EXAR » Topics » Research and Development (R&D)

These excerpts taken from the EXAR 10-K filed Jun 12, 2009.

Research and Development

We believe that ongoing innovation and introduction of new products in our targeted and adjacent markets is essential to sustaining growth. Our ability to compete depends on our ability to offer technologically innovative products on a timely basis. As performance demands and the complexity of ICs have increased, the design and development process has become a multi-disciplinary effort requiring diverse competencies. Our research and development is focused on developing high-performance analog, digital and mixed-signal solutions addressing the high-bandwidth requirements of communications and storage systems OEMs and the high-current, high-voltage requirements of interface and power management OEMs. We make investments in advanced design tools, design automation and high-performance intellectual property libraries while taking advantage of readily available specialty intellectual property through licensing or purchases. We also augment our skill sets and intellectual property through university collaboration, incorporating talent through acquisition and by accessing needed skills with off-campus design centers. We continue to pursue the development of design methodologies that are optimized for reducing design-cycle time and increasing the likelihood of first-time success. While we continually upgrade our internal technology to develop innovative products, as a fabless company, we also work with foundries that provide our wafers. As a result of the Hifn acquisition we now have a substantive research and development presence in the People’s Republic of China (“PRC”). We spent $31.8 million, $30.7 million

 

11


Table of Contents

and $25.8 million on research and development in fiscal years 2009, 2008 and 2007, respectively. For the explanation of our increased expenses in research and development, please see Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Research and Development (“R&D”)

Our research and development costs consist primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment;

 

   

amortization of purchased intellectual property; and

 

   

facilities expenses.

Fiscal Year 2009 versus Fiscal Year 2008

The $1.2 million, or 4% increase in R&D expenses for fiscal year 2009 as compared to a year ago was primarily due to increased labor, equipment depreciation and patent expenses associated with operating the entire fiscal year with the resources acquired from Sipex partially offset by lower EDA software license costs.

Fiscal Year 2008 versus Fiscal Year 2007

The $4.8 million, or 19% increase in R&D expenses for fiscal year 2008 as compared to fiscal year 2007 was primarily a result of incremental expense of $4.3 million due to the growth of our company as a result of the Sipex acquisition and $0.4 million in severance costs of our employees, partially offset by lower labor related costs.

 

50


Table of Contents
This excerpt taken from the EXAR 10-Q filed Feb 6, 2009.

Research and Development (“R&D”)

Our research and development costs consisted primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment;

 

   

amortization of purchased intellectual property; and

 

   

facilities expenses.

The decrease in R&D expenses for the three months ended December 28, 2008 as compared to the same period a year ago was primarily due to EDA software and mask tooling costs. The increase in R&D expense for the nine months ended December 28, 2008 as compared to the same period a year ago was primarily incremental expense of $1.7 million due to our growth as a result of the Sipex merger partially offset by lower headcount, EDA software and mask tooling costs.

Incremental amortization expense of intellectual property recorded in R&D expenses was $0.2 million and $0.7 million, respectively, for the three and nine months ended December 28, 2008 as compared to the same periods a year ago.

Stock-based compensation expense recorded in R&D expenses was $0.4 million and $1.2 million, respectively, for the three and nine months ended December 28, 2008 as compared to $0.4 million and $1.0 million, respectively, for the same periods a year ago.

This excerpt taken from the EXAR 10-Q filed Nov 7, 2008.

Research and Development (“R&D”)

Our research and development costs consisted primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment;

 

   

Amortization of purchase intellectual property; and

 

   

facilities expenses.

The increase in R&D expenses for the second quarter and first six months of fiscal 2009 as compared to the same periods a year ago was primarily a result of incremental expense of $0.2 million and $1.7 million, respectively, due to our growth as a result of the Sipex merger, amortization expense of $0.3 million and $0.5 million, respectively, of purchased intellectual property and higher labor-related costs.

Stock-based compensation expense recorded in R&D expenses was $0.5 million and $0.8 million, respectively, for the second quarter and first six months of fiscal 2009 as compared to $0.3 million and $0.5 million, respectively, for the same periods a year ago. The increase in stock-based compensation expense when compared to the same periods a year ago was primarily attributable to assumed unvested stock options in connection with the Sipex merger.

This excerpt taken from the EXAR 10-Q filed Aug 11, 2008.

Research and Development (“R&D”)

Our research and development costs consisted primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment;

 

   

Amortization of purchase intellectual property; and

 

   

facilities expenses.

The increase in R&D expenses for the first fiscal quarter of 2009 as compared to the same period a year ago was primarily a result of incremental expense of $1.1 million due to the growth of our company as a result of the Sipex merger, amortization expense of $0.3 million of purchased intellectual property and higher labor-related costs.

 

7


Table of Contents

Stock-based compensation expense recorded in R&D expenses was $0.4 million for the first fiscal quarter of 2009 as compared to $0.2 million same period a year ago. The increase in stock-based compensation expense when compared to the same period a year ago was primarily attributable to assumed unvested stock options in connection with the Sipex merger.

This excerpt taken from the EXAR 10-Q filed Aug 8, 2008.

Research and Development (“R&D”)

Our research and development costs consisted primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment;

 

   

Amortization of purchase intellectual property; and

 

   

facilities expenses.

The increase in R&D expenses for the first fiscal quarter of 2009 as compared to the same period a year ago was primarily a result of incremental expense of $1.1 million due to the growth of our company as a result of the Sipex merger, amortization expense of $0.3 million of purchased intellectual property and higher labor-related costs.

Stock-based compensation expense recorded in R&D expenses was $0.4 million for the first fiscal quarter of 2009 as compared to $0.2 million same period a year ago. The increase in stock-based compensation expense when compared to the same period a year ago was primarily attributable to assumed unvested stock options in connection with the Sipex merger.

These excerpts taken from the EXAR 10-K filed Jun 13, 2008.

Research and Development (“R&D”)

Research and development costs consist primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 

   

facilities expenses.

Fiscal Year 2008 versus Fiscal Year 2007

The $4.8 million, or 19% increase in R&D expenses for fiscal year 2008 as compared to a year ago was primarily a result of incremental expense of $4.3 million due to the growth of our company as a result of the Sipex merger and $0.4 million in severance costs of our employees, partially offset by lower labor-related costs.

Fiscal Year 2007 versus Fiscal Year 2006

The $1.1 million, or 5% increase in R&D expenses in fiscal year 2007 as compared to fiscal year 2006 resulted primarily from stock-based compensation expense from our adoption of FAS 123R of $1.2 million and depreciation associated with additional upgrades to an advanced tester and licensing of additional engineering design software, partially offset by lower labor-related costs of $1.0 million.

We believe that innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for new products, the timing of which may cause significant fluctuations in our R&D expenses. In addition, we expect R&D expenses to fluctuate with the licensing of intellectual property, the recognition of the synergy benefits and potential costs of discontinuing certain product development efforts as we optimize our R&D projects.

 

49


Table of Contents

Research and Development (“R&D”)

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Research and development costs consist primarily of:

 







  

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 







  

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 







  

facilities expenses.

Fiscal Year
2008 versus Fiscal Year 2007

The $4.8 million, or 19% increase in R&D expenses for fiscal year 2008 as compared to a year ago was
primarily a result of incremental expense of $4.3 million due to the growth of our company as a result of the Sipex merger and $0.4 million in severance costs of our employees, partially offset by lower labor-related costs.

STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%">Fiscal Year 2007 versus Fiscal Year 2006

SIZE="2">The $1.1 million, or 5% increase in R&D expenses in fiscal year 2007 as compared to fiscal year 2006 resulted primarily from stock-based compensation expense from our adoption of FAS 123R of $1.2 million and depreciation associated with
additional upgrades to an advanced tester and licensing of additional engineering design software, partially offset by lower labor-related costs of $1.0 million.

FACE="Times New Roman" SIZE="2">We believe that innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future requirements of our
customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for new products, the timing of which may cause significant fluctuations in our R&D expenses. In addition, we expect
R&D expenses to fluctuate with the licensing of intellectual property, the recognition of the synergy benefits and potential costs of discontinuing certain product development efforts as we optimize our R&D projects.

STYLE="margin-top:0px;margin-bottom:0px"> 


49







Table of Contents


This excerpt taken from the EXAR 10-Q filed Feb 8, 2008.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (in thousands):

 

     Three Months Ended     Nine Months Ended  
     December 30,
2007
    December 31,
2006
    Change     December 30,
2007
    December 31,
2006
    Change  

Net sales

   $ 25,207      $ 16,108        $ 61,481      $ 52,842     

Total research and development

   $ 8,890    35 %   $ 6,222    39 %   43 %   $ 22,401    36 %   $ 19,513    37 %   15 %

Research and development expenses consist primarily of:

 

   

salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and the use of in-house test equipment; and

 

   

facility expenses.

The increase in R&D expenses for the three and nine months ended December 30, 2007, as compared to the same period a year ago, was primarily a result of an incremental expense of $2.4 and $3.6 million, respectively, due to our merger with Sipex, $0.3 million in severance costs of our employees, partially offset by lower labor related costs.

Stock-based compensation expense recorded in R&D expenses was $0.4 million and $0.9 million, respectively, for the three and nine months ended December 30, 2007, as compared to $0.3 million and $1.0 million, respectively, for the same periods a year ago.

We believe that innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for new products, the timing of which may cause significant fluctuations in our R&D expenses. In addition, we expect R&D expenses to fluctuate with merger related expenses, the licensing of intellectual property, the recognition of the synergy benefits and potential costs of discontinuing certain product development efforts as we optimize our R&D projects. We are rationalizing our R&D projects with the intent of lowering spending from our most recent levels.

This excerpt taken from the EXAR 10-Q filed Nov 9, 2007.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (dollars in thousands):

 

    

Three Months Ended

September 30

   

Six Months Ended

September 30

 
     2007     2006     Change     2007     2006     Change  

Net sales

   $ 19,173      $ 18,503        $ 36,274      $ 36,734     

Total research and development

     7,452    38.9 %     6,677    36.1 %   12 %     13,511    37.2 %     13,291    36.2 %   2 %

Research and development expenses consist primarily of:

 

   

salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 

   

facility expenses.

The increase in R&D expenses for the three and months ended September 30, 2007, as compared to the same period a year ago, was primarily a result of an incremental $1.1 million associated with Sipex R&D expenses, $0.3 million in merger related severance costs and a higher mask tooling costs, partially offset by lower labor related costs. Stock-based compensation expense recorded in R&D expenses was $0.3 million for the three months ended September 30, 2007 as compared to $0.4 million for the same period a year ago. Stock-based compensation expense recorded in R&D expenses was $0.5 million for the six months ended September 30, 2007 as compared to $0.7 million for the same period a year ago.

We believe that technological innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses. In addition, we expect R&D expenses to fluctuate with merger related expenses, the recognition of the synergy benefits and potential exit costs of discontinuing certain product development efforts as we rationalize our R&D projects.

This excerpt taken from the EXAR 10-Q filed Aug 7, 2007.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (dollars in thousands):

 

     Three Months Ended
June 30,
       
     2007     2006     Change  

Total research and development

   $ 6,058     $ 6,614     (8 %)

Percentage of net sales

     35 %     36 %  

Research and development expenses consist primarily of:

 

   

salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

   

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 

   

facility expenses.

The decrease in R&D expenses for the three months ended June 30, 2007, as compared to the same period a year ago, was primarily a result of lower labor related costs and lower mask tooling costs. Stock-based compensation expense recorded in R&D expenses was $0.2 million for the three months ended June 30, 2007 as compared to $0.3 million for the same period a year ago.

We believe that technological innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses.

This excerpt taken from the EXAR 10-K filed Jun 12, 2007.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (in thousands):

 

     Fiscal Years Ended March 31,     2007 vs
2006
Change
    2006 vs
2005
Change
 
           2007                 2006                 2005            

Research and development

   $ 25,838     $ 24,691     $ 22,025     5 %   12 %

Percentage of net sales

     38 %     37 %     38 %    

 

44


Table of Contents

Research and development costs consist primarily of:

 

   

the salaries, stock-based compensation, and related expenses of employees engaged in product research, design and development activities;

 

   

costs related to design tools, license expenses related to intellectual property, mask tooling costs, supplies and services and use of in-house test equipment; and

 

   

facilities expenses.

Fiscal Year 2007 versus Fiscal Year 2006

The increase in R&D expenses in fiscal year 2007 as compared to fiscal year 2006 resulted primarily from stock-based compensation expense from our adoption of SFAS 123R of $1.2 million, depreciation associated with additional upgrades to an advanced tester and licensing of additional engineering design software, partially offset by lower labor-related costs of $1.0 million.

Fiscal Year 2006 versus Fiscal Year 2005

The increase in R&D expenses in fiscal year 2006 as compared to fiscal year 2005 resulted from an increase in labor-related expenses associated with the ON acquisition of approximately $1.4 million, depreciation and maintenance associated with the purchases licensing of new engineering design software and upgrades to an advanced tester and other lab equipment, mask tooling costs, and legal fees associated with patent applications.

We believe that technological innovation is critical to our long-term success, and we intend to continue our investments in R&D to enhance our product offerings in order to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses.

This excerpt taken from the EXAR 10-Q filed Feb 7, 2007.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (dollars in thousands):

 

     Three Months Ended
December 31,
          Nine Months Ended
December 31,
       
     2006     2005     Change     2006     2005     Change  

Total research and development

   $ 6,222     $ 6,178     0.7 %   $ 19,513     $ 18,432     5.9 %

Percentage of net sales

     38.6 %     36.3 %       36.9 %     37.3 %  

 

21


Table of Contents

Research and development expenses consist primarily of:

 

 

salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

 

costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 

 

facility expenses.

The increase in R&D expenses for the three and nine months ended December 31, 2006, as compared to the same periods a year ago, was primarily a result of stock-based compensation expense of $0.3 million and $1.0 million, respectively, higher depreciation associated with test equipment, and increased mask tooling costs partially offset by lower labor related costs.

We believe that technological innovation is critical to our long-term success, and we intend to continue to invest in R&D to enhance our product offerings to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses. We believe that R&D expenses in the current fiscal year will likely increase in absolute dollars as compared to R&D expenses of the prior fiscal year due to stock-based compensation, the higher development costs of tooling products at 0.18u/0.13u technologies and R&D consulting. We expect R&D expenses in the current fiscal year to increase as a percentage of net sales due to the addition of stock-based compensation.

This excerpt taken from the EXAR 10-Q filed Nov 8, 2006.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (dollars in thousands):

 

     Three Months Ended
June 30,
       
     2006     2005     Change  

Total research and development

   $ 6,614     $ 6,232     6.1 %

Percentage of net sales

     36.3 %     39.2 %  

Research and development expenses consist primarily of:

 

  salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

  costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment and

 

  facility expenses.

 

24


Table of Contents

The increase in R&D expenses for the three months ended June 30, 2006 as compared to the same period a year ago was primarily a result of stock-based compensation expense of $0.3 million. In addition, R&D expense was impacted by increased engineering design software license fees partially offset by lower labor related costs.

We believe that technological innovation is critical to our long-term success, and we intend to continue to invest in R&D to enhance our product offerings to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses. We believe that R&D expenses in the current fiscal year will likely increase in absolute dollars as compared to R&D expenses of the prior fiscal year due to stock-based compensation, the higher development costs of tooling products at 0.18u/0.13u technologies, and more complex packaging technologies. We expect R&D expenses to increase as a percentage of net sales due to the addition of stock-based compensation.

This excerpt taken from the EXAR 10-Q filed Nov 8, 2006.

Research and Development (“R&D”)

The following table shows research and development expenses in absolute dollars and as a percentage of net sales for the periods indicated (dollars in thousands):

 

     Three Months Ended
September 30,
          Six Months Ended
September 30,
       
     2006     2005     Change     2006     2005     Change  

Total research and development

   $ 6,677     $ 6,022     10.9 %   $ 13,291     $ 12,254     8.5 %

Percentage of net sales

     36.1 %     36.4 %       36.2 %     37.8 %  

 

25


Table of Contents

Research and development expenses consist primarily of:

 

  salaries, stock-based compensation and related expenses of engineering employees engaged in product research, design and development activities;

 

  costs related to engineering design tools, mask tooling costs, test hardware, engineering supplies and services, and use of in-house test equipment; and

 

  facility expenses.

The increase in R&D expenses for the three and six months ended September 30, 2006 as compared to the same periods a year ago was primarily a result of stock-based compensation expense of $0.4 million and $0.7 million, respectively. In addition, R&D expense was impacted by increased mask tooling costs and engineering design software license fees partially offset by lower labor related costs.

We believe that technological innovation is critical to our long-term success, and we intend to continue to invest in R&D to enhance our product offerings to meet the current and future technological requirements of our customers and markets. Some aspects of our R&D efforts require significant short-term expenditures, such as mask tooling for advanced technology products, the timing of which may cause significant fluctuations in our R&D expenses. We believe that R&D expenses in the current fiscal year will likely increase in absolute dollars as compared to R&D expenses of the prior fiscal year due to stock-based compensation, the higher development costs of tooling products at 0.18u/0.13u technologies and R&D consulting. We expect R&D expenses in the current fiscal year to increase as a percentage of net sales due to the addition of stock-based compensation.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki