The following press release was published on Business Wire at 1:43 pm on November 11, 1998:
IMP REPORTS SECOND QUARTER FISCAL 1999 RESULTS
The first five paragraphs of the release state:
SAN JOSE, CA., November 11, 1998 -- IMP, Inc. (Nasdaq: IMPX) today announced its financial results for the second fiscal quarter, ending September 27, 1998, of the 1999 fiscal year. Net revenue for the second fiscal quarter of 1999 was $6.7 million as compared to $6.6 million in the prior quarter and $11.0 million for the same period last year. The net loss for the quarter was $3.2 million, or 12 cents per share, compared to a loss of $3.3 million, or 12 cents per share in the prior quarter, and $496,000, or 2 cents per share for the same period last year.
"While it is still too early to say that the industry has past the lowest point in this business cycle, we are encouraged by the recent increase in orders received with requests for shipment in our third fiscal quarter," said Phil Ferguson, President and CEO. "If this trend continues revenue in Q3 should grow significantly over the second quarter. Wafer foundry orders are already ahead of the total shipped last quarter and, although they constitute only 15% of the total received at this time, orders for our finished analog integrated circuit products are more than double those shipped in Q2."
"Our heavy investment in the development of new products continued as we spent 32% of revenue on R & D in the second quarter," continued Mr. Ferguson. "During the quarter we introduced eleven new power management products. These included our second proprietary product for the Electroluminescent (EL) lamp driver market, the IMP525 that allows operation down to very low battery voltages. This brings to 27 the number of standard analog integrated circuits that we have introduced since we restructured the company to address this market."
An agreement signed by the Company for debt financing of up to $10 million in September is not expected to be funded by the lender. As of the date of preparation of this news release, the Company had cash and cash equivalents of approximately $1.7 million as a result of faster than anticipated collection of accounts receivable and higher volumes of shipment earlier in the quarter. Even though, as noted earlier in this release, orders received to date for shipment in the third quarter are ahead of those shipped in the second quarter, business conditions remain uncertain. There can be no assurance that this trend of increased orders will continue or that the Company will be able fulfill all such orders received or that customers will pay their accounts due in a timely manner.
The Company has taken measures to conserve cash and is working with financial institutions to restructure its debt and otherwise improve cash flow. In addition the Company is evaluating all possible strategic options for the Company's future. If none of these actions improve the Company's cash position, there is substantial risk that the Company will not remain financially viable.
The financial tables and full text of the release will be posted on the IMP website at impweb.com as soon as possible.
Statements in this press release regarding IMP's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including, but not limited to demand for the Company's products, foundry utilization, the ability of the Company to develop, manufacture and market new products, demand by end-users for the products produced by the Company's customers, and the other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. |
