OTTAWA, Ontario, Canada – October 29, 2004 - MOSAID Technologies Incorporated (TSX:MSD) today announced preliminary results for the second quarter of fiscal year 2005, ended October 22, 2004.
Revenues for the second quarter of fiscal year 2005 are expected to be approximately $7 million, with an estimated net loss of approximately $1 million to $1.2 million. The Company had previously forecast revenues of $8 million to $8.5 million and provided guidance for a loss of $500,000 to break-even.
"The shortfall in revenues for the second quarter is due to the delay of a tester sale in our Systems Division," said George Cwynar, President & CEO of MOSAID. "We are seeing slowing growth in the semiconductor markets and the attendant delays in tester orders. However, the Systems Division is still expected to record a profitable second quarter while making good progress in its development of next generation tester products."
"Earnings were impacted not only by the loss of the tester sale but also by higher than expected litigation expenses," said Cwynar. "We have previously commented that we are pleased with the expedited court schedule set by Judge Martini in our case against Samung, but this does carry with it a higher, current rate of litigation expense."
These results are preliminary and unaudited, and are subject to change. Final second quarter results for fiscal 2005 are scheduled to be released on Thursday, November 18, 2004.
Conference Call and Webcast
Management will hold a conference call and webcast today, Friday, October 29 at 10:00 a.m. (EST). Participants wishing to access the conference call should dial 1-800-814-4890. The conference call will also be webcast live at www.mosaid.com
, and subsequently archived on MOSAID's web site. A rebroadcast of the conference call will be available until midnight on Friday, November 5, 2004. To access the rebroadcast, please dial 1-877-289-8525 and enter 21100117#.
MOSAID Technologies Incorporated makes memory better through the development and licensing of intellectual property and the supply of memory test and analysis systems to semiconductor manufacturers, foundries and fabless semiconductor companies around the world.
Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit the Company's web site at www.mosaid.com.
Forward Looking Information
This document may contain forward-looking statements relating to the Company’s operations or to the environment in which the Company operates. Such statements are based on current expectations that are subject to a variety of risks and uncertainties that are difficult to predict and/or beyond MOSAID’s control. Actual results may differ materially from those expressed in any forward-looking statements, due to factors such as customer demand and timing of purchasing decisions, product and business mix, competitive products, pricing pressures as well as general economic and industry conditions. MOSAID assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in any forward-looking statements. Additional information identifying risks and uncertainties is contained in other public filings with the Ontario Securities Commission.