Microtune Announces Second Quarter 2004 Results
PLANO, Texas--July 29, 2004--Microtune(R), Inc. announced today financial results for its second quarter of 2004, which ended June 30, 2004.FINANCIAL RESULTS SUMMARY
The Company's net revenue for the quarter was $13.5 million and its net income during the quarter was $16.0 million. Net income included other income of $22.5 million relating to the receipt of a previously disclosed litigation settlement payment, which was discussed in the Company's press release dated June 14, 2004. Two customers accounted for approximately 27% of net revenues. The Company ended the quarter with cash and investments of $85.8 million.
James A. Fontaine, Microtune's CEO and President, said, "Our revenues, net of royalties and sales of our wireless products, grew approximately 25% from last quarter. We expect sales growth to continue into our fiscal third quarter and believe that our third quarter net revenues, in total, will increase 15% to 20% versus the second quarter of 2004. We look forward to tomorrow's conference call to discuss our progress. We thank our customers for their confidence in Microtune and all our employees for their hard work and dedication during the quarter."
CONFERENCE CALL
The Company will hold a conference call and webcast on July 30, 2004 at 7:30 A.M. Central Time/8:30 A.M. Eastern Time to discuss its Q2 results and its outlook for the future.
Interested parties may listen to the conference call via the Internet by accessing Microtune's website at www.microtune.com or by calling 1-712-923-4284 (passcode: earnings). A replay will be available through August 13, 2004 by calling 1-402-280-1614 or on the Company's website at www.microtune.com.
ABOUT MICROTUNE
Microtune, Inc. is a silicon and subsystems company that designs and markets radio frequency (RF)-based solutions for the worldwide broadband communications and transportation electronics markets. Inventors of the MicroTuner(TM) single-chip broadband tuner, Microtune offers a portfolio of advanced tuner, amplifier, upconverter and transceiver products that enable the delivery of information and entertainment across new classes of consumer electronics devices. The Company currently holds 30 U.S. patents for its technology. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design and sales centers located around the world. The website is www.microtune.com.
MICROTUNE FORWARD LOOKING STATEMENTS
All statements in this press release other than statements of historical fact are forward-looking statements that are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are generally accompanied by words such as "plan," "if," "estimate," "expect," "believe," "could," "would," "anticipate," "may," or other words that convey uncertainty of future events or outcomes. These forward-looking statements and other statements made elsewhere in this release are made in reliance on the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to differ include the Company's ability to introduce new products, achieve design wins, forecast revenue and manage inventory levels, control and budget expenses, protect its proprietary technology and intellectual property, and successfully prosecute and defend the various lawsuits, any of which may cause the Company's financial results to fluctuate. The forward-looking statements in this release and in the related conference call for analysts and investors speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. Readers are referred to our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings which discuss the foregoing factors as well as other important risk factors that could affect our business, results of operations and financial condition.
EDITOR'S NOTE: Microtune is a registered trademark and MicroTuner, MicroStreamer and VideoCaster are trademarks of Microtune, Inc. All other company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated
Copyright (C) 2004 Microtune, Inc. All rights reserved.
Microtune, Inc.
Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
Assets June 30, 2004 December 31, 2003
--------------- --------------------
Current assets:
Cash and cash equivalents $73,160 $53,337
Short-term investments 6,045 6,045
Accounts receivable, net 5,997 4,260
Inventories 5,131 4,165
Other current assets 1,994 4,309
------------- --------------------
Total current assets 92,327 72,116
Property and equipment, net 6,499 7,504
Long-term investments 6,556 14,028
Intangible assets, net 4,543 6,564
Other assets and deferred charges 472 447
------------- --------------------
Total assets $110,397 $100,659
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $8,395 $7,195
Accrued compensation 1,325 1,182
Accrued expenses 4,819 3,945
Deferred revenue -- 147
------------- --------------------
Total current liabilities 14,539 12,469
Other noncurrent liabilities 1,185 1,466
Commitments and contingencies
Stockholders' equity 94,673 86,724
------------- --------------------
Total liabilities and
stockholders' equity $110,397 $100,659
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Microtune, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
2004 2003 2004 2003
----------- -------- -------- ---------
Net revenue $13,470 $13,976 $24,509 $26,598
Cost of revenue 7,917 9,086 13,840 19,487
----------- -------- -------- ---------
Gross margin 5,553 4,890 10,669 7,111
Operating expenses:
Research and development:
Stock option
compensation 186 477 364 1,682
Other 3,797 5,664 7,181 12,229
----------- -------- -------- ---------
3,983 6,141 7,545 13,911
Selling, general and
administrative:
Stock option
compensation 64 1,133 144 1,546
Other 7,818 7,730 16,061 14,177
----------- -------- -------- ---------
7,882 8,863 16,205 15,723
Restructuring (12) (1,303) 99 100
Amortization of intangible
assets 1,069 1,055 2,135 2,136
----------- -------- -------- ---------
Total operating
expenses 12,922 14,756 25,984 31,870
----------- -------- -------- ---------
Loss from operations (7,369) (9,866) (15,315) (24,759)
Other income (expense):
Interest income 190 181 405 593
Foreign currency gains
(losses), net 558 1,474 (650) 1,324
Settlement of patent and
anti-trust litigation 22,500 -- 22,500 --
Other 268 137 577 215
----------- -------- -------- ---------
Income (loss) before
provision for income taxes 16,147 (8,074) 7,517 (22,627)
Income tax expense 101 82 201 245
----------- -------- -------- ---------
Net income (loss) $16,046 $(8,156) $7,316 $(22,872)
=========== ======== ======== =========
Net income (loss) per common
share:
Basic $0.31 $(0.16) $0.14 $(0.46)
=========== ======== ======== =========
Diluted $0.30 $(0.16) $0.14 $(0.46)
=========== ======== ======== =========
Weighted-average common
shares outstanding:
Basic 51,467 50,244 51,369 50,008
=========== ======== ======== =========
Diluted 53,706 50,244 53,235 50,008
=========== ======== ======== =========
Microtune, Inc.
Consolidated Statements of Cash Flows
(in thousands, except per share data)
(unaudited)
Six Months Ended
June 30,
----------------------
2004 2003
----------- ----------
Operating activities:
Net income (loss) $7,316 $(22,872)
Adjustments to reconcile net income
(loss) to cash provided (used) in
operating activities:
Depreciation 1,286 3,629
Amortization of intangible assets 2,135 2,135
Non-cash restructuring costs (35) 762
Foreign currency (gains) losses, net 650 (1,324)
Amortization of deferred stock option
compensation 508 3,229
Gain on sale of property and equipment (265) (1,166)
Allowance for uncollectible accounts
receivable 18 --
Other non-cash charges -- 462
Changes in operating assets and
liabilities:
Accounts receivable, net (1,755) 5,380
Inventories (966) 538
Other assets 1,959 (11)
Accounts payable 1,309 (3,457)
Accrued expenses 602 (4,626)
Other liabilities (281) 431
Accrued compensation 143 56
----------- ----------
Net cash provided by (used in)
operating activities 12,624 (16,834)
Investing activities:
Purchases of property and equipment (283) (407)
Proceeds from sale of property and
equipment 267 199
Proceeds from sale of Philippine
manufacturing assets 51 5,151
Sale of Holland subsidiary -- (934)
Proceeds from available-for-sale
investments 9,000 4,000
Purchase of available-for-sale
investments (1,620) --
Loans receivable -- (130)
Acquisition of intangible assets (114) (208)
----------- ----------
Net cash provided by investing
activities 7,301 7,671
Financing activities:
Proceeds from issuance of common stock 523 549
Loans receivable from stockholders 30 --
Other, net (5) --
----------- ----------
Net cash provided by financing
activities 548 549
Effect of foreign currency exchange rate
changes on cash (650) 1,324
----------- ----------
Net increase (decrease) in cash and
cash equivalents 19,823 (7,290)
Cash and cash equivalents at beginning of
period 53,337 102,278
----------- ----------
Cash and cash equivalents at end of
period $73,160 $94,988
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