inSilicon Corporation Provides Third Quarter 2001 Financial Outlook, Announces New Chief Operating Officer
SAN JOSE, Calif.--(BUSINESS WIRE)--June 1, 2001--inSilicon Corporation (Nasdaq:INSN) -- a leading provider of communications technology for complex systems-on-chip (SOC) -- today provided a financial outlook for the third fiscal quarter ending June 30, 2001.
Net revenue for the third fiscal quarter is expected to be in the range of approximately $5.2M to $5.6M, compared with net revenue of $5.2M in the previous quarter. Expenses for the third fiscal quarter are expected to decrease approximately $300K from the previous quarter due to specific cost reduction programs implemented in the past several weeks. Pro forma net loss for the third fiscal quarter, which excludes one-time charges and certain non-cash charges related to the amortization of purchased intangible assets and stock based compensation, is expected to be in the range of approximately $1.0M to $1.4M or ($0.06) to ($0.10) per diluted share.
``We have worked hard since the announcement of our second quarter results to improve our short-term financial situation,'' said Wayne Cantwell, president and chief executive officer. ``Over the course of the quarter we have been encouraged by an increase in our short term revenue visibility. Moreover we are starting to see increased traction in some of our new products, specifically with the USB 2.0 Analog Transceiver product line, having just signed another customer for this high-value product. As we indicated on the April 17 conference call, we have put specific plans in place to reduce our expense run rate in both the third and fourth quarters. These programs include a reduction in headcount of nine full time employees, a dramatic reduction in the management bonus program, focused cuts in our discretionary spending, and other expense reduction strategies that will have an impact both in this current quarter as well as the fiscal fourth quarter.''
``In connection with these expense reduction programs, I have also consolidated our management team both to increase focus and reduce cost by eliminating several positions,'' continued Cantwell. ``I am very pleased to announce the promotion of Barry Hoberman to the newly created post of chief operating officer. Barry was one of the original inSilicon founders, and has been instrumental in driving our vision over the past several years. Effective immediately Barry will oversee all Marketing and Engineering functions, providing me with the opportunity to spend more time working with our sales force and customers to bring increased visibility and more predictable revenue results. I am looking forward to Barry's continued contributions towards inSilicon's long term success.''
``We believe these changes will help position us to return inSilicon to profitable growth and help increase shareholder value,'' concluded Cantwell. ``We are committed to creating a company that provides long-term value by creating world-class semiconductor IP, and we look forward to seeing the benefits of these changes in the coming quarters.''
These statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. The Company presently intends to release full third quarter financial results on July 17, 2001.
inSilicon Corporation is a leading provider of communications semiconductor intellectual property used by semiconductor and systems companies to design systems-on-chip that are critical components of innovative wired and wireless products. inSilicon's technology provides customers faster time-to-market and reduced risk and development cost. The company's broad portfolio of analog and mixed-signal products and enabling communications technologies, including the JVX(TM) and JVXtreme(TM) Java(TM) Accelerators, Bluetooth, Ethernet, USB, PCI, and IEEE-1394, are used in a wide variety of markets encompassing communications, consumer, computing, and office automation. inSilicon is a subsidiary of Phoenix Technologies (Nasdaq:PTEC). Information about inSilicon products and technologies is available at http://www.insilicon.com.
``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside inSilicon's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see inSilicon's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K. inSilicon undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Note to Editors: inSilicon and JVX are trademarks of inSilicon Corporation. All other trademarks are the property of their respective owners.
Contact: inSilicon Corporation
Bryan LeBlanc, 408/894-1900 (Chief Financial Officer)
Doug Sherk, Kip Meintzer (Investor Relations)
Ron Heckmann (Financial Media Relations)