BCD Semiconductor Manufacturing Limited Announces Financial Results for the Fiscal Second Quarter of 2012

BCD Semiconductor Manufacturing Limited Announces Financial Results for the
Fiscal Second Quarter of 2012

SHANGHAI, China, July 30, 2012 (GLOBE NEWSWIRE) -- BCD Semiconductor
Manufacturing Limited ("BCD Semiconductor," the "Company," "we," "our" or
"us") (Nasdaq:BCDS), a leading analog integrated device manufacturer, or IDM,
based in China, specializing in the design, manufacture and sale of power
management integrated circuits, or ICs, today announced financial results for
the fiscal second quarter ended June 30, 2012.

The results for the fiscal second quarter ended June 30, 2012 were as follows:

  oRevenue was $36.8 million, an increase of 18.7% from the first quarter of
    fiscal year 2012 and a decrease of 4.2% from the second quarter of fiscal
    year 2011.
    
  oGross margin was 29.1%, compared to 23.6% for the first quarter of fiscal
    year 2012 and 30.0% for the second quarter of fiscal year 2011.
    
  oOperating expenses were $8.3 million, compared to $7.3 million for the
    first quarter of fiscal year 2012 and $6.9 million for the second quarter
    of fiscal year 2011. Operating expenses for the second quarter of fiscal
    year 2012 included $452 thousand in share-based compensation expenses and
    $109 thousand in amortization of acquired intangible assets, as compared
    to $269 thousand and $105 thousand, respectively, for the first quarter of
    fiscal year 2012, and $359 thousand and $69 thousand, respectively, for
    the second quarter of fiscal year 2011.
    
  oIncome from operations after share-based compensation expenses and
    amortization of acquired intangible assets was $2.4 million, compared to
    income from operations of $4 thousand for the first quarter of fiscal year
    2012 and income from operations of $4.6 million for the second quarter of
    fiscal year 2011.
    
  oGAAP net income was $2.1 million, compared to $292 thousand for the first
    quarter of fiscal year 2012 and $5.1 million for the second quarter of
    fiscal year 2011.
    
  oNon-GAAP adjusted net income was $2.5 million, compared to $715 thousand
    for the first quarter of fiscal year 2012 and $5.5 million for the second
    quarter of fiscal year 2011.
    
  oGAAP earnings per diluted American Depositary Share ("ADS") (EPS) was
    $0.11, compared to $0.02 for the first quarter of fiscal year 2012 and
    $0.26 for the second quarter of fiscal 2011.
    
  oNon-GAAP earnings per diluted ADS share (non-GAAP EPS) was $0.13, compared
    to $0.04 for the first quarter of fiscal year 2012 and $0.28 for the
    second quarter of fiscal year 2011.
    
  oNumber of weighted average fully diluted ADSs was 19,031,141.
    
  oCash balance was $49.9 million as of June 30, 2012, compared to $53.0
    million as of March 31, 2012 and $72.0 million as of June 30, 2011.
    
  oCash flow from operating activities was a net inflow of $3.8 million,
    compared to a net outflow of $2.9 million for the first quarter of fiscal
    year 2012 and a net inflow of $3.4 million for the second quarter of
    fiscal year 2011.
    
  oCapital expenditures were $7.9 million, compared to $10.1 million for the
    first quarter of fiscal year 2012 and $6.0 million for the second quarter
    of fiscal year 2011.
    
  oWe used $732 thousand of cash to repurchase 151,204 ADSs at an average
    price of $4.84 per ADS under our authorized share re-purchase program.

"We are encouraged by our second quarter financial results as all of our
product lines have achieved substantial sequential growth with improved gross
margins," said Chieh Chang, Chief Executive Officer of BCD Semiconductor.
"While the global economic environment remains uncertain, we will stay focused
on our business model and are confident that we will continue to gain market
in our industry through competitive products and services to our customers."

Business Outlook

Revenue for the third quarter of fiscal year 2012 is expected to be in the
range of $37 to $41 million, representing a growth of approximately 0.5% to
11.4% compared to the second quarter of fiscal year 2012 and a decline of
approximately 5.4% to a growth of 4.9% compared to the third quarter of fiscal
year 2011. Gross margins are expected to be in the range of 27.0% to 30.0% of
revenue. Operating expenses exclusive of share based compensation expenses and
amortization of acquired intangible assets are expected to be approximately
$7.8 million. We expect our effective income tax rate to range between 9.0%
and 11.0%. We expect our capital expenditures to be approximately $7.0 million
in the third quarter of fiscal year 2012. The number of ADSs used to calculate
GAAP earnings per share for the third quarter of fiscal year 2012 is
anticipated to be approximately 19.0 million.

Forward-Looking Statements

This press release contains forward-looking statements that are based on
current expectations, estimates, forecasts and projections of future
performance based on management's judgment, beliefs, current trends, and
anticipated product performance.These forward-looking statements include,
without limitation, projected revenues, gross margins, operating expenses,
income tax rate, capital expenditures and shares used to calculate earnings
per share under the section titled "Business Outlook," statements regarding
market demand and our expectation of continuing to grow our business and gain
market share in the analog power management industry. Forward-looking
statements involve risks and uncertainties that may cause actual results to
differ materially from those contained in the forward-looking statements.
These factors include, but are not limited to, our ability to introduce or
develop new and enhanced products that achieve market acceptance; the actual
product performance in volume production; the quality and reliability of our
products; our ability to achieve design wins; general business and economic
conditions; our ability to identify and consummate strategic transactions; the
state of the semiconductor industry and seasonality of our markets; and other
risks and uncertainties as described inour filings with the U.S. Securities
and Exchange Commission ("SEC"), including our Annual Report on Form 20-F for
the fiscal year ended December 31, 2011 filed on April 25, 2012, and other
filings with the SEC. Underlying assumptions subsequently proving to be
incorrect or other unknown or unpredictable factors could cause actual results
to differ materially from those in the forward-looking statements. Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance on these
forward-looking statements. All information provided in this press release is
as of today's date, unless otherwise stated, and we undertake no duty to
update such information, except as required under applicable law.

Conference Call and Webcast

BCD Semiconductor plans to conduct an investor teleconference and live webcast
to discuss the financial results for the fiscal second quarter ended June 30,
2012, its outlook for the third quarter of 2012 and other business matters
today, July 30, 2012 at 2:00 pm PT / 5:00 pm ET. To listen to the live
conference call, please dial 855-500-8701 (or +65 6723 9385 if dialing from
outside the U.S.A.). The conference ID number is 97923048. A live webcast of
the call will also be available in the "Event Calendar" section of the
Company's investor relations website, http://ir.bcdsemi.com/. The webcast
replay will be available for seven days after the live call on the same
website. To listen to the webcast replay, please dial 866-214-5335 (or +61 2
8235 5000 if dialing from outside the U.S.A.). The conference ID number for
the replay is 97923048.

Use of Non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements presented on a
basis consistent with GAAP, we disclose certain non-GAAP financial measures,
including non-GAAP adjusted net income and non-GAAP EPS. These supplemental
measures exclude share-based compensation expenses that are non-cash charges,
amortization of acquired intangible assets and change in acquisition earn-out
payment. We believe that non-GAAP financial measures can provide useful
information to both management and investors by excluding certain non-cash
expenses that are not indicative of our core operating results. In addition,
our management uses non-GAAP measures to compare our performance relative to
forecasts and to benchmark our performance externally against competitors. Our
use of non-GAAP financial measures has certain limitations in that the
non-GAAP financial measures we use may not be directly comparable to those
reported by other companies.For example, the term used in this press release,
non-GAAP adjusted net income, does not have a standardized meaning. Other
companies may use the same or similarly named measures, but exclude different
items, which may not provide investors with a comparable view of our
performance in relation to other companies. We seek to compensate for this
limitation by providing a detailed reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures in the tables attached
to this press release.Investors are encouraged to review the related GAAP
financial measures and the reconciliation of these non-GAAP financial measures
to their most directly comparable GAAP financial measure.

About BCD Semiconductor

BCD Semiconductor Manufacturing Limited ("BCD Semiconductor") is a leading
analog integrated device manufacturer, or IDM, based in China, specializing in
the design, manufacture and sale of power management integrated circuits. Our
broad product portfolio targets primarily rapidly growing, high volume market
segments such as mobile phones, LCD televisions and monitors, personal
computers, adapters and chargers. As an IDM, we integrate product design and
process technology to optimize product performance and cost, and offer
system-level solutions with quality and reliability. Our China-based
operations also give us immediate access to the fast growing electronics
industry in Asia, enabling us to align our product development efforts with
market trends and provide timely and effective technical support to our
customers. For more information, please visit http://www.bcdsemi.com.

The following consolidated financial statements are prepared in accordance
with United States generally accepted accounting principles ("GAAP").


BCD Semiconductor Manufacturing Limited
Condensed Consolidated Balance Sheets - GAAP
(in thousands of US dollars)
(Unaudited)
                                                                 
                                             As of
                                             June 30,   March 31,  June 30,
                                              2011       2012       2012
ASSETS                                                            
CURRENT ASSETS                                                    
Cash and cash equivalent                      $72,029  $52,972  $49,940
Restricted cash                               5,136      6,762      4,824
Accounts receivable, net                      21,297     20,931     23,859
Inventories, net                              28,282     26,235     27,516
Excess value-added tax paid                   1,654      2,717      3,539
Receivable from ZiZhu                         --       2,443      2,431
Prepaid expenses and other current assets     4,919      3,073      2,997
Total current assets                          133,317    115,133    115,106
                                                                 
PROPERTY, PLANT AND EQUIPMENT, NET            39,277     71,220     76,860
LAND USE RIGHT, NET                           3,034      3,067      3,034
ACQUIRED INTANGIBLE ASSETS, NET               3,326      1,965      1,831
INVESTMENT IN EQUITY SECURITIES               1,624      2,705      2,692
GOODWILL                                      305        291        287
OTHER ASSETS                                  2,750      5,692      5,886
TOTAL                                         $183,633 $200,073 $205,696
                                                                 
LIABILITIES, AND SHAREHOLDERS' EQUITY                             
CURRENT LIABILITIES                                               
Short-term bank loans                         $3,000  $10,300  $10,800
Accounts payable                              21,374     16,382     21,949
Notes payable                                 11,589     14,402     11,779
Accrued expenses                              3,656      2,990      3,622
Payable for purchase of property, plant and   1,507      6,889      6,781
equipment
Withholding tax liability                     1,954      1,859      1,828
Other current liabilities                     3,150      2,652      3,075
Total current liabilities                     46,230     55,474     59,834
                                                                 
OTHER LIABILITIES                                                 
Deferred rent-noncurrent                      125        117        113
Performance obligation                        3,800      3,907      3,888
Obligation under capital lease - noncurrent   240        185        162
Deferred grant-noncurrent                     560        357        394
Total other liabilities                       4,725      4,566      4,557
Total liabilities                            50,955     60,040     64,391
                                                                 
SHAREHOLDERS' EQUITY                                              
Ordinary shares                               111        112        112
Additional paid-in capital                    160,318    160,335    160,127
Accumulated other comprehensive income        10,278     12,766     12,175
Accumulated deficit                           (38,029)   (33,178)   (31,106)
Treasury stock                                --         (2)        (3)
Total shareholders' equity                    132,678    140,033    141,305
TOTAL                                         $183,633 $200,073 $205,696



BCD Semiconductor Manufacturing Limited
Condensed Consolidated Statements of Income - GAAP
(in thousands of US dollars, except for percentages)
(Unaudited)
                                                            
                                          Three Months Ended
                                          June 30,  March 31, June 30,
                                           2011      2012      2012
NET REVENUE                                                  
IC products                                $35,685 $29,723 $34,046
Foundry services                           2,771     1,305     2,791
Total net revenue                          38,456    31,028    36,837
COST OF REVENUE                                              
IC products                                25,643    22,862    24,666
Foundry services                           1,284     832       1,464
Total cost of revenue                      26,927    23,694    26,130
GROSS PROFIT                               11,529    7,334     10,707
                                          30.0%     23.6%     29.1%
OPERATING EXPENSES                                           
Research and development                   2,393     2,565     2,973
Selling and marketing                      2,081     2,376     2,676
General and administrative                 2,394     2,284     2,503
Amortization of acquired intangible assets 69        105       109
Total operating expenses                   6,937     7,330     8,261
INCOME FROM OPERATIONS                     4,592     4         2,446
                                          11.9%     0.0%      6.6%
OTHER INCOME (EXPENSE)                                       
Interest income and expenses               364       267       162
Other-net                                  510       50        (316)
Other income (expenses), net               874       317       (154)
                                                            
INCOME BEFORE INCOME TAX EXPENSE           5,466     321       2,292
                                                            
INCOME TAX EXPENSE                         381       29        220
                                                            
NET INCOME                                 $5,085  $292    $2,072



BCD Semiconductor Manufacturing Limited
Condensed Consolidated Cash Flows Statement - GAAP
(in thousands of US dollars)
(Unaudited)
                                                                 
                                           Three Months Ended
                                           June 30,    March 31,   June 30,
                                            2011        2012        2012
                                                                 
NET INCOME                                  $5,085    $292      $2,072
                                                                 
CASH FLOWS FROM OPERATING ACTIVITIES                              
Depreciation and amortization               1,345       2,409       2,504
Other adjustments to net income             1,328       1,682       2,008
Changes in assets and liabilities           (4,408)     (7,324)     (2,798)
Net cash provided by (used in) operating    $3,350    $(2,941)  $3,786
activities
                                                                 
CASH FLOWS FROM INVESTING ACTIVITIES                              
Capital expenditures                        (6,008)     (10,106)    (7,932)
Investment in equity securities             (4,582)     (1,587)     --
Financing to ZiZhu,receivable               --          1,585       --
Other cash flow from investing activities   282         151         1,477
Net cash used in investing activities       $(10,308) $(9,957)  $(6,455)
                                                                 
CASH FLOWS FROM FINANCING ACTIVITIES                              
Share repurchase                            --          (279)       (732)
Net borrowings                              (3,101)     2,000       500
Other cash flow from financing activities   (366)       36          9
Net cash provided by (used in) financing    $(3,467)  $1,757    $(223)
activities
                                                                 
Effects of exchange rate changes            703         (24)        (140)
                                                                 
CHANGE IN CASH                              $(9,722)  $(11,165) $(3,032)
                                                                 
CASH, BEGINNING OF PERIOD                   $81,751   $64,137   $52,972
                                                                 
CASH, ENDING OF PERIOD                      $72,029   $52,972   $49,940



BCD Semiconductor Manufacturing Limited
Reconciliation of GAAP to Non-GAAP Net Income and EPS
(in thousands of US dollars, except for per ADS data)
(Unaudited)
                                                           
GAAP to Non-GAAP Net Income                Three Months Ended
                                          June 30, March 31, June 30,
                                           2011     2012      2012
                                                           
GAAP net income                            $5,085 $292    $2,072
                                                           
Share-based compensation (Note A)          380      318       495
Amortization of acquired intangible assets 69       105       109
Change in acquisition earn-out payment     --       --        (148)
                                                           
Non-GAAP net income                        $5,534 $715    $2,528
                                                           
EPS (ADS) fully diluted, GAAP:             $0.26  $0.02   $0.11
                                                           
EPS (ADS) fully diluted, Non GAAP:         $0.28  $0.04   $0.13
                                                           
                                                           
                                                           
Note A:                                    Three Months Ended
Share-based compensation                   June 30, March 31, June 30,
                                           2011     2012      2012
Cost of revenue                            $21    $49     $43
Research and development                   24       48        51
Selling, general and administrative        335      221       401
Total share-based compensation             $380   $318    $495

CONTACT: Jean-Claude Zhang
         Chief Financial Officer
         Tel: +86 21 2416 2298
         IR@bcdsemi.com
        
        
         The Blueshirt Group
         Erica Abrams
         Tel: 415-217-5864
         erica@blueshirtgroup.com
 
Press spacebar to pause and continue. Press esc to stop.