Tundra Semiconductor Corporation Announces Record Revenue And Earnings For The Quarter
Ended August
KANATA, Ontario--(BUSINESS WIRE)--Aug. 25, 1999--Tundra Semiconductor Corporation (TSE:TUN. - news), a leader in silicon solutions for embedded systems, today announced record revenue
and earnings for its first quarter of fiscal 2000, which ended on August 1, 1999.
This quarter represented the Company's twelfth consecutive quarter of continued revenue growth and builds on the momentum achieved in previous quarters.
Revenue for the first quarter of fiscal 2000 was $8.6 million, up 44 percent from the $6.0 million achieved in the first quarter of fiscal 1999. Net earnings for the quarter were up 104 percent to $808,000, as
compared to the $396,000 reported for the same quarter of the previous fiscal year. Fully diluted earnings per share for the first quarter of fiscal 2000 were $0.06, as compared to $0.04 per share in the first
quarter of fiscal 1999.
Tundra is very pleased with these financial results and the growth of the business in both the VME and the PCI product segments. Tundra is also encouraged by its expanding customer base, and the continued
growth in design-wins for existing and recently introduced products. Design-win growth is key to future revenue growth. The increasing number of customers moving to volume production for our PCI product
line also validates the expectation of revenue growth for this Tundra product family.
Another significant milestone for Tundra this quarter which has added focus to our Far East sales efforts was the appointment of a new Regional Sales Manager for the Asian region. Tundra has also added a
distributor in Hong Kong that will help our reach into China. With the level of economic activity increasing in Asia, Tundra opted to capitalize on this potential, and these developments have lead to significant
increases in the demand for our products in the Asian market. ``This is an exciting time for Tundra, especially since the revenue potential we knew existed in Asia is now beginning to come to fruition,' said Dr.
Adam Chowaniec, President & CEO of Tundra. ``We are looking forward to what the future has in store for Tundra in this region.'
During the quarter, Tundra announced the PowerSpan product initiative. PowerSpan is a key milestone in the evolution of the Company from a key supplier of bus-bridging components into a leader of
systems-on-silicon products for interconnecting embedded computer systems. The PowerSpan was launched at a major trade show in Silicon Valley early in the quarter and prototype samples will ship to
customers late this calendar year. ``The response of our customer base to the announcement of the PowerSpan, its architecture, and performance, has been very encouraging,' said Dr. Chowaniec. ``We are
very excited by the potential of this product in the fast growing datacom and telecom market. This puts Tundra in a position of leading architectural decisions in these markets.'
Tundra Semiconductor Corporation designs, develops, and markets advanced interconnect solutions for embedded computer systems. Tundra chips are essential devices found in a broad spectrum of
applications, including telecommunications, data communications, wireless communications, industrial automation, and avionics. Tundra markets and sells its products worldwide through its network of direct
sales, distributors and manufacturers' representatives. More information about Tundra is available at www.tundra.com.
Tundra Semiconductor Corporation is a public company whose common shares are listed for trading on The Toronto Stock Exchange (TUN) in Canada. All figures, unless otherwise noted, are stated in
Canadian dollars in accordance with accounting standards accepted in Canada.
The Company cautions that these statements are based on current expectations that are subject to risks and uncertainties. Actual results may differ due to factors such as customer demand, product shipping
schedules, product mix, competitive products and pricing pressures, and changes in the embedded systems market specifically. Additional information identifying risks and uncertainties is contained in the
Company's filings with the various provincial securities commissions.
Summary of financial statements to follow:
Tundra is a registered trademark of Tundra Semiconductor Corporation.
Tundra Semiconductor Corporation
Consolidated Statements of Earnings and Retained Earnings
(Canadian dollars, amounts in thousands except per share data)
For the fiscal quarter ended
August 1 August 2
1999 1998
(unaudited) (unaudited)
Revenue $8,641 $6,005
Cost of revenue 4,008 2,798
-------------------------
Gross margin 4,633 3,207
Expenses
Sales and marketing 1,360 1,105
General and
administration 675 539
Research and
development 1,799 1,111
-------------------------
3,834 2,755
Earnings from op2
Interest and other income 444 76
-------------------------
Earnings before
income taxes 1,243 528
Income tax provision 435 132
-------------------------
Net earnings 808 396
Retained earnings
(deficit),
beginning of period 1,698 (486)
--------------------------
Retained earnings
(deficit),
end of period $2,506 ($90)
---------------------------
---------------------------
Earnings per share
Basic $0.06 $0.04
Fully diluted $0.06 $0.04
Weighted average number
of shares outstanding
Basic 13,749 10,061
Fully diluted 15,570 11,393
Tundra Semiconductor Corporation
Consolidated Balance Sheets
(Canadian dollars in thousands)
August 1 April 30
1999 1999
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash
equivalents $31,424 $34,463
Accounts receivable 4,570 3,973
Inventories 6,035 3,057
Investment tax credits 1,165 1,165
Prepaid expenses and
other current assets 2,643 2,361
--------------------------
45,837 45,019
Deferred income taxes 0 236
Capital assets 5,042 4,138
--------------------------
$50,879 $49,393
--------------------------
--------------------------
CURRENT LIABILITIES
AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $3,940 $3,333
Income taxes payable 71 0
--------------------------
4,011 3,333
Shareholders' equity
Share capital 44,362 44,362
Retained earnings 2,506 1,698
--------------------------
46,868 46,060
--------------------------
$50,879 $49,393
--------------------------
--------------------------
Tundra Semiconductor Corporation
Consolidated Statements of Cash Flows
(Canadian dollars in thousands)
August 1 August 2
1999 1998
(Unaudited) (Unaudited)
Operating activities
Net earnings $808 $396
Item not affecting cash:
Amortization 617 279
Deferred income taxes 236 0
--------------------------
1,661 675
Cash effect of changes in:
Accounts receivable (597) 286
Inventories (2,978) 242
Refundable investment
tax credits 0 (147)
Prepaid expenses and
other current assets (282) (134)
Accounts payable and
accrued liabilities 607 12
Income taxes payable 71 132
--------------------------
(1,518) 1,066
--------------------------
Investing activities
Acquisition of
capital assets (1,521) (781)
--------------------------
Financing activities
Net proceeds on the
issue of common shares 0 9
--------------------------
Increase, (decrease)
in cash and
cash equivalents (3,039) 294
Cash and cash equivalents
beginning of period 34,463 5,009
---------------------------
Cash and cash equivalents
end of period $31,424 $5,303
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