Revenues increased 15 percent from fourth-quarter fiscal 2003 revenues of $23.2 million

January 28, 2004

3 Min Read

NEWPORT BEACH, Calif. -- Mindspeed Technologies, Inc. (NASDAQ:MSPD), a leading supplier of semiconductor solutions for network infrastructure applications, today announced revenues of $26.7 million for the first quarter of fiscal 2004, which ended December 31, 2003. Revenues increased 15 percent from fourth quarter fiscal 2003 revenues of $23.2 million, at the high end of the company's expectations set at the beginning of the quarter.

"I am very proud of our performance in the first quarter of fiscal 2004. We met or exceeded our expectations in every key financial measure, and continued to execute on our roadmap to profitability," said Raouf Halim, Mindspeed's chief executive officer. "Our T/E carrier and multiservice access voice-over-IP product lines delivered excellent performance, a direct result of our focus over the past two years on developing leadership products and capturing share within the metro/access market."

Revenue growth from T/E carrier transmission products, particularly DS3/E3, was primarily driven by increasing deployment of next-generation metro optical platforms designed to increase the capacity, flexibility, and speed of metropolitan networks.

Revenue growth from multiservice access products was driven by increasing demand for voice-over-IP, particularly from customers in the Asia-Pacific region, for use in telecommunications carrier equipment as well as for converged voice/data enterprise networks.

Mindspeed's pro forma operating loss for the first quarter of fiscal 2004 was $13.8 million, an improvement of 24 percent over the pro forma operating loss of $18.2 million in the prior quarter. Presented on a GAAP basis, Mindspeed's operating loss for the first quarter was $26.2 million, as compared to $32.4 million last quarter, an improvement of 19 percent.

Mindspeed's pro forma net loss for the first quarter was $13.7 million, or $0.15 per share, based on approximately 94.6 million shares outstanding, compared to the pro forma net loss of $17.9 million, or $0.20 per share, in the prior quarter. Presented on a GAAP basis, the net loss for the first quarter was $26.2 million, or $0.28 per share, compared to $32.2 million, or $0.35 per share last quarter.

Mindspeed's total cash consumption (the net decrease in cash and cash equivalents) for the first quarter was $13.4 million, a 37 percent reduction from the $21.3 million in cash consumption in the fourth quarter of fiscal 2003. Cash consumption for the first quarter includes the benefit of net cash provided by financing activities of $4.2 million, consisting principally of proceeds from the exercise of employee stock options. Cash and cash equivalents at the end of the quarter totaled $66.7 million.

The pro forma results, which are a supplement to financials based on generally accepted accounting principles (GAAP), exclude largely non-cash items such as amortization of intangible assets and special items. Mindspeed uses pro forma information to evaluate its operating performance and believes this presentation provides investors with additional insight into underlying operating results. A reconciliation between the pro forma and GAAP results is included in the accompanying financial data.

Mindspeed Technologies Inc.

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