Thursday December 16, 4:07 pm Eastern Time
Company Press Release
Integrated Systems Reports Third Quarter
Record Revenue of $43.6 Million
Product Revenue Increased 36% and Total Revenue
Increased 25% Over the Third Quarter of Fiscal Year 1999
SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 16, 1999-- Integrated Systems, Inc. (NASDAQ:
INTS - news) today reported total revenue of $43.6 million for the third quarter of fiscal year 2000,
ended November 30, 1999, compared to total revenue of $35.0 million for the third quarter of fiscal
year 1999, representing a 25% increase. Product revenue for the quarter increased 36%, while services
revenue which includes product maintenance and consulting contracts, was up 8% over the third
quarter of fiscal year 1999. Net income in the third quarter of fiscal year 2000, excluding amortization
of intangibles, acquisition-related expenses and the associated tax effects, was $4.2 million or $0.17
per diluted share. Including the aforementioned expenses, net income was $2.7 million, or $0.11 per
diluted share, as compared to $0.14 per diluted share for the third quarter of fiscal year 1999.
For the nine months ended November 30, 1999, total revenue was $111.3 million, an increase of 13%
from $98.4 million reported for the same period last year. Excluding amortization of goodwill, in
process research and development, acquisition-related expenses and the associated tax effects, net
income was $6.1 million or $0.26 per diluted share in the first nine months of fiscal year 2000. This
compares to $8.9 million of net income or $0.37 per diluted share for the same period last year,
excluding unusual items and a one-time tax benefit, which occurred in the first quarter of fiscal year
1999.
Including the amortization of goodwill, in process research and development, acquisition related
expenses and the associated tax effects, a net loss of $4.5 million or ($0.19) per share was recorded in
the first nine months of fiscal year 2000, as compared to net income of $9.6 million, or $0.40 per
diluted share for the nine months of fiscal year 1999 which included unusual items and a one-time tax
benefit.
``During the past year our focus has been on returning ISI to 20+% growth,' said Charles M.
Boesenberg, President and CEO of Integrated Systems. ``I am pleased to see the strong momentum in
our business around the world.'
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Other highlights of Q3 included:
-- pRISM+©development seats increased 34% over third quarter
fiscal year 1999 with one-fourth of the seats representing new
design wins.
-- Diab-SDS sales of data compilers and debugger tools increased 44%
over fiscal year 1999.
-- NEC, Hitachi, and National Semiconductor joined the Vantage
Internet Appliance program.
-- Isochron Data Corp will deploy pSOSystem(TM) to power on-line
vending machines.
-- A definitive agreement to merge with Wind River was signed.
In addition, following quarter-end, Motorola and ISI signed an agreement to license pSOS+(TM) for
use in future Motorola wireless cellular and subscriber devices.
``Motorola's decision to license pSOS+, along with our Diab compilers and SDS debuggers, validates
ISI's strategy of providing total solutions for the development of embedded products,' stated
Boesenberg.
A conference call will be held today at 1:45 PM (PST). To be connected to the call, please dial (612)
332-1214 or (612) 288-0337. There will also be a replay of the call available starting at 5:00 PM
through December 23, 1999. To listen to the replay dial, (800) 475-6701 in the U.S. and (320)
365-3844 internationally. The access code for the replay is 483453. Additionally, a live Webcast of the
call will be available on our website at www.isi.com.
Except for the historical information contained herein, the matters discussed in this news release are
forward looking statements that involve risks and uncertainties, including, but not limited to, the timely
availability and acceptance of recently announced and future products, the cost of developing and
introducing new products, the impact of competitive products and pricing, the management of growth,
the successful integration of acquisitions, sufficient availability of qualified personnel, changes in
international operations, including exchange rate risks, changes in market conditions for the
Company's products and other risks discussed from time-to-time in the Company's Securities and
Exchange Commission reports.
Regards
Neil |
