Date: 30/01/2009

Zarlink bear recession weather with 13% fall in quarterly revenue

Zarlink Semiconductor's fiscal third quarter revenue was US$53.8 million, compared with revenue of US$61.8 million in the fiscal 2009 second quarter and US$48.6 million in the third quarter of fiscal 2008. Zarlink semiconductor recorded net income of US$12.1 million or US$0.09 basic earnings per share in the third quarter, compared with second quarter net income of US$7.2 million or US$0.05 per share, and a net loss of US$8.4 million or US$0.07 per share in Fiscal 2008 third quarter.

"We are aggressively managing through this slowdown to ensure we emerge as a stronger company," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "While we anticipate challenges, we are still seeing opportunities where customers are continuing to invest in products relying on our communication, medical wireless and optical interconnect solutions. We have taken advantage of our cash holdings to strengthen our long-term financial position and enhance shareholder value, and will maintain firm cost control and are adjusting as necessary to guide Zarlink through this difficult market."