ZLOG 
By SAN JOSE, Calif., Jan. 27 /PRNewswire-FirstCall/ -- Zilog, Inc. (Nasdaq: ZILG), a trusted supplier of application specific, embedded control products including energy management solutions for industrial and consumer markets, today reported financial results for its three- and nine-month periods ended December 26, 2009.
Net sales from continuing operations for the fiscal 2010 third quarter were $8.7 million, a sequential increase of 7 percent and a year-over-year decrease of 4 percent. Licensing royalties were $0.8 million in the third fiscal quarter, compared to $1.0 million in the previous quarter and $0.6 million in Q3 a year ago. The sequential increase in sales reflects a continued improvement in global demand for products following the global economic downturn that commenced in 2008. The financial results exceeded our previous guidance in both top and bottom line performance. On February 18, 2009, the Company sold its universal remote control and secured transaction processor businesses ("sale businesses"). In accordance with FASB ASC 205, the comparative financial statements for its previous fiscal periods ended December 27, 2008, have been restated to reflect the sold businesses as discontinued operations. Further, on December 4, 2009, the Company signed a definitive merger agreement ("Merger Agreement") in which Ixys Corporation ("Ixys") agreed to acquire all of the outstanding shares of the Company for $3.5858 per share in cash, subject to customary closing conditions. The Company expects to hold a special meeting of shareholders on February 17, 2010 to vote on the merger. If the merger is approved the Company expects to close shortly thereafter.
GAAP net income for the fiscal third quarter ended December 26, 2009 was $0.3 million, or 1 cent per share, compared to GAAP net income of $1.6 million, or 9 cents per share, in the previous fiscal quarter and a GAAP net loss of $5.7 million, or 33 cents per share, for fiscal Q3 a year ago. Net income for the fiscal 2010 third quarter includes special charges of $0.6 million, or 3 cents per share, which included $0.5 million in legal and other costs associated with the Merger Agreement. The previous quarter's results included $1.55 million in income from discontinued operations. Results for the third fiscal quarter a year ago included special charges of $1.7 million and net losses from discontinued operations of $0.4 million. Special charges in Q3 fiscal 2009 included costs associated with reductions in headcount as a result of declining sales driven by the downturn in the global economy.
On a year-to-date basis for the nine months ended December 26, 2009, sales were $24.0 million and GAAP net income was $2.2 million, or 13 cents per share, compared to sales of $29.1 million and a GAAP net loss of $9.0 million, or 53 cents per share for the nine months ended December 27, 2008. The financial results reflect an $11.2 million favorable improvement in net income for the fiscal 2010 nine-month period as compared to the comparable period in 2009. This improvement reflects a $5.1 million reduction in sales offset by improved product gross margins from 40 percent to 45 percent, a $10.5 million or 49 percent reduction in operating expenses, a $2.6 million reduction in special charges and amortization of intangible assets and the benefit of $1.0 million in patent sales. Additionally, fiscal 2010 year to date net income as compared to fiscal 2009 was negatively impacted by a $3.1 million reduction in net income from discontinued operations offset by a $1.6 million discontinued operations gain on sale reflecting the receipt of 50 percent of an escrow receivable related to the sale businesses. Fiscal 2009 results for the nine months ended December 27, 2008 included special charges of $2.8 million reflecting severance and other related costs associated with the global economic downturn resulting in a significant worldwide reduction in force. Additionally, special charges included costs associated with the production test outsource activities as well as expenses associated with the strategic alternatives review.
The Company reported cash, cash equivalents and long-term investments of $37.4 million at December 26, 2009, compared to $36.4 million and $33.3 million at September 26, 2009 and March 31, 2009, respectively. Net cash provided by continuing operating activities was $3.2 million for the year to date nine months of fiscal 2010, as compared to net cash used in continuing operating activities of $6.9 million for the comparative nine month period a year ago. On a non-GAAP basis, adjusted EBITDA from continuing operations, as defined below, was positive $1.4 million for the fiscal 2010 third quarter, as compared to positive $0.7 million in the prior fiscal quarter and negative $2.6 million in the third fiscal quarter a year ago. On a year to date basis, adjusted EBITDA from continuing operations was positive $2.8 million for the nine months ended December 26, 2009 as compared to negative $6.4 million for the comparative nine months a year ago.
The outlook for this quarter reflects the traditional seasonal slowdown in demand with an expected sequential reduction in sales. As was the case in Q3, the Company expects distribution end-demand to be the key to determining final sales levels for Q4 and for fiscal 2010 as a whole. The Company expects net sales for its fiscal 2010 fourth quarter ending March 31, 2010, to be lower by 3 percent to 5 percent, as compared to the third fiscal quarter ended December 26, 2009. Additionally in the fourth quarter, the Company expects $1.55 million in cash receipts from its remaining 50 percent of an escrow amount associated with the sale of its discontinued business in February 2009.
NON-GAAP FINANCIAL INFORMATION (Unaudited)
The Company may make reference to certain Non-GAAP financial measures. Management believes that these Non-GAAP measures are useful measures of operating performance and liquidity because they may exclude the impact of certain items, such as amortization of intangible assets, stock-based compensation, depreciation, non-operating interest, income taxes and special charges. However, these Non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net income (loss) and net cash provided by (used in) operating activities, or other financial measures prepared in accordance with GAAP.
Three Months Ended
Dec. Sep. Jun.
26, 26, 27,
2009 2009 2009
---- ---- ----
(in thousands)
Reconciliation of Non-GAAP Net Income
(Loss) to GAAP Net Income (Loss)
-------------------------------------
Non-GAAP net income (loss) from
continuing operations $1,035 $332 $394
Non-GAAP adjustments on continuing
operations:
Special charges and credits 578 77 135
Amortization of intangible assets - - -
Non-cash stock-based compensation
COS 35 19 19
Non-cash stock-based compensation
R&D 43 20 24
Non-cash stock-based compensation
SG&A 171 166 183
--- --- ---
Total non-GAAP adjustments,
continuing operations 827 282 361
--- --- ---
GAAP net income (loss) from continuing
operations $208 $50 $33
==== === ===
Three Months Ended
Mar. Dec.
31, 27,
2009 2009
---- ----
Reconciliation of Non-GAAP Net Income (Loss) to
GAAP Net Income (Loss)
-----------------------------------------------
Non-GAAP net income (loss) from continuing
operations ($1,776) ($2,871)
Non-GAAP adjustments on continuing operations:
Special charges and credits 3,478 1,696
Amortization of intangible assets 174 209
Non-cash stock-based compensation COS 21 44
Non-cash stock-based compensation R&D (24) 126
Non-cash stock-based compensation SG&A 201 297
--- ---
Total non-GAAP adjustments, continuing operations 3,850 2,372
----- -----
GAAP net income (loss) from continuing operations ($5,626) ($5,243)
======= =======
Non-GAAP Net Income (Loss) from continuing operations (Unaudited)
Non-GAAP net income (loss) from continuing operations (Non-GAAP net income (loss)) excludes special charges and non-cash charges relating to the amortization of intangible assets and stock-based compensation. Following the sale of the universal remote control and secured transaction processor businesses in February 2009, Non-GAAP net income (loss) was restated to exclude amounts related to the Company's discontinued operations. We believe that Non-GAAP net income (loss) is a useful measure as it excludes certain special charge items as well as certain non-cash charges, which facilitates a comparison of the Company's operating performance. However, this Non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, the net loss measured in accordance with GAAP.
Three Months Ended
------------------
Reconciliation of Net
Income (Loss) and Dec. Sep. Jun. Mar. Dec.
Cash Flows 26, 26, 27, 31, 27,
---------------------
From Operating
Activities to EBITDA 2009 2009 2009 2009 2008
--------------------- ---- ---- ---- ---- ----
(in thousands)
Reconciliation of net
income (loss) to
EBITDA:
Net income (loss)
from continuing
operations $208 $50 $33 ($5,626) ($5,243)
Depreciation and
amortization 328 338 318 452 466
Interest income (5) (6) (3) (4) (24)
Provision (benefit)
for income taxes 36 22 40 (2) 67
--- --- --- --- ---
EBITDA from
continuing
operations $567 $404 $388 ($5,180) ($4,734)
==== ==== ==== ======= =======
Reconciliation of
EBITDA to net cash
provided by
(used in) conitnuing
operating
activities:
EBITDA $567 $404 $388 ($5,180) ($4,734)
Provision (benefit)
for income taxes (36) (22) (40) 2 (67)
Interest income 5 6 3 4 24
Non-cash stock-
based compensation 249 205 226 198 467
Loss on disposition
of operating assets - - - 986 11
Changes in other
operating assets and
liabilities 176 (393) 1,457 (4,119) (571)
--- ---- ----- ------ ----
Net cash provided by
(used in) continuing
operating
activities $961 $200 $2,034 ($8,109) ($4,870)
==== ==== ====== ======= =======
Nine Months Ended
-----------------
Reconciliation of Net Income (Loss) and
Cash Flows Dec. 26, Dec. 27,
---------------------------------------
From Operating Activities to EBITDA 2009 2008
----------------------------------- ---- ----
Reconciliation of net income (loss) to
EBITDA:
Net income (loss) from continuing
operations $292 ($12,424)
Depreciation and amortization 984 1,380
Interest income (14) (143)
Provision (benefit) for income taxes 98 183
--- ---
EBITDA from continuing operations $1,360 ($11,004)
====== ========
Reconciliation of EBITDA to net cash
provided by
(used in) conitnuing operating
activities:
EBITDA $1,360 ($11,004)
Provision (benefit) for income taxes (98) (183)
Interest income 14 143
Non-cash stock-based compensation 680 1,126
Loss on disposition of operating assets - 46
Changes in other operating assets and
liabilities 1,239 2,976
----- -----
Net cash provided by (used in) continuing
operating
activities $3,195 ($6,896)
====== =======
Non-GAAP EBITDA (Unaudited)
Management believes that Non-GAAP EBITDA ("EBITDA"), that is Earnings or loss Before Interest, Taxes, Depreciation and Amortization, is a useful measure of financial performance. Following the sale of the universal remote control and secured transaction processor businesses in February 2009, EBITDA was restated to exclude amounts related to the Company's discontinued operations. We believe that the disclosure of EBITDA helps investors more meaningfully evaluate our liquidity position by the elimination of non-cash related items such as depreciation and amortization. We believe that our investors regularly use EBITDA as a measure of the liquidity of our business. Our management uses EBITDA as a supplement to cash flows from operations as a way to assess the cash generated from our business available for capital expenditures and the servicing of other requirements including working capital.
Three Months Ended
------------------
Reconciliation
of Net Income
(Loss) and Cash Dec. Sep. Jun. Mar. Dec.
Flows 26, 26, 27, 31, 27,
----------------
From Operating
Activities to
Adjusted EBITDA 2009 2009 2009 2009 2008
---------------- ---- ---- ---- ---- ----
(in thousands)
Reconciliation
of net income
(loss) to
Adjusted
EBITDA:
Net income
(loss) from
continuing
operations $208 $50 $33 ($5,626) ($5,243)
Depreciation and
amortization
including
intangibles 328 338 318 626 675
Interest income (5) (6) (3) (4) (24)
Provision
(benefit) for
income taxes 36 22 40 (2) 67
Special charges
and credits 578 77 135 3,478 1,696
Non-cash stock-
based
compensation 249 205 226 198 467
--- --- --- --- ---
Adjusted EBITDA,
continuing
operations $1,394 $686 $749 ($1,330) ($2,362)
====== ==== ==== ======= =======
Reconciliation
of Adjusted
EBITDA to net
cash provided
by
(used in)
continuing
operating
activities:
Adjusted EBITDA,
continuing
operations $1,394 $686 $749 ($1,330) ($2,362)
Special charges
and credits (578) (77) (135) (3,478) (1,696)
Provision
(benefit) for
income taxes (36) (22) (40) 2 (67)
Interest income 5 6 3 4 24
Loss on
disposition of
operating
assets - - - 986 11
Changes in other
operating
assets and
liabilities 176 (393) 1,457 (4,293) (780)
--- ---- ----- ------ ----
Net cash
provided by
(used in)
continuing
operating
activities $961 $200 $2,034 ($8,109) ($4,870)
==== ==== ====== ======= =======
Nine Months Ended
-----------------
Reconciliation of Net Income (Loss) and
Cash Flows Dec. 26, Dec. 27,
---------------------------------------
From Operating Activities to Adjusted
EBITDA 2009 2008
------------------------------------- ---- ----
Reconciliation of net income (loss) to
Adjusted EBITDA:
Net income (loss) from continuing
operations $292 ($12,424)
Depreciation and amortization
including intangibles 984 2,007
Interest income (14) (143)
Provision (benefit) for income taxes 98 183
Special charges and credits 790 2,840
Non-cash stock-based compensation 680 1,126
--- -----
Adjusted EBITDA, continuing operations $2,830 ($6,411)
====== =======
Reconciliation of Adjusted EBITDA to net
cash provided by
(used in) continuing operating
activities:
Adjusted EBITDA, continuing operations $2,830 ($6,411)
Special charges and credits (790) (2,840)
Provision (benefit) for income taxes (98) (183)
Interest income 14 143
Loss on disposition of operating assets - 46
Changes in other operating assets and
liabilities 1,239 2,349
----- -----
Net cash provided by (used in) continuing
operating
activities $3,195 ($6,896)
====== =======
Non-GAAP Adjusted EBITDA (Unaudited)
EBITDA reflects our Earnings or loss Before Interest, Taxes, Depreciation and Amortization. Additionally, management uses separate "Adjusted EBITDA" calculations for purposes of determining certain employees' incentive compensation and subject to meeting specified Adjusted EBITDA amounts. Adjusted EBITDA, as we define it, excludes interest, income taxes, effects of changes in accounting principles and non-cash charges such as depreciation, amortization, in-process research and development, and stock-based compensation expense. It also excludes cash and non-cash charges associated with reorganization items and special charges and credits, which represent operational restructuring charges, including asset write-offs, employee termination costs, relocation costs, lease termination costs, costs associated with selling our discontinued operations and costs associated with our merger with Ixys. Adjusted EBITDA also excludes changes in operating assets and liabilities, which are included in net cash provided by (used in) operating activities. Following the sale of the universal remote control and secured transaction processor businesses in February 2009, Adjusted EBITDA was restated to exclude amounts related to the Company's discontinued operations. Our management uses Adjusted EBITDA as a supplement to cash flows from operations as a way to assess the cash generated from our business available for capital expenditures and the servicing of other requirements including working capital. This Non-GAAP Adjusted EBITDA measure allows management to monitor cash generated from the operations of the business. However, this Non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, net loss and net cash provided or used in operating activities prepared in accordance with GAAP.
Earnings conference call
The Company will be conducting a conference call with analysts and investors today, January, 27, 2010 at 2:00 p.m. PST (5:00 p.m. EST) to review the details of its financial results. Analysts and investors may access the call by dialing (866) 203-2528 within the United States or (617) 213-8847 from outside the United States, using participant pass code 31603197. The webcast will be distributed in a listen-only mode through Zilog's website at http://www.zilog.com. Additionally, institutional investors can access the call via StreetEvents at www.streetevents.com.
Following the completion of the earnings call, an audio MP3 replay will be available from the Company's investor relations website at www.zilog.com. A telephone replay of the conference call will also be available for one week after the conference call at (888) 286-8010 (U.S.) and (617) 801-6888 (international) and can be accessed using pass code 30666050.
About Zilog, Inc.
Zilog is a trusted supplier of application specific, embedded system-on-chip (SoC) solutions for the industrial and consumer markets. From its roots as an award-winning architect in the microprocessor and microcontroller industry, Zilog has evolved its expertise beyond core silicon to include SoCs, single board computers, application specific software stacks and development tools that allow embedded designers quick time to market in areas such as energy management, monitoring and metering and motion detection. For more information, visit http://www.zilog.com.
EZ80ACCLAIM!, Zilog, Z8, Z80, eZ80, Z8 ENCORE!, Encore!XP and Zneo are registered trademarks of Zilog, Inc. in the United States and in other countries.
Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.
Cautionary Statements
This release contains forward-looking statements (including those related to our expectations for our March 2010 quarter, the timing and outcome of our shareholder vote, the timing of the merger if approved, the expected receipt of the remaining escrow receivable and our position as the global economy recovers) relating to expectations, plans or prospects for Zilog, Inc. that are based upon the current expectations and beliefs of Zilog's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, weakness in our 8-bit classic or embedded flash products could negatively impact our March 2010 fiscal quarter. Changes in requirements for supporting the Transition Services Agreement with Maxim Integrated Products, Inc., which was as a result of selling the universal remote control and secured transaction processor businesses and is currently scheduled to terminate on February 18, 2010, could impact our cash projections. Any major claims against the escrow fund resulting in the delay or reduction of the amount to be received could negatively impact our cash flow expectations. We are being sued in Delaware and California for certain claims relating to our proposed merger with Ixys. These claims are disclosed in our proxy statement filed with U.S. Securities and Exchange Commission ("SEC") on January 15, 2010. Further legal actions may be made by these parties or other parties that could impact the timing of our shareholder vote and the closing of the proposed merger. Additionally, our ability to attract and retain technical employees may be negatively impacted by uncertainties relating to potential future changes in the ownership and control of the Company which may make it difficult to execute on our long-term strategy.
Notwithstanding changes that may occur with respect to customer matters relating to the forward-looking statements, Zilog does not expect to, and disclaims any obligation to update such statements until release of its next quarterly earnings announcement or in any other manner. Zilog, however, reserves the right to update such statement, or any portion thereof, at any time for any reason.
The financial information presented herein is unaudited and is subject to change as a result of subsequent events or adjustments, if any, arising prior to the filing of the Company's Form 10-Q for the periods ended December 26, 2009.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the SEC, including but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2009, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov or from the Company's website at www.Zilog.com and can be found under the investor section.
Contact:
Daniel Francisco
Francisco Group
Zilog Communications
(916) 812-8814
Source: Zilog, Inc. www.Zilog.com
Zilog, Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 26, March 31,
2009 2009
---- ----
ASSETS
Current assets:
Cash and cash equivalents $36,980 $32,230
Accounts receivable, net 3,156 1,698
Receivables under transition services
agreement 255 1,696
Escrow receivable related to sold business 1,550 3,100
Inventories 3,285 4,022
Deferred tax asset 10 10
Prepaid expenses and other current assets 1,110 1,199
Current assets associated with discontinued
operations - 960
--- ---
Total current assets 46,346 44,915
Long term investments 375 1,100
Property, plant and equipment, net 1,856 2,347
Goodwill 1,861 2,211
Other assets 1,320 1,079
----- -----
Total assets $51,758 $51,652
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short term debt $- $346
Accounts payable 2,532 1,939
Payables under transition services
agreement 1,516 275
Income taxes payable 174 195
Accrued compensation and employee benefits 1,455 1,349
Other accrued liabilities 3,888 3,828
Deferred income including remaining escrow 6,048 8,024
Current liabilities associated with
discontinued business - 1,256
--- -----
Total current liabilities 15,613 17,212
Deferred tax liability 10 10
Other non-current liabilities 1,536 2,804
----- -----
Total liabilities 17,159 20,026
------ ------
Stockholders' equity:
Common stock 186 186
Additional paid-in capital 128,131 127,436
Treasury stock (7,563) (7,563)
Other comprehensive income 209 173
Accumulated deficit (86,364) (88,606)
------- -------
Total stockholders' equity 34,599 31,626
------ ------
Total liabilities and stockholders' equity $51,758 $51,652
======= =======
Zilog, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data and percentages)
Three Months Ended
------------------
Dec. 26, Dec. 27,
2009 2008
---- ----
Net sales from continuing operations $8,670 $9,035
Cost of sales 4,359 6,091
----- -----
Gross margin 4,311 2,944
----- -----
Gross margin % 49.7% 32.6%
---- ----
Operating expenses:
Research and development 1,252 1,657
Selling, general and administrative 2,345 4,696
Special charges 578 1,696
Amortization of intangible assets - 209
--- ---
Total operating expenses 4,175 8,258
----- -----
Operating income (loss) from continuing
operations 136 (5,314)
--- ------
Interest and other income :
Interest income 5 24
Other income, net 103 114
--- ---
Income (loss) from continuing operations
before provision for income taxes 244 (5,176)
Provision for income taxes 36 67
--- ---
Net income (loss) from continuing operations 208 (5,243)
Net income (loss) from discontinued
operations 30 (425)
Gain from sale of discontinued operations,
net of tax 17 -
--- ---
Net income (loss) $255 ($5,668)
==== =======
Basic and diluted net income (loss) from
continuing operations per share $0.01 ($0.31)
Basic and diluted net income (loss) from
discontinued operations per share - (0.02)
Basic and diluted net income from gain on
sale of discontinued operations net of tax
per share - -
--- ---
Basic and diluted net income (loss) per share $0.01 ($0.33)
===== ======
Weighted-average shares used in computing
basic net income (loss) per share 17,308 17,071
====== ======
Weighted-average shares used in computing
diluted net income (loss) per share 17,318 17,071
====== ======
Nine Months Ended
-----------------
Dec. 26, Dec. 27,
2009 2008
---- ----
Net sales from continuing operations $23,975 $29,113
Cost of sales 13,264 17,436
------ ------
Gross margin 10,711 11,677
------ ------
Gross margin % 44.7% 40.1%
---- ----
Operating expenses:
Research and development 3,462 5,147
Selling, general and administrative 7,196 15,911
Special charges 790 2,840
Amortization of intangible assets - 627
--- ---
Total operating expenses 11,448 24,525
------ ------
Operating income (loss) from continuing operations (737) (12,848)
---- -------
Interest and other income :
Interest income 14 143
Other income, net 1,113 464
----- ---
Income (loss) from continuing operations before
provision for income taxes 390 (12,241)
Provision for income taxes 98 183
--- ---
Net income (loss) from continuing operations 292 (12,424)
Net income (loss) from discontinued operations 386 3,459
Gain from sale of discontinued operations, net of
tax 1,564 -
----- ---
Net income (loss) $2,242 ($8,965)
====== =======
Basic and diluted net income (loss) from continuing
operations per share $0.02 ($0.73)
Basic and diluted net income (loss) from
discontinued operations per share 0.02 0.20
Basic and diluted net income from gain on sale of
discontinued operations net of tax per share 0.09 -
---- ---
Basic and diluted net income (loss) per share $0.13 ($0.53)
===== ======
Weighted-average shares used in computing basic net
income (loss) per share 17,278 16,982
====== ======
Weighted-average shares used in computing diluted
net income (loss) per share 17,279 16,982
====== ======
Zilog, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
-----------------
Dec. 26, Dec. 27,
2009 2008
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) from continuing
operations $292 ($12,424)
Adjustments to reconcile net income
(loss) to net cash
provided by (used in ) continuing
operating activities:
Depreciation and amortization 984 1,380
Disposition of operating assets - 46
Non-cash stock-based compensation 680 1,126
Amortization of fresh-start intangible
assets - 627
Goodwill 350 -
Changes in operating assets and
liabilities:
Accounts receivable, net (1,458) (620)
Receivable under transition services
agreement 1,441 -
Escrow receivable 1,550 -
Inventories 737 2,400
Prepaid expenses and other current and
non-current assets (116) (163)
Accounts payable 593 167
Payable under transition services
agreement 1,241 -
Accrued compensation and employee
benefits 106 (328)
Deferred income from disti and escrow (1,976) (494)
Accrued and other current and non-
current liabilities (1,229) 1,387
------ -----
Net cash provided by (used in)
continuing operating activities 3,195 (6,896)
----- ------
Net cash provided by discontinued
operating activities 90 3,642
--- -----
CASH FLOWS FROM INVESTING ACTIVITIES:
Redemption of long term investments 725 625
Capital expenditures (494) (519)
---- ----
Net cash provided by investing
activities 231 106
--- ---
Net cash provided by sale of
discontinued operations 1,564 -
----- ---
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short term debt - 660
Payments on short term debt (346) (692)
Proceeds from issuance of common stock
under
employee stock purchase and stock
option plans 16 112
--- ---
Net cash provided by (used in)
financing activities (330) 80
---- ---
Net cash provided by discontinued
financing activities - 3
--- ---
Increase in cash and cash equivalents 4,750 (3,065)
Cash and cash equivalents at beginning
of period 32,230 16,625
------ ------
Cash and cash equivalents at end of
period $36,980 $13,560
======= =======
Zilog, Inc.
SELECTED UNAUDITED TRENDED FINANCIAL INFORMATION
(Amounts in thousands except percentages, selected key metrics and
per share amounts)
Three Months Ended
------------------
Dec. 26, Sep. 26, Jun. 27,
2009 2009 2009
---- ---- ----
Sales & Expenses Information:
-----------------------------
Net sales from continuing operations $8,670 $8,070 $7,235
Cost of sales 4,359 4,386 4,520
----- ----- -----
Gross margin 4,311 3,684 2,715
----- ----- -----
Gross margin % 49.7% 45.7% 37.5%
---- ---- ----
Operating expenses:
Research and development 1,252 1,179 1,031
Selling, general and administrative 2,345 2,370 2,481
Special charges and credits 578 77 135
Amortization of intangible assets - - -
--- --- ---
Total operating expenses 4,175 3,626 3,647
----- ----- -----
Operating income (loss) from continuing
operations 136 58 (932)
Interest income 5 6 3
Other income (expense) 103 8 1,002
--- --- -----
Income (loss) from continuing operations
before
provision for income taxes 244 72 73
Provision (benefit) for income taxes 36 22 40
--- --- ---
Net income (loss) from continuing
operations 208 50 33
--- --- ---
Net income (loss) from discontinued
operations 30 36 320
Gain from sale of discontinued operations,
net of tax 17 1,547 -
--- ----- ---
Net income (loss) $255 $1,633 $353
==== ====== ====
Basic and diluted net income (loss) from
continuing operations per share $0.01 - -
Basic and diluted net income (loss) from
discontinued operations per share - - 0.02
Basic and diluted net income from gain on
sale of discontinued operations per
share - 0.09 -
--- ---- ---
Basic and diluted net income (loss) per
share $0.01 $0.09 $0.02
===== ===== =====
Weighted average basic shares 17,308 17,291 17,230
Weighted average diluted shares 17,318 17,297 17,230
Net Sales Information:
----------------------
Net Sales - by channel
Direct $1,913 $2,310 $1,685
Distribution 6,757 5,760 5,550
----- ----- -----
Total net sales $8,670 $8,070 $7,235
====== ====== ======
Net Sales - by region
America's $3,593 $3,466 $2,853
Asia (including Japan) 3,626 3,326 3,336
Europe 1,451 1,278 1,046
----- ----- -----
Total net sales $8,670 $8,070 $7,235
====== ====== ======
Selected Key Metrics (as defined in our
Form 10-Q and 10-K)
---------------------------------------
Days sales outstanding 33 38 27
Net sales to inventory ratio (annualized) 10.6 8.6 8.7
Current ratio 3.0 2.8 2.6
Distributor weeks of inventory 13 12 12
Other Selected Financial Metrics
--------------------------------
Depreciation and amortization $328 $338 $318
Stock based compensation $249 $205 $226
Capital expenditures $33 $141 $320
Cash and cash equivalents $36,980 $35,998 $33,826
Long term investments $375 $375 $900
Cash and long term investments $37,355 $36,373 $34,726
Short term debt - - -
Cash and long term investments, net of
debt $37,355 $36,373 $34,726
EBITDA, adjusted $1,394 $686 $749
Three Months Ended
------------------
Mar. 31, Dec. 27,
2009 2008
---- ----
Sales & Expenses Information:
-----------------------------
Net sales from continuing operations $7,044 $9,035
Cost of sales 4,379 6,091
----- -----
Gross margin 2,665 2,944
----- -----
Gross margin % 37.8% 32.6%
---- ----
Operating expenses:
Research and development 1,118 1,657
Selling, general and administrative 3,442 4,696
Special charges and credits 3,478 1,696
Amortization of intangible assets 174 209
--- ---
Total operating expenses 8,212 8,258
----- -----
Operating income (loss) from continuing
operations (5,547) (5,314)
Interest income 4 24
Other income (expense) (85) 114
--- ---
Income (loss) from continuing operations before
provision for income taxes (5,628) (5,176)
Provision (benefit) for income taxes (2) 67
--- ---
Net income (loss) from continuing operations (5,626) (5,243)
------ ------
Net income (loss) from discontinued operations (3,831) (425)
Gain from sale of discontinued operations, net
of tax 21,606 -
------ ---
Net income (loss) $12,149 ($5,668)
======= =======
Basic and diluted net income (loss) from
continuing operations per share ($0.33) ($0.31)
Basic and diluted net income (loss) from
discontinued operations per share (0.22) (0.02)
Basic and diluted net income from gain on sale
of discontinued operations per share 1.26 -
---- ---
Basic and diluted net income (loss) per share $0.71 ($0.33)
===== ======
Weighted average basic shares 17,171 17,071
Weighted average diluted shares 17,171 17,071
Net Sales Information:
----------------------
Net Sales - by channel
Direct $1,849 $1,625
Distribution 5,195 7,410
----- -----
Total net sales $7,044 $9,035
====== ======
Net Sales - by region
America's $2,975 $3,569
Asia (including Japan) 2,571 4,046
Europe 1,498 1,420
----- -----
Total net sales $7,044 $9,035
====== ======
Selected Key Metrics (as defined in our Form
10-Q and 10-K)
--------------------------------------------
Days sales outstanding 22 28
Net sales to inventory ratio (annualized) 7.0 8.0
Current ratio 2.6 1.5
Distributor weeks of inventory 18 13
Other Selected Financial Metrics
--------------------------------
Depreciation and amortization $452 $466
Stock based compensation $198 $467
Capital expenditures $107 $82
Cash and cash equivalents $32,230 $13,560
Long term investments $1,100 $1,300
Cash and long term investments $33,330 $14,860
Short term debt $346 $693
Cash and long term investments, net of debt $32,984 $14,168
EBITDA, adjusted ($1,304) ($2,362)
Nine Months Ended
-----------------
Dec. 26, Dec. 27,
2009 2008
---- ----
Sales & Expenses Information:
-----------------------------
Net sales from continuing operations $23,975 $29,113
Cost of sales 13,264 17,436
------ ------
Gross margin 10,711 11,677
------ ------
Gross margin % 44.7% 40.1%
---- ----
Operating expenses:
Research and development 3,462 5,147
Selling, general and administrative 7,196 15,911
Special charges and credits 790 2,840
Amortization of intangible assets - 627
--- ---
Total operating expenses 11,448 24,525
------ ------
Operating income (loss) from continuing
operations (737) (12,848)
Interest income 14 143
Other income (expense) 1,113 464
----- ---
Income (loss) from continuing operations before
provision for income taxes 390 (12,241)
Provision (benefit) for income taxes 98 183
--- ---
Net income (loss) from continuing operations 292 (12,424)
--- -------
Net income (loss) from discontinued operations 386 3,459
Gain from sale of discontinued operations, net
of tax 1,564 -
----- ---
Net income (loss) $2,242 ($8,965)
====== =======
Basic and diluted net income (loss) from
continuing operations per share $0.02 ($0.73)
Basic and diluted net income (loss) from
discontinued operations per share 0.02 0.20
Basic and diluted net income from gain on sale
of discontinued operations per share 0.09 -
---- ---
Basic and diluted net income (loss) per share $0.13 ($0.53)
===== ======
Weighted average basic shares 17,278 16,982
Weighted average diluted shares 17,279 16,982
Net Sales Information:
----------------------
Net Sales - by channel
Direct $5,908 $5,658
Distribution 18,067 23,455
------ ------
Total net sales $23,975 $29,113
======= =======
Net Sales - by region
America's $9,912 $11,312
Asia (including Japan) 10,288 12,530
Europe 3,775 5,271
----- -----
Total net sales $23,975 $29,113
======= =======
Selected Key Metrics (as defined in our Form
10-Q and 10-K)
--------------------------------------------
Days sales outstanding 33 28
Net sales to inventory ratio (annualized) 10.6 8.0
Current ratio 3.0 1.5
Distributor weeks of inventory 13 13
Other Selected Financial Metrics
--------------------------------
Depreciation and amortization $984 $1,380
Stock based compensation $680 $1,126
Capital expenditures $494 $519
Cash and cash equivalents $36,980 $13,560
Long term investments $375 $1,300
Cash and long term investments $37,355 $14,860
Short term debt - $693
Cash and long term investments, net of debt $37,355 $14,168
EBITDA, adjusted $2,830 ($6,411)
SOURCE Zilog, Inc.
