News

Exar Reports Sequential and Year-Over-Year Growth in Quarterly Revenue and Net Income

October 28, 2013 by Jeff Shepard

Exar Corporation announced financial results for the Company's second quarter of fiscal year 2014, ended September 29, 2013. Revenue for the quarter was $34.0 million, an increase of 4% sequentially and 11% from the same quarter a year ago. On a non-GAAP basis gross margin was 52% and non-GAAP net income was $5.1 million, or $0.10 per fully diluted share. On a GAAP basis gross margin was 41%, net income was $6.5 million and earnings per fully diluted share were $0.13. GAAP results reflect an income tax benefit recorded as a result of the acquisition of Cadeka Microcircuits on July 5, 2013.

Louis DiNardo, the Company's President and CEO, commented, "We are pleased with our performance in the second quarter of fiscal year 2014 as revenue grew nicely both sequentially and year-over-year. During the quarter we absorbed the acquisition of Cadeka Microcircuits and delivered solid non-GAAP net income growth of 7% sequentially and 80% versus the same quarter a year ago.

"As we focus on the second half of fiscal 2014 we expect to expand our account base in the networking market and achieve deeper account penetration with our current industrial customers. The second quarter marks a turning point for us as we are now well positioned to drive growth from new products," continued Mr. DiNardo. "In Data Management we began shipping evaluation boards of our next-generation coprocessor. The XR9200 ASIC and the DX2000 Series of PCIe Gen 3 cards deliver unparalleled performance for compression and security and our new AltraHD (Hadoop) platform solution, which leverages our existing DX1840 Series PCIe Cards, paves the way for our effort in the unstructured Big Data environment. In our components businesses new product introductions in High Performance Analog and Connectivity are leading the way to robust design win traction in the industrial sector."

Mr. DiNardo concluded, "While we have demonstrated revenue growth for the past six quarters, we are sensitive to the short-term challenges faced by our existing customers in Big Data. Accordingly, we see a temporary depression this quarter from revenue in the networking area as our OEM customers and subcontractors consume their inventory. Meanwhile, our new design wins are expected to ramp to production in the New Year, positioning us well for growth in all of our target markets based on revenue from new products."

For the third quarter of fiscal year 2014 the Company expects total revenue to be in the range of $30.5 to $33.5 million and gross margin to be in the range of 50% to 52%.