San Jose, Calif. - January 7, 2003 - LogicVision, Inc., (NASDAQ:LGVN), a leading provider of embedded test IP for integrated circuits and systems, today announced preliminary results for the fourth quarter ended December 31, 2002. The Company now expects that revenues for the fourth quarter ended December 31, 2002 will be in the range of $2.0 million to $2.1 million, principally due to deferred purchase orders. Fourth-quarter loss on a GAAP basis is expected to be between approximately ($0.31) and ($0.32) per share. LogicVision expects to have approximately $41.5 million in cash and marketable securities with a $2.5 million balance outstanding under its line of credit, or net cash and marketable securities of $2.57 per share, as of the end of the quarter.
Vinod Agarwal, President and Chief Executive Officer of LogicVision, said, "Despite an increasing interest in embedded test by major semiconductor manufacturers, continuing concerns about the downturn in the semiconductor industry and resulting budget constraints led to purchase deferrals by certain customers. For the last few quarters, LogicVision has adopted the strategy of focusing on key semiconductor suppliers to provide a total solution from silicon debug to manufacturing test. This strategy may elongate the sales cycle but has the potential to make LogicVision's embedded test solution a de facto standard, providing cost and time-to-market benefits to our customers and significant growth for LogicVision We believe that this focused account strategy is evolving well and currently expect this strategy to lead to positive cash flow by the second half of 2003."
LogicVision cautions that its anticipated results are preliminary, based on the best information currently available, and subject to the closing of its financial records and customary quarterly accounting procedures. The Company plans to release its full results for the fourth quarter and full year 2002 before the market opens on Friday, January 24, with a conference call at 11AM PST. The Company will provide additional guidance and a more detailed business outlook at that time.
About LogicVision Inc.
LogicVision (Nasdaq: LGVN) provides proprietary technologies for embedded test that enable the more efficient design and manufacture of complex semiconductors. LogicVision's embedded test solution allows integrated circuit designers to embed into a semiconductor design test functionality that can be used during semiconductor production and throughout the useful life of the chip. For more information on the company and its products, please visit the LogicVision website at www.logicvision.com.
Except for the historical information contained herein, the matters set forth in this press release, including statements as to the preliminary results for the quarter ended December 31, 2002, including revenues, GAAP loss, cash and marketable securities balance and net cash per share, as well as market conditions and purchase deferrals by the Company's customers, increasing interest in embedded test, expected benefits of the Company's focused account strategy, including market acceptance of embedded test, benefits to customers, the Company's growth and expected positive cash flow, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially, including, but not limited to, the completion of the review of the Company's financial results for the quarter ended December 31, 2002, the timing of customer orders, trends in capital spending in the semiconductor industry, the impact of competitive products and alternative technological advances, and other risks detailed in LogicVision's Form 10-Q for the quarter ended September 30, 2002 and from time to time in LogicVision's SEC reports. These forward-looking statements speak only as of the date hereof. LogicVision disclaims any obligation to update these forward-looking statements.
LogicVision, Embedded Test and LogicVision logos are trademarks or registered trademarks of LogicVision Inc. in the United States and other countries. All other trademarks and service marks are the property of their respective owners.