SUNNYVALE, Calif.--(BUSINESS WIRE)--July 22, 2004 -- Artisan Components, Inc., (Nasdaq:ARTI), a leading provider of physical intellectual property (IP), today reported its results for the three-month period ended June 30, 2004. Total revenue for the third quarter of fiscal 2004 was comprised of license revenue and net royalty revenue of $14.2 million and $7.8 million, respectively, or $22.0 million, an increase of 16% from the same period in the prior year. Total revenue for the third quarter of fiscal 2003 was $18.9 million, comprised of license revenue and net royalty revenue of $15.6 million and $3.3 million, respectively.
Net income for the third quarter of fiscal 2004, on a generally accepted accounting principles ("GAAP") basis, was $6.2 million or $0.25 per diluted share, an increase of 334% from the same period in the prior year. For the third quarter of fiscal 2003, GAAP net income was $1.4 million or $0.06 per diluted share.
Pro forma net income for the third quarter of fiscal 2004 was $4.2 million or $0.17 per diluted share, an increase of 109% compared to pro forma net income of $2.0 million or $0.09 per diluted share for the third quarter of fiscal 2003. Pro forma net income is comprised of GAAP net income plus, to the extent incurred in any particular quarter, amortization of purchased intangible assets, deferred stock-based compensation expense, in-process research and development from acquisitions and the related income tax effect. A detailed reconciliation of GAAP net income to pro forma net income is included with this press release.
Total revenue for the first nine months of fiscal 2004 was comprised of license revenue and net royalty revenue of $41.8 million and $21.6 million, respectively, or $63.4 million, an increase of 29% from the same period in the prior year. Total revenue for the first nine months of fiscal 2003 was $49.0 million, comprised of license revenue and net royalty revenue of $41.5 million and $7.5 million, respectively.
Net income for the first nine months of fiscal 2004, on a GAAP basis, was $14.7 million or $0.59 per diluted share, an increase of 206%, compared with net income of $4.8 million or $0.23 per diluted share for the first nine months of fiscal 2003.
Pro forma net income for the first nine months of fiscal 2004 was $11.3 million or $0.45 per diluted share, an increase of 105%, compared to pro forma net income of $5.5 million or $0.27 per diluted share for the first nine months of fiscal 2003.
"Artisan's community, the leading pure-play foundries as well as more than 2,000 semiconductor companies that are Artisan licensees, is enjoying a robust market with strong production volume growth. Many of the companies that worked with us and prepared well during the downturn are reaping rewards with Artisan playing a key role in their success," said Mark Templeton, president and chief executive officer of Artisan Components. "The design activity in our user base continues to grow with the majority of our end-user licenses being for our memory products. During the quarter we licensed nearly 9,000 Artisan products to design teams at more than 500 companies. These large numbers demonstrate the appeal of our products as well as the benefits of our business model."
Artisan is hosting a conference call beginning at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 22, 2004 to discuss the results of the third quarter of fiscal 2004 and to review Artisan's progress and outlook. Interested parties may participate in the conference call available by telephone at 800-901-5213 and the passcode is 59647574. There will also be a live webcast available within the investor relations' section of Artisan's website at www.artisan.com. A telephonic replay will be available through Thursday, August 5, 2004 at 888-286-8010. The passcode for the replay is 82334767.
About Artisan Components
Artisan Components, Inc. is a leading provider of physical intellectual property (IP) components for the design and manufacture of complex system-on-a-chip integrated circuits. Artisan's products include embedded memory, standard cell, input/output, analog and mixed-signal components, which are designed to achieve the best combination of performance, density, power and yield for a given manufacturing process. Artisan has licensed its IP components to over 2,000 companies involved in integrated circuit design. Artisan is headquartered in Sunnyvale, California. More information about Artisan Components, including free library access, can be found at www.artisan.com.
Artisan Components and Artisan are registered trademarks of Artisan Components, Inc. All other trademarks or registered trademarks are the property of their respective owners.
Use of Non-GAAP Financial Measures
This earnings release includes financial information presented on both a pro forma and GAAP basis. Pro forma net income is comprised of GAAP net income plus, to the extent incurred in any particular quarter, amortization of purchased intangible assets and deferred stock-based compensation from acquisitions and in-process research and development. Pro forma net income and net income per share are reduced by the amount of additional tax that would be required to be accrued and expensed by us if pro forma results were used instead of GAAP results to calculate our tax liability.
We provide pro forma financial information to enhance the reader's overall understanding of our current financial performance and our prospects for the future. We believe the pro forma results provide useful information to investors by excluding certain expenses that we believe are not indicative of our core operating results. The pro forma measures are included to provide investors and management with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between quarters. Further, these pro forma results are one of the primary indicators management uses for planning and forecasting in future periods. In addition, since we have historically reported pro forma results to the investment community, we believe the inclusion of pro forma numbers provides consistency in our financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.
Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding the growth in design activity by Artisan's end users, the growth in semiconductor production volume, and demand for Artisan's products. These statements are subject to various risk factors including, without limitation, market acceptance of Artisan's products and technologies and the continued demand for semiconductors incorporating Artisan's products and the production of those semiconductors in volume. We refer you also to the documents that Artisan files from time to time with the Securities and Exchange Commission, in particular the section entitled "Factors Affecting Future Operating Results" in Artisan's annual report on Form 10-K and its quarterly reports on Forms 10-Q.
SOURCE: Artisan Components, Inc.