Microsemi Corp. (MSCC, Financial) filed Annual Report for the period ended 2009-09-27.
Microsemi Corp. is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and regulate power, protect against transient voltage spikes and transmit, receive and amplify signals. The company's products include individual components as well as complete circuit solutions that enhance our customers' end products by providing battery optimization, reducing size or protecting circuits. Microsemi Corp. has a market cap of $1.28 billion; its shares were traded at around $15.71 with a P/E ratio of 22.4 and P/S ratio of 2.8. Microsemi Corp. had an annual average earning growth of 78.5% over the past 5 years.
We spent approximately $41.4 million, $45.0 million and $42.2 million in fiscal years 2009, 2008 and 2007 respectively, for research and development. The principal focus of our research and development activities has been to improve processes and to develop new products that support the growth of our businesses.
In fiscal year 2009, we approved consolidation plans that will result in the closure of our manufacturing facility in Scottsdale, Arizona by April 2011. In fiscal year 2009, the Company recorded charges for severance and asset write-downs of $17.1 million related to the Scottsdale closure that included a held and used impairment of $4.5 million to reflect our long-lived assets at their lower fair value and severance charges of $5.3 million that are expected to be paid beginning in the first quarter of fiscal year 2010 and extending through 2012. In addition, charges of $7.3 million for additional inventory obsolescence write-downs to cost of goods sold for estimated inventory components that will not be used by the anticipated closure date and that cannot be used by other manufacturing facilities. In addition, we recorded a held for sale impairment of $1.7 million related to the real estate and building for our closed manufacturing facility in Broomfield, Colorado to reflect our long-lived assets at their lower fair value .
The consolidation of Scottsdale is expected to result, subsequent to its completion, in annual cost savings of between $20.0 million to $25.0 million from the elimination of redundant resources and related expenses and employee reductions. Scottsdale has approximately 375 employees and occupies a 135,000 square foot leased facility. Scottsdale shipped approximately 14%, 15% and 22% of net sales in fiscal years 2009, 2008 and 2007, respectively.
In Broomfield, Colorado, the owner of a property located adjacent to a manufacturing facility owned by one of our subsidiaries, Microsemi Corp. Colorado had notified the subsidiary and other parties of a claim that contaminants migrated to his property, thereby diminishing its value. In August 1995, the subsidiary, together with Coors Porcelain Company, FMC Corporation and Siemens Microelectronics, Inc. (former owners of the manufacturing facility), agreed to settle the claim and to indemnify the owner of the adjacent property for remediation costs. Although trichloroethylene (TCE) and other contaminants previously used by former owners at the facility are present in soil and groundwater on the subsidiarys property, we vigorously contest any assertion that the subsidiary caused the contamination. In November 1998, we signed an agreement with the three former owners of this facility whereby they have 1) reimbursed us for $530,000 of past costs, 2) assumed responsibility for 90% of all future clean-up costs, and 3) promised to indemnify and protect us against any and all third-party claims relating to the contamination of the facility. An Integrated Corrective Action Plan was submitted to the State of Colorado. Sampling and management plans were prepared for the Colorado Department of Public Health & Environment. State and local agencies in Colorado are reviewing current data and considering study and cleanup options. The most recent forecast estimated that the total project cost, up to the year 2020, would be approximately $5,300,000; accordingly, we recorded
Read the The complete ReportMSCC is in the portfolios of David Dreman of Dreman Value Management.
Microsemi Corp. is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and regulate power, protect against transient voltage spikes and transmit, receive and amplify signals. The company's products include individual components as well as complete circuit solutions that enhance our customers' end products by providing battery optimization, reducing size or protecting circuits. Microsemi Corp. has a market cap of $1.28 billion; its shares were traded at around $15.71 with a P/E ratio of 22.4 and P/S ratio of 2.8. Microsemi Corp. had an annual average earning growth of 78.5% over the past 5 years.
Highlight of Business Operations:
Net sales were $453.0 million, $514.1 million and $442.3 million in fiscal years 2009, 2008 and 2007. Net sales by originating geographic area and end market are disclosed in the notes to the consolidated financial statements.We spent approximately $41.4 million, $45.0 million and $42.2 million in fiscal years 2009, 2008 and 2007 respectively, for research and development. The principal focus of our research and development activities has been to improve processes and to develop new products that support the growth of our businesses.
In fiscal year 2009, we approved consolidation plans that will result in the closure of our manufacturing facility in Scottsdale, Arizona by April 2011. In fiscal year 2009, the Company recorded charges for severance and asset write-downs of $17.1 million related to the Scottsdale closure that included a held and used impairment of $4.5 million to reflect our long-lived assets at their lower fair value and severance charges of $5.3 million that are expected to be paid beginning in the first quarter of fiscal year 2010 and extending through 2012. In addition, charges of $7.3 million for additional inventory obsolescence write-downs to cost of goods sold for estimated inventory components that will not be used by the anticipated closure date and that cannot be used by other manufacturing facilities. In addition, we recorded a held for sale impairment of $1.7 million related to the real estate and building for our closed manufacturing facility in Broomfield, Colorado to reflect our long-lived assets at their lower fair value .
The consolidation of Scottsdale is expected to result, subsequent to its completion, in annual cost savings of between $20.0 million to $25.0 million from the elimination of redundant resources and related expenses and employee reductions. Scottsdale has approximately 375 employees and occupies a 135,000 square foot leased facility. Scottsdale shipped approximately 14%, 15% and 22% of net sales in fiscal years 2009, 2008 and 2007, respectively.
In Broomfield, Colorado, the owner of a property located adjacent to a manufacturing facility owned by one of our subsidiaries, Microsemi Corp. Colorado had notified the subsidiary and other parties of a claim that contaminants migrated to his property, thereby diminishing its value. In August 1995, the subsidiary, together with Coors Porcelain Company, FMC Corporation and Siemens Microelectronics, Inc. (former owners of the manufacturing facility), agreed to settle the claim and to indemnify the owner of the adjacent property for remediation costs. Although trichloroethylene (TCE) and other contaminants previously used by former owners at the facility are present in soil and groundwater on the subsidiarys property, we vigorously contest any assertion that the subsidiary caused the contamination. In November 1998, we signed an agreement with the three former owners of this facility whereby they have 1) reimbursed us for $530,000 of past costs, 2) assumed responsibility for 90% of all future clean-up costs, and 3) promised to indemnify and protect us against any and all third-party claims relating to the contamination of the facility. An Integrated Corrective Action Plan was submitted to the State of Colorado. Sampling and management plans were prepared for the Colorado Department of Public Health & Environment. State and local agencies in Colorado are reviewing current data and considering study and cleanup options. The most recent forecast estimated that the total project cost, up to the year 2020, would be approximately $5,300,000; accordingly, we recorded
Read the The complete ReportMSCC is in the portfolios of David Dreman of Dreman Value Management.
