Leadis Technology, Inc. (NASDAQ: LDIS), an analog and mixed-signal semiconductor developer of LED driver products for consumer electronics devices, today announced results for the second quarter of 2009, ended June 30, 2009.

Q2 2009 Highlights

--  Leadis divested of its Touch sensor product assets for $6.25 million. Leadis is now focused solely on the design, development and marketing of LED drivers and controllers.

--  Leadis achieved 5 new LED driver design wins in the quarter.

--  Leadis announced availability of new LED products in three new product families:  its LDS8161 and LDS8141 for mobile backlight applications; its LDS8680/81 and LDS8640/41 Flash LED drivers for camera-enabled handsets and digital still cameras; and its LDS9001 and LDS9003 LED controllers for high-power lighting applications.

Financial Results
Second quarter revenue was $2.8 million, slightly higher than the company's guidance. Second quarter gross profit was $0.5 million. Under generally accepted accounting principles (GAAP), second quarter net income was $2.7 million, or $0.09 per share, as compared with the $2.8 million, or $0.09 per share, net loss reported in the previous quarter and the $19.5 million, or $0.67 per share, net loss reported in the second quarter of 2008. The GAAP net income in the second quarter of 2009 included a net gain from the sale of the company's Touch sensor product assets. The GAAP net loss in the first quarter of 2009 included a net gain from sales of the company's display driver and audio product assets as well as assets related to a development stage power management product. The GAAP net loss in the second quarter of 2008 included a charge for impairment of goodwill and other intangible assets.

In addition to reporting GAAP results, the company reports non-GAAP results, which exclude the net gain on sales of assets and technology, stock-based compensation expense per FAS 123(R), acquisition-related expenses and restructuring charges. Non-GAAP net loss for the second quarter of 2009 was $1.9 million, or $0.06 per share, as compared to a net loss of $3.7 million, or $0.13 per share, in the first quarter of 2009 and a net loss of $8.2 million, or $0.28 per share, in the second quarter of 2008. A reconciliation of GAAP measures to non-GAAP measures is included in the financial statements portion of this press release.

Business Summary
"Second quarter revenue growth was 39% from the first quarter, albeit on a small base," said Mr. Tony Alvarez, President and CEO. "With the divestiture of the capacitive Touch sensor business, our operating expenses are expected to decrease to approximately $2.0 million in the third quarter. We have narrowed our focus to LED driver and controller products, and our recent product offerings position us for revenue growth at higher margins within this space. Our entry into the high power lighting market with the LDS9003 family enables us to leverage the intellectual property we developed for the low power consumer market into a rapidly growing new market."

Leadis introduced eight new LED driver products during the quarter, across three separate product families. "The LDS8161 and LDS8141 broaden the available market for our proprietary LED-Sense(TM) Temperature Sensing and Compensation Engine into a wider range of portable backlighting products," said Mr. Alvarez. "This technology is also available for high-power lighting applications through the introduction of our LDS9001 and LDS9003 LED controllers. These controllers enable system lighting designers to reduce the number of LEDs required to achieve the same level of luminescence by enabling the LEDs to safely operate at higher average temperatures. Additionally, we introduced our first LED drivers targeted at the camera-enabled handset and digital still camera spaces, the LDS8680/81 and LDS8640/41 products."

Q3 2009 Outlook
"We continue to see revenue growth in our legacy display driver products, and expect revenue momentum to build with our LED drivers through the remainder of the year," said Mr. Alvarez.

Based on information currently available to the company, expectations for the third quarter of 2009 are as follows:

--  Revenue is expected to be approximately $3.9 million.

--  Non-GAAP operating expenses will be approximately $2.0 million.