Mosaid announces preliminary fourth quarter results for fiscal 2003
MOSAID Restructures Systems and Semiconductor Divisions
OTTAWA, Ontario - April 25, 2003 - MOSAID Technologies Incorporated (TSE:MSD) today announced preliminary, estimated fourth quarter results for fiscal 2003 ending April 25, 2003, and a restructuring of operations in its Systems and Semiconductor Divisions.
Effective today, MOSAID has reduced its workforce by 58 people, approximately 36% of the Company's total employee base, and estimates an associated restructuring charge of $6 million. Revenues for the fourth quarter are expected to be $11 to $11.5 million, compared to $9.8 million in the fourth quarter of fiscal 2002. Net loss for the fourth quarter of fiscal 2003, excluding restructuring charges, is expected to be $1.5 to $2 million or $0.15 to $0.20 per diluted share, compared to a net loss of $3.2 million or $0.31 per diluted share in the same period last year.
The Company's cash balance and short-term marketable securities at the end of the fourth quarter are expected to be approximately $42.0 million compared to $45.0 million at the end of the third quarter of fiscal 2003. The cash cost of the restructuring is estimated to be approximately $4.1 million.
"Revenues for the fourth quarter are expected to meet analysts' estimates, while net loss, excluding restructuring charges, is expected to exceed the analysts' consensus published by First Call," said George Cwynar, President & Chief Executive Officer of MOSAID. "In a separate news announcement today, the Intellectual Property Division reported progress in its transition strategy to harness greater long-term value from its patents with the signing of its first running royalty patent license agreement with Winbond Electronics. MOSAID also announced today the signing of a license agreement with Sony Corporation, a leader in consumer electronics. Sony has licensed MOSAID's patent portfolio for its own semiconductor products and uses embedded memory in a number of its consumer electronics offerings."
"However, low levels of capital spending in ATE markets and slow design activity by networking OEMs continue to adversely affect the performance of the Systems and Semiconductor Divisions, respectively," said Cwynar. "We have continued to invest in these two businesses and have developed a strong set of product offerings but, given the delays in market recovery, we have taken actions today to lower our cost structure."
"In the Systems Division, we will continue the development efforts on our market leading MS4205 product line of memory test systems which will meet customer requirements for years to come," said Cwynar. "Our latest tester, the MS4205ex, started shipping in the second quarter and has the capability to test emerging high-speed memories, such as DDR2 SDRAM and QDR SRAM, as well flash and the current DDR and SDRAM memories."
"During the fourth quarter, our Semiconductor Division was engaged with networking OEMs who were initiating new designs that require content addressable memories (CAMs), as well as those seeking replacements for competitors' CAMs. However, given the current size of the market opportunity we have reduced our level of CAM R&D. We will capitalize on the competitive strengths of our current and announced product offerings, and despite the restructuring, we remain fully capable of delivering on both near-term and future customer requirements for larger CAMs," said Cwynar.
Financial results are preliminary and unaudited, and are subject to change. Fourth quarter and year end results for fiscal 2003 are scheduled to be released on Thursday, June 19, 2003.
Conference Call and Webcast
Management will hold a conference call and webcast on Friday, April 25 at 12:00 p.m. (EST). Participants wishing to access the conference call should dial 1-800-814-4862. The conference call will also be webcast live at www.mosaid.com and www.newswire.ca, and subsequently archived on MOSAID's web site. A rebroadcast of the conference call will be available until midnight on Friday, May 2, 2003. To access the rebroadcast, please dial 1-877-289-8525 and enter 248199#.
MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions:
- Semiconductor - a fabless provider of networking chips
- Intellectual Property - a licensor of intellectual property to semiconductor manufacturers worldwide
- Systems - the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies.
Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan.
Forward Looking Information
This document may contain forward-looking statements relating to the Company's operations or to the environment in which the Company operates. Such statements are based on current expectations that are subject to a variety of risks and uncertainties that are difficult to predict and/or beyond MOSAID's control. Actual results may differ materially from those expressed in any forward-looking statements, due to factors such as customer demand and timing of purchasing decisions, product and business mix, competitive products, pricing pressures as well as general economic and industry conditions. MOSAID assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in any forward-looking statements. Additional information identifying risks and uncertainties is contained in other public filings with the Ontario Securities Commission.
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