Tundra Semiconductor Corporation (Tundra), a provider of system interconnects, has reported revenues of CAD14.6 million for the third quarter of fiscal 2009, compared with revenues of CAD14.7 million in the year-ago quarter. It has also reported a net loss of CAD1.1 million, or CAD0.06 loss per share, for the third quarter of fiscal 2009, compared with the net loss of CAD54 million or CAD2.73 loss per share, in the year-ago quarter.

Revenue for the third quarter of fiscal year 2009 comprised of CAD14.1 million in product revenue and CAD0.5 million in services revenue. The Communications market segment generated CAD8.0 million in the third quarter and the Computing/Storage market segment generated CAD6.1 million. Overall, the products business performed beyond our expectations in the quarter and was positively impacted by foreign exchange. Design Services revenue was significantly lower than expected as a result of the cancellation of a large project during the quarter. Overall quarterly revenue represents a 20% decrease from the second quarter of fiscal year 2009 and a 1% decrease compared to the third quarter of fiscal year 2008. Pro forma earnings for the quarter were CAD0.1 million or CAD0.00 per diluted share, compared to earnings of CAD2.4 million or CAD0.12 per diluted share in the second quarter of fiscal year 2009 and compared to CAD0.3 million or CAD0.02 per diluted share in the third quarter of fiscal year 2008.

Third quarter results were within the guidance we provided at the close of the second quarter. Quarter over quarter, our cash position increased by more than CAD1 million and we generated more than CAD2 million in cash from operations during the quarter. Our cash position at the close of the quarter was more than CAD63 million and we remain debt free, said Daniel Hoste, president and chief executive officer, Tundra Semiconductor. “Considering the current global economic environment we are satisfied with, but not complacent about, the results of the products business during the quarter,” continued Hoste.

Management offers the following outlook for the fourth quarter of fiscal year 2009:

Q4 Revenue is expected to be in the range of CAD13.0 million to CAD15.5 million;

Q4 Pro forma diluted earnings per share is expected to be in the range of a loss of CAD0.04 to earnings of CAD0.01.

“Although we expect revenue to be flat to slightly down quarter over quarter, we expect to add to our cash balance during the quarter,” said David Long, chief financial officer.

Q3-2009 Highlights:

In February 2009, RMI Corporation (RMI) and Tundra announced interoperability of Tundra’s Tsi578 RapidIO Switch with RMI’s high performance XLS multi-core multi-threaded processor. The combined switch-processor solution enables high performance 3G and 4G wireless infrastructure systems. By using Tundra’s Serial RapidIO Development Platform, that includes the Tsi578 RapidIO Switch, with RMI’s XLS Processor evaluation platform, Tundra and RMI successfully completed testing for interoperability between their two products. The comprehensive testing validates that the Tsi578, with multi-cast capability, and RMI’s multi-core and multi-threaded XLS Processor are interoperable and can be quickly deployed as a turnkey solution in wireless infrastructure applications such as WiMAX, WCDMA, TD-SCDMA, and LTE.

Tundra was recently presented with a supplier excellence award from Huawei, in recognition of its support for delivering technology excellence, customer service and support, and on-time delivery rates. Tundra’s global teams: sales, research and development, supply chain management and field applications engineers, adhere to Tundra’s customer-first-commitment by constantly providing a good level of service to customers around the world. Tundra has been a supplier to Huawei for many years, delivering System Interconnect solutions that enable Huawei’s new production systems. Huawei’s supplier excellence award is given only when a supplier meets a strict set of guidelines by which Huawei measures supplier performance throughout the year.

Tundra recently announced that its PCI Express (PCIe) products have been selected by Axiomtek, EFI and Nortel for their latest designs, based on the high quality and performance which the PCIe bridges offer.

AXIOMTEK selected Tundra’s Tsi381 Bridge because the product was the best solution for their network appliance platform design. “Tundra’s PCIe bridges offer the best performance in the networking vertical appliance and their expert technical team delivers a new, higher standard of customer service and support to our engineers,” said, Philip Wei, Product Management, AXIOMTEK.

Noam Rabin, Senior Engineering Manager at EFI said, “EFI selected the Tundra Tsi384 for our print solutions, because of its proven, industry-leading performance. The Tsi384 offered us the high quality, reliable performance required to help deliver cutting-edge digital printing solutions to our customers.”

Nortel’s senior design engineer, Karl Reinke said, “customers continue to rely on Nortel’s longstanding commitment to quality and reliability. The new Nortel Passport switch/routers take advantage of the proven reliability of the Tundra Tsi381™, which offers the highest performance connection between PCI and PCI Express.”

MUSILAND recently announced that it selected Tundra’s PCIe bridge to be used in its X-SWORDS II High Definition Audio System. Musiland selected the Tsi382 for its high performance and support of a single lane configuration providing 2.5 Gbps throughput capacity. The PCI port of the device works at frequencies as high as 66 MHz and supports three types of addressing modes; transparent, opaque and non-transparent providing the designer with excellent flexibility. The Tsi382 has a highly efficient buffering mechanism and provides low latency and high throughput capacity.

Tundra recently signed a representative agreement with StarBridge Inc. This agreement will bring new opportunities for customers to take advantage of Tundra’s Serial RapidIO and PCI Express products in the Japanese market.

StarBridge’s existing partnerships with OEMs in the embedded industry, and their long standing expertise and experience in system integration and design services of switch fabric technology, will offer Tundra’s customers another level of world-class support and service. “This partnership is important for StarBridge’s new and existing customers, as we can now offer the proven results of Tundra’s industry-leading RapidIO and PCI Express products through our extensive network in Japan,” said Akira Sato, president and chief executive officer, StarBridge.