Microsemi Corp. (MSCC, Financial) filed Quarterly Report for the period ended 2009-12-27.
Microsemi Corp. has a market cap of $1.28 billion; its shares were traded at around $15.57 with a P/E ratio of 26.8 and P/S ratio of 2.7. Microsemi Corp. had an annual average earning growth of 78.5% over the past 5 years.MSCC is in the portfolios of David Dreman of Dreman Value Management, Chuck Royce of ROYCE & ASSOCIATES.
We had gross unrecognized tax benefits including interest and penalties of approximately $20.1 million and $19.7 million related to various U.S. and foreign jurisdictions at December 27, 2009 and September 27, 2009, respectively. These amounts include $3.6 million and $3.3 million of interest and penalties at December 27, 2009 and September 27, 2009, respectively. Unrecognized tax benefits of $12.2 million at both December 27, 2009 and September 27, 2009, would impact our effective tax rate in the period of recognition. We are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.
Current liabilities decreased $8.1 million to $92.7 million at December 27, 2009 from $100.8 million at September 27, 2009. The decrease was due to a reduction of $10.0 million in our auction rate securities credit facility following a redemption by an issuer of an auction rate bond we held, payments of accrued severance, profit sharing and bonus and lower accrued payroll due to the timing of payroll periods, offset by higher accounts payable due primarily to the timing of payments.
During the quarter ended December 27, 2009, an issuer called $10.0 million in auction rate bonds at par plus accrued interest and as such, the par value of our investment in auction rate securities and the corresponding auction rate securities credit facility were each $36.6 million at December 27, 2009. Subsequent to December 27, 2009 an issuer called $1.7 million in auction rate bonds at par plus accrued interest. As such, the par value of our remaining investment in auction rate securities and the corresponding auction rate securities credit facility were each $34.9 million.
Net cash provided by (used in) investing activities was $6.5 million for Q1 2010 and ($11.2) million for Q1 2009, respectively. Net cash provided by investing activities in Q1 2010 primarily consisted of $10.0 million in proceeds from an issuer redemption of auction rate bonds offset by $3.2 million in purchases of property and equipment. In Q1 2009, net cash used in investing activities primarily consisted of $21.9 million related to the acquisition of Electro Module, Inc., and Babcock, Inc., its wholly-owned subsidiary, $4.2 million in purchase of property and equipment, offset by a $15.5 million repurchase of our investment in auction rate preferred shares.
Net cash provided by (used in) financing activities was ($8.4) million in Q1 2010 and $0.4 million in Q1 2009. In Q1 2010, net cash used in financing activities primarily consisted of a $10.0 million reduction in the auction rate securities credit facility offset by $1.6 million related to proceeds from stock-awards. In Q1 2009, net cash provided by financing activities related to proceeds from stock awards.
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Microsemi Corp. has a market cap of $1.28 billion; its shares were traded at around $15.57 with a P/E ratio of 26.8 and P/S ratio of 2.7. Microsemi Corp. had an annual average earning growth of 78.5% over the past 5 years.MSCC is in the portfolios of David Dreman of Dreman Value Management, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Net sales in the mobile and connectivity end market increased $4.4 million to $17.3 million in Q1 2010 from $12.9 million in Q1 2009. In fiscal year 2009, enterprise demand waned in a challenging economic environment, resulting in sequential net sales declines in the first half of fiscal year 2009. As economic conditions have improved, net sales increased sequentially in the most recent quarter, driven primarily by PoE products. We believe this end market has stabilized and that net sales in this end market will grow next quarter.We had gross unrecognized tax benefits including interest and penalties of approximately $20.1 million and $19.7 million related to various U.S. and foreign jurisdictions at December 27, 2009 and September 27, 2009, respectively. These amounts include $3.6 million and $3.3 million of interest and penalties at December 27, 2009 and September 27, 2009, respectively. Unrecognized tax benefits of $12.2 million at both December 27, 2009 and September 27, 2009, would impact our effective tax rate in the period of recognition. We are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.
Current liabilities decreased $8.1 million to $92.7 million at December 27, 2009 from $100.8 million at September 27, 2009. The decrease was due to a reduction of $10.0 million in our auction rate securities credit facility following a redemption by an issuer of an auction rate bond we held, payments of accrued severance, profit sharing and bonus and lower accrued payroll due to the timing of payroll periods, offset by higher accounts payable due primarily to the timing of payments.
During the quarter ended December 27, 2009, an issuer called $10.0 million in auction rate bonds at par plus accrued interest and as such, the par value of our investment in auction rate securities and the corresponding auction rate securities credit facility were each $36.6 million at December 27, 2009. Subsequent to December 27, 2009 an issuer called $1.7 million in auction rate bonds at par plus accrued interest. As such, the par value of our remaining investment in auction rate securities and the corresponding auction rate securities credit facility were each $34.9 million.
Net cash provided by (used in) investing activities was $6.5 million for Q1 2010 and ($11.2) million for Q1 2009, respectively. Net cash provided by investing activities in Q1 2010 primarily consisted of $10.0 million in proceeds from an issuer redemption of auction rate bonds offset by $3.2 million in purchases of property and equipment. In Q1 2009, net cash used in investing activities primarily consisted of $21.9 million related to the acquisition of Electro Module, Inc., and Babcock, Inc., its wholly-owned subsidiary, $4.2 million in purchase of property and equipment, offset by a $15.5 million repurchase of our investment in auction rate preferred shares.
Net cash provided by (used in) financing activities was ($8.4) million in Q1 2010 and $0.4 million in Q1 2009. In Q1 2010, net cash used in financing activities primarily consisted of a $10.0 million reduction in the auction rate securities credit facility offset by $1.6 million related to proceeds from stock-awards. In Q1 2009, net cash provided by financing activities related to proceeds from stock awards.
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