Microsemi Corporation (MSCC)

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F1Q08 (Qtr End 12/30/07) Earnings Call Transcript

James Peterson

Thank you Terri. I would like to thank all of you for joining us this afternoon for Microsemi’s first quarter fiscal year 2008 earnings call. Net sales for Microsemi’s first quarter were $123.5 million up $3.2 million sequentially from $119.7 million reported in the fourth quarter of fiscal 2007.

The first quarter 2008 produced non-GAAP earnings of $0.31 per share diluted up from $0.28 per diluted share reported in the prior quarter. The non-GAAP gross margins were 51.3% up from 51% in the previous quarter and non-GAAP operating margins were 26.2% up 200 basis points from 24.2% reported in the September quarter. These results show Microsemi’s ability to execute on growth and margin improvement strategy even as others begin to show signs of the much talked about macroeconomic slow down. We’ve grown our revenues through the new product offerings, market increases, and end market growth while also increasing gross and operating margins. The environment for Microsemi’s high performance analog mixed signal business continues to show strength and the high reliability business continues to show very robust demand. We will continue to drive our strategic plan to grow in all of our markets with new product offerings and unique value propositions for our customers. As we execute on this plan we expect to continue to outpace our semiconductor industry peers. Bookings in the first quarter were strong across all major markets. We achieved a book to bill ratio of 1.09 to 1. The particular areas of continued strength this quarter were defense, commercial aerospace, satellite, LCD TV, and notebook markets. The Analog Mixed Signal Group showed strong results this quarter delivering record performance in revenues and profits. Steve Litchfield and his team continue to gain momentum with new product development efforts and remain on track to kick off a record number of differentiated products in 2008 that will drive significant growth in coming years. As I said last quarter, [back lagging] remains one of the strongest drivers of the Analog Mixed Signal Group delivering double digit sequential growth in notebook, LCD TV, end display end markets where we saw record bookings and shipments. We continue to see market share gains in LCD TV business for CCFL with notable design win strength in tier 1 Japanese and Korean markets. We see significant design win traction with the new products and expect to see strengthening throughout all of 2008. ...

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