August 7, 2007 - 3:08 PM EST
SigmaTel Reports Second Quarter 2007 Results
SigmaTel, Inc. (NASDAQ:SGTL) today announced results for the quarter ended June 30, 2007.
Second Quarter Financial Review
Revenues for the second quarter of 2007 were $30.7 million with a GAAP net loss of $11.6 million or $0.32 per share. The non-GAAP adjusted net loss for the second quarter of 2007 was $9.2 million or a non-GAAP adjusted net loss of $0.26 per share. GAAP gross margin for the quarter was 38.0 percent and non-GAAP gross margin was 39.5 percent. See the reconciling charges set forth in the reconciliation of GAAP to non-GAAP results provided below.
As of June 30, 2007, SigmaTel had cash, cash equivalents, restricted cash and short-term investments of $82 million.
Executive Summary
“SigmaTel was pleased to announce in July that we exceeded our second quarter revenue guidance. This growth was a result of focusing on profitable projects, strengthening our relationships with brand customers, while continuing to monitor our expenses,” said Phil Pompa, CEO of SigmaTel. “The turnaround process is not complete, but we believe the basic building blocks have been implemented and we are cautiously optimistic about the future.”
Third Quarter 2007 Guidance
For the third quarter of 2007, the company anticipates revenue of $37 million to $42 million with non-GAAP gross margins of approximately 41 percent, plus or minus a couple of points. SigmaTel’s gross margin percentage varies primarily with product mix, pricing, and unit costs.
GAAP diluted loss per share is expected to be $0.21 to $0.14 with non-GAAP adjusted net loss per share expected to be $0.15 to $0.07, based on 35.8 million diluted weighted average shares outstanding. Our effective tax rate for the third quarter is expected to be approximately 10%.
The company expects its quarterly operating expenses to decline by an additional $2 million to $4 million over the remainder of the year. This should result in the company’s fourth quarter operating expenses being in the range of $20 million to $22 million, excluding stock-based compensation. These reductions, along with the expected increase in revenue from the second quarter, should significantly lessen the company’s cash burn in the third and fourth quarters compared to prior quarters.
“Although we are pleased with our performance this past quarter, we will remain diligent in our efforts to achieve a full recovery,” said Mr. Pompa. “Our highest priority is to operate the company for long term growth.”
surf's up......crikey
