358

10,023

11,040

42,675

42,311

NON-GAAP GROSS PROFIT %

43.1%

48.1%

44.2%

45.4%

48.9%














NET LOSS:

























NET LOSS ON GAAP BASIS:

$ (3,344)

$ (3,960)

$      (1,293)

$ (12,752)

$ (12,673)

Reserve release due to settlement of an IRS audit

-

-

(3,407)

(3,407)

-

Foreign tax reserve adjustment

304

-

-

304

-

Stock-based compensation

1,225

1,988

1,777

5,576

6,928

Amortization of acquired intangibles

-

21

-

-

212

Restructuring and other severance expenses

-

-

532

532

127

Associated tax effects of above adjustments

(236)

(359)

(527)

(1,216)

(1,324)

Deferred tax asset valuation allowance

236

359

527

1,216

1,281

Total adjustments

1,529

2,009

(1,098)

3,005

7,224

NET LOSS ON NON-GAAP BASIS:

$ (1,815)

$ (1,951)

$      (2,391)

$   (9,747)

$   (5,449)














EPS:

























GAAP EPS, DILUTED

$   (0.08)

$   (0.09)

$        (0.03)

$     (0.30)

$     (0.29)

NON-GAAP EPS, DILUTED

$   (0.04)

$   (0.05)

$        (0.06)

$     (0.23)

$     (0.13)














Weighted average shares used to calculate Non-GAAP diluted EPS:

42,252

42,947

42,156

42,561

42,973

SOURCE Advanced Analogic Technologies, Inc.

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