AUGUST 24, 2000 - 16:00 EDT
MOSAID announces first quarter results: Continued strong
growth in Semiconductor and Systems revenues
OTTAWA, ONTARIO--MOSAID Technologies Inc. (TSE:MSD) today reported
revenues of $18,286,000 for its first fiscal quarter ended July
28, 2000, representing an increase of 89 percent over the
$9,672,000 recorded for the same period last year.
Net earnings for the quarter were $1,344,000 compared to net
earnings of $497,000 for the same period last year, an increase of
170 percent. Earnings per share on a fully diluted basis were
$0.15 for the quarter, compared with $0.07 for the corresponding
quarter last year, an increase of 114 percent.
The Company's increased revenues reflect strong contributions from
its patent licensing program and from sales of its multiple lines
of engineering memory test equipment.
"It's been a very active quarter for us," said George Cwynar,
President and CEO of MOSAID Technologies. "Many achievements
announced in the quarter have contributed to the stronger
financial performance - the licensing of our memory patents to
Hitachi, the multiple orders for testers received from Samsung,
and the development of an embedded high speed DRAM macrocell to
operate with Analog Devices' digital signal processors. Several
others relate primarily to our future - the delivery of functional
silicon samples for two of our networking chips, the launch of our
new line of test equipment for memory modules, and the broadening
of our relationship with and investment in Atmos, which is
developing and licensing DRAM compilers. These achievements
reflect the vibrancy of our business thrusts in networking chips,
automatic test equipment (ATE) and the licensing of our
intellectual property."
"The strong revenue growth and backlog provide us with the
confidence to increase our commitment to research and development
to yield the new products and intellectual property which are
strategic to the Company's continued success in its three areas of
business", said Richard Boadway, Senior Vice President and CFO.
"R&D represents 38 percent of revenues this quarter, as it did for
our last fiscal year. The revenues generated by this R&D,
stemming from the development of families of networking chips, new
intellectual property and our new generations of ATE, will be
realized later this year and in the years to come."
During the quarter, the Company's cash and short-term marketable
securities declined to $25,761,000, but working capital remained
roughly level with the previous quarter at $36,773,000. Cash was
used to make investments in Atmos Corporation and Acuid
Corporation Limited. These investments were made in conjunction
with broader strategic relationships to develop and market DRAM
compilers and memory module testers respectively.
About MOSAID
MOSAID Technologies Incorporated is an independent semiconductor
company with a 25-year history of design innovation. MOSAID's
Semiconductor Division is a fabless provider of high performance
products for the networking market. The company's Systems Division
is the leading supplier of engineering memory test and analysis
systems for memory device design and quality. MOSAID is based in
Ottawa, Ontario, Canada with offices in Austin, Texas, Santa
Clara, California, London, U.K., and Tokyo, Japan. For more
information, visit the Company's web site at www.mosaid.com.
/T/
THREE FINANCIAL STATEMENTS FOLLOW
MOSAID TECHNOLOGIES INCORPORATED
(incorporated under the Ontario Business Corporations Act)
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars)
As at As at
July 28 April 28
2000 2000
(Unaudited) (Audited)
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Current Assets
Cash and cash equivalents $9,862 $6,046
Short-term marketable securities 15,899 25,101
Accounts receivable 11,526 9,486
Income taxes receivable 1,721 1,721
Revenues recognized in excess of amounts billed 1,656 1,860
Inventories 5,276 4,690
Prepaid expenses 1,621 1,163
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47,561 50,067
Capital Assets 18,557 18,107
Long-term Investments 4,732 1,482
Future Income Taxes Recoverable 5,101 4,627
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$75,951 $74,283
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Current Liabilities
Accounts payable and accrued liabilities $8,540 $10,836
Mortgage payable 153 150
Deferred revenue 2,095 1,618
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10,788 12,604
Mortgage Payable 5,513 5,553
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16,301 18,157
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Shareholders' Equity
Share capital 40,756 38,576
Retained earnings 18,894 17,550
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59,650 56,126
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$75,951 $74,283
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MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(in thousands of Canadian dollars, except per share amounts)
13 weeks 13 weeks
ended ended
July 28 July 30
2000 1999
(unaudited) (unaudited)
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Revenues
Operations $17,948 $9,459
Interest 338 213
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18,286 9,672
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Expenses
Labour and materials 2,870 1,430
Research and development 6,987 4,020
Selling and marketing 4,403 2,150
General and administration 1,850 1,520
Restructuring - (179)
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16,110 8,941
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Earnings from operations 2,176 731
Income tax expense 832 234
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Net earnings 1,344 497
Retained earnings, beginning of period 17,550 15,646
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Retained earnings, end of period $18,894 $16,143
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Earnings per share
Basic $0.16 $0.07
Fully diluted $0.15 $0.07
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Weighted average number of shares
Basic 8,662,116 7,207,827
Fully diluted 10,379,971 8,251,505
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MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
13 weeks 13 weeks
ended ended
July 28 July 30
2000 1999
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Operating
Net earnings $1,344 $497
Items not affecting cash
Amortization 1,372 1,234
Loss on disposal of capital assets 3 3
Future income taxes recoverable (474) (701)
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2,245 1,033
Change in non-cash working capital items (4,699) 1,677
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(2,454) 2,710
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Investing
Acquisition of capital assets - net (1,825) (1,978)
Acquisition of short-term marketable-securities (10,089) 0
Proceeds on maturity/disposal of short-term market 19,291 1,524
Long-term investments (3,250) (1,066)
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4,127 (1,520)
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Financing
Repayment of mortgage (37) (34)
Issue of common shares 2,180 193
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2,143 159
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Net cash inflow 3,816 1,349
Cash and cash equivalents, beginning of period 6,046 3,576
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Cash and cash equivalents, end of period $9,862 $4,925
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