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 firstname.lastname@example.org
BCD Semiconductor Manufacturing Limited Announces Financial Results for the Fiscal Second Quarter of 2012
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