Click here to close now.

Welcome!

Web 2.0 Authors: Elizabeth White, Carmen Gonzalez, Liz McMillan, Pat Romanski, Yeshim Deniz

News Feed Item

Vitesse Reports First Quarter Fiscal Year 2013 Results

Vitesse Semiconductor Corporation (NASDAQ: VTSS), a leading provider of advanced IC solutions for Carrier and Enterprise networks, reported its financial results for the first quarter fiscal year 2013, ended December 31, 2012.

“At Vitesse, we are focused on running operations as efficiently as possible while investing in our future. New product revenues in the first quarter fiscal year 2013 are in line with our expectations. We are driving revenue growth from our new products in 2013 and beyond,” said Chris Gardner, CEO of Vitesse. “During the quarter, we made significant progress on our goal to manage our capital structure. We raised net proceeds of $17.1 million in a follow-on offering. This strengthened our balance sheet and provides us with additional options and flexibility to address our debt maturities due in 2014.”

“For the second quarter, we expect solid growth in bookings for new products. We continue to project new product revenue to double to $30.0 million in fiscal year 2013 from fiscal year 2012, and double again in fiscal year 2014.”

First Quarter Fiscal Year 2013 Financial Results Summary

  • Total net revenues were $25.7 million, compared to $29.5 million in the fourth quarter of fiscal year 2012 and $30.0 million in the first quarter of fiscal year 2012.
    • Product revenues were $23.9 million, compared to $28.1 million in the fourth quarter of fiscal year 2012 and $28.9 million in the first quarter of fiscal year 2012.
    • The product lines contributed the following as a percentage of product revenue as compared to the fourth quarter of fiscal year 2012:
      • Carrier networking products: 58.5% versus 51.6%
      • Enterprise networking products: 40.4% versus 45.6%
      • Core Carrier and Enterprise networking products: 98.9% versus 97.2%
      • Non-core products: 1.1% versus 2.8%
    • Intellectual property revenues totaled $1.8 million, compared to $1.4 million in the fourth quarter of fiscal year 2012 and $1.0 million in the first quarter of fiscal year 2012.
  • Product margins were 54.1%, compared to 55.9% in the fourth quarter of fiscal year 2012 and 58.0% in the first quarter of fiscal year 2012.
  • Operating expenses were $18.6 million. This compares to $16.6 million net of a restructuring and impairment credit of $1.5 million in the fourth quarter of fiscal year 2012 and $19.9 million in the first quarter of fiscal year 2012.
  • Operating loss was $3.8 million, compared to operating income of $531,000 in the fourth quarter of fiscal year 2012 and an operating loss of $2.1 million in the first quarter of fiscal year 2012.
  • Non-GAAP operating loss was $2.5 million, compared to operating income of $308,000 in the fourth quarter of fiscal year 2012 and non-GAAP operating loss of $1.0 million in the first quarter of fiscal year 2012.
  • Net loss was $5.0 million, or $0.18 per basic and fully diluted share. This compares to net income of $1.2 million, or $0.05 per basic and fully diluted share, in the fourth quarter of fiscal year 2012; and net loss of $0.8 million, or $0.03 per basic share and fully diluted share, in the first quarter of fiscal year 2012.
  • Non-GAAP net loss was $4.5 million or $0.16 per basic and fully diluted share, compared to non-GAAP net loss of $130,000, or breakeven per basic and fully diluted share, for the fourth quarter of fiscal year 2012; and non-GAAP net loss of $3.0 million, or $0.12 per basic and fully diluted share, in the first quarter of fiscal year 2012.

Balance Sheet Data at December 31, 2012 as Compared to September 30, 2012

  • Cash balance increased to $37.1 million, compared to $23.9 million;
  • Accounts receivable totaled $9.6 million, compared to $9.4 million;
  • Inventory totaled $12.6 million, compared to $12.1 million; and
  • Working capital increased to $42.0 million, compared to $28.7 million.

Financial Outlook

For the second quarter of fiscal year 2013, ending March 31, 2013, Vitesse expects revenues to be in the range of $25.0 million to $28.0 million and product margins are expected to be between 51% and 54%. Operating expenses are expected to be between $18.0 million and $19.0 million.

February 5, 2013 Conference Call Information

A conference call is scheduled for today, February 5, 2013, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to report financial results for the first quarter fiscal year 2013.

To listen to the conference call via telephone, dial 888-401-4668 (U.S. toll-free) or 719-325-2495 (International) and provide the passcode 8174566. 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 investor.vitesse.com/events.cfm.

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 8174566. The audio replay will be available for seven days.

About Vitesse

Vitesse (NASDAQ: VTSS) designs a diverse portfolio of high-performance semiconductor solutions for Carrier and Enterprise networks worldwide. Vitesse products enable the fastest-growing network infrastructure markets including Mobile Access/IP Edge, Cloud Computing and SMB/SME Enterprise Networking. Visit www.vitesse.com or follow us on Twitter @VitesseSemi.

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 second fiscal quarter of 2013, projected revenues from design wins 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.

We provide non-GAAP measures of non-GAAP income (loss) from operations and non-GAAP net income (loss) as a supplement to financial results based on GAAP income from operations and GAAP net income. The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. We believe the presentation of non-GAAP measures provides investors with additional insight into underlying operating results and prospects for the future by excluding gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. Management uses these measures internally to evaluate the Company’s in-period operating performance before taking into account these non-operating gains, losses and charges. In addition, the measures are used for planning and forecasting of the Company’s performance in future periods.

In deriving non-GAAP income (loss) from operations from GAAP income (loss) from operations, we exclude stock-based compensation charges, amortization of intangible assets, as well as restructuring and impairment charges. In deriving non-GAAP net income (loss) from GAAP net income (loss), we further exclude gain or loss on the embedded derivative and loss on extinguishment of debt. Stock-based compensation charges, amortization of intangible assets, gain or loss on the embedded derivative and loss on extinguishment of debt represent charges that recur in amounts unrelated to the Company’s operations. Restructuring and impairment costs relate to strategic initiatives that result in short term increases in costs that end with the fulfillment of the initiative and cost reductions in future periods.

The non-GAAP financial measures we provide have certain limitations because they do not reflect all of the costs associated with the operation of our business as determined in accordance with GAAP. Non-GAAP income (loss) from operations and Non-GAAP net income (loss) are in addition to, and are not a substitute for or superior to, income (loss) from operations and net income (loss), which are prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. A detailed reconciliation of the non-GAAP measures to the most directly comparable GAAP measure is set forth below. Investors are encouraged to review these reconciliations to appropriately incorporate the non-GAAP measures and the limitations of these measures into their analyses. For complete information on stock-based compensation, amortization of intangible assets, restructuring and impairment charges, and the change in the fair value of our embedded derivatives, please see our Form 10-K for the year ended September 30, 2012.

 
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
 
  December 31,   September 30,
2012 2012
(in thousands, except par value)
ASSETS
Current assets:
Cash $ 37,078 $ 23,891
Accounts receivable, net 9,601 9,403
Inventory, net 12,646 12,060
Prepaid expenses and other current assets   2,914     2,125  
Total current assets 62,239 47,479
Property, plant and equipment, net 3,373 3,832
Other intangible assets, net 1,078 1,175
Other assets   4,046     4,130  
$ 70,736   $ 56,616  
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 7,513 $ 5,726
Accrued expenses and other current liabilities 11,431 12,188
Deferred revenue   1,325     871  
Total current liabilities 20,269 18,785
Other long-term liabilities 478 574
Long-term debt, net 15,967 15,852
Compound embedded derivative - 2,899
Convertible subordinated debt, net   42,983     42,521  
Total liabilities   79,697     80,631  
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $0.01 par value: 10,000 shares authorized; Series B Non Cumulative, Convertible, 135 shares outstanding at December 31, 2012 and September 30, 2012, respectively 1 1
Common stock, $0.01 par value: 250,000 shares authorized; 36,770 and 25,812 shares outstanding at December 31, 2012 and September 30, 2012, respectively 368 258
Additional paid-in-capital 1,849,952 1,829,976
Accumulated deficit   (1,859,282 )   (1,854,250 )

Total stockholders' deficit

  (8,961 )   (24,015 )
$ 70,736   $ 56,616  
 
 
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
   
Three Months Ended December 31,
2012 2011
(in thousands, except per share data)
Net revenues:
Product revenues $ 23,905 $ 28,942
Intellectual property revenues   1,822     1,049  
Net revenues   25,727     29,991  
Costs and expenses:
Cost of product revenues 10,975 12,163
Engineering, research and development 10,504 12,425
Selling, general and administrative 7,970 7,452
Amortization of intangible assets   97     67  
Costs and expenses   29,546     32,107  
Loss from operations (3,819 ) (2,116 )

Other expense (income):

Interest expense, net 1,970 1,948
Gain on compound embedded derivative (803 ) (3,298 )
Other expense (income), net   (31 )   12  
Other expense (income), net   1,136     (1,338 )
Loss before income tax expense (4,955 ) (778 )
Income tax expense   77     66  
Net loss $ (5,032 ) $ (844 )
 
Net loss per common share - Basic and diluted $ (0.18 ) $ (0.03 )
 
Weighted average shares outstanding- Basic and diluted 28,059 24,512
 
 
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET LOSS
 
  Three Months Ended
December 31, 2012   December 31, 2011   September 30, 2012
(in thousands, except per share data)
 
GAAP net (loss) income $ (5,032 ) $ (844 ) $ 1,217  
 
Adjustments:
Stock-based compensation charges 1,143 1,063 1,141
Amortization of intangible assets 97 67 96
Restructuring and impairment charges 53 28 (1,460 )
Gain on compound embedded derivative   (803 )   (3,298 )   (1,124 )
Total GAAP to non-GAAP adjustments   490     (2,140 )   (1,347 )
Non-GAAP net loss $ (4,542 ) $ (2,984 ) $ (130 )
 
Net (loss) income per common share
Basic:
GAAP net (loss) income $ (0.18 ) $ (0.03 ) $ 0.05
Adjustments *   0.02     (0.09 )   (0.05 )
Non-GAAP net (loss) income $ (0.16 ) $ (0.12 ) $ -  
 
Net (loss) income per common share
Diluted:
GAAP net (loss) income $ (0.18 ) $ (0.03 ) $ 0.05
Adjustments *   0.02     (0.09 )   (0.05 )
Non-GAAP net (loss) income $ (0.16 ) $ (0.12 ) $ -  
 

UNAUDITED RECONCILIATION OF GAAP (LOSS) INCOME FROM OPERATIONS

TO NON-GAAP (LOSS) INCOME FROM OPERATIONS
 
GAAP (loss) income from operations $ (3,819 ) $ (2,116 ) $ 531  
Adjustments:
Stock-based compensation charges 1,143 1,063 1,141
Amortization of intangible assets 97 67 96
Restructuring and impairment charges   53     28     (1,460 )
Total GAAP to non-GAAP adjustments 1,293 1,158 (223 )
     
Non-GAAP (loss) income from operations $ (2,526 ) $ (958 ) $ 308  
 
* Included in the adjustments are calculations required by the two class method relative to participation rights of our preferred shares.
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around the world, while creating a new service that Avnet and its IT solution providers can offer to their...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Telecommunications Corporation, a facilities-based international carrier licensed by t...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applications as well as responsive action controls. The various architectural building blocks of an IoT ...
Recent technology advances in miniaturization has positioned the wearables as the pinnacle of technology convergence with the human body. We inquire if wearables are mere standard miniaturized devices extended with the connectivity and present our views on considerations like design, applications, performance, efficiency, interoperability, usage scenarios, human device interaction and consequent trade-offs enabling wearables to impart optimal value.
In this session we look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. We will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS7, ISDN and similar protocols and creating advanced routing and serv...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are configurable to any form factor or custom configuration. AIC leads the industry with nearly 20 years of ...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.