LogicVision Reports First Quarter Financial Results

SAN JOSE, Calif. – April 21, 2009 – LogicVision, Inc. (NASDAQ: LGVN), a leading provider of semiconductor built-in-self-test (BIST) and diagnostic solutions, today announced its financial results for the first quarter ended March 31, 2009.

First Quarter 2009 Results
Revenues in the first quarter of 2009 were $3.1 million, compared with $3.0 million in the fourth quarter of 2008.

Net loss in the first quarter of 2009 was $104,000, or $0.01 per share, compared with a net loss of $782,000, or $0.08 per share, reported in the fourth quarter of 2008. The first quarter net loss includes approximately $243,000 in costs associated with considering strategic alternatives, as indicated in the company’s December 16, 2008 press release.

Operating expenses were $2.6 million in the first quarter, including $120,000 of stock-based employee compensation charges in accordance with SFAS 123 (R). This compares with $3.0 million of operating expenses in the fourth quarter of 2008, including $83,000 of stock-based employee compensation charges in accordance with SFAS 123(R).

At March 31, 2009, LogicVision had $6.9 million in cash, cash equivalents, and investments compared with $9.4 million at December 31, 2008. In addition, the company had accounts receivable of $1.9 million at March 31, 2009, compared with $500,000 at December 31, 2008. The company has no debt.

New orders received during the fourth quarter totaled $2.6 million. The company exited the first quarter with a 12-month backlog of $10.7 million, compared with a 12-month backlog of $9.9 million at the end of the fourth quarter. The company’s total backlog was $17.4 million as of March 31, 2009.

“Operationally, LogicVision performed well during the first quarter of 2009, especially in light of the current state of the economy,” said James T. Healy, president and CEO of LogicVision. “This allowed us to achieve solid first quarter financial results, including revenues in line with guidance, cash and cash equivalents at about $6.9 million, with cash and receivables totaling about $8.9 million, and strong quarterly bookings. We were pleased to have recorded our first quarter of operating profit in the past seven years; however, the approximate $243,000 in costs we incurred associated with considering our strategic alternatives resulted in a net loss for the quarter.

“While there are preliminary indications that the economy may be reaching a bottom, we believe that the recovery will take some time. Some of our customers are continuing to express uncertainty about their businesses and as such, we plan to continue our on-going cost-control measures this quarter. In the longer term, we believe that the economic turmoil has caused some companies to more seriously re-evaluate their ‘make’ versus ‘buy’ decisions, which could positively impact us in the future.”

Guidance for the Second Quarter of 2009

• Revenues are expected to be in the range of $2.9 million to $3.0 million.
• Net loss is expected to be in the range of $100,000 to $0, or a net loss in the range of $0.01 to $0.00 per share. We expect to be break-even, or profitable, on an operating basis.
• Cash, cash equivalents and investments are expected to be between approximately $5.5 million and $6.0 million at the end of the second quarter.

Financial Tables

Click here to read financial tables

Conference Call

LogicVision will broadcast its conference call discussion of first quarter of 2009 financial results today, April 21, 2009 at 2 p.m. Pacific time. To listen to the call, please dial 888-603-9710, 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 203-369-3653. 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 a comprehensive set of proprietary built-in-self-test (BIST) technologies for achieving the highest quality silicon manufacturing test while reducing test costs for complex System-on-Chip devices. LogicVision's Dragonfly Test Platform™ enables integrated circuit designers to embed BIST functionality into a semiconductor design. This functionality is used during semiconductor production test and throughout the useful life of the chip. The complete Dragonfly Test Platform, including the ETCreate™, Silicon Insight™ and Yield Insight™ product families, improves profit margins by reducing device field returns and test costs, accelerating silicon bring-up times and shortening 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.