Q4 Cash Balance and Net Loss Better Than Guidance SAN JOSE, Calif. – January 29, 2008 –
LogicVision, Inc. (NASDAQ: LGVN), a leading provider of test and yield learning capabilities for the semiconductor industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2007. Fourth Quarter 2007 Results
Revenues in the fourth quarter of 2007 were $2.9 million, compared with $3.0 million in the third quarter of 2007.
Net loss in the fourth quarter of 2007 was $700,000, or $0.03 per share, the same as a loss of $700,000, or $0.03 per share, reported in the third quarter of 2007.
Gross margins in the fourth quarter were 71 percent, compared with 72 percent in third quarter of 2007.
Operating expenses were $2.8 million in the fourth quarter, including $143,000 of stock-based employee compensation charges in accordance with SFAS 123 (R). This compares with $3.0 million of operating expenses in the third quarter of 2007, including $319,000 of stock-based employee compensation charges in accordance with SFAS 123(R).
At December 31, 2007, LogicVision had $8.3 million in cash, cash equivalents and investments, compared with $9.5 million at September 30, 2007. The company has no bank debt.
New orders received during the fourth quarter totaled $2.0 million. The company exited the fourth quarter with a 12-month backlog of $8.7 million, compared with a 12-month backlog of $9.1 million at the end of the third quarter. Fiscal Year 2007 Results
For the fiscal year ended December 31, 2007, LogicVision reported revenues of $11.6 million, a 10 percent increase from revenues of $10.5 million in 2006. The net loss for 2007 was $3.7 million, or a net loss of $0.15 per share, a significant improvement from the 2006 net loss of $7.1 million or a net loss of $0.36 per share. Gross margins in 2007 were 72 percent, the same as 72 percent in the prior year.
“In the fourth quarter, our revenues were within our guidance range, and our net loss and cash balance were better than our forecast,” said James T. Healy, president and CEO of LogicVision. “Throughout 2007, key customers renewed their contracts with us, some customers adopted our products enterprise-wide, and we signed new customers that could potentially grow into bigger accounts. As a result, our 2007 revenues increased 10 percent from last year, and new orders of $12.0 million in 2007 were 21 percent higher than $9.9 million in new orders in 2006. Our net loss for the year improved by almost 50 percent, due to the revenue growth and the 16 percent reduction in expenses we realized in executing our business plan for the year.”
“We entered 2008 with a 12-month backlog of $8.7 million. We intend to continue to focus on closing additional significant customer expansions and renewals in 2008, as well as closing potential new customers during the year. Our 2008 financial goals include recording solid year-over-year revenue growth, as well as achieving positive cash flow and profitability,” said Mr. Healy. Guidance for the First Quarter of 2008
• Revenues are expected to be in the range of $2.8 million to $3.0 million.
• Net loss is expected to be in the range of $800,000 to $1.1 million, or a net loss in the range of $0.03 to $0.05 per share.
• Cash, cash equivalents and investments are expected to be between approximately $6.0 million and $7.0 million at the end of the first quarter. Financial Tables
to read financial tablesConference Call
LogicVision will broadcast its conference call discussion of fourth quarter and fiscal 2007 financial results today, January 29, 2008 at 2 p.m. Pacific time. To listen to the call, please dial 888-928-9122, pass code: “LogicVision.” A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, dial 866-410-5842. The LogicVision financial results conference call will be available via a live web cast on the investor relations section of the company’s web site at http://www.logicvision.com
. An archived web cast of the call will be available at http://www.logicvision.com
for one year.About LogicVision Inc.
LogicVision (NASDAQ: LGVN) provides proprietary technologies for embedded test and yield learning that enable more efficient manufacturing test of complex semiconductors. LogicVision's embedded test solutions allow integrated circuit designers to embed test functionality into a semiconductor design that is used during semiconductor production test and throughout the useful life of the chip. The company's advanced Design for Test (DFT) product line, ETCreate, works together with Silicon Insight applications and Yield Insight to improve profit margins by reducing device field returns and test costs, accelerating silicon bring-up times and shorten both time to market and time to yield. For more information on the company and its products, please visit the LogicVision website at www.logicvision.com