ChipMOS RETURNS TO PROFITABILITY IN 1Q 2010; EXPECTS 17% TO 23% REVENUE GROWTH IN Q2 OVER Q1
- Net sales increased 53% sequentially to $64.7 million driven by strong organic growth and net sales from the Coretec acquisition
- Bookings increased 65% sequentially to $71.7 million, a 1.11 book to bill ratio
- Gross margin expanded 110 basis points sequentially to 21.6%
- Adjusted EBITDA grew to $8.4 million, a 83% sequential increase
- Net income increased over six-fold sequentially to $3.8 million
- Integration of Coretec Inc. acquisition on-track, immediately accretive to EPS
- Denver facility received Boeing Key Supplier Award
First Quarter Results
Net sales for the first quarter of 2010 were $64.7 million, a 64.6% increase over the prior year quarter and a 53.1% increase sequentially. The increase was due to stronger end market customer demand coupled with the net sales contribution from the Coretec acquisition. On a pro-forma basis, including the impact of Coretec’s net sales for the 2009 comparative periods, net sales for the first quarter of 2010 increased 16.4% over the prior year quarter and increased 12.2% sequentially.
Gross margin for the first quarter of 2010 increased 310 basis points to 21.6% of net sales, from 18.5% of net sales in the prior year period. Sequentially, gross margin increased 110 basis points from 20.5% of net sales. The sequential and year-over-year improvement in gross margin was primarily driven by improved operational performance derived from the increased net sales and cost controls.
Operating income in the first quarter of 2010 was $4.9 million compared to operating income of $0.7 million in the prior year period and operating income of $1.5 million in the fourth quarter of 2009.
Adjusted EBITDA for the first quarter of 2010 was $8.4 million compared to $3.6 million in the prior year period and $4.6 million in the fourth quarter of 2009. Reconciliations of this non-GAAP measure are provided after the GAAP condensed consolidated financial statements below and in the first quarter exclude non-recurring costs associated with the Coretec acquisition, including severance and professional fees.
Net income in the first quarter of 2010 was $3.8 million, or $0.19 per share, compared to net income of $0.5 million, or $0.03 per share, in the prior year period. Net income in the fourth quarter of 2009 was $0.6 million, or $0.03 per share.
First Quarter Balance Sheet and Liquidity
As of March 31, 2010, DDi had total cash and cash equivalents of $12.2 million and total debt of $12.6 million. During the first quarter of 2010, DDi repaid, in full, Coretec’s outstanding line of credit, which amounted to $4.2 million at December 31, 2009.
For the three months ended March 31, 2010, capital expenditures totaled $1.3 million.
