STOCKREPORTS

Exar Corporation

NASDAQ Symbol EXAR

Recent Price 21.50 52 Wk Range 23.00 - 13.25

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 2- Fair Value 22.00 Risk MEDIUM Earn/Div Rank B-
Technical Evaluation: BEARISH since 11/96 Rel. Strength Rank (1 Lowest - 99 Highest) 79 Insider Activity Neutral

Business Profile 02-MAY-97

The company attributed lower sales in recent periods to order push-outs and cancellations in most of its product lines as a result of broader trends being experienced in the semiconductor industry. Results in FY 97 were also hurt by significant one-time restructuring and other charges, which led to a large loss for the year. Exar has redirected its efforts to focus on its key target markets, strengthen sales and marketing functions, and reduce overhead. The company believes it has begun to see tangible results from these activities, and considers growth prospects favorable.

Operation Review 02-MAY-97

Based on a preliminary report, net sales in FY 97 (Mar.) declined 27% from those of FY 96, hurt by the discontinuance of the hard disk drive unit and lower sales to the semiconductor industry. Margins narrowed on the lower volume and a less favorable product mix. Results in FY 97 were further penalized by $10 million of charges for inventory, fixed assets, leases, severance and other restructuring costs, and $9 million relating to the termination of a foundry agreement; a net loss of $9,197,000 ($1.01 a share) contrasted with income of $13,582,000 ($1.37). Absent the one-time charges, net income in FY 97 would have been $4.2 million, or $0.45 a share.

Stock Performance 18-JUL-97n

In the past 30 trading days, EXAR's shares have increased 12%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 110,480 shares, compared with the 40-day moving average of 111,053 shares.

Key Stock Statistics

Fiscal Year Ending Mar. 31

Dividend Data: No cash dividends have been paid. The company intends to retain earnings for use in its business.

Business Summary 02-MAY-97

Exar Corp. designs, develops and markets analog and mixed-signal integrated circuits for use in telecommunications, data communications, document imaging, consumer electronics and other selected product areas. It also produces digital integrated circuits used in telecommunications and data communications products. In July 1995, the company discontinued its family of devices for use in the mass storage industry.

The company's transmission telecommunications circuits are used in multiplexers, private branch exchanges, central office switches and digital cross connects. Principal products in this market are targeted toward T-carrier and E-carrier equipment. Exar also provides integrated circuits for telephone handsets, including speakerphones, telephone circuitry and caller identification systems.

Data communications products include Universal Asynchronous Receiver and Transmitter circuits and related products for use in computer serial interfaces. Exar supplies a family of V.35 circuits used for high-speed data transmission, primarily in networking equipment such as routers and bridges. In addition, it manufactures fax/data/voice (modem) chip sets.

The company supplies high-performance data converters, data acquisition subsystems and other sophisticated electronic components to the document imaging, communications, industrial and other markets through its wholly owned Micro Power Systems subsidiary. It offers analog-to-digital converters, as well as digital-to-analog converters, to the document imaging industry for products such as scanners, digital cameras and digital copiers.

Products being sold to or developed for the consumer market include integrated circuits for use in graphic equalizer systems, telephone answering devices, base band circuits for cellular telephones, filter circuits for use in audio and video systems, audio chips for sound enhancement, automatic track finding circuits for video systems and timer circuits for various products.

Through Startech Semiconductor, Exar supplies frequency timing generator chips to the personal computer and workstation markets. Such chips allow computers to perform an operation accurately by precise timing of signals that coordinate transfer, storage and execution activities. The company also serves a variety of other markets with products such as hearing aids, industrial controls and automotive controls. Most of the integrated circuits sold to these markets are custom and semicustom products, although Exar continues to develop application-specific standard products (ASSPs) in certain niche areas.

Capitalization

Long Term Liabilities: $2,675,000 (3/97).

Curr. Ratio	5.6	5.2	3.1	4.5	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	0.7	0.8	2.3	Nil	Nil	Nil	Nil	NA	NA	NA
% Net Inc.of Revs.	NM	10.7	NM	9.6	9.4	7.7	6.4	NA	NA	NA
% Ret. on Assets	NM	9.3	NM	11.4	9.9	8.9	7.2	NA	NA	NA
% Ret. on Equity	NM	10.0	NM	14.5	13.7	14.8	10.0	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--48720 Kato Rd., Fremont, CA 94538. Tel--(510) 668-7000. Chrmn--R. L. Conlisk. Pres & CEO--D. L. Ciffone Jr. EVP, CFO, Secy & Investor Contact--Ronald W. Guire. Dirs--D. L. Ciffone Jr., R. L. Conlisk, J. E. Dykes, G. E. Grega, G. D. Wells. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in Delaware in 1991. Empl-- 0. S&P Analyst: Adam Penn

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997