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NeoMagic(R) Corporation Reports Second Quarter Fiscal 1999 Results
SANTA CLARA, Calif., Aug. 12 /PRNewswire/ -- NeoMagic Corporation (Nasdaq: NMGC) today reported net sales for the second quarter of fiscal 1999 of $53.4 million, an increase of 117% compared to $24.6 million for the second quarter of fiscal 1998, and an increase of 12% compared to $47.7 million for the first quarter of fiscal 1999.
Net income for the second quarter of fiscal 1999 was $7.0 million, or $0.27 per share, and reflects an effective tax rate of 35%. Net income for the second quarter of fiscal 1998, which reflects an effective tax rate of 15%, was $4.0 million, or $0.15 per share. Assuming that a comparable effective tax rate of 35% had applied to the second quarter of fiscal 1998, net income and earnings per share would have been $3.0 million or $0.12 per share. Net income and earnings per share for the first quarter of fiscal 1999 was $6.7 million or $0.26 per share.
Net sales for the fist six months of fiscal 1999 were $101.1 million, an increase of 135.7%, over the $42.9 million of net sales reported in the first six months of fiscal 1998. Net income for the first six months of fiscal 1999 increased to $13.6 million, or $0.52 per share, compared to net income of $6.1 million or $0.25 per share in the first six months of fiscal 1998.
Second Quarter Highlights
"Our financial results for the quarter demonstrate the strong market leadership we have achieved with our MagicGraph128 family of multimedia accelerators," said NeoMagic's President and CEO, Prakash Agarwal. "During the quarter, we saw more than 20 notebook manufacturers, including Acer, Compaq, Dell, Gateway, IBM, Micron, NEC, Panasonic, Sharp, Sony, and Toshiba, introduce over 30 new notebook models incorporating a NeoMagic multimedia accelerator. In May, NeoMagic was named the revenue leader for the notebook PC graphics market by The In-Stat Group, a market analyst for the electronics industry."
Design Wins at Toshiba
On August 10, 1998 NeoMagic announced that it had been designed into two additional notebooks introduced by Toshiba: the Tecra 8000 and the Portege 7000. In March of 1998 NeoMagic announced its first design win with Toshiba in the Libretto 100CT. "With these introductions we have increased our presence at Toshiba to three of their major product lines," said Agarwal.
Second Major Product Family - MagicMedia256
During the quarter, NeoMagic announced its MagicMedia256 architecture, and the MagicMedia256AV, the first product in this family. Two notebooks have already been announced by industry leaders which incorporate this new accelerator: the Sony VAIO PCG 808 and the Toshiba Tecra 8000.
The MagicMedia256AV offers an AGP host bus interface, and packs 256-bit performance along with acceleration for MPEG2 video playback from DVDs, and also integrates PCI and AGP digital audio, eliminating the need for a separate PCI audio chip. This audio and video hardware integration not only offers savings in size, power consumption and cost, it also offers unique value at the system level by providing integrated audio and video software drivers for applications like DVD playback.
Organizational Update
During the first quarter, NeoMagic announced the consolidation of the product development, marketing and support for the first highly successful product line, multimedia accelerators, into the Multimedia Products Division headed by senior vice president and general manager, Ron Jankov. Subsequently in the second quarter, NeoMagic announced the creation of the Consumer Products Division headed by senior vice president and general manager, Amnon Fisher, to lead NeoMagic's exploration and development of additional semiconductor product line solutions.
Award Winning Performance
Notebooks with NeoMagic accelerators continued to win awards in reviews conducted by major PC publications. Notebook models garnering honors included the Gateway Solo 2500SE, the HP OmniBooks, the IBM ThinkPad 560X and ThinkPad 600, the Micron GoBook, the Sharp Actius, and the Sony VAIO family. For a more complete list of award winning notebooks and direct links to the reviews, visit the NeoMagic web site at www.neomagic.com.
In recognition of NeoMagic's pioneering role in developing the revolutionary technology of memory and logic integration, the NeoMagic MagicGraph128 Design team was honored with Mobile Computing Magazine's First-Ever Mobile Innovation Award in the Component Design category.
About NeoMagic
NeoMagic Corporation, based in Santa Clara, CA, is the first company to design and deliver integrated DRAM, complex logic, and analog circuits in a single chip. The company's proprietary MagicWare(TM) technology takes systems integration to a new level by building DRAM into "system-on-a-chip" solutions. NeoMagic is dedicated to bringing leading-edge performance to mobile computers, without compromising power consumption or space. NeoMagic has been awarded honors by the Fabless Semiconductor Association for the past two years: In 1996, as the industry's "Most Respected Private Fabless Company;" In November 1997, as the "Best Financially Managed Public Fabless Company." NeoMagic may be contacted on the World Wide Web at www.neomagic.com or at 408-988-7020.
NOTE: NeoMagic, MagicGraph, and the NeoMagic circle logo are registered trademarks of NeoMagic Corporation. MagicWare and MagicMedia are trademarks of NeoMagic Corporation. Pentium and MMX are trademarks of Intel Corporation. All other trademarks are the property of their respective owners. NeoMagic disclaims any proprietary interest in the marks and names of others.
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
July 31, July 31,
1998 1997 1998 1997
Net sales $53,396 $24,570 $101,134 $42,851
Cost of sales 31,058 14,522 58,568 25,693
Gross margin 22,338 10,048 42,566 17,158
Operating expenses:
Research and development 7,314 3,338 13,566 5,805
Sales, general and
administrative 4,848 2,382 9,204 4,659
Total operating expenses 12,162 5,720 22,770 10,464
Income from operations 10,176 4,328 19,796 6,694
Other income (expense), net:
Interest income and other 919 646 1,894 962
Interest expense (372) (314) (696) (538)
Income before income taxes 10,723 4,660 20,994 7,118
Provision for income taxes 3,753 699 7,348 1,068
Net income $6,970 $3,961 $13,646 $6,050
Basic earnings per share $.30 $.18 $.58 $.29
Diluted earnings per share $.27 $.15 $.52 $.25
Weighted common shares
outstanding 23,595 22,161 23,445 21,003
Weighted common shares
outstanding, assuming
dilution 26,033 25,893 26,066 24,646
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, January 31,
1998 1998
ASSETS
Current assets:
Cash and cash equivalents and
short-term investments $69,834 $71,020
Accounts receivable, net 11,099 11,236
Inventory 13,785 9,342
Other current assets 4,249 3,730
Total current assets 98,967 95,328
Property, plant and equipment, net 7,313 6,232
Other assets 6,266 6,023
Total assets $112,546 $107,583
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Working capital line of credit $-- $21,041
Accounts payable 20,999 9,490
Accrued expenses 9,635 10,652
Obligations under capital leases 962 1,273
Total current liabilities 31,596 42,456
Stockholders' equity 80,950 65,127
Total liabilities and
stockholders' equity $112,546 $107,583
SOURCE NeoMagic Corporation
CO: NeoMagic Corporation
ST: California
IN: CPR
SU: ERN
08/12/98 16:25 EDT prnewswire.com
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