Exar: Results in line with expectations

"Our financial results for the first quarter were within expectations. Revenue growth was 5% and our earnings per share of $0.03 on a non-GAAP basis improved by $0.13 compared to the prior quarter. On a non-GAAP basis our gross margin was 47.2%, which represents a 720 basis point improvement over the prior quarter, which was negatively impacted by excess inventory. Our non-GAAP operating expenses were $12.9 million, down from $16.5 million in the prior quarter," commented company president and CEO Louis DiNardo. "During the first quarter we benefited from our participation in the Big Data market where our data compression and security products are used in data warehousing, data analytics and cloud computing to improve system performance and reduce cost. Additionally, we saw growth in Communications product revenue and stability in our Connectivity business," added Mr. DiNardo. "Our bookings were strong throughout the first quarter and increased 22% as compared to the prior quarter. While this level of bookings supported a book-to-bill ratio of significantly better than 1:1, our dependence on distribution sell-through, for which we have less visibility, and weak macro economic conditions suggest caution in the September quarter," concluded Mr. DiNardo. For the second quarter of fiscal year 2013, the Company expects sales growth in the range of 2% to 4% and non-GAAP gross margin to be in the range of 47% to 49%. Diluted earnings per share on a non-GAAP basis are expected to be in the range of $0.03 to $0.05.