Exar Reports Continuing Impact from Excess Inventory in Supply Chain
Exar Corporation today announced financial results for the company's fourth quarter of fiscal year 2014 and fiscal year 2014, ended March 30, 2014. Fiscal year 2014 revenue of $125.3 million increased 3% from $122.0 million in the prior year. On a non-GAAP basis, gross margin for fiscal year 2014 was 50% versus 49% in the prior year, and non-GAAP operating income of $11.3 million was up 3% compared to $11.0 million in the prior year.
Revenue of $28.0 million for the fourth quarter of fiscal year 2014 decreased from $30.7 million in the previous quarter and $31.2 million in the same quarter a year ago. On a non-GAAP basis, fourth quarter 2014 gross margin was 46% and non-GAAP net income was $0.7 million, or $0.01 per fully diluted share. On a GAAP basis, fourth quarter net income was $0.1 million, or $0.00 earnings per share. For the first quarter of fiscal year 2015 the Company expects revenue to be in the range of $28.0 to $31.0 million and expects non-GAAP gross margin to be in the range of 46% to 48%.
Louis DiNardo, the Company's President and CEO, commented, "Our financial results for the quarter continued to be impacted by supply chain inventory exceeding demand in the networking market, as well as timing issues in certain contracts for proprietary high reliability products and technology licenses. We expect the inventory to be consumed over the next several months and a return to prior levels. Design win momentum for our new power management and connectivity products is strong and we are building a trend and momentum with new and existing customers for our video processor products.
"Our recent announcement of an agreement to acquire Integrated Memory Logic through a tender offer and merger represents a transformative transaction for Exar. The combined company will have greater scale, increased profitability and broader markets to support future growth. We expect the tender offer to be successful and that we will close the transaction during our second fiscal quarter," concluded Mr. DiNardo.
