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Power outage at fab partner may cost CMD $1M in Q4

Posted: 07 Nov 2007 ?? ?Print Version ?Bookmark and Share

Keywords:power outage? CMD foundry partner? Q4 results?

California Micro Devices (CMD) disclosed that the recent power outage at one of its foundry partners, Advanced Semiconductor Manufacturing Corp. (ASMC), may have an adverse impact on its results for Q4. The company indicated that it is still assessing the situation but that its revenue in the quarter could be reduced by up to $1 million and its net income by up to $500,000, or approximately $0.02 per diluted share.

"ASMC has informed us that it expects to complete repairs to damaged equipment and resume processing wafers within the next four to six weeks," said Robert Dickinson, president and CEO of CMD. "In addition we are taking other steps to try to minimize the effect on our customers and on our fiscal Q3 and Q4. We believe that some of the revenue and net income that we lose this quarter will be deferred to fiscal Q4." He noted that events such as these are included in the company's periodic assessment of enterprise risk and that its response is in accordance with its contingency plans.

Due to the unexpected loss of in-process wafers caused by the Shanghai foundry's power outage, CMD has revised its Q4 guidance. Expected revenue of between $15 and $17.5 million will now range between $14 and $17 million. Diluted EPS on a GAAP basis, which was previously estimated to be between a loss of $0.03 and a profit of $0.01, is now expected to be between a loss of $0.05 and breakeven. On a non-GAAP basis, excluding Arques Technology acquisition costs and employee stock-based compensation expenses, and using a cash basis tax rate, the diluted EPS that was previously estimated to be between breakeven and a profit of $0.04 is now expected to be between a loss of $0.02 and a profit of $0.03.

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