Net revenue for the quarter ended December 31, 2008 grew by 6% to $24.0 million compared to the fourth quarter of 2007. For the fourth quarter of 2008, gross margin percentage was 50.6% and gross margin percentage for the year was 49.4%.
On a generally accepted accounting principles (GAAP) basis, net income per diluted share was $0.02 for the fourth quarter of 2008 and net income per diluted share was $0.12 for the full year 2008. Non-GAAP net income per diluted share was $0.04 for the fourth quarter of 2008 and $0.20 per diluted share for the year. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the tables attached to this press release.
“Even in a very challenging economy, we reported strong 2008 financial results in which we posted a 19% year-over-year increase in net revenue, achieved substantially increased operating margins, and performed extremely well in our target markets,” said James A. Fontaine, president and chief executive officer of Microtune. “We are aggressively focused on expense control, cash preservation, and operational execution in this difficult environment. We are encouraged by our strong market share, newly expanded product portfolio and design-win opportunities, which, we believe, enable us to move forward in balancing our short and long-term goals until the market fully recovers.”
FINANCIAL HIGHLIGHTS
Fourth quarter of 2008 net revenue of $24.0 million was up 6% over fourth quarter of 2007;
Fourth quarter of 2008 non-GAAP net income of $2.0 million, or EPS of $0.04 per diluted share, was up 26% compared to non-GAAP net income of $1.6 million, or EPS of $0.03 per diluted share in fourth quarter of 2007;
At December 31, 2008, cash and investments were $86.1 million, up $3.9 million from September 30, 2008; and
Q4 2008 days sales outstanding (DSOs) were 36 days.
Financial Outlook
First quarter of 2009 revenue is expected to range between $17.5 million and $18.5 million and second quarter of 2009 revenue is expected to be flat compared to first quarter of 2009;
Break-even revenue levels are expected to be reached in the second half of 2009 (break-even revenue is estimated at $22.0 million per quarter on a non-GAAP basis);
Full year 2009 gross margin is expected to range between 49 and 50%;
Full year 2009 non-GAAP R&D expenses are expected to increase 10 to 15%;
Full year 2009 non-GAAP SG&A expenses are expected to decrease 6 to 10%;
Full year 2009 income tax expense is expected to be approximately $500 thousand.
Business Highlights
As part of its strategy to drive its silicon radio frequency (RF) technology into automotive entertainment markets worldwide, Microtune introduced two new integrated-circuit (IC) products engineered specifically for automobiles:
The MicroTuner MT2067 is a world-standard, automotive-grade TV tuner chip that provides high-quality, stable analog/digital broadcast TV reception in vehicles, even in those traveling at very high speeds. It offers manufacturers new RF technology that replaces traditional ‘can’ tuners, enabling lower cost and higher reliability.
Microtune also announced that a complementary automotive product, the MT1119 antenna amplifier chip, is in production. Targeted for new car model in-glass, roof and bumper antennas, the amplifier chip enables superior multi-standard (AM, FM, HD-Radio, and DRM) car radio reception. With its miniature form factor and high level of integration, the MT1119 is another example of Microtune RF-IC technology that offers automakers and their suppliers a compact, low-cost RF solution requiring a minimum number of external components.
Microtune expanded its portfolio of silicon products supporting the cable industry’s new DOCSIS 3.0 specification. The company introduced the MT1570, a wideband upstream amplifier designed to increase the performance, data rate and reliability of upstream data communications in bandwidth-intensive DOCSIS 3.0 services. The MT1570 completes Microtune’s DOCSIS 3.0 front-end product offering, enabling the company to offer one-stop, all-silicon DOCSIS 3.0 RF solutions.
Through December 31, 2008, Microtune has shipped a cumulative historical total of 122.5 million silicon TV tuner chips.
Fontaine said, “Despite the challenging economic conditions impacting our global markets, Microtune remains financially solid with a strong balance sheet, no debt and more than $86 million in cash. Additionally, we remain the technology leader in RF silicon tuner technology with a strong customer base and robust design-win activity. We believe that continued investment in R&D and other strategic programs will help drive long-term opportunities for revenue and market-share growth as the economy recovers.”
