This press release contains forward-looking statements regarding the company's business and financial outlook for the first quarter and remainder of the 2008 fiscal year based on the company's current expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," "confident," "optimistic," and similar phrases as they relate to future events are intended to identify such forward-looking statements. These forward-looking statements reflect the company's current views and assumptions but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that the company may not be able to maintain its current level of revenue or its gross margin levels; risks that one or more of the company's concentrated group of customers may reduce demand or price for the company's products or a particular product; risks that design wins will not result in meaningful revenue; the company's dependence on a limited number of products; risks that the company's new products may not be completed in a timely fashion or gain market acceptance; risks associated with the company's efforts to expand its business beyond display drivers, including efforts to develop and market LED drivers, audio CODEC's and FM transmitters, and touch sensor technology products; risks related to the semiconductor and mobile electronic industries; the company's ability to keep up with technological change; risks associated with any strategic transaction undertaken by the company; risks with managing international activities; and other factors. For a discussion of these and other factors that could impact the company's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2006 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, in the sections titled Risk Factors and Forward-Looking Statements, which are available at www.leadis.com. The projections in this press release are based on information currently available to the company. Although such projections, as well as the factors influencing them, may change in the future, the company undertakes no responsibility to update the information contained in this press release.
LEADIS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31, September 30, December 31,
2007 2007 2006
=========== =========== ============
ASSETS
Current assets:
Cash and cash equivalents $ 33,945 $ 34,471 $ 62,697
Restricted cash 2,508 2,559 -
Short-term investments 34,286 44,016 43,845
Accounts receivable, net 5,803 9,043 17,399
Inventory 2,210 4,169 7,024
Prepaid expenses and other current
assets 4,119 3,730 4,498
----------- ----------- ------------
Total current assets 82,871 97,988 135,463
Property and equipment, net 4,582 4,497 4,160
Goodwill and purchased intangible
assets, net 10,278 6,708 281
Other assets 805 845 825
----------- ----------- ------------
Total assets $ 98,536 $ 110,038 $ 140,729
=========== =========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,538 $ 7,085 $ 19,623
Taxes payable 353 70 2,342
Deferred margin 6 139 383
Other accrued liabilities 6,619 5,564 3,805
----------- ----------- ------------
Total current liabilities 11,516 12,858 26,153
Long-term income tax liabilities 2,276 2,419 -
Other noncurrent liabilities 1,107 1,141 539
----------- ----------- ------------
Total liabilities 14,899 16,418 26,692
Stockholders' equity:
Common stock and additional
paid-in capital 109,171 108,265 109,110
Retained earnings (Accumulated
deficit) (25,534) (14,645) 4,927
----------- ----------- ------------
Total stockholders' equity 83,637 93,620 114,037
----------- ----------- ------------
Total liabilities and
stockholders' equity $ 98,536 $ 110,038 $ 140,729
=========== =========== ============
LEADIS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Year Ended
============================ ==================
December September December
31, 30, 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
======== ======== ======== ======== ========
Revenue $ 6,233 $ 9,943 $ 23,903 $ 39,581 $101,208
Cost of sales (1) 6,493 8,857 20,820 36,327 88,506
-------- -------- -------- -------- --------
Gross profit (loss) (260) 1,086 3,083 3,254 12,702
Research and development
expenses (1) 5,370 5,391 2,970 18,599 13,796
Selling, general and
administrative expenses(1) 5,146 4,318 3,946 16,296 14,785
Amortization of purchased
intangible assets 627 627 - 2,090 -
In-process research and
development (2) 600 500 - 2,420 -
-------- -------- -------- -------- --------
Total operating
expenses 11,743 10,836 6,916 39,405 28,581
-------- -------- -------- -------- --------
Operating loss (12,003) (9,750) (3,833) (36,151) (15,879)
Interest and other
income, net 1,071 997 1,308 4,390 4,349
-------- -------- -------- -------- --------
Loss before provision
(benefit) for income
taxes (10,932) (8,753) (2,525) (31,761) (11,530)
Provision (benefit) for
income taxes (43) (394) 548 (989) 523
-------- -------- -------- -------- --------
Net loss before
cumulative change in
accounting principle (10,889) (8,359) (3,073) (30,772) (12,053)
Cumulative effect of
change in accounting
principle - - - - 142
-------- -------- -------- -------- --------
Net loss $(10,889) $ (8,359) $ (3,073) $(30,772) $(11,911)
======== ======== ======== ======== ========
Basic and diluted net
loss per share:
Prior to cumulative
effect of change in
accounting principle $ (0.38) $ (0.29) $ (0.11) $ (1.06) $ (0.42)
Cumulative effect of
change in accounting
principle - - - - $ 0.01
======== ======== ======== ======== ========
Basic and diluted net
loss per share $ (0.38) $ (0.29) $ (0.11) $ (1.06) $ (0.41)
Shares used in computing
basic and diluted per
share amounts 28,813 28,973 29,187 29,119 28,802
======== ======== ======== ======== ========
Note:
(1) Includes stock-based compensation, as follows:
Three Months Ended Year Ended
============================ ==================
December September December
31, 30, 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
======== ======== ======== ======== ========
Cost of sales $ 50 $ 47 $ 48 $ 122 $ 417
Research and
development expenses 304 291 219 1,046 1,017
Selling, general and
administrative
expenses 637 634 801 2,223 3,232
(2) The Company has estimated the in-process R&D charges for the three
month period ending 12/31/2007. It is possible that this estimate could
change to a number between 400-800 thousand dollars. The Company
expects to finalize the in process R&D charge and report it in the
Annual Report on Form 10-K.
LEADIS TECHNOLOGY, INC.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Year Ended
========================== ==================
December September December
31, 30, 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
======== ======= ======= ======== ========
A. GAAP net loss $(10,889) $(8,359) $(3,073) $(30,772) $(11,911)
Adjustment for stock-
based compensation within:
Cost of sales 50 47 48 122 417
Research and
development expenses 304 291 219 1,046 1,017
Selling, general and
administrative
expenses 637 634 801 2,223 3,232
Benefit (provision)
for income taxes 185 (213) 505 (254) -
Adjustment for acquisition
of business within:
Research and
development expenses 308 408 - 1,246 -
Selling, general and
administrative
expenses 1,126 217 - 1,646 -
Amortization of
purchased intangible
assets 627 627 - 2,090 -
In-process research
and development 600 500 - 2,420 -
Provision for income
taxes (13) (25) - (74) -
Cumulative effect of
change in accounting
principle - - - - (142)
-------- ------- ------- -------- --------
Non-GAAP net loss $ (7,065) $(5,873) $(1,500) $(20,307) $ (7,387)
B. GAAP basic and diluted
net loss per share $ (0.38) $ (0.29) $ (0.11) $ (1.06) $ (0.41)
Adjustment for stock-
based compensation 0.04 0.03 0.06 0.11 0.15
Adjustment for
acquisition of
business 0.09 0.06 - 0.25 -
-------- ------- ------- -------- --------
Non-GAAP basic and
diluted net loss per
share $ (0.25) $ (0.20) $ (0.05) $ (0.70) $ (0.26)
C. GAAP Gross Margin (4.2%) 10.9% 12.9% 8.2% 12.6%
Adjustment for stock-
based compensation 0.8% 0.5% 0.2% 0.3% 0.4%
-------- ------- ------- -------- --------
Non-GAAP Gross Margin (3.4%) 11.4% 13.1% 8.5% 13.0%
D. GAAP operating expenses $ 11,743 $10,836 $ 6,916 $ 39,405 $ 28,581
Adjustment for stock-
based compensation within:
Research and
development expenses (304) (291) (219) (1,046) (1,017)
Selling, general and
administrative
expenses (637) (634) (801) (2,223) (3,232)
Adjustment for acquisition
of business within:
Research and
development expenses (308) (408) - (1,246) -
Selling, general and
administrative
expenses (1,126) (217) - (1,646) -
Amortization of
purchased intangible
assets (627) (627) - (2,090) -
In-process research
and development (600) (500) - (2,420) -
-------- ------- ------- -------- --------
Non-GAAP Operating
expenses $ 8,141 $ 8,159 $ 5,896 $ 28,734 $ 24,332
IR Contacts John Allen Chief Financial Officer Eric Itakura Director Business Development & Investor Relations (408) 331-8616
