FREMONT, Calif.--May 3, 2006--Virage Logic Corporation (Nasdaq:VIRL), a pioneer in Silicon Aware IP(TM) and leading provider of semiconductor intellectual property (IP) platforms, today reported its financial results for the second fiscal quarter ended March 31, 2006.
Revenues for the second quarter of fiscal 2006 were $15.2 million, compared with $12.8 million for the second quarter of fiscal 2005 and $13.7 million for the first quarter of fiscal 2006. License revenue for the second quarter of fiscal 2006 was $10.4 million, compared with $10.1 million for the second quarter of fiscal 2005 and $10.4 million for the previous quarter. Royalties for the second quarter of fiscal 2006 were $4.8 million, up 81 percent from $2.7 million for the second quarter of fiscal 2005 and up 46 percent from $3.3 million for the first quarter of fiscal 2006.
As reported under U.S. generally accepted accounting principles (GAAP), net income for the second quarter of fiscal 2006 was $176,000, or $0.01 per share, compared with a net loss of $(988,000), or $(0.04) per share for the same period a year ago and with a net loss of $(242,000) or $(0.01) per share for the first quarter of fiscal 2006.
Net income for the second quarter of fiscal 2006 included $1.9 million of stock-based compensation expense per the adoption of FAS123R. Excluding the effects of FAS123R, the company would have reported net income of $1.3 million, or $0.06 per share. The exclusion of FAS123R from our net income represents a non-GAAP measure provided by the company to allow comparability to prior fiscal periods.
"Our historical emphasis on developing semiconductor intellectual property for advanced process nodes allowed us to post strong, profitable royalty growth, moving us to the next level in royalty revenues as designs based on these nodes continued to ramp in volume," said Adam Kablanian, CEO and President. "Our future success demands the efficient development of performance optimized semiconductor IP at the advanced process nodes. During the quarter, we have taken first steps toward the expansion of our engineering development capacity and the build out of scalable infrastructure around our business processes to further improve our ability to drive leadership at the advanced process nodes of 90-nanometer and below."
Virage Logic also announced today its business outlook for the third quarter of fiscal 2006 ending June 30, 2006. The company currently anticipates total revenues of approximately $15.2 million to $15.7 million, including royalties of approximately $4.3 million to $4.6 million. The company expects to report GAAP net income of approximately $0.00 to $0.01 per share. The company also expects $1.8 million of stock-based compensation expense per FAS123R. Without the impact of stock-based compensation expense, the company would expect earnings per diluted share of $0.06 to $0.07 for the third fiscal quarter. Although this news release will be available on the company's website, the company disclaims any duty or intention to update these or any other forward-looking statements.
Virage Logic's management plans to hold a teleconference on second-quarter 2006 results at 1:30 p.m. PT / 4:30 p.m. ET today. A live webcast of management's teleconference regarding second-quarter results will be available to all investors, and an archived webcast will be available from May 3, 2006 until May 3, 2007 on the Investor Relations page of Virage Logic's website at www.viragelogic.com. In addition, a telephonic replay will be available through May 10, 2006 at (719) 457-0820, access code 2005940.
Click here to read financial tables
About Virage Logic
Founded in 1996, Virage Logic Corporation (Nasdaq:VIRL) rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Now, as the company celebrates its 10th anniversary, it is a global leader in semiconductor IP platforms comprising embedded memories, logic, and I/Os and is pioneering the development of a new class of IP called Silicon Aware IP. Silicon Aware IP tightly integrates Physical IP (memory, logic and I/Os) with the embedded test, diagnostic, and repair capabilities of Infrastructure IP to help ensure manufacturability and optimized yield at the advanced process nodes. Virage Logic's highly differentiated product portfolio provides higher performance, lower power, higher density and optimal yield to foundries, integrated device manufacturers (IDMs) and fabless customers who develop products for the consumer, communications and networking, hand-held and portable, and computer and graphics markets. The company uses its FirstPass-Silicon(TM) Characterization Lab for certain products to help ensure high quality, reliable IP across a wide range of foundries and process technologies. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide. For more information, visit www.viragelogic.com.