Company records fourth consecutive year of profitability, sets stage for fifth OTTAWA, Ontario – June 26, 2008 -
MOSAID Technologies Inc. (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2008.
Q4 Fiscal 2008 Results
- Q4 revenues of $17.0 million, compared to $12.2 million in Q4 fiscal 2007
- Q4 pro forma income of $6.1 million, or $0.57 per diluted share, compared to $3.8 million or $0.34 per diluted share in Q4 fiscal 2007
- Q4 GAAP net income of $5.4 million or $0.50 per diluted share, compared to $9.0 million or $0.81 per diluted share in Q4 fiscal 2007
Revenues of $17.0 million for the fourth quarter of fiscal 2008 represent a 39% increase from revenues of $12.2 million in the fourth quarter a year ago. Pro forma income of $6.1 million was up 59% from the year earlier period. Q4 GAAP net income of $5.4 million included $1.5 million in net profit from discontinued operations. In the comparative period, GAAP net income of $9.0 million included $7.8 million in net profit from discontinued operations. Fiscal Year 2008 Results
- Fiscal 2008 revenues of $55.1 million, compared to $60.0 million in fiscal 2007
- Fiscal 2008 pro forma income of $20.2 million, or $1.83 per diluted share, compared to $25.3 million or $2.24 per diluted share in fiscal 2007
- Fiscal 2008 GAAP net income of $18.5 million or $1.67 per diluted share, compared to $24.7 million or $2.18 per diluted share in fiscal 2007
"I am very pleased to report that in fiscal 2008, MOSAID recorded a fourth consecutive year of profitability and positive cash flow, which we achieved while completing our transition to a pure-play intellectual property company focused on patent licensing and innovation," said John Lindgren, President and CEO, MOSAID. "Although a strong Canadian dollar exerted downward pressure on revenues, we successfully met or surpassed our financial and operational objectives, including signing our first wireless patent license, re-licensing our first term licensee, and further diversifying our Semiconductor patent portfolio through an exclusive sub-licensing agreement with LSI Corporation."
"Building on our substantial amount of booked revenue and growing deal pipeline, we are guiding for revenue growth and another year of substantial profitability in fiscal 2009," said Lindgren. "By executing on our patent portfolio growth and licensing strategies, we see significant, long-term upside revenue potential going forward, based on wireless licensing, new semiconductor licenses, and license renewals. This will enable us to continue to invest in the future through research and development in innovative Flash memory technologies, and to return value to shareholders."
MOSAID had cash and marketable securities of $58.4 million at the end of the fourth quarter of fiscal 2008, compared with $50.8 million at the end of the third quarter of fiscal 2008.
During the fourth quarter, the Company returned $2.7 million to shareholders in quarterly dividend payments. Subsequent to quarter end, MOSAID announced on May 30, 2008, an amendment to the terms of its NCIB, to increase the number of common shares to be purchased from 559,583 to 1,118,731, or 10% of the public float of common shares issued and outstanding as of September 13, 2007.
On June 26, 2008, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on July 24, 2008 to shareholders of record as July 10, 2008.
A reconciliation of pro forma income to Canadian generally accepted accounting principles (GAAP) net income is included in the Notes to the Financial Statements accompanying this press release. Fiscal 2008 Operational Highlights
Wireless Licensing: signed first wireless patent license with Matsushita Electric Industrial Co., Ltd., commonly known as Panasonic.
Semiconductor Licensing: signed patent licenses with Etron Technology, Inc. and ProMOS Technologies Inc., re-signed Winbond Electronics Corporation to a new term license, and settled patent infringement litigation with Mosel Vitelic, Inc.
Licensing Initiatives: signed an exclusive patent licensing agreement with LSI Corporation.
Restructuring: completed the sale of the Semiconductor IP product business to Synopsys, Inc. for US$15.3 million, and sold the Company's Ottawa real estate for $10.5 million.
Innovation: publicly launched HLNAND (Hyperlink NAND) Flash architecture as a technology licensing and internal patent generation initiative. Q1 and Fiscal 2009 Guidance
Management offers the following guidance for the first quarter of fiscal 2009:
- Q1 revenues of $12.0 million to $13.0 million
- Q1 pro forma income of $3.2 million to $4.0 million, or $0.29 to $0.36 per diluted share
Management is guiding for the following financial results for fiscal 2009:
- Fiscal 2009 revenues of $59.0 million to $61.0 million
- Fiscal 2009 pro forma income of $20.0 million to $21.0 million, or $1.90 to $2.00 per diluted share
MOSAID's revenues result primarily from intellectual property agreements, which by their nature may actually close on dates other than those projected. MOSAID's priority and focus is on obtaining the best terms possible under its agreements, rather than on the particular timing of agreement closure. Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, June 26, 2008 at 5:00 p.m. EDT
. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-866-436-9172. The webcast will be available on MOSAID's web site for 90 days following the event.
MOSAID Technologies Inc. is one of the world’s leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario.
Pro forma income, a non-GAAP measure, is GAAP net income adjusted for stock-based compensation, patent amortization and imputed interest, foreign exchange gains and losses on "Other long-term liabilities," and any other non-recurring items. The Company uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers.
For more information, visit www.mosaid.com.