Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MICROTUNE INC | d8k.htm |
Exhibit 99.1
Investor Relations
Justin Chapman
Microtune, Inc.
972-673-1850
ir@microtune.com
MICROTUNE ANNOUNCES THIRD QUARTER 2010 FINANCIAL RESULTS
Company Achieves Sequential and Year-over-Year Revenue Growth
PLANO, TX, OCTOBER 28, 2010 – Microtune®, Inc. (NASDAQ: TUNE) today reported preliminary unaudited financial results for the third quarter ended September 30, 2010.
Net revenue for the third quarter of 2010 was $24.7 million, a 2% increase compared to net revenue of $24.3 million for the second quarter of 2010, and a 37% increase compared to net revenue of $18.0 million for the third quarter of 2009. For the third quarter of 2010, gross margin percentage was 50.4%.
On a U.S. generally accepted accounting principles (GAAP) basis, net loss was $16 thousand for the third quarter of 2010. Non-GAAP net loss was $0.1 million for the third quarter of 2010. GAAP and Non-GAAP net loss for the third quarter of 2010 included professional fees of $1.9 million related to the proposed acquisition of the Company by Zoran Corporation (NASDAQ: ZRAN). A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the tables attached to this press release.
FINANCIAL SUMMARY
| • | Q3 2010 net revenue of $24.7 million was up 2% compared to the previous quarter and up 37% compared to Q3 2009; |
| • | Q3 2010 gross m ttom"> |
273 | 276 | 302 |
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(in thousands)
(unaudited)
| Three Months Ended | ||||||||||||||||||||
| September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
December 31, 2009 |
September 30, 2009 |
||||||||||||||||
| Cost of revenue |
$ | 1 | $ | 8 | $ | 14 | $ | 9 | $ | 10 | ||||||||||
| Research and development |
(40 | ) | 567 | 761 | 490 | 557 | ||||||||||||||
| Selling, general and administrative |
(178 | ) | 633 | 433 | 598 | 657 | ||||||||||||||
| Total stock-based compensation expense (benefit) included in operating expenses |
(218 | ) | 1,200 | 1,194 | 1,088 | 1,214 | ||||||||||||||
| Total stock-based compensation expense (benefit) |
$ | (217 | ) | $ | 1,208 | $ | 1,208 | $ | 1,097 | $ | 1,224 | |||||||||
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
CERTAIN EXPENSES RELATING TO
INVESTIGATION, RESTATEMENT AND LITIGATION
(in thousands)
(unaudited)
| Three Months Ended | ||||||||||||||||||||
| September 30, 2010 (2) |
June 30, 2010 (3) |
March 31, 2010 (4) |
December 31, 2009 (5) |
September 30, 2009 (6) |
||||||||||||||||
| Selling, general and administrative expenses(1) |
$ | 46 | $ | 97 | $ | (137 | ) | $ | (435 | ) | $ | 274 | ||||||||
| (1) | These amounts represent professional fees that are not expected to be reimbursed under our directors’ and officers’ liability insurance policy. Amounts expected to be reimbursed under our directors’ and officers’ liability insurance policy have been excluded from these amounts. |
| (2) | Amounts reimbursed under our directors’ and officers’ liability insurance policy were $4.5 million in the third quarter of 2010. |
| (3) | Amounts reimbursed under our directors’ and officers’ liability insurance policy were $3.9 million in the second quarter of 2010. |
| (4) | Amounts reimbursed under our directors’ and officers’ liability insurance policy were $0.6 million in the first quarter of 2010. Amounts in the first quarter of 2010 reflect a benefit of $0.3 million from a settlement of professional fees that were expensed in prior periods. |
| (5) | Amounts reimbursed under our directors’ and officers’ liability insurance policy were $3.0 million in the fourth quarter of 2009. Amounts in the fourth quarter of 2009 are net of $0.5 million in professional fees reimbursed by our directors’ and officers’ liability insurance that were previously determined to be excluded from coverage and expensed in prior periods. |
| (6) | No amounts were reimbursed under our directors’ and officers’ liability insurance policy in the third quarter of 2009. |
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP COST OF SALES
(in thousands)
(unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| GAAP cost of sales |
$ | 12,257 | $ | 8,466 | $ | 34,761 | $ | 27,038 | ||||||||
| Amortization of intangibles |
122 | 35 | 249 | 35 | ||||||||||||
| Stock-based compensation expense |
1 | 10 | 23 | 29 | ||||||||||||
| Non-GAAP cost of sales |
$ | 12,134 | $ | 8,421 | $ | 34,489 | $ | 26,974 | ||||||||
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES
(in thousands)
(unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| GAAP research and development expense |
$ | 6,767 | $ | 7,430 | $ | 21,413 | $ | 21,143 | ||||||||
| Stock-based compensation expense (benefit) |
(40 | ) | 557 | 1,288 | 1,686 | |||||||||||
| Non-GAAP research and development expense |
$ | 6,807 | $ | 6,873 | $ | 20,125 | $ | 19,457 | ||||||||
| GAAP selling, general and administration expense |
$ | 6,308 | $ | 6,658 | $ | 16,169 | $ | 18,094 | ||||||||
| Stock-based compensation expense (benefit) |
(178 | ) | 657 | 888 | 1,995 | |||||||||||
| Expense relating to SEC investigation and litigation |
46 | 274 | 6 | 1,315 | ||||||||||||
| Non-GAAP selling, general and administration expense |
$ | 6,440 | $ | 5,727 | $ | 15,275 | $ | 14,784 | ||||||||
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED NET INCOME (LOSS)
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| GAAP net loss |
$ | (16 | ) | $ | (4,378 | ) | $ | (307 | ) | $ | (12,075 | ) | ||||
| Amortization of intangibles |
122 | 35 | 249 | 35 | ||||||||||||
| Stock-based compensation expense (benefit) |
(217 | ) | 1,224 | 2,199 | 3,710 | |||||||||||
| Restructuring expense |
— | — | 4 | — | ||||||||||||
| Expense relating to SEC investigation and litigation |
46 | 274 | 6 | 1,315 | ||||||||||||
| Non-GAAP net income (loss) |
$ | (65 | ) | $ | (2,845 | ) | $ | 2,151 | $ | (7,015 | ) | |||||
| Basic net income (loss) per share: |
||||||||||||||||
| GAAP |
$ | (0.00 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.23 | ) | ||||
| Non-GAAP |
$ | (0.00 | ) | $ | (0.05 | ) | $ | 0.04 | $ | (0.13 | ) | |||||
| Diluted net income (loss) per share: |
||||||||||||||||
| GAAP |
$ | (0.00 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.23 | ) | ||||
| Non-GAAP |
$ | (0.00 | ) | $ | (0.05 | ) | $ | 0.04 | $ | (0.13 | ) | |||||
| Weighted-average common shares outstanding used in basic net income (loss) per share calculation: |
||||||||||||||||
| GAAP |
54,269 | 53,094 | 54,134 | 52,685 | ||||||||||||
| Non-GAAP |
54,269 | 53,094 | 54,134 | 52,685 | ||||||||||||
| Weighted-average common shares outstanding used in diluted net income (loss) per share calculation: |
||||||||||||||||
| GAAP |
54,269 | 53,094 | 54,134 | 52,685 | ||||||||||||
| Non-GAAP |
54,269 | 53,094 | 56,296 | 52,685 | ||||||||||||
Microtune, Inc.
ADDITIONAL FINANCIAL INFORMATION
RECONCILIATION OF SHARES USED IN THE CALCULATION
OF GAAP TO NON-GAAP
CONSOLIDATED NET INCOME (LOSS) PER SHARE
(in thousands)
(unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Weighted-average common shares outstanding used in basic net income (loss) per share calculation – GAAP and Non-GAAP |
54,269 | 53,094 | 54,134 | 52,685 | ||||||||||||
| Weighted-average common shares outstanding used in diluted net income (loss) per share calculation – GAAP |
54,269 | 53,094 | 54,134 | 52,685 | ||||||||||||
| Incremental common equivalent shares |
— | — | 2,162 | — | ||||||||||||
| Weighted-average common shares outstanding used in diluted net income (loss) per share calculation – Non-GAAP |
54,269 | 53,094 | 56,296 | 52,685 | ||||||||||||