PTEC had a great first quarter and looking forward their future looks very bright. Highlights of the conference call are below.
PTEC reported 10 cents a share verses the street estimate of 7 cents.
PTEC announced two very significant new customers: Transmeto with their new chip and Network Appliance with their Eye Opener device. These wins open up a completely new and growing market (silicon to browser) for PTEC.
PTEC BIOS market share is 70% and growing and the PC market is growing. PTEC is very strong in ASIA where the BIOS market is growing and they are expanding into China.
ASP down slightly from previous quarter because a seasonal shift from desktop to laptops, but ASP's are the same as the first quarter last year. Licensing revenue was up 13% to a record $27.4M. Gross margins were 82%, which is up from last year and above analyst expectations. Looking forward the margin trend looks good and they expect margins to be approximately the same.
RD included $900,000.00 in a non-recurring fee and looking forward, they expect R&D costs to be in the low 20% range.
They experienced no Y2K BIOS problems and they may take back some of the $3.2 million charge they took in the 4th quarter.
Phoenix net on schedule and they will add partners and initiatives this Quarter.
10,000,000 PC motherboards shipped with Phoenix Net software last quarter. This beat their initial estimate of 8,000,000.00. 5 of 13 Mother board companies shipped product and now PTEC is delivering to additional motherboard companies. PTEC will start to recognize revenue from Phoenix net this quarter and they expect additional sign ups and deployments. Revenue from Phoenix net will accelerate in Q3 and 4.
inSilicon revenues were up 8%, and they had their first profit of $47,000.00. PTEC will retain approximately 75% of inSilicon. They expect to raise at least $40,000,000 in the IPO, which equates to a market cap of at least $160,000,000.00.
Comments from analyst were "We are very happy" and Good quarter.
jd |
