Orders Booked in Q2 Total $5.6 Million
SAN JOSE, Calif., Jul 21, 2003 /PRNewswire-FirstCall via COMTEX/ -- LogicVision, Inc. (Nasdaq: LGVN), a leading provider of embedded test IP for integrated circuits and systems, today announced financial results for the second quarter ended June 30, 2003. All financial information contained in this release, except backlog data, was prepared in accordance with generally accepted accounting principles (GAAP).
Revenues for the second quarter were $1.4 million, compared with $2.4 million in the first quarter of 2003. The continued focus of the company's sales efforts with major customers has lengthened the sales cycle; therefore, more of its revenues are being recognized ratably, leading to the revenue decline in this quarter.
Gross margins for the second quarter of 2003 were 45 percent, down from 66 percent in the first quarter. This drop in gross margins reflected the less favorable mix of business between the higher margin license revenues and the more labor intensive service revenues.
Net loss for the second quarter was $4.0 million, or a loss of $0.26 per share, compared with a net loss of $3.0 million or a loss of $0.19 per share for the first quarter of 2003.
At June 30, 2003, LogicVision had $34.1 million in cash and cash equivalents, short-term investments and marketable securities together with a $1.0 million balance outstanding under its line of credit, for a combined net balance of $33.1 million, or $2.15 cash per share. This compares with a combined net balance of $35.5 million in the prior quarter.
Orders booked during the quarter totaled $5.6 million. LogicVision exited the second quarter with a backlog of $11.6 million, including $3.3 million of deferred revenues. This is the highest level of backlog for the company since September 2001. The largest of these newer orders will first be reflected as an increase in deferred revenues beginning in Q3, with the related revenue recognition starting in the first quarter of 2004.
"One year ago we outlined our key account strategy and total solution approach, and we are very pleased to note that this strategy has started to realize its potential," said Dr. Vinod Agarwal, president and CEO of LogicVision. "A significant improvement in the size of our engagement with a single customer resulted in bookings in the second quarter that were the second highest in the history of the company. We expect similar arrangements with other customers in the future will materialize as our strategy comes to full fruition."
- Partnered with JTAG Technologies, a leading provider of boundary-scan testing, to streamline the integration of device level embedded test and diagnosis with board- and system-level testing
- Demonstrated real-time testing and diagnosis on Oak Technology's latest generation digital TV decoder ICs
- In cooperation with MoSys, Inc., announced the availability of a silicon-proven Built-In Repair Analysis (BIRA) solution that provides automated test and repair
- Introduced the ability to characterize individual embedded System-on-Chip cores -- an industry first -- using LogicVision's Validator product and hierarchical embedded test
- Selected DI Corporation as the exclusive distributor of LogicVision's products in South Korea, one of the world's largest semiconductor markets
- Named Spirox Corporation as exclusive distributor for LogicVision's products in Taiwan, China and Singapore
Guidance for the Third and Fourth Quarters of 2003
- Revenues for Q3 are expected to be comparable to, or slightly above, Q2 revenues
- Net loss and net loss per share for Q3 are expected to be comparable to, or slightly less than, Q2 results
- Bookings and deferred revenues are expected to grow in Q3, leading to improved revenues and lower losses in Q4
- Cash and cash equivalents, short-term investments and marketable securities are expected to continue to be in the range of $30 million to $34 million throughout the balance of 2003
LogicVision will broadcast its conference call discussion of second quarter fiscal 2003 financial results on Monday, July 21 at 2 p.m. PT. To listen to the call, please dial 630-395-0018, passcode: 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 402-344-6640.
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://logicvision.com . An archived web cast replay of the call will be available at http://logicvision.com for 12 months.
Click here to read the financial tables
About LogicVision, Inc.
LogicVision 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.
FORWARD LOOKING STATEMENTS:
Except for the historical information contained herein, the matters set forth in this press release, including statements as to the Company's progress with customers and the Company's expected financial results and condition, including revenues, net loss, net loss per share, bookings, deferred revenues and cash and cash equivalents, short-term investments and marketable securities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, trends in capital spending in the semiconductor industry, the timing of customer orders, the impact of competitive products and alternative technological advances, and other risks detailed in LogicVision's Form 10-Q for the quarter ended March 31, 2003 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.
NOTE: 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.