Valley Forge, Pa.--Oct. 23, 1997--Integrated Circuit Systems announcedrecord consolidated revenue of $38.6 million for the first fiscalquarter ended Sept. 27, 1997, an increase of 80 percent from thatreported for the first quarter a year ago.
Compared to the preceding quarter, revenue surged 27 percent as a resultof strong growth across all product lines. In particular, ICS showedsignificant volume gains in the single chip 10/100-megabit fastethernet transceiver and frequency timing clocks for variousapplications.
During the quarter, record income from continuing operations of$5.0 million was achieved, a 400 percent increase over the $1.0 millionreported in the same period a year ago. Earnings per share fromcontinuing operations was $0.38 versus $0.09 a year ago. As comparedto that reported in the preceding quarter, income from continuingoperations less special charges increased 20 percent.
However, reflecting a 12 percent increase in shares outstanding,earnings per share from continuing operations gained 8 percent from thepreceding quarter (net of special charges).
Consolidated gross margin during the quarter substantiallyimproved to 45 percent from 36 percent during the same period a yearago, butdeclined from 48 percent the preceding quarter due to startup costs inthenew Singapore test facility. Improved yields in the 10/100-megabittransceiver and stable margins in clock products partially offset theSingapore startup costs.
The company continued to increase investment in R&D to gainposition in its fast growing markets and to broaden its productlines. Cost controls and increased volume reduced consolidatedoperating expenses to 24 percent of revenue from 32 percentduring the same quarter a year ago, and from 26 percent duringthe preceding quarter.
Accordingly, consolidated pretax margin (excluding specialcharges) was sustained at 22 percent of revenues, the same as thatachievedduring the preceding quarter, and up from 6 percent a year ago.
Integrated Circuit Systems
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