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Mindspeed Technologies: Mindspeed(R) Updates Fiscal 2009 Second Quarter Outlook

^{Published on 2009-03-18 06:33:37, Last Modified on 2009-11-03 19:03:13 - Market Wire}
 

NEWPORT BEACH, CA--(Marketwire - March 18, 2009) - Mindspeed Technologies, Inc. (NASDAQ: [ MSPD ]), a leading supplier of semiconductor solutions for network infrastructure applications, today announced an update to its business outlook for the second quarter of fiscal 2009. The company now expects revenues in the second quarter of fiscal 2009 to be in the range of $27.5 million to $28.5 million, including $2.0 million in previously announced patent sales. The company's previous guidance for second fiscal quarter revenue was to be in the range of $26.0 million to $29.0 million, including $2.0 million of patent sales. The revision in guidance is attributable to strength in the company's voice-over-IP (VoIP) and wide area networking (WAN) businesses, due primarily to better than expected 3G wireless infrastructure and fiber-to-the-building (FTTB) customer demand in China.

The company is expecting to reduce its inventory levels materially in the second quarter. Based upon expected inventory reduction and product mix changes in the second quarter, the company now anticipates gross margin for the quarter to be approximately 63% for the second quarter, including the benefit of $2.0 million in patent sales.

The company is progressing with its previously announced restructuring efforts for the current quarter and continues to expect an operating expense reduction to $21.0 million in the third fiscal quarter of 2009 as previously announced. For the second quarter, the company now expects operating expenses to be $23.2 million due primarily to an unexpected medical insurance claim during the period.

Mindspeed is scheduled to release its earnings results for the second fiscal quarter of 2009 on May 4, 2009.

About Mindspeed Technologies®

Mindspeed Technologies, Inc. designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and wide-area networks.

The company's three key product families include high-performance analog transmission and switching solutions, multiservice access voice-over-IP processors designed to support voice and data services across wireline and wireless networks and WAN communication products such as T/E carrier transmission devices and ATM/MPLS network processors.

Mindspeed's products are used in a wide variety of network infrastructure equipment, including voice and media gateways, high-speed routers, switches, access multiplexers, cross-connect systems, add-drop multiplexers and digital loop carrier equipment.

To learn more, visit us at [ www.mindspeed.com ].

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the company's expectations, goals or intentions, including but not limited to, statements regarding expected levels of revenues, gross margin, customer demand and inventory reduction. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the company and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: cash requirements and terms and availability of financing; anticipated operating expenses; future operating losses; worldwide political and economic uncertainties, and specific conditions in the markets we address; fluctuations in the price of our common stock and our operating results; loss of or diminished demand from one or more key customers or distributors; our ability to attract and retain qualified personnel; constraints in the supply of wafers and other product components from our third-party manufacturers; doing business internationally; pricing pressures and other competitive factors; successful development and introduction of new products; our ability to successfully and cost effectively establish and manage operations in foreign jurisdictions; industry consolidation; order and shipment uncertainty; our ability to obtain design wins and develop revenues from them; lengthy sales cycles; the expense of and our ability to defend our intellectual property against infringement claims by others; product defects and bugs; possible future impairments because our stock market capitalization is lower than our stockholders' equity; and business acquisitions and investments. Risks and uncertainties that could cause the company's actual results to differ from those set forth in any forward-looking statement are discussed in more detail under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Quarterly Report on Form 10-Q for the quarter ended January 2, 2009, as well as similar disclosures in the company's subsequent SEC filings. Forward-looking statements contained in this press release are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.