Montage Technology Reports Second Quarter 2014 Financial Results

SHANGHAI, China, Aug. 7, 2014 (GLOBE NEWSWIRE) -- Montage Technology Group Limited (Nasdaq:MONT) ("Montage Technology" or "Montage" or the "Company"), a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets, today announced financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 and Recent Highlights:
  • Attained revenue of $40.4 million, an increase of 13.6 percent sequentially and 59.8 percent year-over-year;
  • Increased set-top box product revenue by 16.2 percent and memory interface product revenue by 5.7 percent over the prior quarter;
  • Reported gross margin of 58.3 percent, compared to 63.9 percent last quarter;
  • Achieved net income per diluted share of $0.24, and non-GAAP net income per diluted share of $0.30, after excluding non-cash expenses;
  • Generated $10.0 million of cash from operations after excluding funding of the escrow account for the termination fee with signing of Merger Agreement; and
  • Shareholders voted to approve the acquisition by Shanghai Pudong Science and Technology Investment Co. (PDSTI) for $22.60 per share.

Second Quarter 2014 Results

Commenting on the results, Stephen Tai, Montage Technology's president stated, "Montage once again reported revenue results exceeding guidance, due to increased demand for our set-top box and memory interface solutions. Montage's continued share gains in the set-top box market reflect the strength of our integrated SoC solutions for satellite applications, which address the complete hardware and software needs of emerging market customers. We also gained further traction on our new products, including our integrated HD satellite SoC as well as solutions targeting the cable and terrestrial markets where we believe Montage has substantial growth opportunities."

Howard Yang, Montage Technology's chairman and chief executive officer, added, "Memory Interface revenue also continued to grow in the quarter, with first half revenue exceeding the full year 2013 memory interface product revenue by almost 50 percent. We believe that our performance advantage and lower power continue to serve as key competitive differentiators in this market. Interest also continues to ramp up for our DDR4 RDIMM and LRDIMM solutions. We anticipate that Intel's next generation platform will significantly accelerate demand for these products establishing Montage as a leading provider of next-generation DDR4 memory interface solutions.

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