Exar Earnings: Here’s Why Shares are Down Now

Exar Corp. (NASDAQ:EXAR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.10%.

Exar Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 233.33% to $0.1 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 11.45% to $32.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exar Corp. reported adjusted EPS income of $0.1 per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $32.13 million.

Quoting Management: “Our first fiscal quarter results demonstrate continued profitable growth. Revenue grew 5% sequentially and 12% versus the same quarter a year ago. We continue to experience strength in the networking and storage market, which represented 30% of our revenue this quarter, and stability in the broad industrial market, at 51% of revenue, while communications infrastructure contracted slightly to 18%. This growth, coupled with continued strong gross margin and a focus on prudent spending, allowed us to maintain a neutral impact to our earnings per share while we absorbed the acquisition of Altior. On a non-GAAP basis we achieved 14% operating profit and $0.10 earnings per diluted share. With strong earnings and focus on cash management, our free cash flow of $0.8 million was positive for the quarter, despite two significant one-time events that consumed $4.7 million of cash,” commented company President and CEO Louis DiNardo.

Key Stats (on next page)…

Revenue increased 4.65% from $31.15 million in the previous quarter. EPS decreased 0% from $0.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.11 and has not changed. For the current year, the average estimate has moved down from a profit of $0.48 to a profit of $0.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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