Tundra Semiconductor Corporation (TSX:TUN), the leader in System Interconnect, released preliminary financial results for the first quarter of fiscal 2007, which ended July 30, 2006.
Q1-2007 PRELIMINARY RESULTS:
- Q1-2007 revenue of approximately $19.5M (up 3% quarter-over-quarter; up 7% compared to Q1-2006)
- Pro forma diluted earnings per share between $0.09 and $0.11 (down from $0.13 in Q4-2006; up from $0.09 in Q1-2006)
“We experienced a weaker close than what we’ve seen in recent quarters due to a shortfall from a number of key customers in the last few weeks of the quarter” said Jim Roche, President and CEO of Tundra. “This appears to be related to a softening in the communications infrastructure market that we think is temporary. Looking forward, early indications show that Q2 should be back on track with continued revenue growth.
“While I am disappointed by our results this quarter, I am nonetheless pleased with the progress we have made. We completed two strategic acquisitions to grow our product offering with important PCI Express products and to add a key capability in high-end communications and computing chip design. To support these acquisitions and to strengthen the sales of our existing products we have expanded our presence in Asia by opening offices in Shanghai and Shenzhen and we will soon open offices in Taiwan and South Korea. Additionally, we have added sales resources in Europe and North America to better support our tier-one customers. These investments are starting to pay off. I am particularly encouraged by the adoption of our new RapidIO products in the wireless infrastructure market where we are winning significant designs at industry-leading companies. These wins give me confidence that we are on the right track strategically and that we can expect continued growth in the future.”
“Although we missed our June 8th revenue guidance of $21.0M to $23.5M, we were able to deliver pro forma diluted earnings within our guidance of $0.09 to $0.15 despite the shortfall,” said Norm Paquette, Chief Financial Officer of Tundra. Additional detail on the quarter will be available when the company reports its final Q1-Fiscal 2007 financial results on August 28, 2006.
Tundra Semiconductor Corporation (TSX:TUN) is the global leader in System Interconnect providing world-class customer and technical support, leading-edge semiconductor solutions and design services to the world’s foremost communications, networking, storage system, and information technology vendors. Consistently delivering on system level performance promises that reduce time to market, Tundra System Interconnect products ensure market advantage in wireless infrastructure, storage networking, network access, military, industrial automation, and information technology applications. Silicon Logic Engineering, Inc. (SLE), Tundra’s semiconductor design services division, offers industry-leading ASIC design services, semiconductor intellectual property and product development consulting.
The difference between pro forma and GAAP earnings is due to stock-based compensation expense, goodwill impairment charges and amortization of intangibles and backlog associated with Tundra’s acquisitions. Tundra uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan.
Tundra Semiconductor Corporation is a public company with common shares listed for trading on the Toronto Stock Exchange (TSX:TUN) in Canada. All figures, unless otherwise noted, are stated in Canadian dollars in accordance with accounting principles generally accepted in Canada.
TUNDRA is a registered trademark of Tundra Semiconductor Corporation (Canada, U.S. and U.K.). TUNDRA and the Tundra logo are registered marks of Tundra Semiconductor Corporation (Canada – registration in the United States, European Union, and People’s Republic of China).