Knobias Clip Report (07-30-2008) TUNE
Submitted By Knobias ClipReport
TUNE: CEO Discusses Q2 Earnings Results; Sees “Bright” Outlook for Q3 and Q4
By Fain Hughes, fhughes@knobias.com
Microtune, Inc. (TUNE) was higher on Tuesday after the Company reported its financial results for the second quarter ended June 30, 2008. Net revenue for the three months ended June 30, 2008 was $26.6 million, a 7% increase compared to net revenue of $24.8 million for the second quarter of 2007, and a 5% increase compared to net revenue of $25.5 million for the first quarter of 2008. Non-GAAP net income per diluted share was $0.06 for the second quarter versus $0.07 in the seconf quarter of 2007.
The Company expects Q308 net revenue to be in the range of $27.5 to $29.0 million, and Q408 net revenue is expected to be higher than in Q308. Gross margin percentage is expected to be in the range of 49% to 50% for the remaining quarters of 2008.
James A. Fontaine. President and CEO of Microtune, commented in a conference call, “We reported record revenues, our tenth consecutive quarter of year-over-year growth. We also ended the quarter with cash and cash equivalents of $82.8 million. Almost half of our market share value is now in cash.”
“We clearly remain the number one silicon tuner in the world today from a market and brand perspective. We are the largest and most successful pure play silicon provider in the industry today. We have seen many competitors come and go since we introduced our technology ten years ago.”
“We remain optimistic and do not see any significant downturn in our business. However, we continue to take a prudent and conservative approach when estimating our future financial performance to protect against unforseen market changes.”
Mr. Fontaine concluded, “We have a very solid balance sheet and modest expense growth plans to allow us to with stand any macro-economic downturn. We see a bright outlook for Q3 and Q4, and we are well-positioned in the marketplace for near term growth in the cable and automotive markets and long term grwth in the DTV market.”
Collins Stewart reiterated its Buy rating for TUNE with a price of $6. The firm said that converter boxes are no longer a headwind after the company raised its outlook for DOCSIS 3.0.
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