Net sales for the fourth fiscal quarter were $15,010,000, a 15% decrease compared to the prior quarter of $17,596,000 and a 24% decrease compared to $19,621,000 in the same quarter last year. On a GAAP basis, net income in the fourth fiscal quarter was $944,000, or $0.07 per diluted share, as compared with $2,612,000 or $0.20 per diluted share in the prior fiscal quarter, and $4,354,000 or $0.33 per diluted share in the same quarter of the prior fiscal year.

Non-GAAP earnings per diluted share for the fourth quarter of fiscal 2009 were $0.12, excluding pretax employee stock-based compensation of $722,000, compared with $0.25 in the prior quarter, excluding pre-tax employee stock based-compensation of $695,000, and $0.39 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $850,000. For the fiscal year ended March 28, 2009, non-GAAP net income per diluted share, was $1.17, excluding pre-tax employee stock-based compensation of $2,761,000, as compared to $1.40 for the prior fiscal year, excluding pre-tax employee stock-based compensation of $2,545,000.

“The difficult global economic conditions continued to affect us in nearly all of our target markets,” stated Henry C. Pao, president and chief executive officer. “Sales of our medical electronics products, imaging products and industrial electronics products decreased 15%, 34% and 27%, respectively, compared to the prior quarter although medical electronics product sales performed well in Asia. Imaging products, which consist of EL inverter products and commercial printer products, were lower due to reduced demand from customers. Sales of our high voltage ICs for industrial and other markets were lower due to the global economic decline.

“On the positive side, sales of our high voltage LED driver ICs for backlighting LCD TVs, which began to ramp up in our third fiscal quarter, continued to be robust. Orders from our major customer have been higher than expected. Our overall LED driver sales grew 118% from prior quarter,” added Pao. “For the first quarter of fiscal 2010, due to the continued lack of order visibility and short lead times from our customers, we can only forecast our overall sales to be modestly higher than the prior quarter, although as mentioned in our third fiscal quarter release, LED TVs are going into volume production and therefore their sales, along with our sales of the LED driver ICs they incorporate, may experience significant growth.”

Pao further commented, “At the beginning of the fourth fiscal quarter, we anticipated a slowdown and took action to cut expenses in order to maintain profitability and grow cash. Our gross margin fell to 42% from 54% in the prior quarter due to the decline in sales and lower fab utilization. We reduced inventory by $1.7 million and we exercised extreme cost-cutting measures in manufacturing and operating activities, reducing expenses by $2.8 million. Interest income was lower than the prior quarter by approximately $400,000 due to lower market interest rates, however a reduction in Other

Expense more than offset this impact. We left our research and development spending in tact. Our effective tax rate for fiscal year 2009 was 20%, compared to 24% last year, and 31% to 36% during the preceding five years.”

Pao further stated, “While fiscal 2009 was a difficult year due to the poor global economy, we did not cut back on our research and development spending. We filed several patents and have developed many new products in our target markets which we expect to introduce in fiscal 2010. We should be well-positioned to resume growth when our target markets recover, hopefully during the second half of this fiscal year. In such a recovery, we expect our medical ultrasound products and our LED products for general lighting and for backlighting LCD TVs to capture significant market share due to their superior features.”