Microsemi Corporation (Microsemi) has reported net sales of $130.6 million for the first quarter of fiscal 2009, up 5.7%, compared with the net sales of $123.5 million in the year-ago quarter. It has also reported a net income of $13.2 million, or $0.16 per diluted share, for the first quarter of fiscal 2009, compared with the net income of 8.6 million, or $0.11 per diluted share, in the year-ago quarter.
The non-GAAP gross margin in the first quarter was 51.8%, an increase of 50 basis points compared to 51.3% in the first quarter of 2008 and down 70 basis points from 52.5% in the fourth quarter of 2008. Non-GAAP operating margin was 26.9% in the first quarter compared to 26.2% in the first quarter of 2008 and 28.3% in the fourth quarter of 2008. For the first quarter, non-GAAP net income was $28.7 million, compared to $24.4 million in the first quarter of 2008 and $29.0 million in the fourth quarter of 2008. For the first quarter, the non-GAAP effective tax rate was 19.8%. The non-GAAP effective tax rate was favorably impacted, in part, by reinstatement of the research and development tax credit, retroactive to January 1, 2008, amounting to about $0.01 of diluted earnings per share. Non-GAAP diluted earnings per share in the first quarter were $0.36 compared to $0.31 in the first quarter of 2008 and $0.36 in the fourth quarter of 2008.
The GAAP gross margin for the first quarter was 46.2%, an increase of 370 basis points compared to 42.5% in the first quarter of 2008 and down 60 basis points from 46.8% in the fourth quarter of 2008. GAAP operating margin was 10.6% in the first quarter compared to 8.9% in the first quarter of 2008 and 16.3% in the fourth quarter of 2008. GAAP results in the first quarter included $6.9 million for transitional idle capacity, a reduction of $0.7 million from the previous quarter and $2.9 million in restructuring and other charges. Also included were non-cash charges of $7.9 million related to stock based compensation, $3.2 million in amortization of acquisition-related intangibles and $0.2 million from manufacturing profit in acquired inventory. For the first quarter, the GAAP effective tax rate was 9.6%. The GAAP effective tax rate was favorably impacted, in part, by reinstatement of the research and development tax credit, retroactive to January 1, 2008, amounting to about $0.01 of diluted earnings per share.
James J. Peterson, president and chief executive officer, stated, Our performance in our first quarter continued to exceed overall industry performance with positive contributions, especially in our satellite, defense and implantable medical markets. We continue to make company-wide operational and efficiency improvements in order to better service our customers. These improvements are also reflected in our cash flow, giving us increased leverage for continued strategic initiatives.
The book-to-bill ratio for the first quarter of 2009 was 1.00 to 1.00.
Business Outlook:
Microsemi expects that for the second quarter of fiscal 2009, our sales will decline within a range of 16 to 20%, sequentially. On a non-GAAP basis, we expect earnings for the second quarter of fiscal year 2009 to be $0.15 to $0.20 per diluted share.