Montage Tech Lifts Q1 Revenue Outlook - Quick Facts

(RTTNews) - Montage Technology Group Limited (MONT) announced preliminary revenue results for the first quarter 2014 of $34.5 million to $36.5 million, exceeding the previously announced guidance of $29.0 million to $32.0 million. Analysts polled by Thomson Reuters expect the company to report revenues of $30.57 million for the first-quarter. Analysts' estimates typically exclude special items.

The increased revenue expectations reflect higher sales of Montage's memory interface solutions due to growing demand for LRDIMMs.

As a result, memory interface revenue is expected to increase more than 60 percent sequentially. Gross margin for the first quarter 2014 is expected to be above the previously announced guidance range of 60 percent to 62 percent.

In a separate press release, Montage Technology Group Limited announced that it has filed a Form 12b-25 notification of late filing for its Annual Report on Form 10-K for the year ended December 31, 2013.

In its Filing, the company indicated that its Form 10-K cannot be finalized until the completion of the audit committee's review of allegations contained in reports issued by Gravity Research and the completion of the audit of the Company's financial statements for the year ended December 31, 2013. As previously announced, the audit committee appointed the law firm of Jones Day to conduct an independent review of the reports' allegations and related matters.

The audit committee has not yet completed its work nor reached final conclusions, and therefore no final conclusions can be made until the completion of the ongoing review.

As a result, the company does not currently anticipate any changes to its previously reported financial results. The company continues to expect to report total revenue for 2013 of $110.9 million, an increase of 41.7 percent compared to $78.2 million in the previous fiscal year, and net income of $25.7 million, compared to $18.3 million in 2012.