01/13 09:46 Silicon Valley Research Says Q3 to Beat Expectations <SVRI.OB>
Silicon Valley Research Says Q3 to Beat Expectations
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 13, 2000--Silicon Valley Research, Inc. (OTC BB: SVRI) a maker of electronic design automation software, said on Thursday that higher than projected sales meant its third fiscal quarter ending December 31, 1999 would be profitable.
"This quarter is the first profitable quarter we have had in over two years," announced James Benouis, President and CEO. "Several key factors contributed to the quarter being profitable, including our new distribution agreement with the Shearwater Group, a global distributor and reseller of EDA (Electronic Design Automation) software, the reorganization efforts made during calendar 1999 and an increase in new license revenue resulting from sales of the companies new Linux based products ," Mr. Benouis added.
The San Jose, Calif.-based company said revenues for the three-month period would come in at around $.8 million, with sales for the March ending fiscal year now estimated at $2.5 million.
"Because of the significant increase in bookings we have experienced this quarter, we now expect to exceed our earlier estimates for revenues and profits," Mr. Benouis said in a statement.
Mr. Benouis gave no exact figures for expected earnings, but the company had expected losses for the third quarter and the full year (Fiscal 2000, ending March 31, 2000). Now the company anticipates profitability in the March, fourth fiscal quarter. For the year, the company still anticipates an overall loss as the second half profitability will not erase the losses from the first two fiscal quarters.
The sales improvement came as customers upgraded products in anticipation of Y2K concerns and from steady sales of design services as well as from sales of the companies recent porting of its existing software to Red Hat (RHAT) Linux 6.1. The previously announced agreement with the Shearwater Group has also been an important boost for the company's top line.
"Shearwater is giving SVR broader representation and getting us in front of new and past customers more effectively," Mr. Benouis commented.
Silicon Valley Research will release its Fiscal Third Quarter earnings on January 19, 2000 after the market close.
Founded in 1979, Silicon Valley Research, Inc. develops, markets and supports innovative IC physical design software for floorplanning, placement, routing, custom layout and parasitic extraction of deep submicron Integrated Circuits (ICs). SVR also provides design consulting services and support to its customers. The advanced technology in SVR's production-proven tools results in dense, high yielding, high performance chips. Headquartered in San Jose, California, SVR has sales representatives in the United States, Asia, and Europe. Information on potential factors which may affect the Company's financial results are included in the Company's Quarterly Reports on Form 10-Q and the Company's Annual Report on Form 10-K.
The preceding paragraphs include forward-looking statements. Such forward-looking statements involve risks and uncertainty, and actual results of the Company could vary materially from the forward-looking statements as a result of factors including, without limitation, liquidity and capital resources, new products and rapid technological change, dependence on certain customers and potential fluctuations in quarterly operating results and lengthy sales cycles. Further information on potential factors which may affect the Company's financial results are included in the Company's Quarterly Reports on Form 10-Q and the Company's Annual Report on Form 10-K. (For additional information, visit SVR's Web site, svri.com)
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CONTACT: Silicon Valley Research, Inc.
James O. Benouis, 408/361-1018
benouissvri.com |
