First Quarter Fiscal 2009 GAAP Results:
Gross margin was $143 million, or 38.9% of sales. This compares with a gross margin of $168 million, or 37.6% last quarter. Net income of $6 million compares with net income of $18 million last quarter.
Cash balances at the end of the quarter were $195 million versus $213 million at the end of last quarter. The sequential decrease is consistent with the company’s seasonal profile and reflects the payment of fiscal year 2008 variable compensation and semi-annual interest payments.
First Quarter Fiscal 2009 Non-GAAP Results:
A favorable product mix combined with tight cost control actions resulted in gross margin of $164 million, or 44.6%. This compares with gross margin of $184 million, or 41.2% last quarter.
R&D expenses were $61 million, or 16.6% of revenue. Last quarter, R&D expenses were $68 million. Selling, general and administrative costs declined to $41 million, or 11.1% of revenue, compared with $46 million in the fourth quarter.
Net income was $37 million, down from $52 million last quarter. These overall results translated into Adjusted EBITDA, as defined in the indentures governing our outstanding debt securities, of $81 million, compared with $88 million in the prior quarter.
“In the last few months we have taken several actions to reduce our corporate cost structure, including announcing a headcount reduction in January,” said Hock E. Tan, president and chief executive officer of Avago Technologies. “These actions, along with our continued focus on expanding our product portfolio into areas offering higher growth potential, helped lessen the impact the general economic slowdown is having on our financial results.”
