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Gold/Mining/Energy : MOSAID Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Stang who wrote (92)	7/29/1998 6:02:00 PM
From: Stang	Read Replies (1) \| Respond to of 219

NEWS FOR IMMEDIATE RELEASE MOSAID Technologies signals reduced first-quarter expectations OTTAWA, Ontario, Canada - July 29, 1998. MOSAID Technologies Incorporated (TSE:MSD) today announced it expects to incur an after-tax loss of $2 to $3 million before restructuring charge, for its first quarter ending July 31, 1998. A one-time restructuring charge of approximately $4.5 million (approximately $2.9 million after tax) will also be taken in the quarter. The loss is due to lower than expected revenues in the quarter, in both of the Company's two operating divisions, brought about by the continued depressed state of the world's memory markets. According to MOSAID President and CEO George Cwynar, customers in major memory-producing countries such as Korea, Japan and Taiwan are increasingly cautious and constrained with respect to capital equipment spending. Underscoring this general weakness, industry forecasting firm Dataquest has recently downgraded its expectations for worldwide 1998 DRAM revenues, from essentially flat to a likely drop of 23%. This will make 1998 the 3rd consecutive year of DRAM market decline. "Revenues in the first quarter of our 1999 fiscal year will be between $3 and $4 million," said Mr. Cwynar. "We expect to improve significantly on this poor performance in the balance of the year, yielding annual revenues of $22 to $27 million. However, our visibility is limited by both minimal backlog and the general state of uncertainty in our markets. Because of these factors, we have revised our business plan and are adjusting the Company's cost base to be more in line with our lower expectations for the year." The restructuring charge includes severance costs related to a 16 percent reduction in the Company's workforce, the expensing of the balance of the capitalized cost of a specific technologyacquisition, and the write-off of custom items in inventory. Of the restructuring charge, it is expected that $500,000 will require cash outlays. At May 1, 1998, the Company's fiscal year end, the cash and short term marketable securities balance was $19,625,000 and the working capital position was $31,698,000. Full first-quarter financial statements for fiscal 1999 will be released, as scheduled, on August 27, 1998 after the close of the market. 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, including both standard memory and integrated solutions such as Application Specific Memory (ASM) and system-on-a-chip, and also designs, manufactures and markets engineering test systems for memory chips. MOSAID is traded on the Toronto Stock Exchange under the symbol MSD. For a list of recent news releases and financial information, visit the Company's web site at www.mosaid.com. For further information, please contact: Richard Boadway, Sr. Vice President, CFO MOSAID Technologies Incorporated 613-599-9539 ext. 1205