Zarlink Releases Q1 Results

OTTAWA -- Zarlink Semiconductor Inc. (NYSE/TSX: ZL) today released first quarter results for the Fiscal 2003 period ended June 28, 2002. As expected, revenue for the first quarter was US$48.0 million as compared to US$52.1 million for the previous quarter and US$67.8 million for the same period last year. Sales continue to be affected by the general state of the semiconductor industry, and of communications semiconductors in particular. The decrease in revenue from the previous quarter is due principally to the absence of foundry business as a result of selling the company's two CMOS wafer fabs in the fourth quarter of Fiscal 2002.Zarlink recorded a first quarter net loss of US$8.7 million, or US$0.07 per share. This compares to a net loss of US$60.5 million, or US$0.49 per share, in the first quarter of last year.As expected, Adjusted Net Loss (*) for the quarter was US$10.3 million, representing a loss of US$0.09 per share, after excluding a stock compensation recovery of US$1.6 million. This compares to Adjusted Net Income (*) of US$43 million or US$0.03 per share for the same period last year."Our management programs, time-to-market thrusts, cost controls, and product development priorities continue to move ahead," said Patrick J. Brockett, president and CEO, Zarlink Semiconductor. "We will drive the company out of this slump by building a substantial portfolio of industry-leading products"Revenue in the second quarter is expected to amount to approximately US$46 million. The decrease from the first quarter of Fiscal 2003 is due principally to lower sales of User Access products as a result of weak set top box (STB) markets. As a result, Zarlink expects to record an Adjusted Net Loss of US$0.11 per share in the second quarter of Fiscal 2003. Zarlink Semiconductor Inc.