Gennum Reports 2011 First Quarter Results

Burlington, Ontario (April 6, 2011) – Gennum Corporation (TSX: GND) today reported unaudited financial results for the first quarter of fiscal 2011. First quarter revenue of $31.5 million increased 7% over the first quarter of 2010 and diluted earnings per share was $0.13 compared to $0.12 in 2010.

"We achieved solid first quarter results. Gennum introduced several new, industry-first products for our core markets as well as launched our new transceiver ICs for Thunderbolt cables that address the demand for high speed consumer connectivity. Beyond this, we announced the acquisition of Nanotech Semiconductor which significantly expands our optical transceiver IC portfolio," said Dr. Franz Fink, President and CEO, Gennum. "Looking ahead, our second quarter order book at this time is similar to first quarter order levels. We have been working very closely with our customers and distribution partners to assess the full impact of the recent events in Japan. While we have limited long-term visibility at this point, there is potential for a near-term impact to our business. We remain focused on executing our strategy and I am confident Gennum is well positioned for continued market success."

Gennum recorded revenue of $31.5 million in the first quarter of 2011, a 7% increase over the same period in 2010 as all three product portfolios exceeded the comparable period in the prior year. Gross margins as a percentage of sales remain strong at 72.5% in the quarter.

Operating income in the quarter was $6.5 million compared to $6.1 million in the first quarter of 2010. The increase was driven mainly by higher revenue at similar gross margins, partially offset by higher operating expenses, primarily research and development. Net income in the first quarter of 2011 was $4.6 million or $0.13 per share compared to $4.0 million or $0.12 per share in the first quarter of 2010.

Adjusted EBITDA¹ in the quarter was $9.3 million, compared to $8.9 million in the first quarter of 2010.

Outlook

Looking ahead, our current order book for the second quarter is similar to the order book at the same time in the first quarter of 2011. We are working closely with our customers, employees and partners in Japan to ensure they have the support needed to begin the rebuilding process. At this point, we have limited visibility on the long-term impact to our business and we are taking a cautious stance over the next few quarters. As such, we might experience some near-term impact to our business as customers bring production back online over the coming months.

Despite these uncertainties, we continue to execute against our business strategy and invest to strengthen our core market position and expand our capability to address the emerging high-speed consumer connectivity market. Our new product traction constitutes 34% of revenue in the first quarter and we are encouraged by continued design-in activities.

New Product Introductions

Gennum introduced its new 25Gb/s clock and data recovery (CDR) integrated circuits designed to support the implementation of 100Gb/s Ethernet optical transceivers. The GN2425 and GN2426 are designed to handle 25Gb/s data streams within next-generation 100Gb/s pluggable fiber-optic modules, line cards and direct-attach copper cables.

Gennum also launched the industry's first in-connector transceiver chip for Thunderbolt™ active copper cables. Gennum's new GN2033 is the world's first signal conditioner chip enabling the transmission of data and display across a copper cable at cutting edge speeds.

Finally, Gennum announced the addition of three new, next-generation 3Gb/s adaptive cable equalizers (EQs) to its innovative portfolio of broadcast solutions. The next-generation adaptive cable EQs provide cable reach to 200 meters, best in class density and simplify connector options.

The Company will be demonstrating its next generation products at the National Association of Broadcasters (NAB) show in Las Vegas April 11-14, 2011.

Dividend

Gennum's Board of Directors has declared a regular cash dividend of 3.5 cents per share Canadian to be paid on May 4, 2011 to shareholders of record on April 20, 2011.

Our interim financial statements for the first quarter of 2011 and related management's discussion and analysis have been filed and may be viewed on our website www.gennum.com and on SEDAR www.sedar.com.

Download the complete financial results (PDF)
http://www.gennum.com/extranet/file/q1fy11-financials.pdf

Gennum will hold a conference call to discuss 2011 first quarter results on Thursday, April 7, 2011 at 8:00 am (ET). To access the call, participants should dial 1-877-974-0446. The conference call will also be webcast live at www.gennum.com or www.newswire.ca and subsequently archived on the Gennum site. A rebroadcast of the call will be available until May 7, 2011. To access the rebroadcast, dial 1-877-289-8525 and enter the passcode 4425365#. Download a slide presentation to accompany the discussion http://www.gennum.com/q1fy11-downloads.

About Gennum Corporation

Gennum Corporation (TSX: GND) designs innovative semiconductor solutions and intellectual property (IP) cores for the world's most advanced consumer connectivity, enterprise, video broadcast and data communications products. Leveraging the company's proven optical, analog and mixed-signal products and IP, Gennum enables multimedia and data communications products to send and receive information without compromising the signal integrity. Recognized as an award winner for advances in high definition (HD) broadcasting, Gennum is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Germany, United States, Taiwan, India and the United Kingdom.

¹ "Adjusted EBITDA" is a non-GAAP financial measure that does not have any standardized meaning under GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. A definition of this term, a description of why we believe it is a useful measure, and a quantitative reconciliation to the most directly comparable measure calculated in accordance with GAAP is set forth under the heading “Non-GAAP Reporting - EBITDA” in our management’s discussion and analysis as filed on SEDAR at www.sedar.com.