Exar (Nasdaq: EXAR) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q2), Exar beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew.

Gross margins dropped, operating margins increased, net margins grew.

Revenue details
 Exar booked revenue of $30.6 million. The three analysts polled by S&P Capital IQ anticipated net sales of $30.2 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $36.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.06. The three earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS were $0.01 for Q2 versus -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 46.3%, 250 basis points worse than the prior-year quarter. Operating margin was -0.3%, 380 basis points better than the prior-year quarter. Net margin was 0.9%, 390 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $31.3 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $123.1 million. The average EPS estimate is $0.18.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 76 members out of 80 rating the stock outperform, and four members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Exar a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exar is outperform, with an average price target of $9.73.

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