Quarterly dividend of $0.25 per share payable on April 16, 2009 OTTAWA, Ontario – Feb 26, 2009 -
MOSAID today announced financial results for the third quarter of fiscal 2009, ended January 31, 2009.
- Q3 revenues of $18.1 million, up 29% from $14.0 million in Q3 fiscal 2008
- Q3 pro forma income of $5.3 million or $0.53 per diluted share, compared to $5.4 million or $0.50 per diluted share in Q3 fiscal 2008
- Q3 GAAP net income of $2.3 million or $0.23 per diluted share, compared to a net loss of $1.2 million or $0.11 per diluted share in Q3 fiscal 2008
"Our strong financial results for the third quarter, achieved during a period of global economic turmoil, demonstrate that the Company is well positioned to meet its financial targets for fiscal 2009," said John Lindgren, President and CEO, MOSAID.
"The landmark agreements that we recently announced with Nokia Corporation and Micron Technology are key transition points for the Company," said Lindgren. "Our deal with Nokia, the world leader in the mobile phone industry, fulfills management's commitment to license a major handset vendor this fiscal year, and boosts the momentum of our wireless licensing program. With the Micron deal, MOSAID has now licensed virtually 100% of the global commodity DRAM market to its patents, and has also gained title to an important portfolio of 400 patents that will help generate new revenue streams and assist us in reaching new agreements with existing licensees."
MOSAID had cash and marketable securities of $62.2 million at the end of the third quarter of fiscal 2009, compared to $59.8 million at the end of the second quarter of fiscal 2009. In Q3 fiscal 2009, MOSAID returned $2.5 million to shareholders in quarterly dividend payments.
On February 26, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on April 16, 2009 to shareholders of record as of April 2, 2009.
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: MOSAID announced the settlement of patent infringement litigation with Micron Technology, Inc., and that the companies had entered into two separate agreements: a patent license agreement and a patent transfer agreement. Under the patent license agreement, Micron received a lives-of-the-patents license to certain MOSAID patents, and a 10-year term license to certain other MOSAID patents. Micron will make a series of fixed cash payments to MOSAID. Under the patent transfer agreement, MOSAID acquired title to 400 Micron patents related to DRAM, Flash memory and semiconductor process technology.
First wireless handset license: MOSAID announced that Nokia Corporation became the first major vendor of Wi-Fi enabled handsets to license MOSAID's wireless patents. MOSAID granted Nokia a license under MOSAID's wireless technology patents, as well as certain other patents, covering the company's products sold globally under the Nokia brand name.
MOSAID also announced patent license agreements with three vendors of wireless and wired networking equipment. Buffalo Inc., ATEN Technology, Inc., and Sena Technologies, Inc. were each granted five year, running royalty licenses under certain of MOSAID's wireless patents.
Patent portfolio: At the end of the third quarter, MOSAID's portfolio comprised 1,397 patents and applications, compared with 897 patents and applications one year ago. Q4 and Fiscal 2009 Guidance
Management offers the following guidance for the fourth quarter of fiscal 2009:
- Q4 revenues of $16.0 million to $18.0 million
- Q4 pro forma income of $6.4 million to $7.4 million, or $0.62 to $0.71 per diluted share, based on 10.3 million diluted shares
The Company is maintaining its annual guidance for fiscal 2009, as follows:
- Fiscal 2009 revenues in the range of $61.0 million to $63.0 million
- Fiscal 2009 pro forma income of $20.0 million to $21.0 million, or $1.92 to $2.02 per diluted share, based on 10.4 million diluted shares
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. MOSAID's revenues depend upon, among other items, the continued ability of its licensees to pay amounts as they become due.
View Financial Statements [PDF] Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, February 26, 2009 at 5:00 p.m. EST.
. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-264-7882. 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 licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario.