IC company reports dipping revenue

Exar has reported a 3% decrease in revenue compared to the prior quarter and an 11% decrease compared to the same period last year.

Exar has reported financial results for its fiscal 2007 fourth quarter and year ended March 31st, 2007.

Revenue for the quarter ended March 31st, 2007 was US $15.7 million, a 3% decrease from US $16.1 million for the prior quarter and an 11% decrease from US $17.6 million for the same period last year.

Revenue for the fiscal year ended March 31, 2007 was US $68.5 million compared to US $67.0 million for fiscal year 2006.

The gross margin for the fourth quarter of fiscal 2007 was 66.0% as compared to 66.5% in the prior quarter and 70.2% for the same period last year.

The fourth quarter fiscal 2007 operating loss was US $2.8 million, as compared to an operating loss of US $0.9 million for the prior quarter and operating income of US $0.6 million for the same period last year.

Net income for the quarter ended March 31, 2007 was US $1.3 million, or US $0.03 diluted earnings per share, down sequentially from US $3.0 million, or US $0.08 diluted earnings per share, in the previous quarter and down from US $2.9 million, or US $0.08 diluted earnings per share, in the fourth quarter of fiscal 2006.

Net income for fiscal year 2007 was US $8.0 million, or US $0.22 diluted earnings per share, as compared to net income of US $7.8 million, or US $0.20 diluted earnings per share, for the previous fiscal year.

In the last fiscal quarter the company's cash, cash equivalents and marketable securities increased by approximately US $2.3 million to US $356.1 million.

The company repurchased approximately US $5.5 million, or approximately 414,000 shares, of its common stock on the open market during the quarter in connection with the company's previously announced 10b5-1 share repurchase plan (SRP).

As of March 31st, 2007, approximately US $4.0 million remains available for purchase under the 10b5-1 SRP and US $14.2 million under the original share repurchase programme.

"Despite the challenging industry environment, we are not satisfied with our performance and operating results for the just completed quarter and fiscal year", remarked Richard Leza, Interim President and Chief Executive Officer.

"We will continue to make changes and take appropriate measures to drive top and bottom line growth -- both short and long-term".

"Our focus and resources will be aligned towards these objectives".

"The strategic restructuring and operational assessment that began in March will move forward while we recruit a new Chief Executive Officer and President".

"We believe it is critical for the company's success that we act in a prudent, pro-active and decisive fashion".

"We trust that our stakeholders share our belief and will hold us accountable for the success of the NEW Exar", stated Leza.

Scott Kamsler, the company's new Chief Financial Officer stated, "Now that I have been with the company for over two months, I have gained a much better appreciation of the strength of our employees and technology".

"I believe that by better allocating resources we can rekindle growth, and achieve significant increases in our revenue and profitability over the next several years".

"Additionally, the company has the financial resources to augment this growth through acquisitions of strategic technology, products and/or companies".

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