wow.....can't be much worse than this.......
Friday August 14, 5:00 pm Eastern Time
Company Press Release
IMP Reports First Quarter Fiscal 1999 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 14, 1998--IMP, Inc. (NASDAQ:IMPX - news) today announced its financial results for the first fiscal quarter, ending June 28, 1998, of the 1999 fiscal year.
Net revenue for the first fiscal quarter of 1999 was $6.6 million as compared to $11.0 million for the same period last year and $9.0 million in the prior quarter. The net loss for the quarter was $3.3 million, or 12 cents per share, compared to a loss of $997,000, or 4 cents per share, for the same period last year.
''The ongoing recession in the semiconductor industry has reduced the demand for our analog and high-voltage foundry services which still provide the majority of our revenue,'' said Phil Ferguson, President and CEO. ''We had qualified our processes at a number of new customers who we had expected to begin placing production orders last quarter. Reduced demands from their end customers limited the immediate need for additional capacity from IMP and delayed our return to profitable levels of operation. A $1.4 million decrease in business from one customer to rebalance inventory also contributed substantially to the quarter to quarter reduction in revenue.''
''Our investment in the development of analog integrated circuits continued to be a high priority as we spent over 33% of revenue in R & D in the first quarter. We also spent over $900,000 of our cash on installation and equipment for the facility upgrade program and $600,000 in product licensing fees,'' continued Mr. Ferguson. ''This investment is beginning to show results, as during the quarter we introduced eight new products in the areas of power management and data communications. These included our first proprietary product for the Electroluminescent (EL) lamp driver market. Our confidence that analog is the right product area for IMP to address is reinforced by a recent (posted on 7.16.98) Electronic Engineering Times Online feature, entitled 'Silicon Valley Panel sees Analog as Sound Investment.'''
''The Company is assuming that there will be no significant upturn in the demand for its foundry services until the semiconductor business recovers from, what is being characterized by some analysts as, 'the worst year ever for the industry,'' added Mr. Ferguson. ''In anticipation that this will be late in calendar 1999 or even 2000, we have signed an agreement for debt financing of up to $10,000,000 to insure that the Company can continue its aggressive new product development program.''
The Company has been advised by Nasdaq that its stock has failed to maintain a closing bid price in excess of $1.00 for a period of thirty consecutive trading days. The Company is evaluating its options in order to comply with this requirement by November 4, 1998 in order to maintain its National Market listing status.
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, manufacture and market new products, demand by end-users for 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 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 call IMP's interactive Shareholder Information Service on 1-888-323-2019 or visit our web site at impweb.com.
Company headquarters are located at 2830 North First Street, San Jose, California 95143-2071. Telephone 408/432-9100. Fax 408/434-0335.
IMP, Inc.
STATEMENT OF OPERATIONS
(amounts in thousands except per share data)
(unaudited)
Three Months Ended
June 28, 1998 June 29, 1997
Net revenues $6,588 $11,006
Cost of revenues (Note 1) 5,997 7,841
Research and development 2,318 2,058
Selling, general and
administrative 1,388 1,792
----------- ------------
Operating costs and expenses 9,703 11,691
----------- ------------
Operating income (loss) (3,115) (685)
Interest and other
expenses (net) (220) (312)
----------- ------------
Loss before provision for (3,335) (997)
income taxes
Provision for income taxes -- --
----------- -----------
Net loss $(3,335) $(997)
Basic and diluted loss
per share $ (.12) $(.04)
Weighted average shares
outstanding 28,284 28,209
Note 1:
Cost of revenues for Q1FY1999 includes a credit from reserves of
$450,000 to compensate for costs that will not have to be incurred due
to better than planned yields on certain purchased materials.
IMP, Inc.
CONDENSED BALANCE SHEET
(amounts in thousands)
(unaudited)
June 28, 1998 March 29, 1998
ASSETS
Cash and cash equivalents $7,703 $11,819
Accounts receivable 4,353 5,357
Inventories 3,271 3,064
Other current assets 1,000 950
--------- ---------
Total current assets 16,327 21,190
Leasehold improvements and
equipment, net 9,804 10,384
Other long term assets 387 375
Total assets $26,518 $31,949
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable and
other current
liabilities $7,470 $8,248
Current portion of debt
and capital lease
obligations and notes payable 6,532 6,930
-------- --------
Total current liabilities 14,002 15,178
Long term debt and capital
lease obligations 5,210 6,173
Total liabilities 19,212 21,351
Capital stock 70,443 70,400
Retained earnings (59,240) (55,905)
Treasury stock (3,897) (3,897)
Total liabilities and
stockholder's equity $26,518 $31,949
------------------------------------------------------------------------
Contact:
IMP, Inc.
David A. Laws, 408/434-1283 (Editor & Analyst Contact)
IMP Investor Relations, 888/323-2019 (Reader Contact) |
