We will continue to endure volatility and granularity in our mobile handset business in the fourth quarter, leading to a sequential decline of 10% to 14% in revenue, consistent with the guidance given in our pre-announcement. Despite some delays, our design win pipeline remains robust, especially for our new TrueTouch® Gen5 touchscreen products, and we expect to resume revenue growth in early 2014.
BUSINESS REVIEW
+ Our non-GAAP consolidated gross margin for the third quarter was 53.8%, up 0.7 percentage points from the previous quarter, due to customer mix and continued cost-reduction efforts. Excluding our Emerging Technologies Division, our core semiconductor gross margins were 54.8%, a record for the year.
+ Net inventory at the end of the third quarter was $101.0 million, up just $2.5 million from the second quarter despite the revenue weakness.
NET SALES SUMMARY | ||||||||||
(In thousands, except percentages) |
||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | ||||||||||
Sept. 29, |
June 30, |
Sept. 30, | Sequential | Year-over- | ||||||
Business Unit | 2013 | 2013 | 2012 | Change | Year Change | |||||
PSD 1 | $78,136 | $81,320 | $91,207 | -4% |
-14% |
|||||
MPD 1 | $88,743 | $88,127 | $88,254 | 1% | 1% | |||||
DCD 1 | $18,884 | $21,296 | $21,236 | -11% | -11% | |||||
ETD 1, 2 | $2,960 | $2,723 | $2,318 | 9% | 28% | |||||
Total | $188,723 | $193,466 | $203,015 | -2% | -7% | |||||
Geographic | ||||||||||
China and ROW | 64% | 69% | 67% | -7% | -4% | |||||
Americas | 14% | 13% | 14% | 8% | 0% | |||||
Europe | 12% | 10% | 10% | 20% | 20% | |||||
Japan | 10% | 8% | 9% | 25% | 11% | |||||
Total | 100% | 100% | 100% | 0% | 0% | |||||
Channel | ||||||||||
Distribution | 74% | 75% | 74% | -1% | 0% | |||||
Direct | 26% | 25% | 26% | 4% | 0% | |||||
Total | 100% | 100% | 100% | 0% | 0% | |||||
1. | PSD, Programmable Systems Division; DCD, Data Communications Division; MPD, Memory Products Division: ETD, Emerging Technology Division. |
2. | “Emerging Technology” includes businesses outside our core semiconductor businesses outlined in Footnote 1. Includes subsidiaries AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit. |
THIRD-QUARTER 2013 HIGHLIGHTS