VIRATA Corporation Reports Record $12.0 Million Revenues for Fiscal 2000 Fourth Quarter biz.yahoo.com
Virata Corporation Reports Record $12.0 Million Revenues for Fiscal 2000 Fourth Quarter
Virata Triples Revenue Sequentially, Signs Record New Customer Licenses
SANTA CLARA, Calif., April 26 /PRNewswire/ -- Virata© Corporation (Nasdaq: VRTA - news), a leading DSL semiconductor supplier for broadband communications, today reported record results for its fiscal fourth quarter and year ended April 2, 2000.
Fourth quarter highlights include:
-- Record revenues of $12.0 million, an increase of 196 percent over the
prior quarter
-- Record number of new customer licenses signed in Q4; and record
bookings
-- Additional customers signed-on, which enabled Virata to exceed the 100
customer design win mark
-- New design wins announced with Diamond Multimedia, Ericsson, Orckit and
Siemens
-- Launch of Beryllium and Boron, the world's most integrated ADSL
semiconductors
-- Tripling of its worldwide sales force including new offices established
in Taiwan, Hong Kong and Japan, and a distributor in Korea
-- Completed acquisition of D2 Technologies and pending acquisition of
Inverness Systems; adding key voice/telephony and networking
capabilities to Virata's existing software strengths
-- Announced plans for a two-for-one stock split
``Virata clearly exceeded all expectations in the fourth quarter as revenues rose steeply fueled by the explosive growth of DSL services,'' said Charles Cotton, chief executive officer of Virata Corporation. ``Based on customer orders and forecasts, we anticipate that the rapid growth in DSL will continue in markets worldwide; and also see an expansion in broadband wireless and integrated voice/data devices. Through our existing product portfolio and key technologies acquired from D2 and Inverness Systems; we believe that Virata is well positioned to establish a leadership role in all of these growth markets.''
Added Cotton, ``Moving forward, we anticipate increased demand for our flagship Helium product, which is ramping strongly; and we have secured multiple designs wins for our new Beryllium and Boron communications processors. We believe these developments should underpin Virata's continued growth over the coming year, and we have implemented aggressive sales, marketing and manufacturing capacity programs to scale with that growth and ensure our long-term success.''
Led by higher than expected demand for Virata's Helium(TM) chip, revenue was a record $12.0 million for the three months ended April 2, 2000, a 196 percent and nearly 400 percent increase over revenues in the preceding quarter and prior year's quarter, respectively. During the quarter, Virata also added a record number of new customer licenses and expanded relationships with key customers.
Non-cash charges during the quarter include in-process research and development expense of $5.3 million relating to the acquisition accounting for D2 Technologies, amortization of intangible assets of $3.9 million, unearned stock compensation of $196K, and a National Insurance Contribution provision on stock options of $4.5 million.
The National Insurance Contribution on stock options is associated with our United Kingdom employees. The provision is calculated as the difference between the market value of Virata stock at the close of the period and the strike price of the option multiplied by the 12.2% tax rate. The calculation is applied to all stock options granted to Virata's UK employees, vested and unvested. Due to the significant movement in Virata's share price during the fiscal year ended April 2, 2000, the charge recorded was $4.5 million. The provision will be revised to take account of the movement in Virata's stock price at each balance sheet date. The allocation of the $4.5 million expense, by department, is $2.0 million to research and development, $1.0 million to sales and marketing, and $1.5 million to general and administrative.
Net loss for the quarter was $15.2 million compared with a net loss of $2.3 million in the prior year fourth quarter. Reported net loss per basic and diluted share for the quarter was $0.69 and $0.69 on a pro forma basis compared to a net loss of $1.14 and $0.17 per share respectively in the prior year fourth quarter. Excluding the non-cash charges and the National Insurance Contribution on options, the adjusted net loss for the quarter was $1.3 million and the adjusted net loss per basic and diluted share for the quarter was $0.06. At April 2, 2000, Virata had $78.2 million in cash and investments and working capital of $70.6 million.
For the fiscal year ended April 2, 2000, Virata reported net revenues of $21.8 million, an increase of 135 percent over $9.3 million reported for the prior fiscal year. Net loss for fiscal 2000 was $26.1 million compared with a net loss of $17.2 million for fiscal 1999. Net loss per basic and diluted share on a pro forma basis for the year ended April 2, 2000 was $1.57 per share compared to $1.28 per share for fiscal 1999. Reported net loss per basic and diluted share for fiscal 2000 was $2.80 per share, compared to $8.92 for fiscal 1999. Excluding the non-cash charges and the National Insurance Contribution on options, the adjusted net loss for the year was $10.9 million and the adjusted proforma net loss per basic and diluted share for the year was $0.66.
Virata expects rapid revenue growth to continue, but cautioned that a continued tripling of quarterly revenue was not expected. Commenting on the company's outlook, Andy Vought, chief financial officer said, ``We continue to see strong demand from the US, Asia and Europe and presently anticipate revenue growth of up to 75% sequentially next quarter. Based on current market visibility, we expect revenue growth to continue increasing at rates of 25-33% sequentially in later quarters.''
About Virata Corporation
Santa Clara-based Virata Corporation provides communications processors combined with integrated software modules to manufacturers of equipment utilizing digital subscriber line (DSL) technologies. These ``integrated software on silicon'' product solutions enable customers to develop a diverse range of DSL equipment including modems, gateways and routers targeted at the voice and high-speed data network access, or broadband, market. Virata's products are designed to enable DSL equipment manufacturers to simplify product development, reduce the time it takes for products to reach the market and focus resources on product differentiation and improvement.
Virata is a registered trademark, and Helium is a trademark of Virata. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders
Safe Harbor
Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, those relating to evolving industry standards, the pace of development and market acceptance of Virata's products and the DSL market generally, commercialization and technological delays or difficulties, the impact of competitive products and technologies, competitive pricing pressures, manufacturing risks, the possibility of our products infringing patents and other intellectual property of third parties, product defects, costs of product development and manufacturing, the company's ability to successfully complete the Inverness Systems acquisition in the time period specified or at all, risks associated with the integration of the D2 Technologies and Inverness Systems respective operations with those of Virata, possible disruptive effects of organizational or personnel changes, actions or announcements by competitors and government regulation. In exceptional market conditions the company may make predictive statements about future performance, however due to the unpredictable nature of the market Virata may not be able to nor wish to make further such statements. The company assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect Virata's financial results is included in the documents Virata files from time to time with the Securities and Exchange Commission.
VIRATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
April 2, March 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $60,193 $8,616
Short-term investments 18,006 1,001
Accounts receivable, net 7,524 2,267
Inventories 409 264
Other current assets 2,895 1,232
Total current assets 89,027 13,380
Property and equipment, net 3,222 2,479
Intangible assets 89,113 3,328
Total assets $181,362 $19,187
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,887 $2,112
Accrued liabilities 3,484 1,018
Accrued employee benefits 2,555 869
Accrued compensation tax 4,471 --
Deferred revenue 2,215 489
Capital lease obligation, current 784 850
Total current liabilities 18,396 5,338
Capital lease obligation, long-term 1,178 1,130
Total liabilities 19,574 6,468
Stockholders' equity:
Convertible preferred stock -- 801
Common stock 23 2
Additional paid-in capital 238,857 63,173
Accumulated other comprehensive income 335 871
Unearned stock compensation (691) (1,500)
Accumulated deficit (76,736) (50,628)
Total stockholders' equity 161,788 12,719
Total liabilities and stockholders' equity $181,362 $19,187
VIRATA CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data, unaudited)
Three Months Ended Twelve Months Ended
April 2, March 31, April 2, March 31,
2000 1999 2000 1999
Revenues:
Semiconductor $8,118 $662 $14,041 $2,784
License 2,195 444 3,717 1,628
Services and royalty 609 591 1,724 2,367
Systems 1,109 720 2,295 2,477
Total revenues 12,031 2,418 21,777 9,256
Cost of revenues 6,549 976 11,239 3,997
Gross profit 5,482 1,442 10,538 5,259
Operating expenses:
Research and development 4,156 2,184 12,331 8,323
Selling and marketing 2,262 826 5,350 2,917
General and administrative 2,196 1,503 5,976 5,567
National Insurance
Contribution on options 4,471 -- 4,471 --
Amortization of intangible
assets and other 4,140 554 5,404 1,943
Acquired in-process research
and development 5,324 -- 5,324 5,260
Total operating expenses 22,549 5,067 38,856 24,010
Loss from operations (17,067) (3,625) (28,318) (18,751)
Interest expense (34) (29) (200) (155)
Interest and other income
(expense), net 1,901 1,382 2,410 1,749
Net loss $(15,201) $(2,272) $(26,108) $(17,157)
Basic and diluted net
loss per share $(0.69) $(1.14) $(2.80) $(8.92)
Weighted average common
shares - basic and diluted 21,924 1,989 9,336 1,923
Pro forma basic and diluted
net loss per share (A) $(0.69) $(0.17) $(1.57) $(1.28)
Pro forma weighted average
common shares -
basic and diluted 21,924 13,521 16,599 13,452
Pro forma basic and diluted
adjusted net loss
per share (B) $(0.06) $(0.93) $(0.66) $(1.26)
Pro forma weighted average
common shares -
basic and diluted 21,924 13,521 16,599 13,452
(A) Pro forma basic and diluted net loss per share assumes that the
conversion of the outstanding shares of convertible preferred stock into
common stock that occurred upon the closing of the initial public offering
occurred as of the beginning of the quarter and the year ended March 31,
1999.
(B) Pro forma basis and diluted adjusted net loss per share excludes the
National Insurance Contribution on options, amortization of intangible
assets and other, and acquired in-process research and development
charges. |
