MOSAID Reports Results for Fourth Quarter and Year-End Fiscal 2009 and Dividend
Records highest patent licensing revenues in Company's history OTTAWA, Ontario June 25, 2009 -
Quarterly dividend of $0.25 per share payable on July 23, 2009
MOSAID Technologies Inc. (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2009.
Q4 Fiscal 2009 Results
Fiscal Year 2009 Results
- Q4 revenues of $18.0 million, up 6% from $17.0 million in Q4 fiscal 2008
- Q4 pro forma income of $7.7 million or $0.75 per diluted share, up 26% from $6.1 million or $0.57 per diluted share in Q4 fiscal 2008
- Q4 GAAP net income of $5.6 million or $0.55 per diluted share, up 4% from $5.4 million or $0.50 per diluted share in Q4 fiscal 2008
- Fiscal year 2009 revenues of $62.5 million, up 14% from $55.1 million in fiscal year 2008
- Fiscal year 2009 pro forma income of $21.2 million or $2.05 per diluted share, up 5% from $20.2 million or $1.83 per diluted share in fiscal year 2008
- Fiscal year 2009 GAAP net income of $5.8 million or $0.57 per diluted share, compared to $18.5 million or $1.67 per diluted share in fiscal year 2008
"In fiscal 2009, the Company earned the highest level of patent licensing revenues in its history and was profitable for a fifth consecutive year," said John Lindgren, President and CEO, MOSAID. "This year we signed a record number of patent license agreements and delivered on our financial and operational targets, including signing our first wireless handset license and our first microcomponent license. We doubled the size of MOSAID's portfolio to over 1,700 patents and applications, and greatly increased the deal pipeline - we're now in communication with more than 100 companies. Our results demonstrated that MOSAID's intellectual property business, with its focus on licensing patents into multiple technology markets and investing in innovation, can deliver revenue growth, substantial profits and consistent dividends, even during a severe recession."
"With MOSAID now earning revenues from four different patent licensing programs, we are well positioned to grow the business in fiscal 2010 and in future years," said Lindgren. "The hallmark elements of MOSAID's growth strategy are our diversified approach to patent licensing, our acquisition of rigorously selected intellectual property assets, and reasonable investment in R&D to generate new patents and potential technology licensing revenues. During fiscal 2010, we will remain focused on revenue growth, returning cash to shareholders, and controlling operating expenses in a challenging economic environment."
MOSAID had cash and marketable securities of $51.8 million at the end of the fourth quarter of fiscal 2009, compared to $62.2 million at the end of the third quarter of fiscal 2009. In Q4 fiscal 2009, MOSAID returned $2.5 million to shareholders in quarterly dividend payments. For the full fiscal year, the Company returned $18.7 million to shareholders: $10.3 million via dividends, and $8.4 million via share buybacks.
On June 25, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on July 23, 2009 to shareholders of record as of July 9, 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. Fourth Quarter Operational Highlights
Semiconductor patent licensing: MOSAID signed separate license agreements with NXP B.V. of the Netherlands and Oki Semiconductor Co., Ltd. (Oki) of Japan. The running royalty patent portfolio license granted to NXP added an additional five years, on the same terms and conditions, to the license first signed in April 2004, and covers embedded Dynamic Random Access Memory (DRAM) used in NXP's semiconductor products. The five-year running royalty patent license agreement signed with Oki licenses the company's DRAM and embedded DRAM products under MOSAID's patents..
Wireless patent licensing: MOSAID announced patent license agreements with two U.S.-based vendors of wireless networking equipment. The Wi-Fi products made by the unnamed companies, including wireless access points, are licensed under MOSAID's patents for five-year and four-year terms, respectively. MOSAID has licensed its wireless patent portfolio to seven companies in the past 14 months.
Communications patent licensing: As part of its diversified patent licensing strategy, MOSAID acquired full title to a significant portfolio of 300 communications patents from SercoNet Ltd. of Israel. Within 10 weeks, MOSAID signed the first license to the new portfolio, granting a five-year term license to a U.S.-based provider of Internet Protocol (IP) telephone systems.
Patent portfolio: MOSAID's portfolio comprised 1,709 patents and applications at the end of the fourth quarter of fiscal 2009, up 99% from 860 patents and applications one year ago. Q1 and Fiscal 2010 Guidance
Management offers the following guidance for the first quarter of fiscal 2010:
- Q1 revenues of $15.0 million to $16.0 million
- Q1 pro forma income of $5.7 million to $5.9 million, or $0.55 to $0.57 per diluted share, based on 10.4 million diluted shares
The Company is guiding for the following financial results in fiscal 2010:
- Fiscal 2010 revenues in the range of $65.0 million to $67.0 million
- Fiscal 2010 pro forma income of $21.5 million to $22.5 million, or $2.07 to $2.17 per diluted share, based on 10.4 million diluted shares
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. MOSAID's revenues depend upon, among other items, the continued ability of its licensees to pay amounts as they become due. The Company takes steps, including monitoring the creditworthiness of its licensees, in order to manage this risk.
Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, June 25, 2009 at 5:00 p.m. EDT
. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-447-0521. The webcast will be available on mosaid.com 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 customers. Founded in 1975, MOSAID is based in Ottawa, Ontario.
For more information, visit www.mosaid.com.
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