Technologies, Inc. (NASDAQ: MSPD), a leading supplier of
semiconductor solutions for network infrastructure applications, today
announced that it has raised its fiscal first quarter 2013 guidance
previously provided on November 5, 2012.
Mindspeed now forecasts product revenue in the range of $37.5 to $38.5
million, versus a prior range of $36.5 to $37.5 million. Mindspeed also
projects non-GAAP product gross margins toward the higher end of its
previous guidance range of 58-59%. Further, Mindspeed forecasts reaching
non-GAAP operating profitability in the fiscal first quarter of 2013,
one quarter ahead of the plan it laid out in the fiscal third quarter of
2012. These forecasts exclude the benefit of the $6.0 million sale of
non-core intellectual property completed in the fiscal first quarter of
"We are seeing better than forecast demand across our product lines,
leading to the upside versus our prior guidance. The rollout of our
Transcede® SoC in the 4G/LTE small cell deployments in Korea is on
target, while our wireline businesses are continuing their upward order
trend," commented Raouf Y. Halim, Mindspeed's chief executive officer.
"Importantly, we are also putting these gains to the bottom line and
executing to the restructuring plan we laid out two quarters ago. Having
completed a year of meaningful investment in our wireless growth
initiative, we now anticipate significant earnings leverage and improved
cash flow going forward in fiscal 2013."
About Mindspeed Technologies
Mindspeed Technologies (NASDAQ: MSPD) is a leading provider of network
infrastructure semiconductor solutions to the communications industry.
The company's low-power system-on-chip (SoC) products are helping to
drive video, voice and data applications in worldwide fiber-optic
networks and enable advanced processing for 3G and long-term evolution
(LTE) mobile networks. The company's high-performance analog products
are used in a variety of optical, enterprise, industril and video
transport systems. Mindspeed's products are sold to original equipment
manufacturers (OEMs) around the globe.
To learn more, please visit www.mindspeed.com.
Company news and updates are also posted at www.twitter.com/mindspeed.
We provide non-GAAP measures as a supplement to financial results based
on GAAP. We believe the presentation of non-GAAP measures provides
investors with additional insight into underlying operating results and
prospects for the future. We have historically reported similar
financial measures and believe that the inclusion of comparative numbers
provides consistency in our financial reporting.
We use non-GAAP gross margin internally to evaluate our operating
performance and to determine certain components of management
compensation. In addition, we use non-GAAP gross margin for internal
budgets and forecasts. We believe that non-GAAP gross margin can be
useful to investors in allowing for greater transparency with respect to
supplemental information used by management in its financial and
operational decision making.
Non-GAAP gross margin excludes asset impairments, stock-based
compensation and related payroll costs, profit in acquired inventory and
amortization of acquired intangible assets. We exclude stock-based
compensation and related payroll costs from non-GAAP gross margin
because we believe that excluding these costs can enhance the
understanding of our performance. We exclude profit in acquired
inventory to facilitate comparability of gross profit between periods
and to better reflect continuing operations of the acquired company. We
exclude asset impairments because it includes discrete items that may
not be indicative of our ongoing operations or economic performance.
We do not provide forward-looking GAAP gross margin or a reconciliation
of forward-looking non-GAAP gross margin to GAAP gross margin because of
our inability to project stock-based compensation and related payroll
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements include statements regarding our expectations, goals or
intentions, including, but not limited to: improved product demand and
associated increased revenues; deployments and our ability to benefit
from them; the anticipated financial and operational impact of our
recent restructuring plan; our ability and timeline to achieve operating
profitability; and our earnings leverage and improved cash flow. These
forward-looking statements are based on management's current
expectations, estimates, forecasts and projections and are subject to
risks and uncertainties that could cause actual results and events to
differ materially from those stated in the forward-looking statements.
For example, we cannot provide assurances that our recent restructuring
plan will result in our achieving operating profitability and our
current projections of future operating results are based, in part, on
the anticipated financial impact of our acquisition of Picochip. In
addition, our existing business is subject to numerous risks and
uncertainties, including fluctuations in our operating results and
future operating losses; loss of or diminished demand from one or more
key distributors; our ability to successfully develop and introduce new
products; pricing pressures; and the potential for intellectual property
litigation. Additional risks and uncertainties that could cause our
actual results to differ from those set forth in any forward-looking
statements are discussed in more detail under the caption "Risk Factors"
in our Annual Report on Form 10-K for the fiscal year ended September
30, 2011, and will be included in our Annual Report on Form 10-K for the
year ended September 28, 2012, as well as our future filings with the
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