News Article
Zarlink revenue increases in Q1
First quarter revenue increases by 10 percent versus fourth quarter Fiscal 2008 results, driven by increasing sales across all major product groups.
arlink Semiconductor issued results for the Fiscal 2009 first quarter ended June 27, 2008, prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
In line with guidance, first quarter revenue was US$60.5 million, compared with revenue of US$54.8 million in the Fiscal 2008 fourth quarter, and US$30.6 million in the first quarter of Fiscal 2008. Zarlink recorded net income of US$1.1 million or US$0.00 per share, compared with a Fiscal 2008 fourth quarter net loss of US$19.1 million or US$0.16 per share, and a net loss of US$5.0 million or US$0.05 per share in the Fiscal 2008 first quarter.
"This quarter provides a much clearer view of the Company that management, the Board of Directors and employees have been working to build over the past three years," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "Quarterly revenue is growing, driven by increasing customer demand for new products across our communications, optoelectronics and medical businesses. We're looking forward to building on this momentum in the coming quarters to drive further growth and sustained profitability."
First quarter results include a gain of US$0.9 million related to the sale of land in the U.K., and severance and other integration costs related to the Legerity acquisition totalling US$1.4 million (US$1.3 million in cost of goods sold, US$0.1 million in S&A). At the end of the first quarter, cash and short-term investments were US$40.3 million and restricted cash was US$17.3 million. This compares to cash and short-term investments of US$42.6 million and restricted cash of US$17.3 million at the end of the Fiscal 2008 fourth quarter.
To more accurately represent Zarlink's lines of business, the Company has recently renamed its major product groups.
Revenue from Zarlink's Communications Products group, formerly Wired Communications, was US$39.1 million, an increase of US$3.4 million compared with revenue of US$35.7 million in the previous quarter. The acquisition of Legerity Holdings, Inc. accounted for US$23.2 million in revenue in the first quarter, compared to US$19.9 million in the Fiscal 2008 fourth quarter.
Medical Products, formerly Medical Communications, revenue in the first quarter of Fiscal 2009 grew to US$9.2 million, compared with US$7.5 million in the previous quarter. To-date, Zarlink has shipped over 30,000 modules incorporating the Company's ZL70101 radio system on a chip to a leading medical manufacturer designing wirelessly enabled implanted devices used to treat patients with heart failure and arrhythmias.
Optical Products, formerly Optical Communications, revenue in the first quarter increased to US$6.2 million, compared with US$4.9 million in the Fiscal 2008 fourth quarter. This increase was driven in part by growing demand for the Company's ZLynx optical interconnect solutions for data centres and computer clusters.
Custom and other revenue in the first quarter of Fiscal 2009 was US$6.0 million. In the Fiscal 2008 fourth quarter, Custom and Other revenue was US$6.6 million, which included nine weeks of revenue from the Swindon foundry.
In line with guidance, first quarter revenue was US$60.5 million, compared with revenue of US$54.8 million in the Fiscal 2008 fourth quarter, and US$30.6 million in the first quarter of Fiscal 2008. Zarlink recorded net income of US$1.1 million or US$0.00 per share, compared with a Fiscal 2008 fourth quarter net loss of US$19.1 million or US$0.16 per share, and a net loss of US$5.0 million or US$0.05 per share in the Fiscal 2008 first quarter.
"This quarter provides a much clearer view of the Company that management, the Board of Directors and employees have been working to build over the past three years," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "Quarterly revenue is growing, driven by increasing customer demand for new products across our communications, optoelectronics and medical businesses. We're looking forward to building on this momentum in the coming quarters to drive further growth and sustained profitability."
First quarter results include a gain of US$0.9 million related to the sale of land in the U.K., and severance and other integration costs related to the Legerity acquisition totalling US$1.4 million (US$1.3 million in cost of goods sold, US$0.1 million in S&A). At the end of the first quarter, cash and short-term investments were US$40.3 million and restricted cash was US$17.3 million. This compares to cash and short-term investments of US$42.6 million and restricted cash of US$17.3 million at the end of the Fiscal 2008 fourth quarter.
To more accurately represent Zarlink's lines of business, the Company has recently renamed its major product groups.
Revenue from Zarlink's Communications Products group, formerly Wired Communications, was US$39.1 million, an increase of US$3.4 million compared with revenue of US$35.7 million in the previous quarter. The acquisition of Legerity Holdings, Inc. accounted for US$23.2 million in revenue in the first quarter, compared to US$19.9 million in the Fiscal 2008 fourth quarter.
Medical Products, formerly Medical Communications, revenue in the first quarter of Fiscal 2009 grew to US$9.2 million, compared with US$7.5 million in the previous quarter. To-date, Zarlink has shipped over 30,000 modules incorporating the Company's ZL70101 radio system on a chip to a leading medical manufacturer designing wirelessly enabled implanted devices used to treat patients with heart failure and arrhythmias.
Optical Products, formerly Optical Communications, revenue in the first quarter increased to US$6.2 million, compared with US$4.9 million in the Fiscal 2008 fourth quarter. This increase was driven in part by growing demand for the Company's ZLynx optical interconnect solutions for data centres and computer clusters.
Custom and other revenue in the first quarter of Fiscal 2009 was US$6.0 million. In the Fiscal 2008 fourth quarter, Custom and Other revenue was US$6.6 million, which included nine weeks of revenue from the Swindon foundry.
