Leadis Technology Reports Second Quarter 2008 Results

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Leadis Technology,Inc. ( LDIS ), an analog and mixed-signal semiconductor developer of colordisplay drivers, LED drivers, power management, audio and touch ICsfor mobile consumer electronics devices, today announced resultsfor the second quarter of 2008, ended June 30, 2008.

Second quarter revenue was $5.9 million, falling short of thecompany's guidance of $7.0 million plus or minus 10%. Secondquarter gross margin was 0%, with 2% gross margin on direct productsales offset by negative gross margin on NRE activity during thequarter. While the NRE activity generated a negative gross margin,these projects generate cash that offsets overall costs. Undergenerally accepted accounting principles (GAAP), second quarter netloss was $19.5 million, or $0.67 per basic share, as compared withthe $10.1 million, or $0.35 per basic share, net loss reported inthe previous quarter and the $6.1 million, or $0.21 per basicshare, net loss reported in the second quarter of 2007. The loss inthe second quarter of 2008 included a $9.4 million non-cashimpairment charge for goodwill and other intangible assetsoriginally recorded in connection with previous businessacquisitions. The loss in the first quarter of 2008 included a $0.5million charge for excess and obsolete inventory.

In addition to reporting GAAP results, the company reports non-GAAPresults, which exclude share-based compensation expense per FAS123(R), acquisition-related expenses, and goodwill and intangibleimpairment charges. Non-GAAP net loss for the second quarter of2008 was $8.2 million, or $0.28 per basic share, as compared to anet loss of $8.3 million, or $0.28 per basic share, in the firstquarter of 2008 and a net loss of $4.1 million, or $0.14 per basicshare, in the second quarter of 2007. A reconciliation of GAAPmeasures to non-GAAP measures is included in the financialstatements portion of this press release.
The company reported cash, restricted cash and investments of $54million as of June 30, 2008, which was $5.6 million lower than itsbalance as of March 31, 2008, due primarily to the second quarternet loss. Cash flow was favorably impacted by a tax refund of $2.5million received during the second quarter.