MILPITAS, Calif., March 16 /PRNewswire-FirstCall/ -- California Micro Devices today presented its financial outlook for the fourth quarter of fiscal 2006, which ends March 31, 2006. Revenue is expected to be between $16.5 and $17.5 Million compared to $19.6 Million in the prior quarter and $14.5 Million in the same quarter a year ago. The company expects diluted earnings per share of between $0.07 and $0.08 compared to diluted earnings of $0.11 in the prior quarter and a loss of $0.05 a year ago, which included restructuring charges of $270,000.
Based on the company's March quarter outlook, fiscal 2006 revenue is expected to be between $69.3 and $70.3 Million, an all time high, compared to the record $65.9 Million in fiscal 2005. Core revenue is expected to grow 28 to 30 percent year on year. Diluted earnings per share for fiscal 2006 are forecast to be between $0.29 and $0.30, also a record high, compared to $0.18 in fiscal 2005. The fiscal 2006 outlook includes restructuring charges of $59,000 compared to approximately $1.3 Million in fiscal 2005.
"In line with our prior Q4 guidance, revenue from mobile handsets is expected to decline sequentially by about 20 percent," said Robert V. Dickinson, president and CEO. "In contrast, revenue from personal computers and digital consumer electronics is expected to grow sequentially by 10 percent driven by strong sales of our low capacitance ESD protection ASIP solutions. Not only do we expect our core revenue to be up substantially compared to Q4 of last year, we anticipate that fiscal 2006 revenue, gross margin and net income will all reach record levels. Overall, we are very pleased with the outlook for fiscal 2006." He noted that March quarter bookings and design win activity are currently running well ahead of where they were at the same time last quarter.
Commenting on the company's agreement to acquire Arques Technology, announced earlier today, Dickinson said, "Our acquisition of Arques Technology represents a key milestone in the evolution of California Micro Devices and will strengthen both our analog design team and our LED driver product portfolio." He noted that the agreement is expected to close early in the June quarter.
Conference Call and Webcast Today
California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its March quarter and fiscal 2006 outlook. Within the USA, interested parties can access the conference call by dialing 800-218-0204. International parties may gain access by dialing 303-262-2130. No password is necessary.
A replay of the conference call will be available on the company's web site at http://www.calmicro.com/ (Investor Relations Link) beginning at approximately 4:00 p.m. Pacific Time today and continuing for 90 days. The company will announce its actual March quarter and fiscal 2006 financial results on May 4, 2006.
About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, personal computer and digital consumer electronics markets. Key products include Application Specific Integrated Passive(TM) (ASIP(TM)) devices and selected high value mixed signal ICs. Detailed corporate and product information may be accessed at http://www.calmicro.com/.
All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. Forward-looking statements made in this release include our expected revenues, both overall and in certain markets, and our earnings per share for the fourth quarter of fiscal 2006 and for the entire fiscal 2006 year; our expected fiscal 2006 gross margin; and that our acquisition of Arques Technology will close in early April and strengthen our analog design team and LED driver portfolio. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to our distributor sell through, drawdown of vendor managed inventory, and turns and other orders being as anticipated during the final few weeks of the quarter; there being no interruption in the supply of quality product from our contract manufacturers, contract assemblers and test houses; our acquisition of Arques not closing due to a failure of either party to satisfy a closing condition or due to either party breaching our agreement; key members of the Arques analog design teams deciding not to join or to shortly thereafter quit our employment; and the Arques product portfolio not being as robust as we expect when readied for production; as well as the risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company's future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.
NOTE: ASIP(TM) and Application Specific Integrated Passive(TM) are trademarks of California Micro Devices.
All other trademarks are property of their respective owners
