Montage Technology Reports Third Quarter 2014 Financial Results

SHANGHAI, China, Nov. 13, 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 third quarter ended September 30, 2014.

Third Quarter 2014 Highlights:
  • Attained revenue of $46.0 million, an increase of 13.8 percent sequentially and 53.1 percent year-over-year;
  • Increased memory interface product revenue by 52.2 percent over the prior quarter;
  • Reported gross margin of 57.9 percent and operating margin of 20.9 percent;
  • Achieved net income per diluted share of $0.33, and non-GAAP net income (which excludes non-cash expense items) per diluted share of $0.40; and
  • Generated $5.8 million of cash from operations after excluding $20.4 million funding of the escrow account for the second half of the termination fee associated with Merger Agreement with Shanghai Pudong Science and Technology Investment ("PDSTI").

Third Quarter 2014 Results

Commenting on the results, Howard Yang, Montage Technology's chairman and chief executive officer stated, "We are pleased to report our fourth consecutive quarter of revenue results exceeding our guidance. Memory revenue increased 52 percent sequentially as DDR4 volumes ramped at key customers for both our LRDIMM and RDIMM solutions, which now represent over 30% of total revenue. To further extend our leadership position in this market, we also recently announced sampling of the world's first JEDEC compliant second generation DDR4 Registering Clock Driver chip."

Stephen Tai, Montage Technology's president added, "Revenue for our set-top box solutions was flat sequentially following a very strong second quarter, and up 17 percent over the prior year quarter reflecting to our increased share of the standard definition SoC market. We also continued to gain traction for our high definition solutions during the quarter as we further position Montage for growth across the satellite, cable and terrestrial markets.

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