Non-GAAP Financial Measures
Leadis reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP financial measures are helpful in evaluating its ongoing operating results and comparing its performance to comparable companies. Leadis management uses financial statements that exclude share-based compensation expense and the impact of purchase accounting expenses, including in-process research and development expenses, amortization of purchased intangible assets, impairment charges for goodwill and other intangible assets, and retention expenses connected with acquisitions, to plan and evaluate its financial performance. Consequently, Leadis has excluded these expenses and charges in deriving calculations of net income (loss), net income (loss) per share, gross profit or margin and certain operating expenses (including cost of sales, research and development, selling, general and administrative, and provision for income taxes). Leadis believes the inclusion of these non-GAAP measures enhances the comparability of current results against the results of prior periods. These non-GAAP measures will enable investors to evaluate the company's operating results and business outlook in a manner similar to how the company internally analyzes its operating results and makes strategic decisions. Investors should note, however, that the non-GAAP financial measures used by the company may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. The company does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure. For additional information on the non-GAAP financial measures, please see the Form 8-K regarding this press release furnished today with the Securities and Exchange Commission.
Cautionary Language
This press release contains forward-looking statements regarding the company's business and financial outlook for the fourth quarter of 2008 and beyond, based on the company's current expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," "confident," "optimistic," "targeted," 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, power management ICs, audio CODEC's and FM transmitters, and touch sensor technology products; risks related to the semiconductor and portable 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, 2007 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, 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. (LDISG)
LEADIS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
Sep. 30, June 30, Dec. 30,
2008 2008 2007
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ASSETS
Current assets:
Cash and cash equivalents $ 27,154 $ 37,710 $ 33,945
Restricted cash 2,467 2,461 2,508
Short-term investments 11,146 11,851 31,286
Accounts receivable, net 4,943 3,772 5,787
Inventory 5,716 4,659 2,210
Prepaid expenses and other current assets 2,387 2,483 4,270
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Total current assets 53,813 62,936 80,006
Property and equipment, net 3,042 3,513 4,534
Goodwill and purchased intangible assets, net 80 107 11,233
Long term investments 2,307 2,307 3,000
Other assets 1,558 1,630 806
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Total assets $ 60,800 $ 70,493 $ 99,579
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,574 $ 7,479 $ 4,538
Taxes payable 89 80 353
Deferred margin 543 386 6
Other accrued liabilities 4,721 4,463 6,691
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Total current liabilities 11,927 12,408 11,588
Long-term tax liabilities 1,994 2,684 3,439
Other noncurrent liabilities 767 901 1,075
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Total liabilities 14,688 15,993 16,102
Stockholders' equity:
Common stock and additional paid-in capital 109,118 109,814 109,171
Accumulated deficit (63,006) (55,314) (25,694)
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Total stockholders' equity 46,112 54,500 83,477
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Total liabilities and stockholders'
equity $ 60,800 $ 70,493 $ 99,579
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