MOSAID Reports Results for Second Quarter Fiscal 2009 and Dividend
- Quarterly dividend of $0.25 per share payable on January 22, 2009
- MOSAID raises annual revenue guidance for fiscal 2009
OTTAWA, Ontario Nov 20, 2008 -
MOSAID today announced financial results for the second quarter of fiscal 2009, ended October 31, 2008.
- Q2 revenues of $13.8 million, compared to $11.5 million in Q2 fiscal 2008
- Q2 pro forma income of $4.1 million or $0.40 per diluted share, compared to $3.8 million or $0.34 per diluted share in Q2 fiscal 2008
- Q2 GAAP net loss of $3.4 million or $0.33 per diluted share, compared to net income of $4.7 million or $0.43 per diluted share in Q2 fiscal 2008. The loss resulted primarily from the revaluation of U.S. dollar denominated liabilities related to acquired patents, resulting in an unrealized foreign exchange loss of $6.0 million
- Fiscal 2009 revenue guidance now in the range of $61.0 million to $63.0 million, exceeding previous full year revenue guidance of $59.0 million to $61.0 million
"Based on our growing deal pipeline and the solid financial and operational performance we delivered in the first half of the year, I am confident that the Company will meet its new revenue target for fiscal 2009," said John Lindgren, President and CEO, MOSAID. "We are increasingly seeing the benefits of our business model and growth strategy, which is based on licensing patents into multiple technology markets."
"In the second quarter, we achieved a key objective for fiscal 2009 by signing Panasonic Corporation as the first licensee to a portfolio of microcomponent patents that is opening up significant new licensing opportunities," Lindgren noted. "We also made excellent progress toward signing additional license agreements based on our wireless patents. In addition, we settled our patent infringement litigation with Powerchip Semiconductor Corporation and signed a five year patent license agreement with them, recording yet another success in licensing MOSAID's semiconductor memory patents to global producers of Dynamic Random Access Memory (DRAM) chips."
MOSAID had cash and marketable securities of $59.8 million at the end of the second quarter of fiscal 2009, compared to $59.0 million at the end of the first quarter of fiscal 2009.
In Q2 fiscal 2009, MOSAID returned $2.5 million to shareholders in quarterly dividend payments. The Company also expended $4.6 million to re-purchase and cancel 296,808 shares under the normal course issuer bid (NCIB) that began on September 13, 2007 and that ended on September 12, 2008. MOSAID has now repurchased and cancelled 1,118,731 common shares, representing the full permitted 10% of the public float of common shares issued and outstanding when the NCIB was announced.
On November 20, 2008, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on January 22, 2009 to shareholders of record as of January 5, 2009.
A reconciliation of pro forma income to Canadian generally accepted accounting principles (GAAP) net income is included in the Notes to the Financial Statements accompanying this press release. Operational Highlights
First microcomponent patent portfolio license: MOSAID announced that Panasonic Corporation became the first company to license a valuable portfolio of microcomponent patents to which MOSAID has exclusive licensing rights. Panasonic was granted a 10-year license for all application specific and microcomponent semiconductor products sold globally under Panasonic's brand name.
Semiconductor Licensing: MOSAID announced the settlement of patent infringement litigation, and the signing of a patent license agreement, with Powerchip Semiconductor Corporation. Under the terms of the license agreement, Powerchip was granted a five year, running royalty license under MOSAID's patents for all of its non-foundry DRAM and Pseudo-Static RAM (PSRAM) products. Since January 1, 2008, MOSAID has settled with three of the four companies involved in the patent infringement litigation initiated in mid-2006.
Patent portfolio: At the end of the second quarter, MOSAID's portfolio comprised 954 patents and applications, compared with 850 patents and applications one year ago. Q3 and Fiscal 2009 Guidance
The Company offers the following guidance for the third quarter of fiscal 2009:
- Q3 revenues of $16.0 million to $17.0 million
- Q3 pro forma income of $3.8 million to $4.2 million, or $0.37 to $0.41 per diluted share
The Company is changing its annual guidance for fiscal 2009, as follows:
- Fiscal 2009 revenues are now expected to be in the range of $61.0 million to $63.0 million, up from the previous guidance of $59.0 million to $61.0 million
- For fiscal 2009, licensing and litigation expense is now expected to be in the range of $19.0 million to $20.0 million, up from the previous guidance of $15.0 million to $18.0 million
- As a result of the above, guidance for fiscal 2009 pro forma income is expected to remain in the range of $20.0 million to $21.0 million, or $1.90 to $2.00 per diluted share
MOSAID's revenues result primarily from intellectual property agreements, which by their nature may actually close on dates other than those projected. MOSAID's priority and focus is on obtaining the best terms possible under its agreements, rather than on the particular timing of agreement closure. Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, Nov 20, 2008 at 5:00 p.m. EDT
. The webcast will be live at www.mosaid.com
and may also be accessed by dialing 1-866-447-0521. The webcast will be available on MOSAID's web site for 90 days following the event.
MOSAID Technologies Inc. is one of the worlds leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest semiconductor companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario.
Pro forma income, a non-GAAP measure, is GAAP net income adjusted for stock-based compensation, patent amortization and imputed interest, foreign exchange gains and losses on "Other long-term liabilities," and any other non-recurring items. The Company uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers.
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