SOURCE: Mindspeed Technologies, Inc.

Mindspeed Technologies, Inc.

April 27, 2009 16:03 ET

Mindspeed® Reports Fiscal 2009 Second Quarter Results

Mindspeed Guides Third Quarter Product Revenues Up 13% to 21% Sequentially

NEWPORT BEACH, CA--(Marketwire - April 27, 2009) - Mindspeed Technologies, Inc. (NASDAQ: MSPD), a leading supplier of semiconductor solutions for network infrastructure applications, today reported results for the second quarter of fiscal 2009, which ended on April 3, 2009.

Revenues for the second quarter of fiscal 2009 were $28.5 million and were at the high end of the company's updated guidance range provided on March 18, 2009. Revenues for the second quarter declined sequentially by 7 percent from revenues of $30.7 million in the first quarter of fiscal 2009. Excluding patent sales, product revenues for the second quarter of fiscal 2009 declined by 4 percent sequentially.

The company's non-GAAP gross margin was $17.7 million, or 62 percent of revenues, for the second quarter of fiscal 2009, which included a 3 percent net benefit from patent sales. This is compared to the company's non-GAAP gross margin of $21.2 million, or 69 percent of revenues, for the first quarter of fiscal 2009, which included a 3 percent net benefit from patent sales. Presented on a GAAP basis, gross margin for the second quarter of fiscal 2009 was $14.0 million, or 49 percent of revenues, compared to $21.0 million, or 68% of revenues, for the first quarter of fiscal 2009. GAAP gross margin for the second quarter of fiscal 2009 included asset impairments of $3.7 million, primarily related to the assets of Ample Communications, Inc., which the company had previously acquired. The Ample assets are part of the company's WAN Carrier Ethernet business, of which Nortel Networks was the largest customer.

Consistent with the company's updated guidance, total non-GAAP operating expenses for the second quarter of fiscal 2009 were $23.2 million, down sequentially from the first quarter of fiscal 2009 level of $23.6 million. Total GAAP operating expenses for the second quarter of fiscal 2009 were $28.4 million and included asset impairments of $2.4 million related to the Ample assets and $1.7 million in restructuring charges related to the company's cost reduction efforts. Total GAAP operating expenses for the first quarter of fiscal 2009 were $26.8 million.

Non-GAAP operating loss for the second quarter of fiscal 2009 was $5.5 million compared to a non-GAAP operating loss of $2.4 million for the first quarter of fiscal 2009. On a GAAP basis, the operating loss for the second quarter of fiscal 2009 was $14.4 million compared to an operating loss of $5.8 million for the first quarter of fiscal 2009.

The company's non-GAAP net loss for the second quarter of fiscal 2009 was $5.7 million, or $0.24 per share. This compares to the non-GAAP net loss for the first quarter of fiscal 2009 of $3.0 million, or $0.13 per share. Presented on a GAAP basis, the company reported a net loss of $14.6 million, or $0.62 per share, for the second quarter of fiscal 2009, which includes, among other items, restructuring charges of $1.7 million and impairment charges of approximately $5.8 million related to the Ample assets. This compares to a GAAP net loss of $3.5 million, or $0.15 per share, for the first quarter of fiscal 2009. Reconciliations of the non-GAAP measures to GAAP measures are included in the accompanying financial data.

Excluding patent sales, revenues from multiservice access voice-over-IP (VoIP) processor solutions contributed 41 percent of second quarter fiscal 2009 product revenues and were flat sequentially, while revenues from high-performance analog products decreased 22 percent sequentially from the prior quarter and represented 31 percent of product revenues. Wide area networking communication revenues contributed the remaining 28 percent of second quarter fiscal 2009 product revenues and increased 18 percent sequentially.

Commentary

"Our 2009 second fiscal quarter was a tough quarter on many fronts, but we began to see positive business trends in the second half of the last quarter, which are continuing into our current quarter, particularly in China, where we are seeing strong demand for fiber-to-the-building (FTTB) and 3G wireless infrastructure," said Raouf Y. Halim, Mindspeed's chief executive officer.

Outlook

Mindspeed expects fiscal 2009 third quarter revenues to grow between 13 and 21 percent, or to between $30.0 million and $32.0 million, from the fiscal 2009 second quarter, excluding patent sales in both periods. The company expects fiscal 2009 third quarter non-GAAP gross margin to be approximately 62 percent, excluding any potential patent sales. As a result of cost reduction actions initiated in the last two quarters, the company expects to reduce quarterly non-GAAP operating expenses to approximately $21.1 million in the fiscal third quarter of 2009, a reduction of 9 percent from the fiscal second quarter 2009 level of $23.2 million. Third quarter fiscal 2009 non-GAAP operating expense of $21.1 million would represent the lowest operating expense level in the company's history. Mindspeed also expects to reduce its cash consumption in the third quarter of fiscal 2009 by approximately 50 percent from the second quarter of fiscal 2009.

Second Quarter Fiscal 2009 Conference Call

Mindspeed will conduct a conference call announcing its second quarter of fiscal 2009 results on Monday, April 27, 2009, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time.

To listen to the conference call via telephone, call 800-593-9968 (domestic) or 210-795-2680 (international); password: Mindspeed. To listen via the Internet, please visit the Investors section of Mindspeed's website at http://investors.mindspeed.com. Replay of the conference will be available via telephone one hour after it concludes for 30 days by calling 888-566-0613 (domestic) or 203-369-3075 (international). Replay will also be available on Mindspeed's website at http://investors.mindspeed.com.

About Mindspeed Technologies®

Mindspeed Technologies, Inc. designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and wide-area networks. The company's three key product families include high-performance analog transmission and switching solutions, multiservice access voice-over-IP processors designed to support voice and data services across wireline and wireless networks and WAN communication products such as T/E carrier transmission devices and ATM/MPLS network processors.

Mindspeed's products are used in a wide variety of network infrastructure equipment, including voice and media gateways, high-speed routers, switches, access multiplexers, cross-connect systems, add-drop multiplexers and digital loop carrier equipment.

To learn more, visit us at www.mindspeed.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the company's expectations, goals or intentions, including but not limited to, statements under the headings "Commentary" and "Outlook" regarding positive business trends, industry and economic cycles and trends, expected levels of revenues, gross margin, operating expenses and cash consumption and the source and amount of savings from and timing of cost reduction and restructuring measures. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the company and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: cash requirements and terms and availability of financing; future operating losses; worldwide political and economic uncertainties, and specific conditions in the markets we address; fluctuations in the price of our common stock and our operating results; loss of or diminished demand from one or more key customers or distributors; our ability to attract and retain qualified personnel; constraints in the supply of wafers and other product components from our third-party manufacturers; doing business internationally; pricing pressures and other competitive factors; successful development and introduction of new products; our ability to successfully and cost effectively establish and manage operations in foreign jurisdictions; industry consolidation; order and shipment uncertainty; our ability to obtain design wins and develop revenues from them; lengthy sales cycles; the expense of and our ability to defend our intellectual property against infringement claims by others; product defects and bugs; possible future asset impairments; and business acquisitions and investments. Risks and uncertainties that could cause the company's actual results to differ from those set forth in any forward-looking statement are discussed in more detail under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Quarterly Report on Form 10-Q for the quarter ended January 2, 2009, as well as similar disclosures in the company's subsequent SEC filings. Forward-looking statements contained in this press release are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.


                       Mindspeed Technologies, Inc.

              Consolidated Condensed Statements of Operations
            (unaudited, in thousands, except per share amounts)


                           Three months ended           Six months ended
                     -------------------------------  --------------------
                      Apr. 3,    Jan. 2,   Mar. 28,    Apr. 3,   Mar. 28,
                       2009       2009       2008       2009       2008
                     ---------  ---------  ---------  ---------  ---------

Net revenues:
  Product            $  26,533  $  27,731  $  34,548  $  54,264  $  67,199
  Intellectual
   property              2,000      3,000      1,700      5,000      4,350
                     ---------  ---------  ---------  ---------  ---------
    Total net
     revenues           28,533     30,731     36,248     59,264     71,549
                     ---------  ---------  ---------  ---------  ---------
Cost of goods sold:
  Cost of goods
   sold, excluding
   asset impairments
   (a)(b)               10,863      9,749     11,799     20,612     22,141
  Asset impairments
   (c)                   3,667         --         --      3,667         --
                     ---------  ---------  ---------  ---------  ---------
    Total cost of
     goods sold
     (a)(b)(c)          14,530      9,749     11,799     24,279     22,141
                     ---------  ---------  ---------  ---------  ---------

Gross margin            14,003     20,982     24,449     34,985     49,408

Operating expenses:
  Research and
   development (a)      13,100     13,344     13,704     26,444     27,422
  Selling, general
   and administrative
   (a)                  10,702     11,123     11,674     21,825     23,180
  Special charges
   (d)                   4,582      2,305         93      6,887        174
                     ---------  ---------  ---------  ---------  ---------
    Total operating
     expenses           28,384     26,772     25,471     55,156     50,776
                     ---------  ---------  ---------  ---------  ---------

Operating loss         (14,381)    (5,790)    (1,022)   (20,171)    (1,368)

Other (expense)
 income, net               (18)     2,332       (750)     2,314     (1,151)
                     ---------  ---------  ---------  ---------  ---------

Loss before income
 taxes                 (14,399)    (3,458)    (1,772)   (17,857)    (2,519)

Provision for income
 taxes                     172         90         65        262        147
                     ---------  ---------  ---------  ---------  ---------

Net loss             $ (14,571) $  (3,548) $  (1,837) $ (18,119) $  (2,666)
                     =========  =========  =========  =========  =========

Net loss per share,
 basic               $   (0.62) $   (0.15) $   (0.08) $   (0.77) $   (0.12)
                     =========  =========  =========  =========  =========

Weighted-average
 number of
 shares used in
 basic per share
 computation (e)        23,573     23,407     23,045     23,490     22,900
                     =========  =========  =========  =========  =========


(a) Includes stock-based compensation expense and employer taxes on
    stock-based compensation.

(b) Cost of goods sold includes the favorable effect of sales of certain
    inventories written down to a zero cost basis during fiscal 2001.
    The favorable effect of such sales, by quarter, was approximately
    $0.3 million (April 2009), $0.6 million (January 2009) and $0.4 million
    (March 2008). For the six months ended April 3, 2009 and March 28,
    2008, the favorable effect of such sales was $1.0 million and
    $0.9 million.

(c) Asset impairments include the write-down of the carrying value of
    technology developed by Ample Communications, Inc., which was
    previously acquired by the company ($2.3 million), certain Ample
    related inventory ($1.0 million) and certain manufacturing related
    fixed assets ($0.3 million).

(d) Special charges consists of tangible and intangible asset
    impairments and restructuring charges.

(e) Per share information has been adjusted to reflect the 1-for-5
    reverse stock split which the company effected on June 30, 2008.




                       Mindspeed Technologies, Inc.

           Reconciliation of Non-GAAP Measures to GAAP Measures
            (unaudited, in thousands, except per share amounts)


                           Three Months Ended           Six Months Ended
                      Apr. 3,    Jan. 2,   Mar. 28,    Apr. 3,   Mar. 28,
                       2009       2009       2008       2009       2008
                     ---------  ---------  ---------  ---------  ---------

Reconciliation of
 Non-GAAP Gross
 Margin to GAAP
 Gross Margin
Non-GAAP gross
 margin              $  17,684  $  21,173  $  24,597  $  38,857  $  49,795
Items excluded from
 non-GAAP gross
 margin:
  Stock-based
   compensation             14         35         (2)        49         78
  Employer taxes on
   stock-based
   compensation             --          1         --          1          4
  Amortization of
   intangible assets
   (f)                      --        155        150        155        305
  Asset impairments
   (g)                   3,667         --         --      3,667         --
                     ---------  ---------  ---------  ---------  ---------
Gross margin         $  14,003  $  20,982  $  24,449  $  34,985  $  49,408
                     =========  =========  =========  =========  =========

Reconciliation of
 Non-GAAP Operating
 Expenses to GAAP
 Operating Expenses
Non-GAAP operating
 expenses            $  23,233  $  23,565  $  24,037  $  46,798  $  47,278
Items excluded from
 non-GAAP operating
 expenses:
  Stock-based
   compensation            513        932      1,249      1,445      2,823
  Employer taxes on
   stock-based
   compensation              2          4         50          6        143
  Amortization of
   intangible assets
   (f)                      --         --         --         --        100
  Employee
   separation costs
   (h)                     (69)       (15)        42        (84)       258
  Special charges
   (i)                   4,582      2,305         93      6,887        174
  Reverse stock
   split costs (j)          --        (19)        --        (19)        --
  Employee option
   exchange costs
   (k)                     123         --         --        123         --
                     ---------  ---------  ---------  ---------  ---------
Operating expenses   $  28,384  $  26,772  $  25,471  $  55,156  $  50,776
                     =========  =========  =========  =========  =========

Reconciliation of
 Non-GAAP Operating
 Income/(Loss)
 to GAAP Operating
 Loss
Non-GAAP operating
 income/(loss)       $  (5,549) $  (2,392) $     560  $  (7,941) $   2,517
Items excluded from
 non-GAAP operating
 income/(loss):
  Stock-based
   compensation            527        967      1,247      1,494      2,901
  Employer taxes on
   stock-based
   compensation              2          5         50          7        147
  Amortization of
   intangible assets
   (f)                      --        155        150        155        405
  Asset impairments
   (g)                   3,667         --         --      3,667         --
  Employee
   separation costs
   (h)                     (69)       (15)        42        (84)       258
  Special charges
   (i)                   4,582      2,305         93      6,887        174
  Reverse stock
   split costs (j)          --        (19)        --        (19)        --
  Employee option
   exchange costs
   (k)                     123         --         --        123         --
                     ---------  ---------  ---------  ---------  ---------
Operating loss       $ (14,381) $  (5,790) $  (1,022) $ (20,171) $  (1,368)
                     =========  =========  =========  =========  =========

Reconciliation of
 Non-GAAP Net
 Income/(Loss) to
 GAAP Net Loss
Non-GAAP net
 income/(loss)       $  (5,739) $  (3,030) $    (255) $  (8,769) $   1,219
Items excluded from
 non-GAAP net
 income/(loss):
  Stock-based
   compensation            527        967      1,247      1,494      2,901
  Employer taxes on
   stock-based
   compensation              2          5         50          7        147
  Amortization of
   intangible assets
   (f)                      --        155        150        155        405
  Asset impairments
   (g)                   3,667         --         --      3,667         --
  Employee
   separation costs
   (h)                     (69)       (15)        42        (84)       258
  Special charges
   (i)                   4,582      2,305         93      6,887        174
  Reverse stock
   split costs (j)          --        (19)        --        (19)        --
  Employee option
   exchange costs
   (k)                     123         --         --        123         --
  Gain on debt
   extinguishment
   (l)                      --     (2,880)        --     (2,880)        --
                     ---------  ---------  ---------  ---------  ---------
Net loss             $ (14,571) $  (3,548) $  (1,837) $ (18,119) $  (2,666)
                     =========  =========  =========  =========  =========

Reconciliation of
 Non-GAAP Net
 Income/(Loss) Per
 Share to GAAP Net
 Loss Per Share
Loss per share,
 basic:
  Non-GAAP net
   income/
   (loss) (m)        $   (0.24) $   (0.13) $   (0.01) $   (0.37) $    0.05
  Adjustments (m)        (0.38)     (0.02)     (0.07)     (0.40)     (0.17)
                     ---------  ---------  ---------  ---------  ---------
  Net loss (m)       $   (0.62) $   (0.15) $   (0.08) $   (0.77) $   (0.12)
                     =========  =========  =========  =========  =========


(f) Amortization of intangible assets reflects amortization expense on
    purchased intangibles from the acquisition of certain of the assets
    of Ample in the fourth quarter of fiscal 2007.

(g) Asset impairments include the write-down of the carrying value of
    technology developed by Ample ($2.3 million), certain Ample related
    inventory ($1.0 million) and certain manufacturing related fixed
    assets ($0.3 million).

(h) Employee separation costs consist of severance benefits payable to
    certain former employees of the company as a result of organizational
    changes.

(i) Special charges consists of asset impairments and restructuring
    charges.

(j) Reverse stock split costs consist of the costs incurred to effect and
    account for the reverse stock split.

(k) Employee option exchange costs consist of the costs incurred to
    implement and account for the employee option exchange program.

(l) Gain on debt extinguishment represents the gain we recorded in
    connection with extinguishing portions of our convertible debt
    instrument.

(m) Per share information has been adjusted to reflect the 1-for-5
    reverse stock split which the company effected on June 30, 2008.


Non-GAAP Measures

We provide non-GAAP measures as a supplement to financial results based on GAAP. A detailed reconciliation of the non-GAAP results to the most directly comparable GAAP measures is set forth above under the heading "Reconciliation of Non-GAAP Measures to GAAP Measures." Investors are encouraged to review this reconciliation. We believe the presentation of non-GAAP measures provides investors with additional insight into underlying operating results and prospects for the future by excluding stock-based compensation and related employer taxes, asset impairments, amortization of intangible assets, employee separation costs, costs related to our reverse stock split and employee option exchange program, the effects of special charges such as asset impairments and restructuring charges and/or gain on extinguishment of debt. We have historically reported similar financial measures and believe that the inclusion of comparative numbers provides consistency in our financial reporting.

We use non-GAAP gross margin, operating expenses, operating income/(loss), net income/(loss) and net income/(loss) per share internally to evaluate our operating performance and to determine certain components of management compensation. In addition, we use these non-GAAP measures for internal budgets and forecasts. We believe that these non-GAAP measures can be useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making.

Non-GAAP gross margin excludes stock-based compensation expense, employer taxes on stock-based compensation, amortization of intangible assets and asset impairments. Non-GAAP operating expenses exclude stock-based compensation expense, employer taxes on stock-based compensation, amortization of intangible assets, employee separation costs, special charges, reverse stock split costs and employee option exchange costs. Non-GAAP operating income/(loss) excludes stock-based compensation expense, employer taxes on stock-based compensation, amortization of intangible assets, asset impairments, employee separation costs, special charges, reverse stock split costs and employee option exchange costs. Non-GAAP net income/(loss) and non-GAAP net income/(loss) per share exclude stock-based compensation expense, employer taxes on stock-based compensation, amortization of intangible assets, asset impairments, employee separation costs, special charges, reverse stock split costs, employee option exchange costs and gain on extinguishment of debt.

As a result of our adoption of SFAS 123R, "Share-Based Payment" in the first quarter of fiscal 2006, our GAAP statements of operations for periods beginning in fiscal year 2006 include stock-based compensation expense. We believe that excluding stock-based compensation and employer taxes on stock-based compensation from non-GAAP measures facilitates a comparison of our results with prior periods and can enhance the understanding of our performance. We exclude the amortization of intangible assets and asset impairments from non-GAAP measures because we believe it provides a helpful perspective on our operating performance. We exclude employee separation costs, costs related to our reverse stock split and costs related to our employee option exchange program because they include significant discrete items that may not be indicative of our ongoing operations or economic performance. We exclude special charges from non-GAAP measures because it includes restructuring charges, asset impairments and other significant discrete items that may not be indicative of our ongoing operations and economic performance. We exclude gain on debt extinguishment because it is considered by management to be outside our core operating activities.

We do not provide forward-looking GAAP measures or a reconciliation of the forward-looking non-GAAP measures to GAAP measures because of our inability to project special charges, asset impairments, employee separation costs and stock-based compensation related expenses.

The non-GAAP financial measures we provide have certain limitations because they do not reflect all of the costs associated with the operation of our business as determined in accordance with GAAP. The non-GAAP measures are in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. We endeavor to compensate for the limitations of these non-GAAP measures by providing GAAP financial statements, descriptions of the reconciling items and a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures so that investors can appropriately incorporate the non-GAAP measures and their limitations into their analyses. For complete information on stock-based compensation and related employer taxes, amortization of intangible assets, asset impairments, our reverse stock split, our employee option exchange program, employee separation costs, special charges and gain on extinguishment of debt, please see our financial statements and "Management's Discussion and Analysis of Results of Operations and Financial Condition" that will be included in the periodic report we expect to file with the SEC with respect to the financial periods discussed herein.


                       Mindspeed Technologies, Inc.

                  Consolidated Condensed Balance Sheets
                        (unaudited, in thousands)


                                                       Apr. 3,     Oct. 3,
                                                        2009        2008
                                                     ----------  ----------
                                 ASSETS

Current Assets
  Cash and cash equivalents                          $   14,568  $   43,033
  Receivables, net                                        7,161      14,398
  Inventories                                            14,205      16,187
  Prepaid expenses and other current assets               2,539       3,138
                                                     ----------  ----------
    Total current assets                                 38,473      76,756

Property, plant and equipment, net                       11,963      12,600
Intangible assets, net                                       --       4,909
License agreements                                        6,361       3,347
Other assets                                              2,739       2,992
                                                     ----------  ----------
    Total assets                                     $   59,536  $  100,604
                                                     ==========  ==========


                  LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
  Accounts payable                                   $    7,454  $   11,265
  Deferred income on sales to distributors                3,745       4,869
  Accrued compensation and benefits                       5,875       6,778
  Restructuring                                           1,827           8
  Convertible senior notes - short term                  10,433          --
  Other current liabilities                               3,828       3,559
                                                     ----------  ----------
    Total current liabilities                            33,162      26,479

Convertible senior notes - long term                     15,000      45,648
Other liabilities                                           697         519
                                                     ----------  ----------
    Total liabilities                                    48,859      72,646

Stockholders' equity                                     10,677      27,958
                                                     ----------  ----------
    Total liabilities and stockholders' equity       $   59,536  $  100,604
                                                     ==========  ==========




                       Mindspeed Technologies, Inc.

              Consolidated Condensed Statements of Cash Flows
                        (unaudited, in thousands)


                                                       Six months ended
                                                      Apr. 3,    Mar. 28,
                                                       2009        2008
                                                    ----------  ----------

Cash Flows From Operating Activities
Net loss                                            $  (18,119) $   (2,666)
Adjustments required to reconcile net loss
 to the net cash provided by (used in)
 operating activities, net of effects of
 acquisitions:
  Depreciation and amortization                          3,124       3,115
  Asset impairments                                      5,498          --
  Restructuring charges                                  4,022          --
  Stock compensation                                     1,494       3,027
  Inventory provisions                                   1,279      (1,064)
  Gain on debt extinguishment                           (2,880)         --
  Other non-cash items, net                                170         258
  Changes in assets and liabilities:
    Receivables                                          7,245      (3,917)
    Inventories                                            703       6,425
    Accounts payable                                    (5,662)      1,265
    Deferred income on sales to distributors            (1,124)       (716)
    Restructuring                                       (1,937)         --
    Accrued expenses and other current liabilities      (1,378)        147
    Other                                                  291       2,335
                                                    ----------  ----------

Net cash (used in) provided by operating activities     (7,274)      8,209
                                                    ----------  ----------

Cash Flows From Investing Activities
Capital expenditures                                    (3,592)     (4,127)
Acquisition of assets, net of cash acquired                 --      (1,172)
                                                    ----------  ----------

Net cash used in investing activities                   (3,592)     (5,299)
                                                    ----------  ----------

Cash Flows From Financing Activities
Extinguishment of convertible debt                     (17,320)         --
Debt issuance costs                                       (256)         --
Exercise of options and warrants                            --         111
                                                    ----------  ----------

Net cash (used in) provided by financing activities    (17,576)        111
                                                    ----------  ----------

Effect of foreign currency exchange rates on cash          (23)       (127)

Net (decrease) increase in cash and cash
 equivalents                                           (28,465)      2,894
Cash and cash equivalents at beginning of period        43,033      25,796
                                                    ----------  ----------

Cash and cash equivalents at end of period          $   14,568  $   28,690
                                                    ==========  ==========




                       MINDSPEED TECHNOLOGIES, INC.

                          Selected Corporate Data
                        (unaudited, in thousands)


                           Three months ended           Six months ended
                     -------------------------------  --------------------
                      Apr. 3,    Jan. 2,   Mar. 28,    Apr. 3,   Mar. 28,
                       2009       2009       2008       2009       2008
                     ---------  ---------  ---------  ---------  ---------

Gross margin %              49%        68%        67%        59%        69%

Cash provided by
 (used in):
  Operating
   activities        $  (4,007) $  (3,267) $   3,421  $  (7,274) $   8,209
  Investing
   activities           (1,417)    (2,175)    (2,131)    (3,592)    (5,299)
  Financing
   activities              (12)   (17,564)        10    (17,576)       111
  Effect of foreign
   currency on cash        (26)         3       (124)       (23)      (127)
                     ---------  ---------  ---------  ---------  ---------
Net increase
 (decrease) in cash  $  (5,462) $ (23,003) $   1,176  $ (28,465) $   2,894
                     =========  =========  =========  =========  =========

Depreciation         $   1,271  $   1,303  $   1,202  $   2,574  $   2,400
Capital expenditures     1,186      1,784        984      2,970      2,310

Revenues by region:
  Americas           $   8,734  $  12,319  $  12,462  $  21,053  $  26,088
  Europe                 3,533      3,481      5,620      7,014      9,624
  Asia-Pacific          16,266     14,931     18,166     31,197     35,837
                     ---------  ---------  ---------  ---------  ---------
                     $  28,533  $  30,731  $  36,248  $  59,264  $  71,549
                     =========  =========  =========  =========  =========

Revenues by product
 line:
  Multiservice
   access DSP
   products          $  10,781  $  10,789  $  11,365  $  21,570  $  19,457
  High-performance
   analog products       8,162     10,519     10,154     18,681     20,728
  WAN communications
   products              7,590      6,423     13,029     14,013     27,014
                     ---------  ---------  ---------  ---------  ---------
Total net product
 revenues               26,533     27,731     34,548     54,264     67,199
Intellectual
 property                2,000      3,000      1,700      5,000      4,350
                     ---------  ---------  ---------  ---------  ---------
Total net revenues   $  28,533  $  30,731  $  36,248  $  59,264  $  71,549
                     =========  =========  =========  =========  =========

Contact Information

  • Contact:
    Andrea Williams
    Mindspeed Technologies, Inc.
    (949) 579-3111