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© rob hill dreamstime.com Components | May 02, 2013

Mindspeed looks for 'strategic alternatives'

Mindspeed Hires Morgan Stanley to Evaluate Strategic Alternatives
"Mindspeed Technologies, Inc. has retained Morgan Stanley & Co. LLC as financial advisor to assist the board of directors in evaluating various strategic alternatives available to the company, a short announcement reads.

For the quarter ended March 29, 2013, Mindspeed recorded net revenue of $35.4 million, a loss per share of $0.02 on a non-GAAP basis, and a loss per share of $1.00 on a GAAP basis.

Revenue from high-performance analog (HPA) products was $15.7 million, or 44 percent of fiscal second quarter 2013 net revenue, and was approximately flat in the same period year-over-year. Revenue from communications processors was $17.1 million, or 49 percent of net revenue, and was approximately flat in the same period year-over-year. Wireless infrastructure revenue contributed $2.6 million in the quarter, or approximately 7 percent of total revenue, and was up 16 percent over the same period year-over-year.

Non-GAAP operating loss for the fiscal second quarter of 2013 was approximately $541,000, compared to a non-GAAP operating loss of $4.9 million for the same period in the prior fiscal year. GAAP operating loss for the fiscal second quarter of 2013 was $39.4 million (assuming preliminarily estimated goodwill and asset impairment charges), compared to a GAAP operating loss of $13.8 million for the same period in the prior fiscal year.

Non-GAAP net loss for the fiscal second quarter of 2013 was $978,000, or $0.02 per share, compared to a non-GAAP net loss of $5.2 million, or $0.14 per share, for the same period in the prior fiscal year. GAAP net loss in the fiscal second quarter of 2013 was $40.1 million (assuming preliminarily estimated goodwill and asset impairment charges), or $1.00 per share, compared to a GAAP net loss of $14.2 million, or $0.39 per share, for the same period in the prior fiscal year.

"While we were disappointed with our financial performance in the fiscal second quarter, the weakness was primarily within the 3G wireless market. In turn, we have had to reconsider our views of how and when that market will develop. Our other product lines for high performance analog and communications processors performed consistently with our expectations, and 4G/LTE met our goal of doubling in the quarter," commented Raouf Y. Halim, chief executive officer at Mindspeed.

Outlook

Mindspeed forecasts total net product revenue in the fiscal third quarter of 2013 to be approximately flat versus the fiscal second quarter of 2013. The company expects fiscal third quarter of 2013 non-GAAP gross margin to be approximately 60 percent and anticipates non-GAAP operating expenses to be approximately $21.5 million in the fiscal third quarter of 2013.

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