MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 9, 1997--Quickturn
Design Systems, Inc. (NASDAQ:QKTN) today announced that for the
quarter ended March 31, 1997, revenue was $21.4 million versus
$23.9 million in the first quarter of 1996.
The reported net loss was $2,118,000 or $0.13 per share, compared
to net income and earnings per share in the first quarter of 1996
of $2,744,000 or $0.16 per share. This net loss includes a one-time
expense of $1.2 million or $0.05 per share net of tax from the
February 1997 pooling-of-interests merger with SpeedSim, Inc.
Keith R. Lobo, president and CEO said, "The decrease in revenue for
the first quarter of 1997 was clearly a departure from the
company's steady performance of the last eight quarters. Recently
we have seen customer decisions on design verification purchases
get pushed out. We believe this action is a combination of our
customers reacting to structural changes within their respective
segments of the electronics industry and to near-term uncertainty
generated by new competition."
"While we continue to express short-term caution about the
potential timing of a return to historic order rates, we remain
firmly committed to our fundamental goal of being the leading
supplier of high performance design verification technologies to
the semiconductor and electronics industries," said Lobo.
"Two important initiatives launched during the fiscal first quarter
evidence our focus on our fundamental goal. Quickturn announced a
strategic technology and marketing partnership with Cadence Design
Systems to create a combined methodology for the co-verification of
complex IC and electronic system designs. The cooperative effort
will develop integration between the companies' product lines,
delivering a seamless design verification flow to common customers.
Quickturn also unveiled its Affinity Partnership Program, a new
initiative formalizing the company's strategic relationships with
third-party design and verification technology suppliers.
Quickturn's purpose in establishing Affinity is to collaborate with
other vendors to provide robust, "best-in-class" solutions for the
verification of complex chips and electronic systems," said Lobo.
Continued Lobo, "On the new product front, we made our first
production shipments during the first quarter of the CoBALT(TM)
technology developed in cooperation with IBM. In addition, our
newly acquired SpeedSim(TM) product continues to lead the industry
in the technology of cycle-based simulation."
"CoBALT and SpeedSim both reinforce Quickturn's technology and
market lead at a time when our customers demand state-of-the-art
solutions for the toughest design verification problems," concluded
Lobo.
This press release contains forward-looking statements. Actual
results could differ materially from those described in the
forward-looking statements as a result of factors including, but
not limited to, the following: (i) the company expects increased
competition which could result in lost sales or price erosion; (ii)
the company's patents and other proprietary rights may not ensure
adequate protection against competition; (iii) the company serves
the electronics and semiconductor industries which are noted for
rapidly changing needs, and there can be no assurance that
Quickturn's product enhancements or new product introductions will
keep pace with or meet those rapidly changing needs or that new
products offered by others will not be superior to those offered by
Quickturn; (iv) there can be no assurance that Quickturn can retain
the services of key employees and key suppliers upon which the
company is dependent to provide product advances, timely production
and high levels of product quality and reliability; and (v) the
decision of customers to purchase the company's products involves a
lengthy sales cycle, which could result, among other things, in
fluctuations of operating results and inventory obsolescence if
expected orders are delayed or not received.
Quickturn Design Systems, Inc. is the industry pioneer in
cycle-based simulation and reprogrammable emulation products for
design verification of complex ICs and electronic systems. The
company's emulation products create a "virtual silicon"(TM)
representation of an electronic design to permit concurrent
verification of ASICs and full-custom ICs with system hardware and
software. The company's high performance cycle-based simulation
software is used to verify digital logic designs. Quickturn's
customers are the leading electronics companies in the
high-performance computing, multimedia, graphics and communications
markets. Quickturn's verification solutions enable these companies
to improve design quality, lower overall development cost and
shorten time to market. Quickturn Design Systems is headquartered
at 440 Clyde Avenue, Mountain View, CA 94043; Telephone:
415-967-3300. For more information, send e-mail to
info@quickturn.com or visit the Quickturn website at
quickturn.com .
Quickturn, SpeedSim, CoBALT and virtual silicon are trademarks of
Quickturn Design Systems, Inc.
Quickturn Design Systems, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands except per share data)
Three Months Ended
March 31,
1997 1996(a)
(unaudited) (unaudited)
Revenue $ 21,402 $ 23,868
Cost of revenue 6,834 7,144
------ -------
Gross profit 14,568 16,724
Operating expenses:
Research and development 5,787 4,267
Sales and marketing 8,534 7,187
General and administrative 2,508 1,563
Merger related costs 1,200 0
------ ------
Total operating expenses 18,029 13,017
Operating income (loss) (3,461) 3,707
Other income, net 392 312
------- -----
Net income (loss) before provision
for income taxes (3,069) 4,019
Provision for income taxes (951) 1,275
------- -----
Net income (loss) $ (2,118) $ 2,744
========= ========
Net income (loss) per share $ (0.13) $ 0.16
========= ========
Shares used in per share calculations 16,562 17,445
========= ========
(a) Q1 1996 restated to reflect pooling-of-interests merger with
SpeedSim, Inc.
Quickturn Design Systems, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
March 31, Dec. 31,
1997 1996(a)
--------- --------
(unaudited)
Assets
Current assets
Cash and marketable securities $ 22,918 $ 36,404
Accounts receivable, net 21,668 21,768
Inventories 14,163 10,141
Prepaid expenses and
other current assets 8,497 8,862
-------- --------
Total current assets 67,246 77,175
Marketable securities 27,972 18,198
Fixed assets, net 10,560 11,243
Other assets 4,960 5,361
-------- --------
$110,738 $111,977
======== ========
Liabilities
Current liabilities
Current portion of long-term debt $ 2,961 $ 3,502
Accounts payable and
accrued liabilities 15,467 15,480
Deferred revenue 10,686 8,950
-------- --------
Total current liabilities 29,114 27,932
Stockholders' Equity
Stockholders' equity 81,624 84,045
-------- --------
$110,738 $111,977
======== ========
(a) Restated to reflect pooling-of-interests merger with SpeedSim,
Inc.
CONTACT: Quickturn Design Systems, Inc.
Raymond K. Ostby, 415/694-6633
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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