4/18/2003 - Virage Logic Corp. (Nasdaq:VIRL), a leading provider of best-in-class semiconductor IP platforms, reported its financial results for the second fiscal quarter ended March 31, 2003.
Revenues for the second quarter were $9.6 million, compared with $10.6 million a year ago. Total license revenue for the second quarter was $9.0 million, compared with $10.2 million for the same period a year ago and $11.1 million for the prior quarter. Royalties for the second quarter were a record $579,000, compared with royalties of $408,000 for the same quarter a year ago and $515,000 for the previous quarter.
As reported under generally accepted accounting principles (GAAP) in the U.S., net loss for the second quarter of fiscal 2003 - including non-cash amortization expenses for deferred stock compensation of $441,000, amortization of purchased technology of $97,000 and net interest income of $139,000 - was $1.6 million, or $0.08 per share. Net income under GAAP for the same period a year ago - including non-cash amortization expenses for deferred stock compensation and warrants of $742,000, and net interest income of $260,000 - was $512,000, or $0.02 per diluted share.
Pro forma net loss for the second quarter of fiscal 2003 was $1.1 million, or $0.05 per share, compared with pro forma net income of $1.2 million, or $0.06 per diluted share for the second quarter of fiscal 2002. Pro forma net loss for the second quarter included a pro forma operating loss of $1.8 million, and net interest income of $139,000, as well as a tax benefit of $557,000.
For the first six months of fiscal 2003, revenues were $21.2 million, up from $20.3 million for the first six months of the prior fiscal year. Reported net loss for the first six months of fiscal 2003, including non-cash amortization expenses of $1.0 million for deferred stock compensation and amortization of purchased technology of $194,000, was $2.0 million or $0.09 per share. Reported net income for the same period of fiscal 2002, including non-cash amortization expenses for deferred stock compensation and warrants of $1.6 million, was $844,000, or $0.04 per diluted share.
ďThe global business environment continues to be very difficult,Ē said Adam Kablanian, chairman, president and chief executive officer. ďAs a result, some of our customers have delayed their purchases of our products. This has clearly impacted our current revenues, but on the positive side, we have signed several royalty agreements during the quarter, which should provide additional revenues for Virage Logic in the future.Ē
Additional Recent Business Highlights
During the second quarter, Virage Logic:
Virage Logic also noted today that given the companyís current lack of visibility in a difficult business environment, for the third quarter of fiscal 2003, the company expects total revenues and pro forma operating expenses to be relatively flat with the second quarter of fiscal 2003. Net interest income and the companyís effective tax rate are expected to remain fairly consistent on a sequential basis. Although this earnings release will be available on the companyís website, the company disclaims any duty or intention to update this or any other forward-looking statements.
Use of Non-GAAP Financial Measure
This press release includes a financial measure for loss per share that excludes certain non-cash charges and that has not been calculated in accordance with generally accepted accounting principles (GAAP). This measure differs from GAAP in that it excludes deferred stock-based 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, and assumes a 34% tax rate for the six-month period ended March 31, 2003, and a 37% tax rate for the six-month period ended March 31, 2002, which may differ from the company's GAAP tax rate. Virage Logic has previously provided this measurement in addition to GAAP because the company believes it provides a consistent basis for comparison between quarters that is not influenced by certain non-cash and non-recurring expenses or by changes in the company's effective tax rate, and therefore is helpful to understanding the company's underlying operational results. This measure should not be considered an alternative to GAAP, and this non-GAAP measure may not be comparable to information provided by other companies. The reconciliation of GAAP to non-GAAP measurements for earnings per share for the recently completed quarter is set forth below.
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, Californiaand has sales and support offices worldwide. For more information, visit www.viragelogic.com or call (877) 360-6690 (toll free) or (510) 360-8000.
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