Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NETLOGIC MICROSYSTEMS INC | n8k.htm |
Exhibit
99.1
Investor
Relations Contact:
Leslie
Green
Green
Communications Consulting, LLC
(650)
312-9060
leslie@greencommunicationsllc.com
NetLogic
Microsystems Announces First Quarter 2010 Financial
Results
|
•
|
Q1
FY 2010 Net Revenues: $86.3
million
|
|
•
|
Q1
FY 2010 GAAP Net Loss: $57.3 million; $0.99 per share
(diluted)
|
|
•
|
Q1
FY 2010 Non-GAAP Net Income: $20.1 million; $0.31 per share
(diluted)
|
MOUNTAIN
VIEW, Calif. – April 29, 2010 – NetLogic Microsystems, Inc. (NASDAQ: NETL), a
worldwide leader in high performance intelligent semiconductor solutions for
next-generation Internet networks, today announced financial results for its
first quarter ended March 31, 2010.
Revenue
for the first quarter of 2010 was $86.3 million, a 24.1% sequential increase
from $69.5 million for the fourth quarter of 2009 and a 184% increase from $30.4
million for the first quarter of 2009.
First
quarter 2010 net loss, determined in accordance with generally accepted
accounting principles (GAAP), was $57.3 million or $0.99 per diluted share. By
comparison, GAAP net loss was $3.9 million or $0.09 per diluted share for the
first quarter of 2009. GAAP net loss for first quarter 2010 included
stock-based compensation and related payroll taxes, changes in contingent
earn-out liability, amortization of intangible assets, fair value inventory
adjustments, acquisition-related costs, tax effect of inventory fair value
adjustments and the establishment of deferred tax asset valuation
allowance. Excluding these items, non-GAAP net income for the first
quarter of 2010 was $20.1 million or $0.31 per diluted share, compared with
$0.14 per diluted share for the first quarter of 2009.
Cash and
cash equivalents totaled $177.4 million as of March 31, 2010. In
March, NetLogic Microsystems raised $112.2 million in cash from issuing
4,083,626 common shares in a follow-on public offering, after paying
underwriters’ commissions. During March 2010, the Company also
completed a 2-for-1 stock split of its common stock through issuance of a stock
dividend. All shares and per share amounts in this release have been
retroactively adjusted to reflect the stock split for all periods
presented.
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 2
of 8
Management Qualitative
Comments
“This is
a very exciting time for us,” said Ron Jankov, president and CEO. “We
are seeing strong growth in our business as a result of the ramp of significant
new designs for our advanced multi-core processors, knowledge-based processors
and physical layer solutions that were won over the last several years and are
now beginning to contribute to our results. In addition, from the
core to the edge of the network, exponential increases in performance and
functionality requirements are driving greater adoption of our most valuable
products and increasing the strategic importance of our advanced technologies
and road maps with our customers.”
Recent
Highlights
|
•
|
NetLogic
Microsystems and Taiwan Semiconductor Manufacturing Company (TSMC),
announced an extension of their long-standing collaboration to include
TSMC’s NEXSYS™ 28HP (28nm high performance) semiconductor process node for
NetLogic Microsystems’ next-generation knowledge-based processors,
multi-core processors and 10/40/100Gigabit
PHY.
|
|
•
|
NetLogic
Microsystems announced the launch of the eNsemble™ Multi-Core Alliance to
drive best-in-class innovations in multi-core parallel processing
platforms and software development. Supported by a broad base of
industry-leading hardware and software providers, this Alliance provides a
foundation upon which developers can create new, breakthrough solutions
that take advantage of the superior performance and functionality of
multi-core processors.
|
|
•
|
The
company also announced that ZTE Special Equipment Company (ZTESec), a
subsidiary of ZTE Corporation, has selected NetLogic Microsystems' XLS®
multi-core processors and 10 Gigabit Ethernet (10GbE) PHY devices for
ZTESec's next-generation intelligent Layer 7 network interface cards
(NICs).
|
|
•
|
ZTE
Corporation also selected NetLogic Microsystems' multi-core,
multi-threaded XLR® processors and NL7000 knowledge-based processors for
its next-generation mobile core network products across TD-SCDMA,
CDMA2000, WiMax, WCDMA and GSM.
|
|
•
|
Datang
Mobile Communications Equipment Co., Ltd. selected NetLogic Microsystems’
multi-core, multi-threaded XLR®processors and knowledge-based processors
to power Datang Mobile's advanced TD-SCDMA and LTE mobile infrastructure
solutions.
|
|
•
|
Lenovo
Security Technologies has selected its market-leading XLR® and XLS®
families of multi-core, multi-threaded processors for Lenovo's
award-winning KingGuard Security Gateway product
family.
|
|
•
|
NetLogic
Microsystems announced that its multi-core processors, knowledge-based
processors and 10 Gigabit Ethernet PHY devices have been designed into
high-performance LTE (Long Term Evolution) systems that are powering LTE
trials worldwide. NetLogic Microsystems' market-leading products are
designed into advanced LTE NodeB/base stations, cell-site routers,
gateways, switches and routers that are part of LTE trials at leading
carriers and service providers
worldwide.
|
|
•
|
The
company announced the NL11K processor, the world's first knowledge-based
processor with a high-speed serial interface, and a member of its
sixth-generation knowledge-based processor family. The integration of
high-speed serial interface delivers 225Gbps of raw chip-to-chip
interconnect bandwidth to enable significantly richer services for LTE,
IPTV and IPv6 services.
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 3
of 8
Conference
Call
NetLogic
Microsystems will hold its first quarter 2010 financial results conference call
today at 1:30 p.m. Pacific time. To listen to the conference call,
dial (866) 543-6403 ten minutes prior to the start of the call, using the
passcode 12242654. International callers, dial (617) 213-8896. A taped replay
will be made available approximately two hours after the conclusion of the call
and will remain available for one week. To access the replay, dial (888)
286-8010 and enter passcode 10763265. International callers dial (617)
801-6888.
The
conference call will be available via a live webcast on the investor relations
section of NetLogic Microsystems’ web site at
http://www.netlogicmicro.com. Access the web site 15 minutes prior to
the start of the call to download and install any necessary audio
software. An archived webcast replay will be available on the web
site for three months.
About
NetLogic Microsystems
NetLogic
Microsystems, Inc. (NASDAQ: NETL) is a worldwide leader in high-performance
intelligent semiconductor solutions that are powering next-generation Internet
networks. NetLogic Microsystems’ best-in-class products perform
highly differentiated tasks of accelerating complex network traffic to
significantly enhance the performance and functionality of advanced 3G/4G mobile
wireless infrastructure, data center, enterprise, metro Ethernet, edge and core
infrastructure networks. NetLogic Microsystems’ market-leading
product portfolio includes high-performance multi-core processors,
knowledge-based processors, content processors, network search engines, ultra
low-power embedded processors and high-speed 10/40/100 Gigabit Ethernet PHY
solutions. These products are designed into high-performance systems
such as switches, routers, wireless base stations, security appliances,
networked storage appliances, service gateways and connected media devices
offered by leading original equipment manufacturers (OEMs). NetLogic
Microsystems is headquartered in Mountain View, California, and has offices and
design centers throughout North America, Asia and Europe. For more
information about products offered by NetLogic Microsystems, call
+1-650-961-6676 or visit the NetLogic Microsystems Web site at
http://www.netlogicmicro.com.
NetLogic
Microsystems, the NetLogic Microsystems logo and eNsemble are trademarks of
NetLogic Microsystems, Inc. XLR and XLS are registered trademarks of
NetLogic Microsystems, Inc. All other trademarks are the properties of their
respective owners.
“Safe
Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding NetLogic Microsystems’ business which
are not historical facts may be “forward-looking statements” that involve risks
and uncertainties. Forward-looking statements are based on certain assumptions
and expectations of future events that are subject to risks and uncertainties.
Actual results and trends may differ materially from historical results or those
projected in any such forward-looking statements depending on a variety of
factors. These factors include, but are not limited to, customer acceptance and
demand for our products, the volume of sales to our principal product customers,
the timing of our receipt of customer orders during the quarter, manufacturing
yields for our products, the timing of manufacture and delivery of product by
our foundry suppliers, potential warranty claims and product defects, the length
of our sales cycles, our average selling prices, our ability to successfully
develop and sell new products, the effects of any business acquisitions that we
might make, the strength of the OEM networking equipment market and the cyclical
nature of that market and the semiconductor industry. For a discussion of such
risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see “Risk Factors” in the Company’s
reports on Forms 10-K and 10-Q, as well as other reports that NetLogic
Microsystems files from time to time with the Securities and Exchange
Commission which
are available at http://www.sec.gov. All forward-looking statements are
qualified in their entirety by this cautionary statement, and NetLogic
Microsystems undertakes no obligation to update publicly any forward-looking
statement for any reason, except as required by law, even as new information
becomes available or other events occur in the future.
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 4
of 8
NETLOGIC
MICROSYSTEMS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN
THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
|
Three
months ended
|
||||||||
|
March
31,
2010
|
March
31,
2009
|
|||||||
|
Revenue
|
$ | 86,251 | $ | 30,366 | ||||
|
Cost
of revenue*
|
51,331 | 13,544 | ||||||
|
Gross
profit
|
34,920 | 16,822 | ||||||
|
Operating
expenses:
|
||||||||
|
Research
and development*
|
28,055 | 12,198 | ||||||
|
Selling,
general and administrative*
|
19,724 | 6,814 | ||||||
|
Change
in contingent earn-out liability
|
45,247 | - | ||||||
|
Acquisition-related
costs
|
735 | - | ||||||
|
Total
operating expenses
|
93,761 | 19,012 | ||||||
|
Loss
from operations
|
(58,841 | ) | (2,190 | ) | ||||
|
Interest
and other income (expense), net
|
(57 | ) | 173 | |||||
|
Loss
before income taxes
|
(58,898 | ) | (2,017 | ) | ||||
|
(Benefit
from) provision for income taxes
|
(1,561 | ) | 1,900 | |||||
|
Net
loss
|
$ | (57,337 | ) | $ | (3,917 | ) | ||
|
Net
loss per share - Basic and Diluted
|
$ | (0.99 | ) | $ | (0.09 | ) | ||
|
Shares
used in calculation - Basic and Diluted
|
57,993 | 43,676 | ||||||
|
*
|
Includes
the following amounts of stock-based compensation and related payroll
taxes (in thousands):
|
|
Three
months ended
|
||||||||
|
March
31,
2010
|
March
31,
2009
|
|||||||
|
Cost
of revenue
|
$ | 226 | $ | 175 | ||||
|
Research
and development
|
6,503 | 2,151 | ||||||
|
Selling,
general and administrative
|
6,150 | 1,974 | ||||||
|
Total
|
$ | 12,879 | $ | 4,300 | ||||
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 5
of 8
Non-GAAP
Financial Information
In
addition to disclosing financial results calculated in accordance with U.S.
generally accepted accounting principles (GAAP), this announcement of operating
results contains non-GAAP financial measures that exclude the income statement
effects of stock-based compensation and related payroll taxes, changes in
contingent earn-out liability, amortization of intangible assets, fair value
adjustments of acquired inventory, acquisition-related costs, tax effect of
inventory fair value adjustments, the establishment of deferred tax asset
valuation allowance and the effects of excluding stock-based compensation upon
the number of diluted shares used in calculating non-GAAP earnings per
share.
We have
excluded stock-based compensation expense and changes in contingent earn-out
liability in calculating these non-GAAP financial measures. These
expenses are non-cash in nature and rely on valuations based on future events
such as the market price of our common stock and revenue generated from products
acquired in the RMI acquisition during the first 12 months following the close
that are difficult to predict and are affected by market factors that are
largely not within the control of management. We have excluded amortization of
intangibles, fair value adjustments related to acquired inventory and the
related tax effect, and acquisition-related costs because we do not consider
them to be related to our core operating performance.
We use
the non-GAAP financial measures that exclude these items to make strategic
decisions, forecast future results and evaluate the Company’s current
performance. We believe that the presentation of non-GAAP financial measures
that exclude these items is useful to investors because we do not consider these
charges either part of the day-to-day business or reflective of the core
operational activities of the Company that are within the control of management
or that are used to evaluate management’s operating performance.
The
non-GAAP financial measures disclosed by the Company should not be considered a
substitute for, or superior to, financial measures calculated in accordance with
GAAP, and the financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully evaluated. The
non-GAAP financial measures used by the Company may be calculated differently
from, and therefore may not be comparable to, similarly titled measures used by
other companies. The Company has provided reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial measures. For
additional information regarding these non-GAAP financial measures, and
management’s explanation of why it considers such measures to be useful, refer
to the Form 8-K dated April 29, 2010 that the Company has submitted to the
Securities and Exchange Commission.
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 6
of 8
NETLOGIC
MICROSYSTEMS, INC.
RECONCILIATION
OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME
(IN
THOUSANDS)
(UNAUDITED)
|
Three
months ended
|
||||||||
|
March
31,
2010
|
March
31,
2009
|
|||||||
|
GAAP
net loss
|
$ | (57,337 | ) | $ | (3,917 | ) | ||
|
Reconciling
items:
|
||||||||
|
Stock-based
compensation and related payroll taxes
|
12,879 | 4,300 | ||||||
|
Changes
in contingent earn-out liability
|
45,247 | - | ||||||
|
Amortization
of intangible assets
|
10,644 | 3,325 | ||||||
|
Fair
value adjustment related to the acquired inventory
|
12,240 | - | ||||||
|
Acquisition-related
costs
|
735 | - | ||||||
|
Tax
effect of inventory fair value adjustment
|
(4,262 | ) | ||||||
|
Net
impact of deferred tax asset valuation allowance
establishment
|
- | 2,988 | ||||||
|
Non-GAAP
net income
|
$ | 20,146 | 6,696 | |||||
NETLOGIC
MICROSYSTEMS, INC.
RECONCILIATION
OF GAAP DILUTED NET INCOME (LOSS) PER SHARE TO
NON-GAAP
DILUTED NET INCOME PER SHARE
(UNAUDITED)
|
Three
months ended
|
||||||||
|
March
31,
2010
|
March
31,
2009
|
|||||||
|
GAAP
net loss per share - Diluted
|
$ | (0.99 | ) | $ | (0.09 | ) | ||
|
Reconciling
items:
|
||||||||
|
Stock-based
compensation and related payroll taxes
|
0.20 | 0.09 | ||||||
|
Changes
in contingent earn-out liability
|
0.69 | - | ||||||
|
Amortization
of intangible assets
|
0.16 | 0.07 | ||||||
|
Fair
value adjustment related to the acquired inventory
|
0.19 | - | ||||||
|
Acquisition-related
costs
|
0.01 | - | ||||||
|
Tax
effect of inventory fair value adjustment
|
(0.07 | ) | - | |||||
|
Net
impact of deferred tax asset valuation allowance
establishment
|
- | 0.06 | ||||||
|
Difference
in shares count between diluted GAAP and diluted non-GAAP
calculation
|
0.12 | 0.01 | ||||||
|
Non-GAAP
net income per share - Diluted
|
$ | 0.31 | $ | 0.14 | ||||
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NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 7
of 8
NETLOGIC
MICROSYSTEMS, INC.
RECONCILIATION
OF THE SHARES USED FOR GAAP DILUTED
NET
INCOME (LOSS) PER SHARE CALCULATION TO THE SHARES USED FOR
NON-GAAP
DILUTED NET INCOME PER SHARE CALCULATION
(IN
THOUSANDS)
(UNAUDITED)
|
Three
months ended
|
||||||||
|
March
31,
2010
|
March
31,
2009
|
|||||||
|
Shares
used in calculation - Diluted (GAAP)
|
57,993 | 43,676 | ||||||
|
The
effect of removing stock-based compensation expense for Non-GAAP
presentation purpose
|
3,118 | 1,850 | ||||||
|
The
effect of dilutive potential common shares due to reporting non-GAAP net
income
|
4,326 | 1,352 | ||||||
|
Shares
used in calculation - Diluted (Non-GAAP)
|
65,437 | 46,878 | ||||||
NETLOGIC
MICROSYSTEMS, INC.
RECONCILIATION
OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN
(IN
THOUSANDS, EXCEPT PERCENTAGES)
(UNAUDITED)
| Three months ended | ||||||||||||||||
|
March
31,
2009
|
March
31,
2008
|
|||||||||||||||
|
Total
GAAP gross margin
|
$ | 34,920 | 40.5 | % | $ | 16,822 | 55.4 | % | ||||||||
|
Reconciling
items:
|
||||||||||||||||
|
Stock-based
compensation
|
226 | 0.3 | % | 175 | 0.6 | % | ||||||||||
|
Amortization
of intangible assets
|
9,731 | 11.3 | % | 2,980 | 9.8 | % | ||||||||||
|
Fair
value adjustment related to acquired inventory
|
12,240 | 14.2 | % | - | 0.0 | % | ||||||||||
|
Total
Non-GAAP gross margin
|
$ | 57,117 | 66.2 | % | $ | 19,977 | 65.8 | % | ||||||||
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More -
NetLogic
Microsystems, Inc. Announces First Quarter 2010
Results
April 29,
2010
Page 8
of 8
NETLOGIC
MICROSYSTEMS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(IN
THOUSANDS)
(UNAUDITED)
|
March
31,
2010
|
December
31,
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 177,427 | $ | 44,278 | ||||
|
Accounts
receivables, net
|
27,148 | 25,137 | ||||||
|
Inventories
|
39,335 | 45,113 | ||||||
|
Deferred
income taxes
|
15,008 | 13,157 | ||||||
|
Prepaid
expenses and other current assets
|
8,322 | 8,638 | ||||||
|
Total
current assets
|
267,240 | 136,323 | ||||||
|
Property
and equipment, net
|
17,012 | 13,278 | ||||||
|
Goodwill
|
112,918 | 112,918 | ||||||
|
Intangible
asset, net
|
212,431 | 223,345 | ||||||
|
Other
assets
|
46,201 | 46,247 | ||||||
|
Total
assets
|
$ | 655,802 | $ | 532,111 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities
|
||||||||
|
Accounts
payable
|
$ | 22,031 | $ | 17,937 | ||||
|
Accrued
liabilities
|
30,854 | 34,205 | ||||||
|
Contingent
earn-out liability
|
56,934 | 11,687 | ||||||
|
Deferred
margin
|
4,332 | 2,667 | ||||||
|
Software
licenses and other obligations, current
|
3,120 | 3,037 | ||||||
|
Total
current liabilities
|
117,271 | 69,533 | ||||||
|
Software
licenses and other obligations, long-term
|
1,196 | 2,409 | ||||||
|
Other
liabilities
|
34,523 | 34,214 | ||||||
|
Total
liabilities
|
152,990 | 106,156 | ||||||
|
Stockholders'
equity
|
||||||||
|
Common
stock
|
626 | 575 | ||||||
|
Additional
paid-in capital
|
682,666 | 548,523 | ||||||
|
Accumulated
deficit
|
(180,480 | ) | (123,143 | ) | ||||
|
Total
stockholders' equity
|
502,812 | 425,955 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 655,802 | $ | 532,111 | ||||
CONTACT:
Green Communications Consulting, LLC
Leslie
Green, 650-312-9060 (Investor Relations)
leslie@greencommunicationsllc.com
SOURCE:
NetLogic Microsystems, Inc.