Tuesday March 2, 5:37 pm Eastern Time
Company Press Release
Tundra Semiconductor Corporation Announces Record Revenue and Earnings with its Tenth Consecutive Quarter of Continued Growth
KANATA, ONTARIO--Tundra Semiconductor Corporation, a leader in bus bridging components for embedded systems, today announced record revenue and earnings for its third quarter of fiscal 1999 ended January 31, 1999. This quarter represents the tenth consecutive quarter of revenue growth for the Company.
Revenue for the third quarter of fiscal 1999 was $7.3 million, up 33 percent from the $5.5 million achieved in the third quarter of fiscal 1998. Net earnings for the quarter were up 83 percent to $539,000, compared to the $295,000 reported for the third quarter of fiscal 1998. Fully diluted earnings per share for the third quarter of fiscal 1999 were $0.05 compared to $0.03 per share in the third quarter of fiscal 1998.
For the nine months ended January 31, 1999 revenue was $19.8 million, up 38 percent from the $14.3 million for the same period in fiscal 1998. Net earnings for the nine months ended January 31, 1999 were $1.4 million, compared to a loss of $1,000 for the same period in fiscal 1998. Fully diluted earnings per share for the three quarters of fiscal 1999 ended January 31, 1999 were $0.13 compared to earnings of $0.00 per share in the three quarters ended February 1, 1998.
On February 8, 1999, Tundra successfully completed an initial public offering and secondary offering of approximately 5.4 million common shares, at $9.25 per share. The $49.6 million offering was comprised of a $34.0 million treasury offering and a $15.6 million secondary offering. Net proceeds of this offering to the Company were approximately $31.1 million. Tundra intends to apply the net proceeds for research and development in connection with current and future products, to further secure its supply of wafer fabrication capabilities, and for general corporate purposes.
Over the quarter, the Company announced the introduction of the Tundra QSpan II, a new product for Motorola embedded processors that will expand the Company's product offering, especially in networking and datacommunications applications. Tundra also expanded its presence in its key growth market of Silicon Valley via the opening of a larger office, with field applications engineering support. Also, President and CEO Adam Chowaniec was presented with the Business Person of the Year Silver Award by the Ottawa Carleton Board of Trade.
''I am pleased with Tundra's expanding position within the embedded data and telecommunications markets,'' said Dr. Chowaniec. ''The results of this quarter represent another important milestone in the Company's emergence as a leader in the bus bridging semiconductor market. Our revenue growth over the past ten quarters is evidence of that leadership. Our PCI and VMEbus bridging products have gained acceptance around the world. With the addition of new distributors in the European and Asian markets, Tundra has added new partners and broadened its base. Tundra continues to invest in the development of ever more complete solutions for bridging the PCI Bus to microprocessors produced by Motorola and other leading manufacturers of embedded processors.''
Founded in December 1995, Tundra Semiconductor Corporation is a fabless semiconductor company that designs, develops and supports bus-bridging solutions for embedded datacommunications, telecommunications, industrial automation, and military applications. Its major products include the Tundra QSpan, the Motorola(r) embedded processor-to-PCI bus bridge, and the Tundra Universe II, the leading PCI-to-VME bus bridge. Tundra has a broad customer base, including leading communications companies. Tundra markets its products through manufacturer's representatives and distributors in North America, Europe, and Asia. Tundra's head office is located in Kanata, Ontario.
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.
For more information on the Company, visit our web site at www.tundra.com.
Tundra, Tundra QSpan, Tundra QSpan II and Tundra Universe II are registered trademarks of Tundra Semiconductor Corporation. All other trademarks are the property of their respective manufacturers.
Tundra Semiconductor Corporation
Statements of Earnings and Retained Earnings
(Canadian dollars, amounts in thousands except per share data)
For the For the three
fiscal quarter ended fiscal quarters ended
----------------------- -----------------------
January 31 February 1 January 31 February 1
1999 1998 1999 1998
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $7,311 $5,502 $19,798 $14,331
Cost of
revenue 3,398 2,880 9,219 7,495
------ ------ ------- -------
Gross margin 3,913 2,622 10,579 6,836
Expenses:
Sales and marketing 1,133 823 3,299 2,437
General and
administration 535 424 1,631 1,311
Research and
development 1,562 1,150 3,943 3,279
------ ------ ------- -------
3,230 2,397 8,873 7,027
Earnings (loss)
from operations 683 225 1,706 (191)
Interest and other
income 36 70 163 192
------ ------ ------- -------
Earnings before
income taxes 719 295 1,869 1
Income tax provision 180 0 467 2
------ ------ ------- -------
NET EARNINGS (LOSS) 539 295 1,402 (1)
Retained earnings
(deficit), beginning
of period 377 (1,254) (486) (958)
------ ------ ------- -------
RETAINED EARNINGS
(DEFICIT), END OF
PERIOD $916 $(959) $916 $(959)
------ ------ ------- -------
------ ------ ------- -------
Earnings per share
Basic $0.05 $0.03 $0.14 $0.00
Fully diluted $0.05 $0.03 $0.13 $0.00
Weighted average number of common shares outstanding
Basic 10,066 10,006 10,056 10,004
Fully diluted 11,666 11,179 11,444 11,109
Tundra Semiconductor Corporation
Balance Sheets
(Canadian dollars in thousands)
January 31 April 30
1999 1998
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 3,233 $ 5,009
Accounts receivable 3,322 2,657
Inventories 2,569 2,532
Investment tax credits 1,090 752
Prepaid expenses and other
current assets 2,420 1,197
-------- --------
12,634 12,147
Capital assets 4,397 2,742
-------- --------
$ 17,031 $ 14,889
-------- --------
-------- --------
CURRENT LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 3,401 $ 3,156
Deferred income taxes 467 0
-------- --------
3,868 3,156
-------- --------
Shareholders' equity
Share capital 12,247 12,219
Retained earnings (deficit) 916 (486)
-------- --------
13,163 11,733
-------- --------
$ 17,031 $ 14,889
-------- --------
-------- --------
--------------------------------------------------------------------------------
Contact:
Tundra Semiconductor Corporation
Normand Paquette
(613) 592-0714
E-Mail: normp@tundra.com
Website: www.tundra.com
|
