SAN JOSE, Calif., April 21, 2010 (GLOBE NEWSWIRE) -- Techwell, Inc., (Nasdaq:TWLL), a leading designer of mixed signal video solutions for the security surveillance and automotive infotainment markets, today announced financial results for the first quarter ended March 31, 2010.
First Quarter Highlights:
- Reported net revenue of $20.1 million
- Grew revenue 95% in Q1 2010 when compared to Q1 2009
- Attained gross margin of 60.2 percent
First Quarter 2010 Results
Total revenue for the first quarter of 2010 was $20.1 million compared to revenue of $10.3 million in the first quarter of 2009 and $22.8 million in the fourth quarter of 2009. Total revenue consisted of $12.4 million in security surveillance, $5.9 million in automotive infotainment and $1.8 million in consumer.
Gross margin for the first quarter was 60 percent as compared to 62 percent in the preceding quarter and 60 percent in the same period a year ago. Operating expenses for the first quarter totaled $11.3 million, or 56 percent of total revenue, including approximately $1.8 million in acquisition-related operating expenses associated with Techwell's agreement to be acquired by Intersil Corporation. This compares to operating expenses of $9.5 million, or 42 percent of revenue, in the preceding quarter and $7.8 million, or 76% percent of revenue, in the same period a year ago.
Net income for the first quarter of 2010 was $312 thousand, or $0.01 per diluted share. Net income includes pre-tax stock-based compensation expenses of approximately $2.1 million, equating to a $0.09 per diluted share charge. Net income was affected by a higher than normal tax rate as most of the $1.8 million of acquisition-related operating expenses are not deductible for tax purposes. This compares to net income in the fourth quarter of 2009 of $3.6 million, or $0.16 per diluted share, and a loss of $697 thousand, or a loss of $0.03 per diluted share in the first quarter of 2009. Shares used to compute GAAP net income per diluted share for the first quarter of 2010 totaled 22.7 million shares.
Techwell also reports net income and net income per share on a non-GAAP basis. Non-GAAP net income excludes stock-based compensation expenses, net of taxes. Non-GAAP net income for the first quarter of 2010 was $1.6 million, or $0.07 per share. This compares to non-GAAP net income in the fourth quarter of 2009 of $4.9 million, or $0.22 per share, and non-GAAP net income of $486 thousand, or $0.02 per diluted share in the first quarter of 2009. The reconciliation between GAAP and non-GAAP results is provided below in a table immediately following the GAAP Condensed Consolidated Statement of Operations.
Cash and cash equivalents, short and long term investments increased by approximately $607 thousand in the quarter, totaling approximately $95.1 million as of March 31, 2010, compared to approximately $94.5 million as of December 31, 2009.
Techwell will not be hosting a conference call in conjunction with these results.
About Techwell
Techwell is a fabless semiconductor company that designs, markets and sells mixed signal video semiconductor solutions for the security surveillance and automotive infotainment markets. Headquartered in San Jose, CA, Techwell currently has over 200 employees in the U.S., China, Japan, South Korea and Taiwan. Please visit www.techwellinc.com for more information.
Techwell, Inc. and the Techwell, Inc. logo are trademarks of Techwell, Inc. All other trademarks are the property of their respective owners.
| TECHWELL, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands, except per share amounts) | ||
| (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2010 | 2009 | |
| Revenues | $ 20,132 | $ 10,339 |
| Cost of Revenues | 8,017 | 4,101 |
| Gross Profit | 12,115 | 6,238 |
| Operating Expenses | ||
| Research and development | 5,362 | 4,314 |
| Selling, general and administrative | 5,926 | 3,533 |
| Total operating expenses | 11,288 | 7,847 |
| Income/(loss) from operations | 827 | (1,609) |
| Interest income | 308 | 368 |
| Income/(loss) before income taxes | 1,135 | (1,241) |
| Provision/(benefit) for income taxes | 823 | (544) |
| Net Income/(Loss) | $ 312 | $ (697) |
| Net income/(loss) per share | ||
| Basic | $ 0.01 | $ (0.03) |
| Diluted | $ 0.01 | $ (0.03) |
| Shares used in computing net income/(loss) per share | ||
| Basic | 22,092 | 21,383 |
| Diluted | 22,726 | 21,383 |
| TECHWELL, INC. | ||
|
RECONCILIATION OF GAAP NET INCOME/(LOSS) TO NON-GAAP NET INCOME |
||
| (In thousands, except per share amounts) | ||
| (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2010 | 2009 | |
| GAAP net income/(loss) | $ 312 | $ (697) |
| Stock-based compensation expense: | ||
| Cost of revenues | 146 | 122 |
| Research and development | 1,124 | 900 |
| Selling, general and administrative | 866 | 822 |
| Total stock-based compensation expenses | 2,136 | 1,844 |
| Tax effect | (844) | (661) |
| Non-GAAP net income | $ 1,604 | $ 486 |
| Non-GAAP net income per share | ||
| Basic | $ 0.07 | $ 0.02 |
| Diluted | $ 0.07 | $ 0.02 |
| Shares used in computing Non-GAAP net income per share | ||
| Basic | 22,092 | 21,383 |
| Diluted | 22,726 | 21,383 |
| In addition to disclosing financial results calculated in accordance with U. S. generally accepted accounting principles (GAAP), the operating results presented contain non-GAAP financial measures that exclude the income statement effects of stock-based compensation expense. | ||
| We believe that the non-GAAP measures, excluding stock-based compensation expense, when viewed in addition to and not in lieu of our reported GAAP results, assist investors in understanding our results of operations. We believe non-GAAP measures provide useful supplemental information for investors to evaluate our operating results in the same manner as the research analysts that follow Techwell, all of whom present non-GAAP projections in their published reports. As such, non-GAAP measures provided by Techwell facilitate a more direct comparison of its performance with the financial projections published by the analysts. However, non-GAAP measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. | ||
| TECHWELL, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
|
March 31, 2010 |
December 31, 2009 |
|
| (unaudited) | (audited) | |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 12,408 | $ 6,404 |
| Short-term investments | 50,214 | 53,093 |
| Accounts receivable | 1,547 | 926 |
| Inventory | 7,900 | 7,937 |
| Deferred income tax assets | 629 | 652 |
| Prepaid expenses and other assets | 2,107 | 2,066 |
| Total Current Assets | 74,805 | 71,078 |
| Property and equipment - net | 897 | 1,033 |
| Long term-investments | 32,448 | 34,967 |
| Deferred income tax assets | 4,944 | 4,796 |
| Purchased intangible assets, net | 2,850 | 2,996 |
| Other assets | 342 | 557 |
| Total | $ 116,286 | $ 115,427 |
| Liabilities and Stockholders' Equity: | ||
| Current Liabilities: | ||
| Accounts payable | $ 3,475 | $ 5,529 |
| Accrued expenses | 6,133 | 6,009 |
| Total Current Liabilities | 9,608 | 11,538 |
| Long-term Liabilities: | ||
| Other | 325 | 72 |
| Total Liabilities | 9,933 | 11,610 |
| Stockholders' Equity: | ||
| Common stock | 22 | 22 |
| Additional paid-in capital | 89,932 | 87,594 |
| Accumulated other comprehensive gain | 98 | 212 |
| Retained earnings | 16,301 | 15,989 |
| Total Stockholders' Equity | 106,353 | 103,817 |
| Total | $ 116,286 | $ 115,427 |