Quarterly dividend of $0.25 per share payable on October 23, 2008 OTTAWA, Ontario – Aug 28, 2008 -
MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the first quarter of fiscal 2009, ended July 31, 2008
- Q1 revenues of $12.7 million, compared to $12.6 million in Q1 fiscal 2008
- Q1 pro forma income of $4.0 million or $0.37 per diluted share, compared to $4.9 million or $0.44 per diluted share in Q1 fiscal 2008
- Q1 GAAP net income of $1.4 million or $0.13 per diluted share, compared to $9.5 million or $0.85 per diluted share in Q1 fiscal 2008. Q1 fiscal 2009 included $168,000 in profit from discontinued operations, compared to $5.8 million in Q1 fiscal 2008
"During the first quarter, we made excellent progress toward achieving key objectives for fiscal 2009. This year's objectives include signing our first patent license for Wi-Fi enabled handsets, and entering into an agreement based on sub-licensed patents," said John Lindgren, President and CEO, MOSAID. "In Q1, we signed important agreements with a U.S.-based fabless semiconductor memory company, with MOSAID receiving cash, patents and exclusive sub-licensing rights."
"The Company continues to guide for revenue growth and a substantial level of profitability in fiscal 2009," added Lindgren. "MOSAID's financial strength and profitability is enabling us, on an ongoing basis, to return significant amounts of cash to our shareholders while investing in R&D activities that are generating both patents and technology licensing opportunities."
MOSAID had cash and marketable securities of $59.0 million at the end of the first quarter of fiscal 2009, compared to $58.4 million at the end of the fourth quarter of fiscal 2008.
The Company continued to return cash to shareholders through its dividend program and normal course issuer bid (NCIB). In Q1, MOSAID returned $2.7 million to shareholders in quarterly dividend payments and expended $3.8 million to re-purchase and cancel 262,340 shares. On May 30, 2008, MOSAID announced an amendment to the terms of its NCIB, to increase the number of common shares allowed 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 August 27, 2008, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on October 23, 2008 to shareholders of record as of October 2, 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. Operational Highlights
Semiconductor Licensing: During the quarter, MOSAID signed three related agreements with a U.S. fabless semiconductor memory company. The agreements consisted of a five-year patent portfolio license agreement, which included cash consideration, a patent transfer agreement, and an exclusive patent sub-licensing agreement. The patents included in the patent transfer and sub-licensing agreements are relevant to DRAM (Dynamic Random Access Memory), SRAM (Static RAM), Flash memory and other technologies.
R&D Subsequent to quarter end, MOSAID displayed its HyperLink NAND (HLNAND™) Flash architecture at the Flash Memory Summit in Santa Clara, California. MOSAID engineers demonstrated a new emulation platform for system development and benchmarking, and presented two technical papers.
Patent portfolioAt the end of the first quarter, MOSAID's portfolio comprised 912 patents and applications, compared with 819 patents and applications one year ago. Q2 and Fiscal 2009 Guidance
Management offers the following guidance for the second quarter of fiscal 2009:
- Q2 revenues of $13.0 million to $14.0 million
- Q2 pro forma income of $3.0 million to $3.5 million, or $0.29 to $0.33 per diluted share
Management is maintaining its guidance for fiscal 2009, as follows:
- 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, August 28, 2008 at 5:00 p.m. EDT
. The webcast will be live at www.mosaid.com
and may also be accessed by dialing 1-866-447-0521. 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.