SMSC (NASDAQ: SMSC) today announced financial results for its first quarter of fiscal 2013, ended May 31, 2012.
- Quarterly revenue of $103.1 million,
- Record non-GAAP gross profit of 58.4 percent,
- Non-GAAP operating profit of 15.3 percent,
- Non-GAAP earnings per share of $0.53,
- Cash and investments of $187.4 million.
Total revenue for the first quarter of fiscal 2013 was $103.1 million, roughly flat with the same prior year period and an increase of approximately 15 percent sequentially. First quarter revenue included $9.5 million in sales related to the BridgeCo acquisition. Non-GAAP gross margin was 58.4 percent compared to 56.4 percent for the same prior year period. GAAP gross margin was 54.5 percent compared to 53.9 percent for the same prior year period. Non-GAAP net income was $12.2 million, or $0.53 per diluted share, compared to non-GAAP net income of $11.0 million, or $0.47 per diluted share in the first quarter of fiscal 2012. GAAP net loss for the first quarter of fiscal 2013 was $17.2 million, or $0.76 per diluted share, compared to GAAP net income of $6.2 million, or $0.26 per diluted share for the same prior year period. The difference between the GAAP and non-GAAP results was primarily driven by adjustments for stock-based compensation of $28.3 million, mainly due to fair market adjustments to stock appreciation rights based on the increase in SMSC's share price in the three month period ended May 31, 2012 as well as $4.0 million in merger and acquisitions related expenses.
“SMSC’s first quarter financial performance was very strong with revenue and non-GAAP gross margin, operating profit and earnings per share all coming in ahead of our guidance,” said Christine King, President & Chief Executive Officer of SMSC. “Networking sales significantly contributed to the revenue upside primarily as a result of key product ramps. Non-GAAP gross margin increased to 58.4 percent, driven by a favorable combination of higher revenue, better product mix, continued cost reductions and inventory management. This record result is higher than our gross margin target model. Strict control of operating expenses enabled us to deliver 15.3 percent non-GAAP operating profit. Finally, on a non-GAAP basis, an effective tax rate of 22.3 percent contributed to our improved earnings per share of $0.53.”