1-31614 | 77-0138960 | |
(Commission File Number) | (IRS Employer Identification No.) |
Exhibit Number | Description | ||
99.1 | Press Release issued by Vitesse Semiconductor Corporation, dated December 4, 2014. |
VITESSE SEMICONDUCTOR CORPORATION | |||
Date: | December 4, 2014 | By: | /s/ Martin S. McDermut |
Martin S. McDermut | |||
Chief Financial Officer |
Exhibit Number | Description | ||
99.1 | Press Release issued by Vitesse Semiconductor Corporation, dated December 4, 2014. |
FOR IMMEDIATE RELEASE | Company Contact: | Agency Contact: |
Marty McDermut | Kirsten Chapman | |
Vitesse Semiconductor | LHA | |
www.vitesse.com | www.lhai.com | |
1.805.388.3700 | 1.415.433.3777 | |
invest@vitesse.com | VTSS@lhai.com |
• | Growth in New Product Revenues of 11% Sequentially and 73% Year-over-Year, Driven by Ethernet Everywhere Strategy, Represents 57% of Total Product Revenues |
• | Increased Gross Margins to 63.1% from 52.5% in Fourth Quarter of Fiscal Year 2013 |
• | Reached Non-GAAP Operating Profit of $1.0 Million for the Fourth Quarter |
• | Added Over 130 New Customers in Fiscal Year 2014, Resulting in Greater Diversification to Support Future Revenue Growth |
• | Achieved Record Design Win Success in Fiscal Year 2014 |
• | Strengthened Balance Sheet with Repayment of 2014 Convertible Debentures |
• | Total net revenues were $28.7 million, compared to $27.2 million in the third quarter of fiscal year 2014 and $26.9 million in the fourth quarter of fiscal year 2013. |
• | Product revenues were $27.0 million, compared to $26.0 million in the third quarter of fiscal year 2014 and $26.5 million in the fourth quarter of fiscal year 2013. |
• | Product revenues by market, excluding non-core revenues of $1.2 million, contributed the following as a percentage of product revenues as compared to the third quarter of fiscal year 2014: |
• | Carrier networking products: 47.1% versus 43.9% |
• | Enterprise networking products: 41.7% versus 43.1% |
• | Industrial-IoT networking products: 11.2% versus 13.0% |
• | Intellectual property revenues totaled $1.7 million, compared to $1.1 million in the third quarter of fiscal year 2014 and $0.4 million in the fourth quarter of fiscal year 2013. |
• | Product margins were 60.9%, compared to 52.9% in the third quarter of fiscal year 2014 and 51.8% in the fourth quarter of fiscal year 2013. Total gross margins were 63.1%, compared to 54.9% in the third quarter of fiscal year 2014 and 52.5% in the fourth quarter of fiscal year 2013. |
• | Operating expenses were $18.8 million, compared to $17.4 million in the third quarter of fiscal year 2014 and $17.6 million in the fourth quarter of fiscal year 2013. |
• | Operating loss was $0.7 million, compared to operating loss of $2.5 million in the third quarter of fiscal year 2014 and $3.5 million in the fourth quarter of fiscal year 2013. |
• | Non-GAAP operating income was $1.0 million, compared to non-GAAP operating loss of $0.9 million in the third quarter of fiscal year 2014 and non-GAAP operating loss of $2.3 million in the fourth quarter of fiscal year 2013. |
• | Net loss was $2.5 million, or $0.04 per basic and fully diluted share. This compares to net loss of $4.4 million, or $0.07 per basic and fully diluted share, in the third quarter of fiscal year 2014, and net loss of $5.8 million, or $0.10 per basic and fully diluted share, in the fourth quarter of fiscal year 2013. |
• | Non-GAAP net loss was $0.8 million, or $0.01 per basic and fully diluted share, compared to non-GAAP net loss of $2.7 million, or $0.04 per basic and fully diluted share, for the third quarter of fiscal year 2014, and non-GAAP net loss of $4.6 million, or $0.08 per basic and fully diluted share, in the fourth quarter of fiscal year 2013. |
• | Total net revenues for fiscal year 2014 were $108.5 million compared with $103.8 million for fiscal year 2013. |
• | Product revenues were $102.8 million, compared with $101.3 million in fiscal year 2013. |
• | Product revenues by market, excluding non-core revenues of $1.6 million, contributed the following as a percentage of fiscal year 2014 product revenue as compared to the fiscal year 2013: |
• | Carrier networking products: 46.8% versus 55.5% |
• | Enterprise networking products: 42.3% versus 39.1% |
• | Industrial-IoT networking products: 10.9% versus 5.4% |
• | Intellectual property revenues were $5.7 million, compared with $2.4 million in fiscal year 2013. |
• | Product margins were 56.7% in fiscal year 2014, compared to 53.9% in the prior year. Total gross margins were 59.0%, compared to 54.9% in the prior year. |
• | Operating expenses were $73.8 million, compared to $72.5 million in fiscal year 2013. |
• | Loss from operations was $9.8 million, compared with loss from operations of $15.5 million in fiscal year 2013. |
• | Non-GAAP loss from operations was $3.3 million, compared with non-GAAP loss from operations of $10.7 million in fiscal year 2013. |
• | Net loss was $18.1 million, or $0.30 per basic and fully diluted share, in fiscal year 2014, compared with a net loss of $22.1 million, or $0.55 per basic and fully diluted share, in fiscal year 2013. |
• | Non-GAAP net loss was $10.0 million, or $0.16 per basic and fully diluted share, in fiscal year 2014 compared with a non-GAAP net loss of $18.1 million, or $0.45 per basic and fully diluted share, in fiscal year 2013. |
• | Cash and restricted cash were $72.7 million, compared to $69.0 million. |
• | Accounts receivable was $10.9 million, compared to $9.8 million. |
• | Inventories were $12.8 million, compared to $10.7 million. |
September 30, 2014 | September 30, 2013 | |||||||
(in thousands, except par value) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 71,903 | $ | 68,863 | ||||
Accounts receivable | 10,850 | 9,807 | ||||||
Inventories | 12,792 | 10,692 | ||||||
Restricted cash | 794 | 101 | ||||||
Prepaid expenses and other current assets | 1,047 | 1,796 | ||||||
Total current assets | 97,386 | 91,259 | ||||||
Property, plant and equipment, net | 2,858 | 3,107 | ||||||
Other intangible assets, net | 1,476 | 1,170 | ||||||
Other assets | 3,104 | 3,425 | ||||||
$ | 104,824 | $ | 98,961 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,814 | $ | 7,436 | ||||
Accrued expenses and other current liabilities | 12,472 | 12,245 | ||||||
Current portion of debt, net | 32,727 | — | ||||||
Deferred revenue | 4,902 | 2,215 | ||||||
Total current liabilities | 56,915 | 21,896 | ||||||
Other long-term liabilities | 234 | 407 | ||||||
Long-term debt, net | 16,417 | 16,366 | ||||||
Convertible subordinated debt, net | — | 44,384 | ||||||
Total liabilities | 73,566 | 83,053 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock, $0.01 par value: 250,000 shares authorized; 67,703 and 57,545 shares outstanding at September 30, 2014 and 2013, respectively | 677 | 575 | ||||||
Additional paid-in-capital | 1,924,984 | 1,891,661 | ||||||
Accumulated deficit | (1,894,403 | ) | (1,876,328 | ) | ||||
Total stockholders’ equity | 31,258 | 15,908 | ||||||
$ | 104,824 | $ | 98,961 |
Three Months ended | Year Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net revenues: | (in thousands, except per share data) | ||||||||||||||||||
Product revenues | $ | 27,007 | $ | 26,012 | $ | 26,455 | $ | 102,751 | $ | 101,334 | |||||||||
Intellectual property revenues | 1,664 | 1,139 | 420 | 5,746 | 2,439 | ||||||||||||||
Net revenues | 28,671 | 27,151 | 26,875 | 108,497 | 103,773 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of product revenues | 10,571 | 12,254 | 12,753 | 44,480 | 46,763 | ||||||||||||||
Engineering, research and development | 10,869 | 10,006 | 9,940 | 42,450 | 41,927 | ||||||||||||||
Selling, general and administrative | 7,792 | 7,330 | 7,593 | 30,981 | 30,210 | ||||||||||||||
Amortization of intangible assets | 93 | 88 | 81 | 360 | 347 | ||||||||||||||
Costs and expenses | 29,325 | 29,678 | 30,367 | 118,271 | 119,247 | ||||||||||||||
Loss from operations | (654 | ) | (2,527 | ) | (3,492 | ) | (9,774 | ) | (15,474 | ) | |||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 1,521 | 1,510 | 1,997 | 6,227 | 7,916 | ||||||||||||||
Gain on compound embedded derivative | — | — | — | — | (803 | ) | |||||||||||||
Loss on extinguishment of debt | — | — | — | 1,594 | — | ||||||||||||||
Other expense, net | 28 | 18 | 34 | 139 | 39 | ||||||||||||||
Other expense, net | 1,549 | 1,528 | 2,031 | 7,960 | 7,152 | ||||||||||||||
Loss before income tax expense (benefit) | (2,203 | ) | (4,055 | ) | (5,523 | ) | (17,734 | ) | (22,626 | ) | |||||||||
Income tax expense (benefit) | 282 | 333 | 242 | 341 | (548 | ) | |||||||||||||
Net loss | $ | (2,485 | ) | $ | (4,388 | ) | $ | (5,765 | ) | $ | (18,075 | ) | $ | (22,078 | ) | ||||
Net loss per common share - basic and diluted | $ | (0.04 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.30 | ) | $ | (0.55 | ) | ||||
Weighted average common shares outstanding - basic and diluted | 67,580 | 59,965 | 57,254 | 60,887 | 40,311 |
Three Months Ended | Year Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS | |||||||||||||||||||
GAAP net loss | $ | (2,485 | ) | $ | (4,388 | ) | $ | (5,765 | ) | $ | (18,075 | ) | $ | (22,078 | ) | ||||
Adjustments: | |||||||||||||||||||
Stock-based compensation charges | 1,609 | 1,586 | 1,091 | 6,075 | 4,396 | ||||||||||||||
Amortization of intangible assets | 93 | 88 | 81 | 360 | 347 | ||||||||||||||
Gain on compound embedded derivative | — | — | — | — | (803 | ) | |||||||||||||
Loss on extinguishment of debt | — | — | — | 1,594 | — | ||||||||||||||
Total GAAP to non-GAAP adjustments | 1,702 | 1,674 | 1,172 | 8,029 | 3,940 | ||||||||||||||
Non-GAAP net loss | $ | (783 | ) | $ | (2,714 | ) | $ | (4,593 | ) | $ | (10,046 | ) | $ | (18,138 | ) | ||||
Net loss per common share - basic and diluted: | |||||||||||||||||||
GAAP net loss per common share | $ | (0.04 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.30 | ) | $ | (0.55 | ) | ||||
Adjustments | 0.03 | 0.03 | 0.02 | 0.14 | 0.10 | ||||||||||||||
Non-GAAP net loss per common share | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.45 | ) | ||||
UNAUDITED RECONCILIATION OF GAAP LOSS FROM OPERATIONS TO NON-GAAP INCOME (LOSS) FROM OPERATIONS | |||||||||||||||||||
GAAP loss from operations | $ | (654 | ) | $ | (2,527 | ) | $ | (3,492 | ) | $ | (9,774 | ) | $ | (15,474 | ) | ||||
Adjustments: | |||||||||||||||||||
Stock-based compensation charges | 1,609 | 1,586 | 1,091 | 6,075 | 4,396 | ||||||||||||||
Amortization of intangible assets | 93 | 88 | 81 | 360 | 347 | ||||||||||||||
Total GAAP to non-GAAP adjustments | 1,702 | 1,674 | 1,172 | 6,435 | 4,743 | ||||||||||||||
Non-GAAP income (loss) from operations | $ | 1,048 | $ | (853 | ) | $ | (2,320 | ) | $ | (3,339 | ) | $ | (10,731 | ) | |||||
UNAUDITED RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES | |||||||||||||||||||
GAAP operating expenses: | |||||||||||||||||||
Engineering, research and development | $ | 10,869 | $ | 10,006 | $ | 9,940 | $ | 42,450 | $ | 41,927 | |||||||||
Selling, general and administrative | 7,792 | 7,330 | 7,593 | 30,981 | 30,210 | ||||||||||||||
Amortization of intangible assets | 93 | 88 | 81 | 360 | 347 | ||||||||||||||
Total GAAP operating expenses | 18,754 | 17,424 | 17,614 | 73,791 | 72,484 | ||||||||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation charges | 1,405 | 1,376 | 933 | 5,252 | 3,779 | ||||||||||||||
Amortization of intangible assets | 93 | 88 | 81 | 360 | 347 | ||||||||||||||
Total GAAP to non-GAAP adjustments | 1,498 | 1,464 | 1,014 | 5,612 | 4,126 | ||||||||||||||
Non-GAAP operating expenses | $ | 17,256 | $ | 15,960 | $ | 16,600 | $ | 68,179 | $ | 68,358 |