Spreadtrum Communications (NASDAQ:SPRD)

SHANGHAI, May 7, 2012 /PRNewswire-Asia/ -- Spreadtrum Communications, Inc. (NASDAQ: SPRD; "Spreadtrum" or the "Company" ), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced that its TD-SCDMA baseband modem, the SC8803G, and its RF transceiver, the SR3200, have been selected by HTC for two premium and mid-range TD-SCDMA smartphones recently launched in China, the HTC One XT and the HTC Desire VT.

The HTC One XT, a 1.5GHz quad-core Android 4.0 smartphone with a 4.7 inch screen, is HTC's flagship handset model targeting the premium smartphone segment and is available now in retail stores. The HTC Desire VT, a mid-range 1GHz Android 4.0 smartphone with a 4-inch screen and HTC's Sense technology, will be available starting in May.

"We are pleased to support HTC's cutting edge Android 4.0 and quad-core smartphones now available on China Mobile's network," said Dr. Leo Li, Spreadtrum's president and CEO. "With HTC's smartphone launch, we are expanding our design wins in the mid- and high-end segments of the market, as well as diversifying our customer base to include more global OEMs."

First Quarter 2012 Results

• Total revenue decreased 16.2% quarter-over-quarter and increased 17.5% year-over-year to US$161.1 million, exceeding the midpoint of the Company's previously guided range of US$158 - US$163 million.
• Gross profit was US$61.3 million compared to US$78.4 million in the previous quarter and US$57.9 million in 1Q11. Gross margin was 38.0% compared to 40.8% in the previous quarter and 42.2% in 1Q11.
• Cash flows from operations were US$21.0 million, compared with US$30.7 million in the previous quarter and US$26.7 million in 1Q11.
• GAAP net income was US$24.3 million, compared with US$35.2 million in the previous quarter and US$27.5 million in 1Q11.
• GAAP net income per basic and diluted ADS was US$0.53 and US$0.47, respectively, a decrease from US$0.75 and US$0.66 per basic and diluted ADS, respectively, in 4Q11 and US$0.57 and US$0.50 per basic and diluted ADS, respectively, in 1Q11.
• Non-GAAP net income was US$29.3 million, compared to US$41.5 million in 4Q11 and US$30.4 million in 1Q11. Non-GAAP net income per diluted ADS was US$0.57, a decrease from US$0.78 per diluted ADS in 4Q11 and an increase from US$0.55 per diluted ADS in 1Q11.

Commenting on the results, Spreadtrum's Chairman and CEO, Dr. Leo Li said, "During the first quarter, we laid a strong foundation for 2012 growth in smartphones with more than 200 design wins for our 1GHz TD-SCDMA and 1GHz EDGE/Wifi smartphone chipsets. Our smartphone platform is now commercially available and we expect to ship more than one million units in the second quarter. Our customers are targeting a $50-100 retail segment through both China Mobile and open market channels. In addition, we secured a significant number of design wins in the premium smartphone segment for our TD-SCDMA basebands. In TD-SCDMA, we expect the overall market for both feature phones and smartphones to grow to approximately 80-90 million units, with the majority of shipments in the second half of the year.

"In the 2.5G segment, we introduced the industry's first 40nm based 2.5G baseband in the industry, the SC6530, and are now beginning to ramp shipments. During the first quarter we grew volume in the mid- to high-end feature phone segment and secured new design wins with first tier global OEMs that will serve as a foundation for continuing volume increase in the second half. Price competition caused margin pressure as expected.

"Looking ahead to 2Q12, we expect revenue to be in the range of US$170 million to US$175 million, a sequential and year-over-year increase of 6% to 9%, with a gross margin of approximately 37%."

Further commenting on the 1Q12 financial results, Shannon Gao, Spreadtrum's CFO added, "Our operating expenses decreased from the prior quarter due to lower R&D expenses relating to our WCDMA program and a higher offset from recognized government subsidies. We expect our operating expenses as a percentage of revenue to go up slightly in Q2 as we continue to invest in new product development. In the first quarter, we made a US$10 million equity investment in handset brand Micromax, which is the third largest handset brand in India. With this investment and joint R&D, we will ensure that our products are closely aligned with the needs of local consumers as well as with the brands that are poised for continuing market share gains. During the quarter, we continued to return capital to shareholders, declaring our fourth quarterly cash dividend of US$0.10 per ADS which was distributed on April 25, 2012."

BUSINESS OUTLOOK:

Looking ahead, Spreadtrum expects revenue for the second quarter of 2012 to be in the range of US$170 million - US$175 million with a gross margin of approximately 37%.

Fourth Quarter 2011 Results

• Total revenue increased 4.0% quarter-over-quarter and 51.9% year-over-year to US$192.2 million, exceeding the midpoint of the Company's previously guided range of US$188 - US$194 million.
• Gross profit was US$78.4 million compared to US$77.2 million in the previous quarter and US$54.4 million in 4Q10. Gross margin was 40.8% compared to 41.8% in the previous quarter and 43.0% in 4Q10.
• Cash flows from operations were US$30.7 million, compared with US$30.5 million in the previous quarter and US$37.1 million in 4Q10.
• GAAP net income was US$35.2 million, compared with US$39.3 million in the previous quarter and US$30.0 million in 4Q10.
• GAAP net income per basic and diluted ADS was US$0.75 and US$0.66, respectively, a decrease from US$0.84 and US$0.75 per basic and diluted ADS, respectively, in 3Q11 and an increase from US$0.62 and US$0.56 per basic and diluted ADS, respectively, in 4Q10.
• Non-GAAP net income was US$41.5 million, compared to US$43.5 million in 3Q11 and US$32.7 million in 4Q10. Non-GAAP net income per diluted ADS was US$0.78, a decrease from US$0.83 per diluted ADS in 3Q11 and an increase from US$0.61 per diluted ADS in 4Q10.

Commenting on the results, Spreadtrum's Chairman and CEO, Dr. Leo Li said, "In 2011 we nearly doubled our revenue to US$674.3 million as a result of market share gains in both the 3G TD-SCDMA and 2G market segments. During 4Q11, we expanded our TD-SCDMA baseband design wins with global first tier handset brands and introduced our first generation 600MHz Android 2.2 smartphone platform. Our second generation 1GHz Android 2.3 smartphone platform, introduced in January, has been well received by China's major OEMs and we expect to see volume contribution in 2H12 in tandem with the seasonally stronger demand in this market segment. Our 3G shipments helped to offset softer 2G demand in China and in some overseas markets that occurred in 4Q11 as a result of macroeconomic factors. In 2012, we expect that our planned migration of 2.5G products to 40nm combined with partnerships with leading overseas local brands will enable us to continue to gain market share in this segment. We believe that the new 2.5G and smartphone products will serve as a platform for continuing growth enabling us to secure a leadership position in both market segments with the combination of advanced technology, turnkey business model and our local China advantage. Looking ahead to the first quarter, we are transitioning to our new 40nm 2.5G and smartphone products to prepare for second half growth and entering the seasonally low period for both 2G and 3G segments. With both these factors in mind, we expect revenue in 1Q12 to be in the range of US$158 million to US$163 million, an increase of 15% to 19% year over year and down 15% to 18% sequentially, with a gross margin of approximately 38%."

BUSINESS OUTLOOK:

Looking ahead, Spreadtrum expects revenue for the first quarter of 2012 to be in the range of US$158 million - US$163 million with a gross margin of approximately 38%.

January 10, 2010

by Morrison Security Research (third party contributor)

Last Friday Jan 5^th 2012, Spreadtrum Communications, Inc (NASDAQ:SPRD) shares fell more than 22%. We anticipate that SPRD is going much lower probably to the single digits. The reason is very simple � investors have found out the truth. Spreadtrum Communications �s US-based RF component supplier RF Micro Devices (RFMD) preannounced 2011 Q3 revenue of approximately $225M, versus the company's previous guidance of $250M and analysts' consensus estimate of $250M. Lower than expected sales of 2G components to China based customers for entry-level handsets contributed to the shortfall, as did weak sales by RF's multi-market products group. Furthermore, 2G demand in general was significantly below customers' expectations at the end of the quarter. Against this US company�s bleak revenue announcement that caused its stock drop 19%, can anybody believe that Spreadtrum Communications �s 2011 Q3 revenue was up 92%? (see Spreadtrum Communications �s Q3 earning report here)

See rest of column here.

Third Quarter 2011 Results

Region

United States / International

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=212408&eventID=4145323

SHANGHAI, June 29, 2011 /PRNewswire-Asia-FirstCall/ -- Spreadtrum Communications, Inc. (Nasdaq: SPRD; "Spreadtrum" or the "Company"), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that its Board of Directors (the "Board") has approved a quarterly cash dividend of US$0.05 per American Depositary Share or approximatelyUS$0.0167 per Ordinary Share (each American Depositary Share represents three Ordinary Shares). The first quarterly dividend will be payable on July 26, 2011 to holders of record of Ordinary Shares (which includes holders of American Depositary Shares) as of the close of business on July 11, 2011. This dividend represents a quarterly payout of approximately $2.45 million in aggregate. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Spreadtrum's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.

Prior to June 27, 2007, the date of our initial public offering, we have financed our operations primarily through private sales of equity interests to investors, as well as through cash generated from our operating activities. We have also received government subsidies in the form of interest reimbursement of bank loans and grants to fund our research and development projects.

We believe that our current cash and cash flow from operations will be sufficient to meet our anticipated cash needs, including working capital requirements and capital expenditures for at least the next 12 months. Our future cash requirements will depend on many factors, including our level of operating income, the timing of our new product introductions, the timing and size of our new office building, the costs to secure access to adequate manufacturing capacity, the continuing market acceptance of our products, or other changing business conditions and future developments, including any investments or acquisitions we may decide to pursue.

SHANGHAI, June 17, 2011 /PRNewswire-Asia-FirstCall/ -- Spreadtrum Communications, Inc. (Nasdaq: SPRD; "Spreadtrum" or the "Company"), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that its Board of Directors has authorized a share repurchase program under which the Company may repurchase up to US$100 million of its American Depositary Shares ("ADSs") pursuant to a Rule 10b5-1 repurchase plan. The share repurchase program will be funded with the Company's cash on hand. Members of the Company's management team also intend to purchase the Company's outstanding shares through the open market.

Spreadtrum's Chairman and CEO, Dr. Leo Li, said, "We believe the share repurchase program represents an effective use of our cash and is in the best interests of our shareholders. We expect to continue generating cash from operations that would provide enough resources to fund our ongoing R&D efforts. Management's commitment to repurchase shares further reflects our confidence with our near and long-term growth initiatives."

The repurchase program does not obligate the Company to repurchase a minimum number of shares, and the program may be suspended or canceled without prior notice.

SHANGHAI, June 9, 2011 /PRNewswire-Asia/ -- Spreadtrum Communications, Inc. (NASDAQ: SPRD; "Spreadtrum" or the "Company"), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that it has acquired approximately 48.44% of the total outstanding shares of MobilePeak Holdings, Ltd. ("MobilePeak"), a privately held fabless semiconductor company based in Shanghai and San Diego that specializes in the design of highly integrated UMTS/HSPA+ modem chipsets.

Spreadtrum acquired approximately 48.44% of MobilePeak's total outstanding shares, and provided a short-term loan to MobilePeak for the repayment of MobilePeak's outstanding convertible bridge loans, for an aggregate cash consideration of approximately US$32.58 million. Spreadtrum intends to purchase all of MobilePeak's issued and outstanding shares, and expects to complete the acquisition in the third quarter of 2011. Thanks to MobilePeak's efficient operations, Spreadtrum expects the acquisition to have a minor impact on its earnings per share in Q2 and the remaining quarters in 2011, and Spreadtrum maintains its Q2 2011 guidance in terms of revenue, gross margin, and operating expenses as a percentage of revenue.

Commenting on the transaction, Spreadtrum's Chairman, President and CEO, Dr. Leo Li, said, "We are very pleased and excited to welcome the MobilePeak team. The synergies between the two companies and the opportunities created by this transaction are clear. With MobilePeak's complete UMTS/HSPA+ solution, we will broaden our portfolio of worldwide wireless handset technologies, and make inroads into the WCDMA feature phone, smart phone and tablet markets."

"Utilizing our advanced 40nm technology, mature GSM/GPRS/EDGE and TD-SCDMA platforms, and working closely with MobilePeak's Shanghai and San Diego teams, we will be well equipped to expand our international market shares. These capabilities are also a solid foundation for developing the next generation multi-mode FDD-LTE/WCDMA and TDD-LTE/TD-SCDMA technologies over the next two years."

Mr. Qiuzhen (Joe) Zou, Chairman and President of MobilePeak, said, "We are eager to work with the Spreadtrum team. Since MobilePeak's inception in 2005, our team has developed world-class baseband chipsets with support for 3GPP Standard through Release 7, including HSPA+ technology up to Category 14 with 21Mbps maximum downlink speed and 11Mbps maximum uplink speed. MobilePeak has more than 100 patents granted or pending worldwide, and its solutions have passed GCF tests and top-tier handset makers' strict in-house tests. We are confident to role out the first 40nm HSPA+ solution platform for feature phones and smart phones by 2012." Mr. Zou will assume the role of Chief Technology Officer at Spreadtrum.

Mr. Zou founded MobilePeak in 2005 and has since served as MobilePeak's Chairman. He served as MobilePeak's Chief Technology Officer from 2005 to 2010 and assumed the position of President in 2010. Mr. Zou has more than 18 years of experience in the wireless communications industry. From 1993 to 2003, Mr. Zou held various positions with QUALCOMM, Inc., where he became a Vice President of Engineering in 2000. At QUALCOMM, Mr. Zou led various semiconductor design projects, including multiple generations of CDMA baseband chipsets. Mr. Zou received a BSEE from Southeast University in Nanjing, China in 1992, followed by an MSEE from Stanford University in 1993.

First Quarter Highlights:

• Total revenue increased 8.3% quarter-over-quarter and 163.0% year-over-year to US$137.1million, exceeding the Company's previously guided range of US$130-135 million.
• Gross profit was US$57.9 million compared to US$54.4 million in the previous quarter and US$23.7 million in 1Q10. Gross margin was 42.2% compared to 43.0% in the previous quarter and 45.5% in 1Q10.
• Cash flows from operations were US$26.7 million, compared with US$37.1 million in the previous quarter and US$28.7 million in 1Q10.
• GAAP net income was US$27.5 million, compared with US$30.0 million in the previous quarter and US$6.6 million in 1Q10.
• GAAP net income per basic and diluted ADS was US$0.57 and US$0.50, respectively, a decrease from US$0.62 and US$0.56 per basic and diluted ADS, respectively, in 4Q10 and an improvement from US$0.14 and US$0.13 per basic and diluted ADS, respectively, in 1Q10.
• Non-GAAP net income was US$30.4 million, compared to US$32.7 million in 4Q10 and US$8.7 million in 1Q10. Non-GAAP net income per diluted ADS was US$0.55, a decrease from US$0.61 per diluted ADS in 4Q10 and an improvement US$0.17 per diluted ADS in 1Q10.

Commenting on the results, Spreadtrum's Chairman and CEO, Dr. Leo Li said, "2011 commenced on solid footing as we enhanced our presence within emerging markets and began to see revenue contributions from our design-ins in the second half of 2010. As a result, we once again surpassed our guidance as quarterly revenue grew 8.3% on a sequential basis to US$137.1 million. This robust top-line growth reflects our ongoing market share gains in both the TD-SCDMA and GSM markets, which is particularly impressive given the fierce competitive landscape combined with the seasonal slowdown in the Chinese handset industry during the first quarter of the year.

Spreadtrum currently expects revenue for the second quarter of 2011 to be in the range of US$152 million - US$158 million with gross margin of approximately 42%.

2010 Fourth Quarter Review:

Stock beat 4th quarter EPS estimates.  But more importantly, the company guided 2011 first quarter revenues to be well over analyst est: $133 million vs. $109 million estimate.

• 2011 first quarter EPS will come in at about $0.69 vs $0.39 estimate,  using current margins and shares.  However, the company did mention that margins may come down in the first quarter due to higher R&D expense. (2010 4th Quarter non-GAAP net margins were 25%).
• Assuming a more modest net margin number of 20% would translate into EPS of $0.53 and annualized EPS of $2.12, well above $1.69 est.

If these numbers pan out, SPRD will have a GPR 3 and possibly more if momentum builds. We think a P/E of 15 on forward EPS is a reasonable target, giving us a potential price target of $32.0. We will listen to CC to gauge where margins may fall in the 2011 first quarter. It has been revealed that SAIC filings match SEC filings.  May Add to our ChinaHybrid mock portfolio (pending CC notes).  Hoping for a pull back.

THIRD QUARTER 2010 FINANCIAL SUMMARY:

• Total revenue increased 34.7% quarter-over-quarter and 150.7% year-over-year to US$96.2 million, exceeding the Company's previously guided range ofUS$88-96 million.
  
• Gross profit wasUS$42.5 million compared to US$31.9 millionin the previous quarter and US$15.0 millionin 3Q09. Gross margin was 44.1% compared to 44.6% in the previous quarter and 39.0% in 3Q09.
  
• Cash flows from operations were US$67.0 million, compared with US$35.2 millionin the previous quarter andUS$11.5 millionin 3Q09.
  
• GAAP net income was US$19.5 million, compared with US$11.1 millionin the previous quarter and US$0.6 millionin 3Q09.
  
• GAAP net income per basic anddiluted ADS was US$0.41 and US$0.37, respectively, an improvement fromUS$0.24 and $0.21per basic and diluted ADS, respectively, in 2Q10 and US$0.01per basic and diluted ADS in 3Q09.
  
• Non-GAAP net income was US$22.9 million, compared to US$17.7 million in 2Q10 and US$2.9 million in 3Q09. Non-GAAP net income per diluted ADS was US$0.43, an improvement from US$0.34 per diluted ADS in 2Q10 and US$0.06 per diluted ADS in 3Q09.

Commenting on the results, Spreadtrum's President and CEO, Dr. Leo Li said, "We delivered another strong set of financial results, with quarterly revenue of US$96.2 million and net income of US$19.5 million, both surpassing our previous records set last quarter.  Although we have witnessed intensifying competition in recent quarters, we have nevertheless managed to achieve substantial growth thanks to our technology innovation, solid execution, and enriching product portfolio.

BUSINESS OUTLOOK:

Spreadtrum currently expects revenue for the fourth quarter of 2010 to be in the range of US$118-125 million with gross margin at 42.5-43.5%

'We are beginning to see the fruits of our efforts to focus on product quality and customer support, as we firmly exceeded our top line guidance for the second quarter

'Currently, we expect third quarter 2009 revenue to be in the range of $31-36 million with improving margins, sequentially,' Dr. Li concluded.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

GeoNote:  Analyst estimates indicate that Spreadtrum Communications is forecasted to report losses through 2010.

Commenting on the first quarter results, Spreadtrum's CEO, Dr. Leo Li, said: 'It is clear that market conditions have not been in our favor for the last several quarters. However, we are actively taking measures to counter the effects and ensure that the Company performs reasonably well against the backdrop of a difficult operating environment.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

Guidance Report:

Due to ongoing difficulties in the Chinese economy, customers serving the Chinese mobile phone market are experiencing unusually weak demand for mobile phones:

SPRD recently announced lower Guidance for it's 2008 Fourth Quarter Ending December:

Source: PR Newswire (December 26, 2008)