We exited 2013 with a book-to-bill ratio of 1.08, a high point since the first quarter of 2012. The book-to-bill ratio of all divisions was above unity with our Programmable Systems Division leading the way at 1.15. Lead times remain low; our distributors decreased their inventories to their lowest levels in three years. As such, we expect less-than-normal seasonal revenue declines in the first quarter of 2014. Our design win pipeline for our new TrueTouch® touchscreen products is finally beginning to recover. We expect our revenue to remain in a seasonal trough in the first quarter and then to increase during the rest of 2014.
Note that we produced $167.8 million in revenue in the fourth quarter of 2013 vs. $180.3 million in the fourth quarter of 2012, down $12.5 million, but that our pretax profit was still up $7.9 million. This was due to record-low operating expenses.
BUSINESS REVIEW
+ Our non-GAAP consolidated gross margin for the fourth quarter was 51.0%, down 2.8 percentage points from the previous quarter, due primarily to reduced amortization of manufacturing expenses by lower revenue. Excluding our Emerging Technologies Division (ETD), our core semiconductor gross margin was 52.3%. ETD revenue is growing rapidly (see Net Sales Summary table) and will contribute significantly to revenue growth in 2014.
+ Net inventory at the end of the fourth quarter was $100.6 million, down from the third quarter.
| NET SALES SUMMARY | ||||||||||||||||||
| (In thousands, except percentages) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||
|
Dec. 29, |
Sept. 29, |
Dec. 30, | Sequential | Year-over- | ||||||||||||||
| Business Unit | 2013 | 2013 | 2012 | Change | Year Change | |||||||||||||
| PSD 1 | $ | 67,746 | $ | 78,135 | $ | 81,405 | -13 | % |
-17 |
% |
||||||||
| MPD 1 | $ | 79,890 | $ | 88,743 | $ | 77,421 | -10 | % | 3 | % | ||||||||
| DCD 1 | $ | 16,482 | $ | 18,884 | $ | 20,170 | -13 | % | -18 | % | ||||||||
| ETD 1, 2 | $ | 3,658 | $ | 2,961 | $ | 1,287 | 24 | % | 184 | % | ||||||||
| Total | $ | 167,776 | $ | 188,723 | $ | 180,283 | -11 | % | -7 | % | ||||||||
| Geographic | ||||||||||||||||||
| China and ROW | 64 | % | 64 | % | 68 | % | 0 | % | -6 | % | ||||||||
| Americas | 14 | % | 14 | % | 16 | % | 0 | % | -13 | % | ||||||||
| Europe | 12 | % | 12 | % | 9 | % | 0 | % | 33 | % | ||||||||
| Japan | 10 | % | 10 | % | 7 | % | 0 | % | 43 | % | ||||||||
| Total | 100 | % | 100 | % | 100 | % | 0 | % | 0 | % | ||||||||
| Channel | ||||||||||||||||||
| Distribution | 69 | % | 74 | % | 75 | % | -7 | % | -8 | % | ||||||||
| Direct | 31 | % | 26 | % | 25 | % | 19 | % | 24 | % | ||||||||
| Total | 100 | % | 100 | % | 100 | % | 0 | % | 0 | % | ||||||||
| TWELVE MONTHS ENDED | |||||||||||
|
Dec. 29, |
Dec. 30, |
Year-over- | |||||||||
| Business Unit | 2013 | 2012 | Year Change | ||||||||
| PSD 1 | $ | 292,707 | $ | 345,430 | -15 | % | |||||
| MPD 1 | $ | 338,986 | $ | 330,504 | 3 | % | |||||
| DCD 1 | $ | 79,410 | $ | 86,591 | -8 | % | |||||
| ETD 1, 2 | $ | 11,590 | $ | 7,162 | 62 | % | |||||
| Total | $ | 722,693 | $ | 769,687 | -6 | % | |||||
| Geographic | |||||||||||
| China and ROW | 66 | % | 65 | % | 2 | % | |||||
| Americas | 14 | % | 17 | % | -18 | % | |||||
| Europe | 11 | % | 10 | % | 10 | % | |||||
| Japan | 9 | % | 8 | % | 13 | % | |||||
| Total | 100 | % | 100 | % | 0 | % | |||||
| Channel | |||||||||||
| Distribution | 73 | % | 74 | % | -1 | % | |||||
| Direct | 27 | % | 26 | % | 4 | % | |||||
| Total | 100 | % | 100 | % | 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 | . |
FOURTH-QUARTER 2013 HIGHLIGHTS
