EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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   NEWS RELEASE
   For More Information Contact:
   Kevin Berry, Chief Financial Officer
   (408) 934-3144
   kevinb@cmd.com

California Micro Devices Reports March Quarter and Fiscal 2006 Financial Results

Fiscal 2006 revenue and net income increase year on year, achieving all time highs

MILPITAS, Calif. — May 4, 2006 — California Micro Devices (Nasdaq: CAMD) today announced financial results for the fourth quarter of fiscal 2006, which ended March 31, 2006. Revenue was $17.4 million compared to $14.5 million a year ago. On a GAAP basis, diluted earnings per share were $0.22 compared to a loss of $0.05 a year ago. Non-GAAP diluted earnings were $0.10 per share, excluding the effect of a partial release of the valuation allowance associated with the net deferred tax asset in the amount of $2.7 million. The loss in the year ago quarter included restructuring charges of $270,000.

Fiscal 2006 revenue reached an all time high of $70.2 million compared to the record $65.9 million posted a year ago. On a GAAP basis, diluted earnings per share were $0.44 compared to $0.18 a year ago. Non-GAAP diluted earnings were a record $0.32 per share, excluding the effect of the partial release of the valuation allowance mentioned above. Fiscal 2005 results included restructuring charges of approximately $1.3 million.

“I am pleased to report that in Q4 we achieved revenue just below the high end of our guidance and that our gross margin percentage and pro forma EPS exceeded the high end of our guidance;” said Robert V. Dickinson, president and chief executive officer. “Revenue from both mobile handsets and from personal computers and digital consumer electronics showed strong growth year on year and we set a new record for low capacitance ESD revenue as the result of strong growth of both PicoGuard™ and MediaGuard™ shipments. Bookings rebounded to $18.5 million in Q4 and design wins reached record levels.

“Our Q4 represented a solid finish for fiscal 2006 in which we achieved new records for revenue, net income, cash, bookings and design wins and the highest gross margin percentage in more than ten years. This is especially notable in light of our exit from non-core businesses at the end of fiscal 2005.” Dickinson summarized fiscal 2006 achievements as follows:

 

  •   Core revenue growth of 30 percent

 

  •   Third consecutive year of profitability with pro forma diluted EPS reaching a record $0.32

 

  •   Gross margin of 37.3 percent, highest in 10 years

 

  •   Mobile handset product revenue growth of 35 percent

 

  •   Personal computer and digital consumer electronics product revenue growth of 13 percent

 

  •   Low capacitance ASIP unit shipments, revenue and design wins all more than tripled

 

  •   Ending cash balance of $49.7 million, up 38 percent from last year

 

  •   1,436 design wins, up 18 percent from last year

 

  •   Sale of Tempe AZ facility, completing the transition to a fully fabless business model

 

  •   Initiated the Arques Technology acquisition to strengthen analog design team, LED driver portfolio and Asia presence

California Micro Devices Corporation • 490 N. McCarthy Blvd. #100, Milpitas, CA 95035-5112

www.calmicro.com • Tel: 408.263-3214 • Fax: 408.263-7846

Conference Call and Webcast Today

California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its March quarter and fiscal 2006 results. Within the USA, interested parties can access the conference call by dialing 866-250-3615. International parties may gain access by dialing 303-262-2194. No password is necessary.

A replay of the conference call will be available on the company’s web site at www.calmicro.com (Investor Relations Link) beginning at approximately 4:00 p.m. Pacific Time today and continuing about a year.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, personal computer and digital consumer electronics markets. Key products include Application Specific Integrated Passive™ (ASIP™) devices and selected high value mixed signal ICs. Detailed corporate and product information may be accessed at www.calmicro.com.

All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including the risk factors detailed in the company’s Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company’s future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.

# # #

ASIPTM, Application Specific Integrated PassiveTM, PicoGuardTM and MediaGuardTM are trademarks of California Micro Devices.

All other trademarks are property of their respective owners

California Micro Devices Corporation Ÿ 490 N. McCarthy Blvd. #100, Milpitas, CA 95035-5112

www.calmicro.com Ÿ Tel: 408.263-3214 • Fax: 408.263-7846

California Micro Devices Corporation

CONDENSED BALANCE SHEETS

(amounts in thousands, except share data)

(Unaudited)

 

     March 31,     March 31,  
     2006     2005  
ASSETS     

Current assets:

     

Cash and cash equivalents

    $ 9,788     $ 13,830  

Short-term investments

      39,958       22,245  

Accounts receivable, less allowance for doubtful accounts of $146 and $74, respectively

      10,667       7,574  

Inventories

      5,508       6,532  

Deferred tax assets

      2,711       —    

Prepaid expenses and other current assets

      1,078       1,286  
                

Total current assets

      69,710       51,467  

Property, plant and equipment, net

      3,961       6,038  

Other long-term assets

      61       172  
                

TOTAL ASSETS

    $ 73,732     $ 57,677  
                
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities:

     

Accounts payable

    $ 5,901     $ 4,523  

Accrued liabilities

      3,185       3,762  

Deferred margin on shipments to distributors

      2,684       2,520  

Current maturities of long-term debt and capital lease obligations

      82       100  
                

Total current liabilities

      11,852       10,905  

Long-term debt and capital leases, less current maturities

      —         90  

Other long-term liabilities

      8       21  
                

Total liabilities

      11,860       11,016  
                

Commitments and contingencies

     

Shareholders’ equity:

     

Common stock - no par value; 50,000,000 shares authorized; shares issued and outstanding: 22,855,223 and 21,605,315 as of March 31, 2006 and 2005, respectively

      110,673       105,494  

Accumulated other comprehensive loss

      (5 )     (2 )

Accumulated deficit

      (48,796 )     (58,831 )
                

Total shareholders’ equity

      61,872       46,661  
                

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

    $ 73,732     $ 57,677  
                

California Micro Devices Corporation

CONDENSED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

(On a GAAP basis)

 

     Three Months Ended
March 31,		     Twelve Months
Ended March 31,
     2006     2005     2006     2005

Net sales

    $ 17,395     $ 14,497     $ 70,241     $ 65,869

Cost and expenses:

         

Cost of sales

      10,575       10,630       44,068       42,085

Research and development

      1,496       1,533       6,817       5,181

Selling, general and administrative

      3,546       3,275       13,348       13,240

Restructuring expense/(benefit)

      (20 )     270       39       1,325
                              

Total costs and expenses

      15,597       15,708       64,272       61,831
                              

Operating income (loss)

      1,798       (1,211 )     5,969       4,038

Other income, net

      503       190       1,491       129
                              

Income (loss) before income taxes

      2,301       (1,021 )     7,460       4,167

Income taxes/(benefit)

      (2,704 )     (30 )     (2,575 )     125
                              

Net income (loss)

    $ 5,005     $ (991 )   $ 10,035     $ 4,042
                              

Net income (loss) per share–basic

    $ 0.22     $ (0.05 )   $ 0.45     $ 0.19
                              

Weighted average common shares outstanding–basic

      22,802       21,555       22,128       21,318
                              

Net income (loss) per share–diluted

    $ 0.22     $ (0.05 )   $ 0.44     $ 0.18
                              

Weighted average common shares and share equivalents outstanding–diluted

      23,031       21,555       22,777       22,582
                              

Reconciliation of net income (loss) to non-GAAP net income (loss):

         

Net income (loss)

    $ 5,005     $ (991 )   $ 10,035     $ 4,042

Reconciling items:

         

Partial release of valuation allowance against deferred tax assets

      (2,711 )     —         (2,711 )     —  
                              

Non-GAAP net income (loss)

    $ 2,294     $ (991 )   $ 7,324     $ 4,042
                              

Non-GAAP:

         

Net income (loss) per share–basic

    $ 0.10     $ (0.05 )   $ 0.33     $ 0.19
                              

Net income (loss) per share–diluted

    $ 0.10     $ (0.05 )   $ 0.32     $ 0.18
                              

Shares used in calculation of non-GAAP:

         

Weighted average common shares outstanding–basic

      22,802       21,555       22,128       21,318
                              

Weighted average common shares and share equivalents outstanding–diluted

      23,172       21,555       22,812       22,582
                              

California Micro Devices Corporation

CONDENSED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

(On a non-GAAP basis)

 

     Three Months Ended
March 31,		     Twelve Months
Ended March 31,
     2006     2005     2006    2005

Net sales

    $ 17,395     $ 14,497     $ 70,241    $ 65,869

Cost and expenses:

          

Cost of sales

      10,575       10,630       44,068      42,085

Research and development

      1,496       1,533       6,817      5,181

Selling, general and administrative

      3,546       3,275       13,348      13,240

Restructuring expense/(benefit)

      (20 )     270       39      1,325
                             

Total costs and expenses

      15,597       15,708       64,272      61,831
                             

Operating income (loss)

      1,798       (1,211 )     5,969      4,038

Other income, net

      503       190       1,491      129
                             

Income (loss) before income taxes

      2,301       (1,021 )     7,460      4,167

Income taxes

      7       (30 )     136      125
                             

Net income (loss)

    $ 2,294     $ (991 )   $ 7,324    $ 4,042
                             

Net income (loss) per share–basic

    $ 0.10     $ (0.05 )   $ 0.33    $ 0.19
                             

Weighted average common shares outstanding–basic

      22,802       21,555       22,128      21,318
                             

Net income (loss) per share–diluted

    $ 0.10     $ (0.05 )   $ 0.32    $ 0.18
                             

Weighted average common shares and share equivalents outstanding–diluted

      23,172       21,555       22,812      22,582
                             

See accompanying reconciliation of GAAP measures to non-GAAP measures.

California Micro Devices Corporation

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited)

 

     Three Months
Ended March 31,		     Twelve Months
Ended
March 31,
Net income (loss) per share:    2006     2005     2006     2005

Basic:

         

GAAP net income (loss) per share

    $ 0.22     $ (0.05 )   $ 0.45     $ 0.19

Reconciling items:

         

Partial release of valuation allowance against deferred tax assets

    $ (0.12 )   $ —       $ (0.12 )   $ —  
                              

Non-GAAP net income (loss) per share

    $ 0.10     $ (0.05 )   $ 0.33     $ 0.19
                              

Diluted:

         

GAAP net income (loss) per share

    $ 0.22     $ (0.05 )   $ 0.44     $ 0.18

Reconciling items:

         

Partial release of valuation allowance against deferred tax assets

    $ (0.12 )   $ —       $ (0.12 )   $ —  
                              

Non-GAAP net income (loss) per share

    $ 0.10     $ (0.05 )   $ 0.32     $ 0.18