Inphi Corporation (NYSE: IPHI), a leading provider of high-speed analog semiconductor solutions for the communications and computing markets, today announced results for its fourth quarter and full year ended December 31, 2012.
Revenue for the fourth quarter of 2012 was $22.9 million, compared with $17.3 million for the fourth quarter of 2011.
As reported under U.S. generally accepted accounting principles (GAAP), fourth quarter 2012 net loss was $16.6 million, or ($0.58) per share, compared with a GAAP net loss of $0.3 million, or ($0.01) per diluted common share, for the fourth quarter of 2011.
Inphi established a full valuation allowance against its net deferred tax assets, which resulted in a one-time, non-cash charge of $14.6 million in the fourth quarter of 2012. The decision to establish the valuation allowance was based on an assessment made at year-end that considered factors such as passage of new California tax law as well as projected taxable income. The establishment of a valuation allowance does not preclude Inphi from using its loss- carryforward, research and development tax credits and other deferred tax assets in the future.
Gross margin on a GAAP basis for the fourth quarter of 2012 was 64.3% of revenue, compared with 63.8% of revenue for the fourth quarter of 2011.
Inphi reports gross margin, net income (loss), and earnings per share in accordance with GAAP and on a non-GAAP basis. A reconciliation of the GAAP to non-GAAP gross margin, net income, and earnings per share, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this news release.
Gross margin on a non-GAAP basis for the fourth quarter of 2012 was 65.4% of revenue, compared with 64.3% of revenue for the fourth quarter of 2011.
Non-GAAP net income for the fourth quarter of 2012 was $1.0 million, or $0.03 per diluted share. This compared with non-GAAP net income of $0.2 million, or $0.01 per diluted share, for the fourth quarter of 2011.
"We delivered on our non-GAAP guidance for Q4, resulting in 16% year-on-year revenue growth in 2012 at 65% gross margin," said Ford Tamer, Inphi CEO. "As already announced by others in our industry, the near term economic climate continues to remain uncertain as we look into Q1. However, we remain optimistic about our growth prospects in the second half of 2013, based on new products going into production, and strong design win momentum in communication equipment, optical modules and next generation servers."
Full Year 2012 Results
For the year ended December 31, 2012, revenue was $91.2 million, compared with $79.3 million for 2011. GAAP net loss for 2012 was $20.7 million, or ($0.73) per diluted share, on approximately 28.4 million diluted weighted average common shares outstanding. This compared with GAAP net income of $1.9 million, or $0.07 per diluted share, on approximately 29.4 million diluted weighted average common shares outstanding for 2011.
Non GAAP net income for the year ended December 31, 2012 was $5.0 million, or approximately $0.17 per diluted share. This compared with non-GAAP net income of $7.3 million, or $0.25 per diluted share, for the year ended December 31, 2011.
The following statements are based on our current expectations for the first quarter of 2013. These statements are forward looking and actual results may differ materially.
Revenues are expected to range from approximately $20.9 million to $22 million.
Non-GAAP gross margin is expected to be approximately 65% - 66%.
Stock-based compensation expense is expected to be in the range of $3.9 million to $4.2 million.
GAAP results are expected to be a net loss in a range between $3.6 million to $4.5 million, or ($0.12) -($0.15) per diluted share, on approximately 30.1 million diluted shares outstanding.
Non-GAAP net income, excluding stock-based compensation expense, is expected to be at breakeven plus or minus $0.3 million, or ($0.01) - $0.01 per diluted share.