Catalyst Semiconductor F1Q08 (Qtr End 4/27/08) Earnings Call Transcript

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2008-06-12 20:19:17.0

Tags: Catalyst Semiconductor Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from John Vin with Colin Stewart.

John Vin - Colin Stewart

Good afternoon. First, just asking a question -- can you give us the breakdown of unit shipments and revenues by segment, please?

David P. Eichler

Sure. So on the revenue side, the total was $17.5 million; $14.2 million EEPROMs, $640,000 was Flash; analog, $2.7 million, as we said earlier.

On the unit shipments: EEPROM, 142 million; Flash, 211,000; analog, 17.1 million, for a total of 159 million units sold.

John Vin - Colin Stewart

Great. Thank you. Turning to gross margins, you saw some nice increase there. Can you -- you talked about some of the improvements there. Can you give us a sense of if you break down the gross margins improvements, how much of that was the move into 0.35 versus mixed signal versus cost savings? And then going forward, how should we think about where your gross margins should settle? Do you think we could break the 40% barrier mark going forward at this point?

Gelu Voicu

The gross margin was the result of a mix of factors. Of course, having more mixed signal percentage wise helped push the gross margin up. We also get the benefit of setting up these operations in Thailand that helps us reduce the cost in the back-end.

As transition to 0.35, the majority of the products were already transferred to 0.35, but there is still room to grow, some latecomers, product families like SPI and Micro-Wire are still not up to full speed in this new technology.

John Vin - Colin Stewart

So it sounds like most of it was kind of back-end cost savings and mix, primarily.

Gelu Voicu

Yes.

John Vin - Colin Stewart

And then going forward, do you see these levels being sustainable?

Gelu Voicu

I think we can safely say that we can operate in this range.

John Vin - Colin Stewart

Okay. In terms of the pricing environment, some of your competitors have talked about significant pricing pressures in E-squared. Can you talk about or give us some visibility in terms of what you guys are seeing in terms of the general pricing environment for E-squared?

Gelu Voicu

Well, I think we don’t see anything new out there. This is the environment we are operating in for as long as I can remember. There’s always pricing pressure in these kinds of products.

 

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