- Net revenue totaled $26.4 million, growing 7% sequentially
- New product revenue represented 29% of total revenue
- Strengthened balance sheet with net proceeds of $37.6 million from follow-on offering
- Increased cash balance to $71.3 million at June 30, 2013
Vitesse Semiconductor Corporation (
"In the third quarter, our net revenue increased 7% sequentially with both Carrier and Enterprise products recording growth," said Chris Gardner, CEO of Vitesse. "We continue to execute on our strategy to drive growth in new products, with new product revenue contributing 29% of our total revenue. Our innovative solutions for next-generation networks are gaining traction in the mobile access, wired and wireless backhaul, and cloud access markets. We are on track for new product revenue to double to $30.0 million in fiscal year 2013 from fiscal year 2012 and double again in 2014."
"After completing a successful public offering of $37.6 million in net proceeds, we closed the quarter with a significantly strengthened balance sheet and are well-positioned to repay our debt, which matures in 2014. The success of this offering represents an important endorsement by many existing and new investors, and is a recognition of Vitesse's improving strategic position."
Third Quarter Fiscal Year 2013 Financial Results Summary
- Total net revenues were $26.4 million, compared to $24.8 million in the second quarter of fiscal year 2013 and $30.3 million in the third quarter of fiscal year 2012.
- Product revenues were $26.3 million, compared to $24.7 million in the second quarter of fiscal year 2013 and $25.7 million in the third quarter of fiscal year 2012.
- The product lines contributed the following as a percentage of product revenue as compared to the second quarter of fiscal year 2013:
- Carrier networking products: 54.7% versus 53.3%
- Enterprise networking products: 43.2% versus 44.0%
- Intellectual property revenues totaled $133,000 compared to $64,000 in the second quarter of fiscal year 2013 and $4.6 million in the third quarter of fiscal year 2012.
- Product margins were 55.6%, compared to 54.0% in the second quarter of fiscal year 2013 and 56.2% in the third quarter of fiscal year 2012.
- Operating expenses increased to $19.0 million from $17.3 million in the second quarter of fiscal year 2013 and $16.9 million in the third quarter of fiscal year 2012.
- Operating loss was $4.3 million, compared to operating loss of $3.9 million in the second quarter of fiscal year 2013 and operating income of $2.1 million in the third quarter of fiscal year 2012.
- Non-GAAP operating loss was $3.1 million, compared to non-GAAP operating loss of $2.8 million in the second quarter of fiscal year 2013 and non-GAAP operating income of $3.3 million in the third quarter of fiscal year 2012.
- Net loss was $6.4 million, or $0.17 per basic and fully diluted share. This compares to net loss of $4.8 million, or $0.13 per basic and fully diluted share, in the second quarter of fiscal year 2013; and net income of $4.7 million, which included a $5.8 million gain on the embedded derivative, or $0.18 per basic and $0.16 per fully diluted share, in the third quarter of fiscal year 2012.
- Non-GAAP net loss was $5.2 million, or $0.13 per basic and fully diluted share, compared to non-GAAP net loss of $3.8 million, or $0.10 per basic and fully diluted share, for the second quarter of fiscal year 2013; and non-GAAP net income of $140,000, or breakeven per basic and fully diluted share, in the third quarter of fiscal year 2012.
Balance Sheet Data at June 30, 2013 as Compared to September 30, 2012
- Cash balance increased to $71.3 million, compared to $23.9 million.
- Accounts receivable totaled $10.4 million, compared to $9.4 million.
- Inventory totaled $11.9 million, compared to $12.1 million.
- Working capital increased to $64.6 million, compared to $28.7 million.
Financial Outlook
For the fourth quarter of fiscal year 2013, ending September 30, 2013, Vitesse expects revenues to be in the range of $26.0 million to $28.0 million and product margins are expected to be between 53% and 56%. Operating expenses are expected to be between $18.5 million and $19.5 million.
August 6, 2013 Conference Call Information
A conference call is scheduled for today, August 6, 2013, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to report financial results for the third quarter fiscal year 2013.
To listen to the conference call via telephone, dial 888.389.5988 (U.S. toll-free) or 719.325.2402 (International) and provide the passcode 6651312. Participants should dial in at least 10 minutes prior to the start of the call. To listen via the Internet, the webcast can be accessed through the investor section of the Vitesse corporate web site at www.vitesse.com.
The playback of the conference call will be available approximately two hours after the call concludes and will be accessible on the Vitesse corporate web site or by calling 877.870.5176 (U.S. toll-free) or 858.384.5517 (International) and entering the passcode 6651312. The audio replay will be available for seven days.
About Vitesse
Vitesse (
Vitesse is a registered trademark of Vitesse Semiconductor Corporation in the United States and other jurisdictions. All other trademarks or registered trademarks mentioned herein are the property of their respective holders.
VTSS-F
Cautions Regarding Forward Looking Statements
All statements included or incorporated by reference in this release and the related conference call for analysts and investors, other than statements or characterizations of historical fact, are forward-looking statements that are based on our current expectations, estimates and projections about our business and industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," and similar terms, and variations or negatives of these words. Examples of forward-looking statements in this release include the Company's financial outlook for its fourth fiscal quarter of 2013 and anticipated revenue growth. Forward-looking statements are not guarantees of future performance and the Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that could affect the Company's forward-looking statements include, among other things: identification of feasible new product initiatives, management of R&D efforts and the resulting successful development of new products and product platforms; acceptance by customers of the Company's products; reliance on key suppliers; rapid technological change in the industries in which the Company operates; and competitive factors, including pricing pressures and the introduction by others of new products with similar or better functionality than the Company's products. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Measures
A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
