IMP Reports Fourth Quarter and Fiscal Year-End Results;
Quarterly Revenue Grows 12%, Loss Narrows
Business Wire - May 06, 1998 17:07
%IMP IMPX %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW P%BW
SAN JOSE, Calif.--(BUSINESS WIRE)--May 6, 1998--IMP, Inc. (NASDAQ:IMPX) today
announced its financial results for the fourth fiscal quarter and the 1998 fiscal year ending March 29,
1998.
Net revenue for the fourth fiscal quarter of 1998 grew 12% to $9.0 million as compared to $8.0 million
for the same period last year. The operating loss was $869,000 compared to a $2.5 million loss for the
corresponding period. Excluding R&D license fees of $612,000 associated with the acquisition of new
products, the equivalent operating loss for the quarter was $257,000, a reduction of ten times. The net
loss for the quarter was $1.17 million, or $0.04 cents per share, compared to a loss of $2.7 million, or
$0.10 cents per share, for the same period last year.
Net revenue for fiscal 1998 was $40.4 million, compared to $64.9 million for fiscal 1997. The company
reported a loss of $3.8 million, or $0.13 cents per share for the year. This is a reduction of 69% as
compared to the loss of $12.4 million, or $0.44 cents per share for the prior year.
"We were pleased to announce the introduction, and to begin customer sampling, of our first power
management circuit during the quarter. The IMP803 high-voltage device is aimed at Electroluminescent
(EL) lamp driver applications in portable electronics and mobile communications equipment," said Phil
Ferguson, President and CEO. "For the year, the Company invested $9.0 million, 22.2% of sales, in
new product and process R&D, with our primary focus on addressing strategic product opportunities
in the power management and data communications interface analog integrated circuit (IC) markets.
This R&D investment includes $962,000 in product license fees. As a result of this effort, over the
next few months we should begin to see first silicon on mask sets capable of generating up to thirty
new products."
"Due to the uncertainties expressed by a number of our foundry customers for their near-term
prospects in the Asian-Pacific market, we view the next three to six months with caution, like many
other companies in our industry," continued Mr. Ferguson. "However, we plan to continue to invest in
the new products and manufacturing capability essential for the long-term future of the Company and
its shareholders while closely managing our cost structure. During the quarter a customer provided
$1.2 million in capital equipment which has been installed in the IMP wafer fabrication facility and is
now in operation. The new equipment extends the technical capabilities and production capacity of the
fab. After investing an additional $1.1 million of IMP cash in new manufacturing equipment and
associated facility improvements, together with the product licenses noted above, we ended the quarter
with $11.8 million in cash."
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 new products,
demand by end-users of 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.
IMP, Inc., designs, manufactures and markets standard-setting analog (linear and mixed-signal)
integrated circuits and specialty analog wafer foundry processes for data communications interface
and power management applications in computer, communications, and control systems world-wide.
Products are manufactured on CMOS, BiCMOS, and EEPROM processes in the company's ISO
9001 qualified wafer fabrication plant in San Jose, California.
For further information on the Company, please visit our web site at impweb.com, or call
IMP's new InvestorREACH Interactive Shareholder Information Service on 1-888-323-2019. This
service supplies IMP shareholders with comprehensive corporate information by telephone, fax, and
mail. It provides access to audio and fax versions of the latest news and financial press releases, direct
connection to the Company's Transfer Agent, and also offers investors the ability to direct specific
questions to IMP management.
IMP, Inc.
STATEMENT OF OPERATIONS
(amounts in thousands except per share data)
(unaudited)
Three Months Ended
March 29, March 30,
1998 1997
Net revenues $ 8,995 $ 8,028
Cost of revenues 6,552 6,703
Research and development 1,993 2,058
R&D license fees 612 --
Selling, general and
administrative 707 1,763
Restructuring charges -- --
Operating costs and expenses 9,864 10,524
Operating income (loss) (869) (2,496)
Interest and other expenses (net) (297) (285)
Income (loss) before provision for
income taxes (1,166) (2,781)
Provision for income taxes -- 70
Net (loss) $ (1,166) $ (2,711)
Basic and diluted loss per share $ (.04) $ (.10)
Weighted average shares outstanding 28,247 28,183
STATEMENT OF OPERATIONS
(amounts in thousands except per share data)
(unaudited)
Twelve Months Ended
March 29, March 30,
1998 1997
Net revenues $ 40,420 $ 64,891
Cost of revenues 29,194 53,889
Research and development 7,998 10,286
R&D license fees 962 --
Selling, general and
administrative 5,142 10,000
Restructuring charges -- 1,862
Operating costs and expenses 43,296 76,037
Operating income (loss) (2,876) (11,146)
Interest and other expenses (net) (923) (1,221)
Income (loss) before provision for
income taxes (3,799) (12,367)
Provision for income taxes -- --
Net (loss) $ (3,799) $(12,367)
Basic and diluted loss per share $ (.13) $ (.44)
Weighted average shares outstanding 28,229 28,153
IMP, Inc.
CONDENSED BALANCE SHEET
(amounts in thousands)
(unaudited)
March 29, March 30,
1998 1997
ASSETS
Cash and cash equivalents $ 11,819 $ 13,306
Accounts receivable 5,357 6,112
Inventories 3,064 3,306
Other current assets 950 759
Total current assets 21,190 23,483
Leasehold improvements and
equipment, net 10,384 13,713
Other long term assets 375 75
Total assets $ 31,949 $ 37,271
LIABILITIES AND STOCKHOLDERS
EQUITY
Accounts payable and other current
liabilities $ 8,248 $ 6,424
Current portion of debt and capital lease
obligations and notes payable 6,930 7,472
Total current liabilities 15,178 13,896
Long term debt and capital lease
obligations 6,173 9,074
Total liabilities 21,351 22,970
Capital stock 70,400 70,304
Retained earnings (55,905) (52,106)
Treasury stock (3,897) (3,897)
Total liabilities and stockholders equity $ 31,949 $ 37,271
CONTACT: IMP, Inc. (EDITORIAL CONTACT)
David A. Laws, 408/434-1283
or
Morgen-Walke Associates (ANALYST CONTACT)
Chris Danne, Jeannine Lewan, 415/296-7383
Sandy Badurina/Deborah Szajngarten, 212/850-5600 or
212/850-5698 |
