Record Annual Revenues for FY2006FREMONT, Calif.--Nov. 6, 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 fiscal year and fourth fiscal quarter ended September 30, 2006.
For fiscal year 2006, revenues were $59.3 million, up 11 percent over revenues of $53.4 million reported for fiscal year 2005. GAAP net loss for fiscal year 2006 was $0.9 million, or ($0.04) per share, compared with a net loss of $0.3 million, or ($0.01) per share, for fiscal 2005. Non-GAAP net income for fiscal year 2006 was $3.9 million or $0.17 per share compared to non-GAAP net loss of $0.3 million or ($0.01) per share for fiscal year 2005. The non-GAAP results exclude FAS123R stock compensation expense.
Revenues for the fourth quarter of fiscal 2006 were $15.0 million compared to $12.8 million for the fourth quarter of fiscal 2005 and $15.3 million for the third quarter of fiscal 2006. License revenue for the fourth quarter of fiscal 2006 was $11.3 million compared to $10.0 million for the same period a year ago and $11.1 million for the previous quarter. Royalties for the fourth quarter of fiscal 2006 were $3.7 million compared to $2.8 million for the fourth quarter of fiscal 2005 and $4.2 million for the third quarter of fiscal 2006.
In accordance with generally accepted accounting principles (GAAP), net income for the fourth quarter of fiscal 2006 was $0.8 million, or $0.03 per share compared to net income of $0.2 million, or $0.01 per share, for the same period a year ago and with a net loss of $1.6 million, or ($0.07) per share, for the third quarter of fiscal 2006. Non-GAAP net income for the fourth quarter of fiscal 2006 was $1.3 million or $0.05 per share compared to non-GAAP net income of $0.2 million or $0.01 per share for the same period of fiscal 2005. The non-GAAP results exclude FAS123R stock compensation expense.
Cash, cash equivalents and investments increased by $9.8 million for the year ended September 30, 2006 compared to the fiscal year 2005 and decreased by $0.2 million from the third quarter of fiscal 2006.
"We are pleased with the progress we made in fiscal 2006 to improve our overall business which puts us in a position to pursue profitable growth," said Adam Kablanian, president and CEO. "For fiscal 2007, we are focused on generating top-line revenue growth and improved profitability. The improvements we made to our business, along with our leadership position in providing advanced semiconductor intellectual property, should help us execute toward that goal and further establish us as the semiconductor industry's trusted IP partner."
Virage Logic also announced today its business outlook for the first quarter of fiscal 2007 ending December 31, 2006. The company currently anticipates total revenues of approximately $14.6 million to $15.0 million, including royalties of approximately $3.6 million to $3.8 million. The company expects to report a GAAP net income of approximately ($0.01) loss to a $0.01 profit per diluted share and non-GAAP earnings per diluted share excluding FAS123R stock compensation expense is expected to be in the range of $0.03 to $0.05 for the first fiscal quarter. The company expects $1.4 million of FAS123R stock compensation expense for the first quarter of fiscal 2007. 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 fourth-quarter 2006 results at 1:30 p.m. PT / 4:30 p.m. ET today. A live webcast of management's teleconference regarding fourth-quarter results will be available to all investors, and an archived webcast will be available from November 6, 2006 until November 6, 2007 on the Investor Relations page of Virage Logic's website at http://www.viragelogic.com
. In addition, a telephonic replay will be available through November 13, 2006 at (719) 457-0820, access code 5628154.Financial Tables
to read financial tableAbout 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(TM). 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. The company also prides itself on providing superior customer support and was recently named Customer Service Leader of the Year in the Semiconductor IP Market by Frost & Sullivan. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide. For more information, visit http://www.viragelogic.com