Here are the 3Q results. EPS were .06
Note there was a press release a couple of days ago announcing Mosaid had done some HDRAM ASIC design for Taiwan Semiconductor Mfg. Co. If you want details search Canadian Corporate News at
cdn-news.com
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: MOSAID TECHNOLOGIES INCORPORATED
TSE SYMBOL: MSD
FEBRUARY 26, 1997
Mosaid Reports Third Quarter Results
TORONTO, ONTARIO--MOSAID Technologies Incorporated (MSD - TSE)
today reported revenues of $8,954,000 for its third fiscal quarter
ended January 31, 1997, compared to $10,351,000 for the same
period last year, a decrease of 13 percent. Net earnings for the
quarter were $439,000, or $0.06 per share, fully diluted, compared
to $2,423,000, or $0.32 per share, for the same period last year.
For the first nine months of fiscal 1997 the Company recorded net
earnings of $3,507,000 on revenues of $29,491,000, representing a
decrease of 39 percent and an increase of 9 percent, respectively,
over net earnings of $5,715,000 on revenues of $27,016,000 for the
same period last year. Earnings per share on a fully diluted
basis were $0.46, compared to $0.76 for the same period last year.
George J.J. Cwynar, MOSAID President and Chief Executive Officer
noted that the third quarter results confirmed the Company's
earlier predictions for modest performance in the current period
of semiconductor industry slowdown. "Our memory design royalty
revenues were well below our original plan," said Cwynar,
"reflecting the unexpectedly steep reduction in memory pricing.
Also, we continued to experience delays in orders for our memory
test systems as memory manufacturers paused to review their
capital budgets."
The Company invested $6,852,000, or 23 percent of revenues, in
research and development during the first nine months of fiscal
1997, compared to $4,857,000, or 18 percent of revenues, during
the same period last year.
"We are striving to use this period of challenging market
conditions to add to our core capabilities and to expand our long
term growth potential," continued Cwynar. "In addition to our
significantly increased research and development expenditures, the
decline in our bottom line also reflects our continuing investment
in Accelerix Inc., a joint venture aimed at the development of
specialized Application Specific Memory devices for the personal
computer market. We believe that these investments are sound and
will provide appropriate payback."
"While we expect the fourth quarter of fiscal 1997 to remain
challenging, there are signs that the market for our customers has
reached its cyclical low and will begin to gradually improve this
calendar year, with a return to significantly improved industry
conditions in 1998," said Cwynar. "Dataquest, a leading market
research firm, is forecasting growth rates in the memory market of
2 percent in 1997 and 22 percent in 1998. Our objective is to
grow sales faster than the overall memory market.
Our memory design teams continue to be booked to capacity, and
both our operating divisions have developed special expertise in
the field of Synchronous DRAM, a high performance device which is
expected to dominate the memory market. Our Semiconductor
Division has now delivered seven SDRAM designs, and the newly
announced high performance engineering memory test system of our
System Division, the MS4105, is directly aimed at the SDRAM
market. The MS4105 has received excellent market reception and we
expect that shipments of this product will start before the end of
our current fiscal year."
MOSAID Technologies Incorporated is a leading independent memory
chip design house and the leading supplier of engineering memory
test systems. The company designs advanced chips for standard
memory and Application Specific Memory (ASM) requirements and also
designs, manufactures and distributes engineering test systems for
memory chips.
/T/
MOSAID TECHNOLOGIES INCORPORATED
(incorporated under the Ontario Business Corporations Act)
CONSOLIDATED BALANCE SHEET
(in thousands of Canadian dollars)
As at As at
January 31, April 30,
1997 1996
(Unaudited) (Audited)
-----------------------------------------------------
Current Assets
Cash and short term
marketable securities $17,968 $21,818
Accounts receivable 10,500 12,656
Revenues recognized
in excess of amounts
billed 3,613 832
Inventories 5,001 2,978
Prepaid expenses 800 343
------------------------
37,882 38,627
Capital Assets 5,792 4,327
Technology Acquisitions 919 -
Investment in Other
Companies 2,295 1,376
------------------------
$46,888 $44,330
------------------------
------------------------
Current Liabilities
Accounts payable and
accrued liabilities $4,154 $4,544
Income taxes payable 262 1,761
Deferred revenue 278 138
Obligations under
capitals leases -current
portion 14 13
Deferred income taxes
payable 383 252
------------------------
5,091 6,708
Obligations under Capital
Leases 4 16
Deferred Income Taxes 713 795
------------------------
5,808 7,519
------------------------
Shareholders' Equity
Share capital 20,711 19,949
Retained Earnings 20,369 16,862
------------------------
41,080 36,811
------------------------
$46,888 $44,330
------------------------
------------------------
MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
13 weeks Three 39 weeks Nine
ended months ended months
Jan 31, ended Jan 31, ended
1997 Jan 31 1997 Jan 31,
1996 1996
-----------------------------------------------------
Revenues
Operations $8,750 $10,041 $28,719 $25,974
Interest 204 310 772 1,042
------------------- -------------------
8,954 10,351 29,491 27,016
------------------- -------------------
Expenses
Labour and
materials 1,973 2,087 6,495 5,617
Research and
development 2,579 1,567 6,852 4,857
Selling and
marketing 1,392 1,334 4,576 3,912
General and
administra-
tion 1,210 1,310 3,933 3,018
Foreign exchange
loss 55 15 169 56
Bad debts - 10 - 36
Other - - - 300
Gain on sale
of assets - - (670) -
------------------- -------------------
Total expenses 7,209 6,323 21,355 17,796
------------------- -------------------
Earnings before
equity pickup
and taxes 1,745 4,028 8,136 9,220
Equity in loss
of investment 623 - 1,651 -
------------------- -------------------
Earnings before
taxes 1,122 4,028 6,485 9,220
Income tax expense
Current 683 1,394 3,312 3,113
Deferred - 211 (334) 392
------------------- -------------------
Net Earnings 439 2,423 3,507 5,715
Retained Earnings,
beginning of
period 19,930 12,336 16,862 9,044
------------------- -------------------
Retained Earnings,
end of
period $20,369 $14,759 $20,369 $14,759
------------------- -------------------
------------------- -------------------
Earnings per share
Basic $0.06 $0.35 $0.50 $0.83
Fully diluted $0.06 $0.32 $0.46 $0.76
Weighted average number of shares
Basic 7,081,739 6,949,750 7,060,734 6,920,123
Fully
diluted 7,889,462 7,668,945 7,766,129 7,605,784
MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENT OF
CHANGES IN FINANCIAL POSITION
(in thousands of Canadian dollars) (unaudited)
39 weeks ended Nine months ended
January 31, January 31,
1997 1996
-----------------------------------------------------
Operating
Net earnings $3,507 $5,715
Items not affecting
cash
Amortization 1,668 1,215
Loss on disposal
of capital assets 22 69
Equity in loss in
other companies 1,651 -
Deferred income
taxes 49 392
-----------------------------------------------------
6,897 7,391
Change in non-cash
working capital
items (4,854) (3,626)
-----------------------------------------------------
2,043 3,765
-----------------------------------------------------
Investing
Acquisition of
capital assets
- net (3,056) (2,106)
Acquisition of
technology (1,018) -
Investment in
other companies (2,570) (1,375)
-----------------------------------------------------
(6,644) (3,481)
-----------------------------------------------------
Financing
Decrease in
obligations under
capital leases (11) (16)
Issue of common
shares 762 666
-----------------------------------------------------
751 650
-----------------------------------------------------
Net cash outflow (3,850) 934
Cash position,
beginning of
period 21,818 19,364
-----------------------------------------------------
Cash position,
end of period $17,968 $20,298
-----------------------------------------------------
Cash comprises the following:
Cash $ 2,661 $ 3,755
Marketable
Securities 15,307 16,543
------------------------------------------
$17,968 $20,298
------------------------------------------
------------------------------------------
/T/
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