Parsing Exar's Q4

| About: Exar Corporation (EXAR)

Exar Corporation (NASDAQ:EXAR) designs and sells analog and mixed-signal silicon products for the networking, serial communications, and storage markets. EXAR reported fourth quarter of fiscal 2008 (ending 3/30/08) earnings on May 15. The company has no debt and $6.24 per share in cash, selling at $7.98.

Financial Highlights

Net sales - $28.3 million.

Non-cash charge of $165.2 million, for the impairment of goodwill and other intangible assets related to the acquisition of Sipex.

GAAP net loss - $172.4 million, or $3.77 loss per share, which includes the impairment charge.

Non-GAAP net loss - $1.7 million, or $0.04 loss per share, excluding the impairment charge.

Cash, cash equivalents and short-term marketable securities - $269 million, or $6.24 per share (diluted count).

No debt.

Guidance

First quarter of fiscal 2009 ending June 29, 2008:

Net sales will increase to between $29.0 million and $31.5 million.

Gross margin is expected to be between 44% and 46% on a GAAP basis and between 47% and 49% on a non-GAAP basis.

Operating expenses are expected to be between $19.2 million and $19.7 million on a GAAP basis and between $17.2 million and $17.7 million on a non-GAAP basis.

Conference Call

“GAAP net sales excluded approximately $2.5 million in the fourth quarter as a result of one purchase accounting which precludes revenue recognition on purchase date inventory held by Sipex distributors upon sell-through.”

“Used $35 million in cash to repurchase a 4.5 million shares of its common stock at an average price of $7.71 per share.”