FREMONT, Calif. -- May 2, 2007 -- Virage Logic Corporation (Nasdaq: VIRL), the semiconductor industry's trusted IP partner and pioneer in Silicon Aware IP(TM), today reported financial results for the second quarter and the six-month period of fiscal year ended March 31, 2007.
Revenue for the second quarter of fiscal 2007 was $10.6 million, compared with $15.2 million for the comparable quarter of fiscal 2006 and $11.5 million in the prior quarter. License revenue for the second quarter of fiscal 2007 was $7.8 million compared to $10.4 million in the second quarter of fiscal 2006 and $8.4 million in the previous quarter. Royalties for the second quarter of fiscal 2007 were $2.8 million, compared with $4.8 million for the second quarter of fiscal 2006 and $3.1 million in the prior quarter.
As reported under U.S. generally accepted accounting principles (GAAP), net loss for the second quarter of fiscal 2007 was $1.8 million, or $0.08 per share, compared with net income of $0.2 million, or $0.01 per share, for the same period a year ago and with a net loss of $1.2 million, or $0.05 per share, for the first quarter of fiscal 2007.
Excluding the effects of FAS123R stock-based compensation expense, the company would have reported a net loss of $0.9 million, or $0.04 per share. Net loss for the second quarter of fiscal 2007 included $1.3 million of FAS123R stock-based compensation expense.
Dan McCranie, president and chief executive officer of Virage Logic, said, "Although we were within our guidance range, our financial performance over these last two quarters has not been acceptable. It is our belief, however, that we can achieve future success through increased focus, intensity and alignment with our key semiconductor and foundry customers. In the past several months our company has made changes in several elements of our business. We will continue to make those organizational and strategic changes necessary to drive this company to success.
During this quarter, I was encouraged by our performance in terms of increased license bookings as well as the record booking numbers of both new 65nm agreements and new royalty bearing STAR Memory System agreements. And although our recent financial performance doesn't map to the strong market opportunity we see, we are making key investments in our business to broaden our product line, improve operational efficiencies to help ensure we are first to market with our differentiated products, and build a global demand creation capability that will enable us to better serve our growing customer base."
"We anticipate total revenues of approximately $11.5 million to $12.5 million in the third fiscal quarter of 2007. License revenues are expected at $8.7 million to $9.2 million and royalty revenues are expected at $2.8 million to $3.3 million. The company expects to report a GAAP net loss of approximately $0.05 to $0.09 per share. The company also expects $1.0 million of stock-based compensation expense per FAS123R. Without the impact of stock- based compensation expense, the company would expect loss per share of $0.02 to $0.07 for the third fiscal quarter."
Virage Logic's management will hold a teleconference on second-quarter 2007 results at 1:30 p.m. PACIFIC / 4:30 p.m. EASTERN today, May 2, 2007. Participants can access the call by dialing (888) 413-9033 (domestic) or (706) 679-5076 (international) or can listen via a live Internet webcast, which can be found on the Investor Relations page of the Virage Logic website at www.viragelogic.com. A replay of the call will be available at (800) 642-1687 (domestic) or (706) 645-9291 (international), access number 5691044 through May 5, 2007; and the webcast can be accessed at www.viragelogic.com for 30 days.
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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. Today, as the semiconductor industry's trusted IP partner, the company is a global leader in 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 named the 2006 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 www.viragelogic.com.