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Advanced Analogic Technologies, Inc. Q1 2010 Earnings Call Transcript

Advanced Analogic Technologies, Inc. Q1 2010 Earnings Call Transcript

Advanced Analogic Technologies, Inc. (AATI)

Q1 2010 Earnings Call Transcript

April 26, 2010 4:30 pm ET


Lisa Laukkanen – IR, The Blueshirt Group

Richard K. Williams – President, CEO and CTO

Brian McDonald – VP and CFO


Tore Svanberg – Thomas Weisel Partners

Patrick Wang – Wedbush Securities



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Ladies and gentlemen, thank you for standing by. Welcome to the Advanced Analogic Technologies first quarter 2010 conference call. During today’s presentation all parties will be in a listen-only mode. Following the presentation the conference will be opened for questions. (Operator instructions) This conference is being recorded today Monday, April 26, 2010. I would now like to turn the conference over to Ms. Lisa Laukkanen. Please go ahead, ma’am.

Lisa Laukkanen

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Good afternoon and thank you for joining us on today’s conference call to discuss AnalogicTech’s first quarter results. This call is being broadcast live over the Web and can be accessed for 90 days in the ‘Investor Relations’ section of the AnalogicTech’s website at

On today’s call are Richard K. Williams, President, Chief Executive Officer and Chief Technical Officer; and Brian McDonald, VP of Finance and Chief Financial Officer. After the market closed today, AnalogicTech’s issued a press release discussing the results for its first quarter ended March 31


, 2010. The press release is accessible online at the Company’s website or you can call The Blueshirt Group at 415-217-4961, and we’ll fax or email your copy.

We would like to remind you that during the course of this conference call AnalogicTech’s management team may make projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements are simply predictions and actual events or results may differ materially.

We refer you to the documents the Company files from time-to-time with the Securities and Exchange Commission, specifically the Company’s most recent Forms 10-Q and 10-K. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

With that said, I’d like to now turn the call over to AnalogicTech’s President, CEO and CTO, Richard Williams.

Richard K. Williams

Thank you for joining us today as AnalogicTech reports its first quarter 2010 results. During the call I will provide a brief recap of the business highlights I will then turn the call over to Brian to review the details of our financial performance followed by guidance for the second quarter. We will then open up the call to your questions.

Our first quarter results were in line with expectations. Revenue was $21.9 million, which represents a 32% year-over-year increase and a 5% sequential increase.

Net loss for the quarter was $4.2 million $4.2 million or $0.10 per share on a GAAP basis. On a non-GAAP basis net loss was $2.9 million or $0.07 per share.

We experienced broad based demand for our product across geographies with the strongest sales increases in China. Sales increased 30% sequentially in Taiwan primarily due to increased shipments for our camera flash products to support Google’s Android phones.

In China, we experience increasingly diverse demand for our wireless data card and lighting management products for both a local handset and major international brands. Distributor inventories remained at the low end of our two to four month target. POS activity during the quarter was up more than 10% sequentially.

Sales to Samsung and LG in Q1 represented 35% and 19% of total revenues, respectively. As planned, continued growth in Taiwan and anticipated seasonal declines in Korea handset revenue reduced sales concentration to these two customers. As we add new customers and increase our non handset revenue, we expect this trend to continue. At the same time, we anticipate continued solid revenue contributions from Samsung and LG.

Our design win momentum continues across a broad portfolio of handsets and Samsung, including Galaxy, Montage, Wave, Saturn, Short Tool [ph], and Moment. Recent design wins include a new generation linear batter charger and our first RFPA buck for smart phones.

We also recently secured a design win for our first multi-channel PMU comprising one switching and four linear regulators. This is to power the feature phone’s camera module. This design win represents the first deployment of a new product line of PMUs fully reconfigurable even after packaging using one-time programmable memory uniquely available in our proprietary ModularBCD technology. This OTP functionality allows us to use a single core to produce multiple products with multiple feature sets and performance parameters.

At LG, ongoing sales cover a wide range of models including Pop, Chocolate, Remark, and Accolade. New LG design wins include four new backlight drivers with power-saving CABC features and ten highly integrated lighting management units, or LMUs. These LMUs represent in a higher dollar content and higher value solution than our existing discrete charge pumps are expected to ramp aggressively in Q3.

Outside of Korea, we are pleased to recognize meaningful revenue growth from our design wins in the Google phone and its accessories comprising high-current LED camera flash, over voltage protected safety switch products, and a protection SmartSwitch for car kit and afters.

For Smart phones we also designed and commenced wafer fabrication of a highly integrated PMIC comprising an over voltage protected OVP dynamic switching charger and a USB OTG power supply, precision monitor amplifier for fuel gauging, a 40 volt serial boost for LED backlighting, and linear regulator for powering USB transceivers. This product completed design in record time primarily using ModularBCD cell libraries developed previously and made available in a standard cell library.

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