4/8/2003 - Virage Logic Corp. (Nasdaq:VIRL), a leading provider of best-in-class semiconductor IP platforms, today announced that it has revised its outlook for revenues and earnings for the second fiscal quarter of 2003 ended March 31, 2003, primarily because of constrained customer spending combined with postponed purchasing decisions due to the prolonged economic downturn.
For the second fiscal quarter, the company anticipates revenues of approximately $9.4 million to $9.6 million, compared with revenues of $10.6 million reported for the second quarter of fiscal 2002. As a result, Virage Logic expects to report a net loss, according to generally accepted accounting principles (GAAP), of approximately $0.08 to $0.09 per share, and on a pro forma basis*, a loss of $0.05 to $0.06 per share. This compares with GAAP earnings per diluted share of $0.02 and pro forma earnings per diluted share of $0.06 for the second quarter of fiscal 2002.
"We are disappointed that constrained customer spending continues to impact Virage Logic," said Adam Kablanian, chairman, president and chief executive officer. "The business climate is very difficult. However, on the brighter side, we signed four new direct royalty agreements for our STAR(TM) Memory System on the 0.13-micron process, three of which are for high-volume consumer applications, and our royalty revenues increased from $408,000 to $579,000 year over year."
Virage Logic cautions that its anticipated results are preliminary, based on the best information currently available, and subject to the closing of its financial records and customary quarterly accounting procedures. The company plans to report its final results for the second fiscal quarter after the close of market on April 16, 2003 and provide a more detailed business outlook at that time.
About Virage Logic
Virage Logic Corp. (Nasdaq:VIRL) is a leading provider of best-in-class semiconductor IP platforms based on memory, logic, I/Os and IP development tools that are silicon proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and graphics markets. Virage Logic is headquartered in Fremont, California and has sales and support offices worldwide. For more information, visit www.viragelogic.com or call (877) 360-6690 (toll free) or (510) 360-8000.
* Anticipated pro forma results represent the company's estimated operating results, excluding non-cash items resulting from deferred stock compensation for stock options and warrants in connection with the company's initial public offering and acquisition activity, as well as the amortization of purchased technology. Pro forma results use a 34% tax rate, which may be different from the rate used under GAAP.
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