SHANGHAI, Oct. 24, 2011 (GLOBE NEWSWIRE) -- BCD Semiconductor Manufacturing Limited ("BCD Semiconductor") (Nasdaq:BCDS), a leading analog integrated device manufacturer, or IDM, based in China, specializing in the design, manufacture and sale of power management integrated circuits, or ICs, today announced financial results for the fiscal third quarter ended September 30, 2011.
The results for the fiscal quarter ended September 30, 2011 are as follows:
- Revenue was $39.1 million, a sequential increase of 1.6% from $38.5 million for the second quarter of fiscal year 2011, and a 1.3% increase from $38.6 million for the third quarter of fiscal year 2010.
- Gross margin was 27.4%, compared to 30.0% for the second quarter of fiscal year 2011 and 34.7% for the third quarter of fiscal year 2010.
- Operating expenses were $7.6 million, compared to $6.9 million for the second quarter of fiscal year 2011 and $5.9 million for the third quarter of fiscal year 2010. Operating expenses for the third quarter of fiscal year 2011 included share-based compensation expenses of $643 thousand, as compared to $359 thousand and $526 thousand for the second quarter of fiscal year 2011 and for the third quarter of fiscal year 2010, respectively.
- Operating profit was $3.1 million, or 7.9% of revenue, compared to $4.6 million, or 11.9% of revenue, for the second quarter of fiscal year 2011 and $7.4 million, or 19.3% of revenue, for the third quarter of fiscal year 2010.
- GAAP net income was $4.0 million compared to $5.1 million for the second quarter of fiscal year 2011, and $7.0 million for the third quarter of fiscal year 2010.
- Non-GAAP adjusted net income was $4.9 million, compared to $5.5 million for the second quarter of fiscal year 2011 and $7.4 million for the third quarter of fiscal year 2010.
- GAAP earnings per diluted ADS share (EPS) was $0.21 compared to $0.26 for the second quarter of fiscal year 2011.
- Non-GAAP earnings per ADS share (non-GAAP EPS) was $0.25 compared to $0.28 for the second quarter of fiscal 2011.
- Number of weighted average fully diluted American Depositary Shares (ADS) was 19,372,622.
- Cash balance was $61.3 million as of September 30, 2011, compared to approximately $72.0 million as of June 30, 2011 and $34.9 million as of September 30, 2010.
- Cash flow from operating activities was $8.4 million compared to $3.4 million for the second quarter of fiscal year 2011 and $6.0 million for the third quarter of fiscal year 2010.
- Capital expenditures were $9.8 million compared to $6.0 million for the second quarter of fiscal year 2011 and $7.3 million for the third quarter of fiscal year 2010.
- We used $1.1 million of cash to repurchase 183,651 American Depositary Shares (ADS) at an average price of $5.80 per ADS under our authorized share re-purchase program.
"As we reported in our updated guidance, demand across our three main end markets including consumer, computing and communications was softer than we expected when we entered the typical holiday buying season in September," said Chieh Chang, Chief Executive Officer of BCD Semiconductor. "While we continue to see sluggish demand heading into the fourth quarter, we remain focused on executing on our strategic initiatives. We are pleased with the market acceptance of several of our newly introduced products especially in the AC/DC product category. We also continue to be on track with our Fab 2 build-out and are looking forward to running test wafers in the first half of next year and generating revenues in the second half of next year."
Business Outlook
Revenue for the fourth quarter of fiscal year 2011 is expected to be in the range of $30 to $34 million, representing a decline of approximately 5.0% to a growth of 7.7% when compared to the fourth quarter of 2010 and a decline of approximately 23.3% to 13.0% when compared to the third quarter of 2011. Gross margins are expected to be in the range of 26% to 27% of revenue. Operating expenses exclusive of the share based compensation expenses and amortization of acquired intangible assets are expected to be in the range of $7.0 to $7.2 million. We expect our effective income tax rate to range between 7.0% and 9.0%. We expect our capital expenditures to be approximately $15.0 million in the fourth quarter. The number of ADS shares used to calculate GAAP earnings per share for the fourth quarter is anticipated to be approximately 19.3 million.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, projected revenues, gross margins, operating expenses, income tax rate, capital expenditures and shares used to calculate earnings per share under the section titled "Business Outlook," statements regarding market demand, our Fab 2 build-out and our expectation of revenue generation next year. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our ability to introduce or develop new and enhanced products that achieve market acceptance; the actual product performance in volume production; the quality and reliability of our product; our ability to achieve design wins; general business and economic conditions; our ability to identify and consummate strategic transactions; the state of the semiconductor industry and seasonality of our markets; and other risks and uncertainties as described in our filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 20-F for the fiscal year ended December 31, 2010 filed on May 25, 2011, and other filings with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and BCD Semiconductor undertakes no duty to update such information, except as required under applicable law.
Conference Call and Webcast
BCD Semiconductor plans to conduct an investor teleconference and live webcast to discuss the financial results for the fiscal third quarter ended September 30, 2011, our outlook for the fourth quarter of 2011 and other business matters today, October 24, 2011 at 3:30 pm PT / 6:30 pm ET. To participate in the live call, analysts and investors should dial 866-405-2350 (or +65 6 723 9388 if dialing from outside the U.S.A.). The conference ID number is 15438877. A live webcast of the call will also be available in the "Event Calendar" section of the company's investor relations website, http://ir.bcdsemi.com/. The webcast replay will be available for seven days after the live call on the same website. To listen to the webcast replay, please dial 866-214-5335 (or +61 2 8235 5000 if dialing from outside the U.S.A.). The conference ID number is 15438877.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP net income and non-GAAP EPS. These supplemental measures exclude share-based compensation expenses that are non-cash charges, gain or loss on valuation of warrant liabilities and amortization of acquired intangible assets. We believe that non-GAAP financial measures can provide useful information to both management and investors by excluding certain non-cash expenses that are not indicative of our core operating results. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the term used in this press release, non-GAAP net income, does not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for this limitation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
About BCD Semiconductor
BCD Semiconductor Manufacturing Limited ("BCD Semiconductor") is a leading analog integrated device manufacturer, or IDM, based in China, specializing in the design, manufacture and sale of power management integrated circuits, or ICs. Our broad portfolio of power management ICs primarily targets rapidly growing, high volume markets such as mobile phones, LCD televisions and monitors, personal computers, adapters and chargers and other electronics products. As an IDM, BCD Semiconductor integrates product design and process technology to optimize product performance and cost. We offer system-level solutions with the quality, performance and reliability required by our customers. Our China-based operations provide proximity to the rapidly growing electronics industry in Asia, enabling us to align our product development effort with customers and market trends and to provide timely and effective technical support. For more information, please visit http://www.bcdsemi.com.
The following consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("GAAP").
| BCD Semiconductor Manufacturing Limited | |||
| Condensed Consolidated Balance Sheets - GAAP | |||
| (in thousands of US dollars) | |||
| (Unaudited) | |||
|
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
|
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash | $34,928 | $72,029 | $61,278 |
| Restricted cash | 7,658 | 5,136 | 10,235 |
| Accounts receivable, net | 22,365 | 21,297 | 22,981 |
| Inventories | 19,827 | 28,282 | 28,670 |
| Excess value-added tax paid | 1,135 | 1,654 | 2,645 |
| Receivable from Zi Zhu | -- | -- | 7,140 |
| Prepaid expenses and other current assets | 5,416 | 4,919 | 5,585 |
| Total current assets | 91,329 | 133,317 | 138,534 |
| PROPERTY,PLANT AND EQUIPMENT, NET | 29,974 | 39,277 | 47,815 |
| LAND USE RIGHT, NET | 2,979 | 3,034 | 3,072 |
| ACQUIRED INTANGIBLE ASSETS, NET | -- | 3,326 | 2,935 |
| INVESTMENT IN EQUITY SECURITIES | 1,568 | 1,624 | 1,654 |
| GOODWILL | -- | 305 | 282 |
| OTHER ASSETS | 2,083 | 2,750 | 2,982 |
| TOTAL | $127,933 | $183,633 | $197,274 |
| LIABILITIES,CONVERTIBLE REDEEMABLE PREFERENCE SHARES AND SHAREHOLDERS' EQUITY | |||
| CURRENT LIABILITIES | |||
| Short-term bank loans | $7,969 | $3,000 | $6,000 |
| Accounts payable | 20,105 | 21,374 | 21,907 |
| Notes payable | 14,296 | 11,589 | 18,175 |
| Accrued expenses | 5,820 | 3,656 | 3,570 |
| Payable for purchase of property, plant and equipment | 1,700 | 1,507 | 1,192 |
| Withholding tax liability | 1,806 | 1,954 | 1,805 |
| Warrant liability | 1,260 | -- | -- |
| Other current liabilities | 2,729 | 3,150 | 2,078 |
| Total current liabilities | 55,685 | 46,230 | 54,727 |
| OTHER LIABILITIES | |||
| Deferred rent-noncurrent | 115 | 125 | 124 |
| Performance obligation | 3,073 | 3,800 | 3,870 |
| Obligation under capital lease - noncurrent | 278 | 240 | 224 |
| Deferred grant-noncurrent | -- | 560 | 468 |
| Total other liabilities | 3,466 | 4,725 | 4,686 |
| Total liabilities | 59,151 | 50,955 | 59,413 |
| CONVERTIBLE REDEEMABLE PREFERENCE SHARES | 90,569 | -- | -- |
| SHAREHOLDERS' EQUITY(CAPITAL DEFICIENCY) | |||
| Ordinary shares | 17 | 111 | 111 |
| Additional paid-in capital | 12,518 | 160,318 | 161,163 |
| Accumulated other comprehensive income | 7,259 | 10,278 | 11,698 |
| Accumulated deficit | (41,581) | (38,029) | (34,039) |
| Treasury stock | -- | -- | (1,072) |
| Total shareholders' equity(Capital deficiency) | (21,787) | 132,678 | 137,861 |
| TOTAL | $127,933 | $183,633 | $197,274 |
| BCD Semiconductor Manufacturing Limited | |||
| Condensed Consolidated Statements of Income - GAAP | |||
| (in thousands of US dollars, except percentages) | |||
| (Unaudited) | |||
| Three Months Ended | |||
|
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
|
| NET REVENUE | |||
| IC products | 35,528 | 35,685 | 36,420 |
| Foundry services | 3,041 | 2,771 | 2,685 |
| Total net revenue | 38,569 | 38,456 | 39,105 |
| COST OF REVENUE | |||
| IC products | 23,829 | 25,643 | 27,074 |
| Foundry services | 1,361 | 1,284 | 1,332 |
| Total cost of revenue | 25,190 | 26,927 | 28,406 |
| GROSS PROFIT | 13,379 | 11,529 | 10,699 |
| OPERATING EXPENSES | 34.7% | 30.0% | 27.4% |
| Research and development | 1,919 | 2,393 | 2,667 |
| Selling and marketing | 1,923 | 2,081 | 2,480 |
| General and administrative | 2,098 | 2,394 | 2,259 |
| Amortization of acquired intangible assets | 69 | 205 | |
| Total operating expenses | 5,940 | 6,937 | 7,611 |
| INCOME FROM OPERATIONS | 7,439 | 4,592 | 3,088 |
| 19.3% | 11.9% | 7.9% | |
| OTHER INCOME (EXPENSE) | |||
| Interest income and expenses | (37) | 364 | 326 |
| Other-net | 28 | 510 | 901 |
| Other income (expenses), net | (9) | 874 | 1,227 |
| INCOME BEFORE INCOME TAX EXPENSE | 7,430 | 5,466 | 4,315 |
| INCOME TAX EXPENSE | 420 | 381 | 325 |
| NET INCOME | 7,010 | 5,085 | 3,990 |
| BCD Semiconductor Manufacturing Limited | |||
| Condensed Consolidated Cash Flows Statement - GAAP | |||
| (in thousands of US dollars) | |||
| (Unaudited) | |||
| Three Months Ended | |||
|
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
|
| NET INCOME | $7,010 | $5,085 | $3,990 |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Depreciation and amortization | 982 | 1,345 | 1,612 |
| Other adjustments to net income | 486 | 1,328 | 1,521 |
| Changes in assets and liabilities | (2,511) | (4,408) | 1,282 |
| Net cash provided by operating activities | $5,967 | $3,350 | $8,405 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Capital expenditures | (7,274) | (6,008) | (9,761) |
| Acquisition of Aura Micro | -- | (4,582) | -- |
| Financing to ZiZhu,receivable | -- | -- | (7,140) |
| Other cash flow from investing activities | 669 | 282 | (4,794) |
| Net cash used in investing activities | $(6,605) | $(10,308) | $(21,695) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Share repurchase | -- | -- | (1,072) |
| Net borrowings | 2,079 | (3,101) | 3,000 |
| Other cash flow from financing activities | (35) | (366) | (198) |
| Net cash provided by (used in) financing activities | $2,044 | $(3,467) | $1,730 |
| Effects of exchange rate changes | 633 | 703 | 809 |
| CHANGE IN CASH | $2,039 | $(9,722) | $(10,751) |
| CASH, BEGINNING OF PERIOD | $32,889 | $81,751 | $72,029 |
| CASH, ENDING OF PERIOD | $34,928 | $72,029 | $61,278 |
| BCD Semiconductor Manufacturing Limited | |||
| Reconciliation of GAAP to Non-GAAP Net Income and EPS | |||
| (in thousands of US dollars) | |||
| (Unaudited) | |||
| GAAP to Non-GAAP Net Income | Three Months Ended | ||
|
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
|
| GAAP net income | $7,010 | $5,085 | $3,990 |
| Share-based compensation: | |||
| Cost of goods sold | 35 | 21 | 85 |
| Research and development | 55 | 24 | 96 |
| Selling, general and administrative | 471 | 335 | 547 |
| Total share-based compensation | 561 | 380 | 728 |
| Gain on valuation of warrant liability | (217) | -- | -- |
| Amortization of acquired intangible assets | -- | 69 | 205 |
| Non-GAAP net income | $7,354 | $5,534 | $4,923 |
| EPS (ADS) fully diluted, GAAP | n.a. | $0.26 | $0.21 |
| EPS (ADS) fully diluted, Non GAAP | n.a. | $0.28 | $0.25 |