Mindspeed Technologies, Inc. (MM) (NASDAQ:MSPD)
Historical Stock Chart
2 Years : From May 2011 to May 2013
Mindspeed
Technologies, Inc. (NASDAQ:MSPD), a leading supplier of
semiconductor solutions for network infrastructure applications, today
reported results for its fiscal second quarter of 2012, which ended on
March 30, 2012.
Fiscal Second Quarter 2012 Financial Highlights
-
Total Net Revenues: $35.4 million, including intellectual property
revenue of $0.5 million; Product Revenue: $34.9 million, up 3.0
percent from the fiscal first quarter of 2012.
-
Non-GAAP Gross Margin: 59.8 percent, compared to 58.0 percent in the
prior fiscal quarter; GAAP Gross Margin: 58.0 percent, compared to
58.1 percent in the prior fiscal quarter.
-
Non-GAAP Operating Margin: (13.9) percent, compared to (6.8) percent
in the prior fiscal quarter; GAAP Operating Margin: (39.1) percent,
compared to (16.0) percent in the prior fiscal quarter.
-
Non-GAAP Net Loss per Share: $(0.14), compared to $(0.07) in the prior
fiscal quarter; GAAP Net Loss per Share: $(0.39), compared to $(0.17)
in the prior fiscal quarter.
Total net revenues for the fiscal second quarter of 2012 were $35.4
million. Excluding intellectual property revenue of $0.5 million,
product revenue was $34.9 million, a sequential increase of 3.0 percent
from product revenue of $33.8 million in the prior fiscal quarter and a
decrease of 9.6 percent from product revenue of $38.6 million in the
fiscal second quarter of 2011.
Product revenue from communications convergence processing (CCP)
solutions contributed 43.5 percent of fiscal second quarter 2012 product
revenues and increased 1.0 percent sequentially from the prior fiscal
quarter. Product revenue from high-performance analog (HPA) products
represented 44.9 percent of fiscal second quarter 2012 product revenue
and increased 9.2 percent sequentially from the prior fiscal quarter.
Wide area networking (WAN) communications product revenue contributed
the remaining 11.6 percent of fiscal second quarter 2012 product revenue
and decreased 10.1 percent sequentially from the prior fiscal quarter.
Non-GAAP gross margin for the fiscal second quarter of 2012 was $21.2
million, or 59.8 percent, compared to non-GAAP gross margin of $19.7
million, or 58.0 percent, in the prior fiscal quarter. Presented on a
GAAP basis, gross margin for the fiscal second quarter of 2012 was $20.5
million, or 58.0 percent, compared to $19.7 million, or 58.1 percent, in
the prior fiscal quarter.
Non-GAAP operating expenses for the fiscal second quarter of 2012 were
$26.1 million, a sequential increase of 18.7 percent, or $4.1 million,
compared to non-GAAP operating expenses of $22.0 million in the prior
fiscal quarter. GAAP operating expenses for the fiscal second quarter of
2012 were $34.4 million, a sequential increase of 36.7 percent, or $9.2
million, compared to $25.1 million in the prior fiscal quarter.
Non-GAAP operating loss for the fiscal second quarter of 2012 was $4.9
million, compared to non-GAAP operating loss of $2.3 million in the
prior fiscal quarter. On a GAAP basis, operating loss for the fiscal
second quarter of 2012 was $13.8 million, compared to $5.4 million in
the prior fiscal quarter.
Non-GAAP net loss for the fiscal second quarter of 2012 was $5.2
million, or $0.14 per share, compared to non-GAAP net loss of $2.4
million, or $0.07 per share, in the prior fiscal quarter. On a GAAP
basis, net loss was $14.2 million, or $0.39 per share, compared to $5.6
million, or $0.17 per share, in the prior fiscal quarter.
Non-GAAP results exclude stock-based compensation and related payroll
costs, acquisition-related costs, integration costs and restructuring
charges, among other items. Reconciliations of the non-GAAP measures to
GAAP measures are included in the accompanying financial data.
Cash and cash equivalents were $32.4 million at the end of the fiscal
second quarter of 2012, a decrease of approximately $10.4 million,
compared to $42.8 million at the end of the prior fiscal quarter,
primarily due to payments toward licensed intangible assets and the net
loss from operations. Net loss from operations included transaction
fees, restructuring charges and integration costs related to the
Picochip acquisition.
Commentary
“Our strong second quarter revenue results reflect a larger than
expected contribution from our wireless business driven by our
acquisition of Picochip,” said Raouf Y. Halim, Mindspeed’s chief
executive officer. “While we did see some softening in our core wireline
business during the second quarter resulting from a weakening in global
wireline carrier capital expenditures, this was almost completely offset
by the product cycles within our wireline businesses, such as optical
access infrastructure and high-performance analog products for the
enterprise.
“From a strategic perspective, the fiscal second quarter was a
transformational period for Mindspeed with the closing of our Picochip
acquisition, a critical building block in our wireless initiative. We
continue to expand our position in small cell wireless infrastructure,
now supporting 25 4G/LTE engagements with Transcede as well as 6
TD-SCDMA engagements, and over 60 3G/HSPA engagements with the former
Picochip product family. We expect our continuing leadership in wireless
network infrastructure technology to drive future revenue and earnings
growth for Mindspeed.”
Outlook
Mindspeed expects fiscal third quarter of 2012 total net product revenue
to range between $35.2 million to $36.3 million, a sequential increase
of 1 to 4 percent in product revenue over the fiscal second quarter of
2012. The company expects fiscal third quarter of 2012 non-GAAP gross
margin to be within a range of 57.5 to 58.5 percent. Net product revenue
and non-GAAP gross margin expectations do not assume any revenue from
intellectual property. The company also expects non-GAAP operating
expenses to be $25.3 million in the fiscal third quarter of 2012.
Fiscal Second Quarter 2012 Conference Call
Mindspeed will conduct a conference call announcing its fiscal second
quarter 2012 results today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern
Time. To listen to the conference call via telephone, call 888-566-6140
(domestic) or 517-308-9199 (international); password: Mindspeed. To
listen via the Internet, please visit the Investors section of
Mindspeed's web site at www.mindspeed.com.
A replay of the conference call will be available via telephone for a
period of 30 days beginning one hour after the conference call concludes
by calling 866-421-0438 (domestic) or 203-369-0800 (international). The
replay will also be available in the Investors section of Mindspeed's
web site at www.mindspeed.com
during such 30 day period.
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, industrial 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.
Non-GAAP Measures
We provide non-GAAP measures as a supplement to financial results based
on GAAP. A detailed reconciliation of the non-GAAP results to the most
directly comparable GAAP measures is set forth below under the heading
“Reconciliation of Non-GAAP Measures to GAAP Measures.” Investors are
encouraged to review the accompanying press release reconciliations. We
believe the presentation of non-GAAP measures provides investors with
additional insight into underlying operating results and prospects for
the future by excluding stock-based compensation and related payroll
costs, profit in acquired inventory, amortization of acquired intangible
assets, employee separation costs, acquisition-related costs,
integration costs, restructuring charges and/or non-cash interest
expense on our convertible senior notes. 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, research and development expenses,
selling, general and administrative expenses, operating expenses,
operating income, other expense, net, net income and net income per
share internally to evaluate our operating performance and to determine
certain components of management compensation. In addition, we use these
non-GAAP measures for internal budgets and forecasts. We believe that
these non-GAAP measures 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 stock-based compensation and related
payroll costs, profit in acquired inventory and amortization of acquired
intangible assets. Non-GAAP research and development expenses exclude
stock-based compensation and related payroll costs. Non-GAAP selling,
general and administrative expenses exclude stock-based compensation and
related payroll costs, amortization of acquired intangible assets,
employee separation costs and integration costs. Non-GAAP operating
expenses exclude stock-based compensation and related payroll costs,
acquisition-related costs, restructuring charges, amortization of
acquired intangible assets, employee separation costs, and integration
costs. Non-GAAP operating income excludes stock-based compensation and
related payroll costs, acquisition-related costs, restructuring charges,
profit in acquired inventory, amortization of acquired intangible
assets, employee separation costs, and integration costs. Non-GAAP other
income/ (expense), net, excludes non-cash interest expense on our
convertible senior notes. Non-GAAP net income/(loss) and non-GAAP net
income/(loss) per share excludes stock-based compensation and related
payroll costs, acquisition-related costs, restructuring charges, profit
in acquired inventory, amortization of acquired intangible assets,
employee separation costs, integration costs, and non-cash interest
expense on our convertible senior notes.
We exclude stock-based compensation and related payroll costs and
non-cash interest expense on our convertible senior notes from non-GAAP
measures 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 employee separation costs, restructuring charges,
acquisition-related costs, and integration costs because they include
significant discrete items that may not be indicative of our ongoing
operations or economic performance.
We do not provide forward-looking GAAP measures or a reconciliation of
the forward-looking non-GAAP measures to GAAP measures because of our
inability to project restructuring charges, employee separation costs
and stock-based compensation and related payroll costs.
The non-GAAP financial measures we provide have certain limitations
because they do not reflect all of the costs associated with the
operation of our business as determined in accordance with GAAP. The
non-GAAP measures are in addition to, and not a substitute for, or
superior to, measures of financial performance prepared in accordance
with GAAP and may be different from non-GAAP measures used by other
companies. We endeavor to compensate for the limitations of these
non-GAAP measures by providing GAAP financial statements, descriptions
of the reconciling items and a reconciliation of the non-GAAP measures
to the most directly comparable GAAP measures so that investors can
appropriately incorporate the non-GAAP measures and their limitations
into their analyses. For complete information on stock-based
compensation and related payroll costs, profit in acquired inventory,
amortization of acquired intangible assets, employee separation costs,
restructuring charges, acquisition-related costs, integration costs and
non-cash interest expense on our convertible senior notes, please see
our financial statements and “Management’s Discussion and Analysis of
Results of Operations and Financial Condition” that will be included in
the periodic report we expect to file with the SEC with respect to the
financial periods discussed herein.
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: our current assessment of the
demand environment in our target markets; the anticipated financial and
strategic impact of our acquisition of Picochip; and our current
expectations for third quarter 2012 net product revenue, gross margin
and non-GAAP operating expenses. 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. In particular, we recently completed the
acquisition of Picochip. As a result, we face various integration risks
and cannot provide any assurances that the anticipated revenue and
expense synergies of the acquisition will be achieved or that the
markets for the combined company will develop as we currently
anticipate. Acquisition transactions are subject to inherent risks and
uncertainties, including, among others, risks associated with the
successful integration of geographically separate organizations; the
ability to integrate the two companies’ technologies; and the potential
for key employee attrition. In addition, our existing business is
subject to numerous risks and uncertainties independent of the
acquisition of Picochip, 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 Quarterly Report on Form 10-Q for
the quarter ended March 30, 2012 as well as our future filings with the
SEC.
MINDSPEED TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Months Ended
Six Months Ended
March 30,
December 30,
April 1,
March 30,
April 1,
2012
2011
2011
2012
2011
Net revenue:
Products
$
34,858
$
33,842
$
38,553
$
68,700
$
76,596
Intellectual property
501
90
-
591
2,500
Total net revenue
35,359
33,932
38,553
69,291
79,096
Cost of goods sold (a)
14,839
14,219
14,283
29,058
28,564
Gross margin
20,520
19,713
24,270
40,233
50,532
Operating expenses:
Research and development (a)
17,740
15,008
14,525
32,748
28,448
Selling, general and administrative (a)
13,088
9,322
10,079
22,410
20,290
Acquisition-related costs (b)
2,259
808
-
3,067
-
Restructuring charges
1,272
-
-
1,272
(18
)
Total operating expenses
34,359
25,138
24,604
59,497
48,720
Operating (loss)/income
(13,839
)
(5,425
)
(334
)
(19,264
)
1,812
Other expense, net
(262
)
(85
)
(290
)
(348
)
(538
)
(Loss)/income before income taxes
(14,101
)
(5,510
)
(624
)
(19,612
)
1,274
Provision for income taxes
134
88
135
222
334
Net (loss)/income
$
(14,235
)
$
(5,598
)
$
(759
)
$
(19,834
)
$
940
Net (loss)/income per share:
Basic
$
(0.39
)
$
(0.17
)
$
(0.02
)
$
(0.57
)
$
0.03
Diluted
$
(0.39
)
$
(0.17
)
$
(0.02
)
$
(0.57
)
$
0.03
Weighted-average number of shares used in per share computation:
Basic
36,293
32,900
32,133
34,597
32,021
Diluted
36,293
32,900
32,133
34,597
33,032
(a) Includes stock-based compensation expense and related payroll
costs.
(b) Acquisition-related costs are professional fees incurred related
to the acquisition of Picochip.
MINDSPEED TECHNOLOGIES, INC.
Reconciliation of Non-GAAP Measures to GAAP Measures
(unaudited, in thousands, except per share amounts)
Three Months Ended
Six Months Ended
March 30,
December 30,
April 1,
March 30,
April 1,
2012
2011
2011
2012
2011
Reconciliation of Non-GAAP Gross Margin to GAAP Gross Margin
Non-GAAP gross margin
$
21,162
$
19,670
$
24,315
$
40,832
$
50,620
Items excluded from non-GAAP gross margin:
Stock-based compensation and related payroll costs
42
(43
)
45
(1
)
88
Profit in acquired inventory (c)
448
-
-
448
-
Amortization of acquired intangible assets (d)
152
-
-
152
-
Gross margin
$
20,520
$
19,713
$
24,270
$
40,233
$
50,532
Reconciliation of Non-GAAP Research and Development Expenses to
GAAP Research and Development Expenses
Non-GAAP research and development expenses
$
16,524
$
14,338
$
14,196
$
30,862
$
27,804
Items excluded from non-GAAP research and development expenses:
Stock-based compensation and related payroll costs
1,216
670
329
1,886
644
Research and development expenses
$
17,740
$
15,008
$
14,525
$
32,748
$
28,448
Reconciliation of Non-GAAP Selling, General and Administrative
Expenses to GAAP Selling, General and Administrative Expenses
Non-GAAP selling, general and administrative expenses
$
9,552
$
7,639
$
9,351
$
17,191
$
18,741
Items excluded from non-GAAP selling, general and administrative
expenses:
Stock-based compensation and related payroll costs
2,145
1,567
728
3,712
1,549
Amortization of acquired intangible assets (d)
65
-
-
65
-
Employee separation costs (e)
-
(19
)
-
(19
)
-
Integration costs (f)
1,326
135
-
1,461
-
Selling, general and administrative expenses
$
13,088
$
9,322
$
10,079
$
22,410
$
20,290
Reconciliation of Non-GAAP Operating Expenses to GAAP Operating
Expenses
Non-GAAP operating expenses
$
26,076
$
21,977
$
23,547
$
48,053
$
46,545
Items excluded from non-GAAP operating expenses:
Stock-based compensation and related payroll costs
3,361
2,237
1,057
5,598
2,193
Acquisition-related costs (b)
2,259
808
-
3,067
-
Restructuring charges
1,272
-
-
1,272
(18
)
Amortization of acquired intangible assets (d)
65
-
-
65
-
Employee separation costs (e)
-
(19
)
-
(19
)
-
Integration costs (f)
1,326
135
-
1,461
-
Operating expenses
$
34,359
$
25,138
$
24,604
$
59,497
$
48,720
Reconciliation of Non-GAAP Operating (Loss)/Income to GAAP
Operating (Loss)/Income
Non-GAAP operating (loss)/income
$
(4,914
)
$
(2,307
)
$
768
$
(7,221
)
$
4,075
Items excluded from non-GAAP operating (loss)/income:
Stock-based compensation and related payroll costs
3,403
2,194
1,102
5,597
2,281
Acquisition-related costs (b)
2,259
808
-
3,067
-
Restructuring charges
1,272
-
-
1,272
(18
)
Profit in acquired inventory (c)
448
-
-
448
-
Amortization of acquired intangible assets (d)
217
-
-
217
-
Employee separation costs (e)
-
(19
)
-
(19
)
-
Integration costs (f)
1,326
135
-
1,461
-
Operating (loss)/income
$
(13,839
)
$
(5,425
)
$
(334
)
$
(19,264
)
$
1,812
MINDSPEED TECHNOLOGIES, INC.
Reconciliation of Non-GAAP Measures to GAAP Measures
(unaudited, in thousands, except per share amounts)
Three Months Ended
Six Months Ended
March 30,
December 30,
April 1,
March 30,
April 1,
2012
2011
2011
2012
2011
Reconciliation of Non-GAAP Other (Expense)/Income, Net to GAAP
Other (Expense)/Income, Net
Non-GAAP other income/(expense), net
$
(158
)
$
17
$
(189
)
$
(141
)
$
(336
)
Items excluded from non-GAAP other income/(expense), net:
Non-cash interest expense on convertible senior notes (g)
(104
)
(102
)
(101
)
(207
)
(202
)
Other (expense)/income, net
$
(262
)
$
(85
)
$
(290
)
$
(348
)
$
(538
)
Reconciliation of Non-GAAP Net (Loss)/Income to GAAP Net
(Loss)/Income
Non-GAAP net (loss)/income
$
(5,206
)
$
(2,378
)
$
444
$
(7,584
)
$
3,405
Items excluded from non-GAAP net (loss)/income:
Stock-based compensation and related payroll costs
3,403
2,194
1,102
5,597
2,281
Acquisition-related costs (b)
2,259
808
-
3,067
-
Restructuring charges
1,272
-
-
1,272
(18
)
Profit in acquired inventory (c)
448
-
-
448
-
Amortization of acquired intangible assets (d)
217
-
-
217
-
Employee separation costs (e)
-
(19
)
-
(19
)
-
Integration costs (f)
1,326
135
-
1,461
-
Non-cash interest expense on convertible senior notes (g)
104
102
101
207
202
Net (loss)/income
$
(14,235
)
$
(5,598
)
$
(759
)
$
(19,834
)
$
940
Reconciliation of Non-GAAP Net (Loss)/Income Per Share to GAAP
Net (Loss)/Income Per Share
Net (loss)/income per share, basic:
Non-GAAP net (loss)/income per share, basic
$
(0.14
)
$
(0.07
)
$
0.01
$
(0.22
)
$
0.11
Adjustments
(0.25
)
(0.10
)
(0.03
)
(0.35
)
(0.08
)
Net (loss)/income per share, basic
$
(0.39
)
$
(0.17
)
$
(0.02
)
$
(0.57
)
$
0.03
Net (loss)/income per share, diluted:
Non-GAAP net (loss)/income per share, diluted
$
(0.14
)
$
(0.07
)
$
0.01
$
(0.22
)
$
0.10
Adjustments
(0.25
)
(0.10
)
(0.03
)
(0.35
)
(0.07
)
Net (loss)/income per share, diluted
$
(0.39
)
$
(0.17
)
$
(0.02
)
$
(0.57
)
$
0.03
(c) Profit in acquired inventory results from purchase-accounting
adjustments which increase the value of inventory acquired to its
fair value. As the acquired inventory is sold, the associated profit
in acquired inventory increases cost of goods sold and reduces gross
profit.
(d) Amortization of acquired intangible assets reflects amortization
expense on intangible assets recorded in conjunction with the
Picochip acquisition.
(e) Employee separation costs consist of severance benefits payable
to certain former employees of the Company as a result of
organizational changes.
(f) Integration costs represent costs incurred related to the
transition of Picochip to a wholly owned subsidiary of Mindspeed.
(g) Non-cash interest expense on convertible senior notes represents
the amortization of debt discounts recorded in accordance with FASB
ASC 470-20, related to the Company's 6.50% convertible senior notes.
MINDSPEED TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited, in thousands)
March 30,
September 30,
2012
2011
ASSETS
Current Assets
Cash and cash equivalents
$
32,354
$
45,227
Receivables, net
22,307
13,393
Inventories
10,837
14,216
Prepaid expenses and other current assets
5,799
3,067
Total current assets
71,297
75,903
Property, plant and equipment, net
17,214
15,369
Intangible assets, net
37,339
17,357
Goodwill
57,639
-
Other assets
2,848
1,982
Total assets
$
186,337
$
110,611
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
15,659
$
5,532
Accrued compensation and benefits
7,331
7,292
Accrued income taxes
990
690
Deferred income on sales to distributors
4,875
5,346
Deferred revenue
4,086
653
Restructuring
867
944
Line of credit - current
5,490
-
Contingent consideration
10,038
-
Other current liabilities
9,488
5,100
Total current liabilities
58,824
25,557
Line of credit - long-term
8,000
-
Long-term debt
29,423
14,216
Other liabilities
1,091
1,426
Total liabilities
97,338
41,199
Stockholders' Equity
88,999
69,412
Total liabilities and stockholders' equity
$
186,337
$
110,611
MINDSPEED TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Six Months Ended
March 30,
April 1,
2012
2011
Cash Flows From Operating Activities
Net (loss)/income
$
(19,834
)
$
940
Adjustments required to reconcile net (loss)/income to net cash
(used in)/provided by operating activities:
Depreciation and amortization
3,108
2,572
Amortization of intangible assets
1,457
1,135
Restructuring charges
1,272
(18
)
Stock-based compensation
5,456
2,212
Inventory provisions
1,539
181
Amortization of debt discount on convertible debt
300
223
Other non-cash items, net
35
4
Changes in assets and liabilities, net of acquisitions:
Receivables
(7,632
)
6,442
Inventories
3,779
(2,572
)
Other assets, net
1,001
(223
)
Accounts payable
4,425
1,931
Deferred income on sales to distributors
(471
)
575
Restructuring charges
(1,349
)
(491
)
Accrued compensation and benefits
(3,656
)
(3,229
)
Accrued expenses and other current liabilities
(1,024
)
(213
)
Other liabilities, net
(76
)
33
Net cash (used in)/provided by operating activities
(11,670
)
9,502
Cash Flows From Investing Activities
Purchases of property, plant and equipment
(2,334
)
(3,920
)
Payments under license agreements
(7,341
)
(5,009
)
Net cash paid for business acquisition
(20,096
)
-
Net cash used in investing activities
(29,771
)
(8,929
)
Cash Flows From Financing Activities
Payments made on capital lease obligations
(281
)
(274
)
Borrowings under term loan
15,000
-
Borrowings under line of credit
14,807
-
Payments made on line of credit
(1,317
)
-
Deferred financing fees
(378
)
-
Repurchase of restricted stock for income tax withholding
(575
)
(291
)
Proceeds from equity compensation programs
1,362
1,256
Net cash provided by financing activities
28,618
691
Effect of foreign currency exchange rates on cash
(50
)
(41
)
Net (decrease)/increase in cash and cash equivalents
(12,873
)
1,223
Cash and cash equivalents at beginning of period
45,227
43,685
Cash and cash equivalents at end of period
$
32,354
$
44,908
MINDSPEED TECHNOLOGIES, INC.
Selected Corporate Data
(unaudited, in thousands)
Three Months Ended
Six Months Ended
March 30,
December 30,
April 1,
March 30,
April 1,
2012
2011
2011
2012
2011
Gross margin %
58.0
%
58.1
%
63.0
%
58.1
%
63.9
%
Cash (used in)/provided by:
Operating activities
$
(11,324
)
$
(346
)
$
2,197
$
(11,670
)
$
9,502
Investing activities
(27,090
)
(2,681
)
(2,827
)
(29,771
)
(8,929
)
Financing activities
28,063
555
40
28,618
691
Effect of foreign currency on cash
(56
)
6
(60
)
(50
)
(41
)
Net (decrease)/increase in cash
$
(10,407
)
$
(2,466
)
$
(650
)
$
(12,873
)
$
1,223
Depreciation and amortization
$
1,595
$
1,513
$
1,370
$
3,108
$
2,572
Amortization of intangible assets
$
814
$
643
$
561
$
1,457
$
1,135
Capital expenditures
$
6,994
$
2,681
$
2,634
$
9,675
$
8,929
Net revenue by region:
Americas
$
6,150
$
5,516
$
7,796
$
11,666
$
19,827
Europe
2,829
1,858
3,343
4,687
6,683
Asia-Pacific
26,380
26,558
27,414
52,938
52,586
Total net revenue
$
35,359
$
33,932
$
38,553
$
69,291
$
79,096
Net revenue by product line:
Communications convergence processing products
$
15,146
$
14,989
$
15,569
$
30,135
$
32,194
High-performance analog products
15,657
14,344
14,949
30,001
29,053
WAN communications products
4,055
4,509
8,035
8,564
15,349
Total net product revenue
34,858
33,842
38,553
68,700
76,596
Intellectual property
501
90
-
591
2,500
Total net revenue
$
35,359
$
33,932
$
38,553
$
69,291
$
79,096
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