Exar: Fiscal 3Q11 Financial Results

in US$ millions)	3Q10	3Q11	9 mo. 10	9 mo. 11
Revenues	33.9	35.4	96.4	112.2
*Growth*		4%		*16%*
Net income (loss)	(3.8)	(5.0)	(24.8)	(16.8)

Exar Corporation reported financial results for its fiscal 2011 third quarter ended December 26, 2010.

Net sales for the third quarter of fiscal 2011 were $35.4 million compared to net sales of $37.2 million for the prior quarter and $33.9 million for the third quarter of fiscal 2010.

The GAAP gross margin for the third quarter of fiscal 2011 was 45.5% compared to 46.4% for the prior quarter and 50.2% in the third quarter of fiscal 2010.

On a non-GAAP basis, gross margin for the third quarter of fiscal 2011 was 50.0% compared to 50.8% for the prior quarter and 54.1% in the third quarter of fiscal 2010.

The GAAP net loss for the third quarter of fiscal 2011 was $5.0 million, or $0.11 net loss per share, compared to a net loss of $4.5 million, or $0.10 net loss per share, in the prior quarter, and a net loss of $3.8 million, or $0.09 net loss per share, for the third quarter of fiscal 2010.

On a non-GAAP basis, net loss was $1.9 million for the third quarter of fiscal 2011, compared to breakeven in the previous quarter and net income of $0.1 million in the third quarter of fiscal 2010.

The Company ended the third quarter of fiscal 2011 with cash, cash equivalents and short-term marketable securities of $202.1 million.

"The impact of the industry wide inventory correction led to lower sales for the December quarter and is expected to continue to put downward pressure on business in the current quarter," said Pete Rodriguez, the Company’s president and chief executive officer. "Our design wins for the quarter were very strong and there are indications of improving demand in our June quarter."

For the fourth quarter of fiscal 2011 ending March 27, 2011, the Company projects that net sales will be between $33 million and $35 million. The non-GAAP gross margin is currently expected to be between 45% and 47%. Operating expenses are currently expected to be between $21 million and $22 million on a non-GAAP basis.