This semiconductor company trounced estimates last quarter, earning $0.11 per share, compared to analysts’ estimates of $0.06. Our second company disappointed with earnings, prompting a sell recommendation.
Exar Corporation (EXAR)
from The Oberweis Report
Exar Corporation (EXAR) designs, develops and markets high performance analog mixed-signal integrated circuits and advanced sub-system solutions for the industrial and embedded systems (46% of last quarter’s revenues), high-end consumer (37%), and infrastructure markets (17%).
Exar’s product portfolio includes power management and connectivity components, high performance analog and mixed-signal products, communications products, and data compression and storage solutions. The company’s knowledge of end-user markets along with the underlying analog, mixed signal and digital technology has enabled them to provide innovative solutions designed to meet the needs of the evolving connected world.
Applying both analog and digital technologies, products are deployed in a wide array of applications such as industrial, instrumentation and medical equipment, networking and telecommunication systems, servers, enterprise storage systems, set top boxes and digital video recorders.
On September 10, 2014, Exar completed the acquisition of Integrated Memory Logic (IML), which has exposure to the flat panel display and tablet markets, for $91million in cash. The acquisition allows the company to accelerate growth and, importantly, increase their scale and profitability leverage.
In the company’s latest reported third quarter, sales increased approximately 44% to $44.3 million from $30.7 million in the first quarter of last year. Exar Corporation reported earnings per share of $.11 in the latest reported third quarter versus $.04 in the same quarter of last year.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, March 2015