Jure Sola: 'We are disappointed in our revenue and margin performance'

Revenue for the second quarter was up 2.7% to USD 1.57 billion, compared to USD 1.53 billion for the same period of fiscal 2010. GAAP operating income in the second quarter was USD 45 million or 2.8% of revenue, compared to USD 45 million or 3.0% in the second quarter fiscal 2010. GAAP net income in the second quarter was USD 13 million, a diluted earnings per share of USD 0.16, compared to USD 10 million, a diluted earnings per share of USD 0.12 for the same period of fiscal 2010. Non-GAAP operating income in the second quarter was USD 53 million or 3.4% of revenue, compared to USD 56 million or 3.7% in the second quarter fiscal 2010. Non-GAAP net income in the second quarter was USD 25 million, a diluted earnings per share of USD 0.30, compared to USD 24 million, a diluted earnings per share of USD 0.29 for the same period a year ago. Cash and cash equivalents increased USD 106 million over the prior quarter to USD 655 million. The company reduced inventory for the third quarter in a row. Cash cycle days were 55 days. "We are disappointed in our revenue and margin performance for the second quarter fiscal year 2011. Softness was broad based, with a significant impact coming from weakness in the communications market and the delay in defense spending. We believe demand is improving and the second half of fiscal 2011 will be stronger than the first half," stated Jure Sola, Chairman and Chief Executive Officer. "We are confident we have the right strategy in place and that our focus on market diversification, operational excellence and investments in technology and services will drive growth and margin expansion," concluded Mr Sola. Third Quarter Fiscal 2011 Outlook The following forecast is for the third fiscal quarter ending July 2, 2011. These statements are forward-looking and actual results may differ materially. * Revenue between USD 1.6 billion to 1.7 billion * Non-GAAP diluted earnings per share between USD 0.33 to 0.37