Wednesday February 24, 6:30 pm Eastern Time
Company Press Release
SOURCE: NeoMagic Corporation
NeoMagic(R) President and CEO Agarwal Presents at BancBoston
Robertson Stephens Technology Conference
SAN FRANCISCO, Feb. 24 /PRNewswire/ -- Prakash Agarwal, president and CEO, presenting at BancBoston Robertson Stephens Conference recounted
NeoMagic's performance in the fiscal year just ended in which revenues grew by 93% and pretax profit grew by 95%. Agarwal described NeoMagic's strategies
driving the recent acquisitions of the Optical Drive Storage Group from Mitel Semiconductor and ACL of Tel Aviv, stating that these acquisitions support
NeoMagic's vision for bringing together the capture, storage, and playback of multimedia content for a rich internet experience delivered on mobile platforms.
Opening his presentation with an MPEG video clip, running off a notebook PC, he effectively demonstrated that there is a web site for every facet of modern life.
The demand for better graphics, higher-quality audio, and higher-resolution video content on the web is building demand for more mobile computers because users
want to access and playback the growing multimedia content as soon as it is available, regardless of where they are located.
Mr. Agarwal attributed NeoMagic's eight successive quarters of higher revenue, higher profits, and greater market share to the ubiquitous nature of the growing
world wide web. He explained that end-user demand for anytime-everywhere access to the web drove sales of mobile computers in 1998 and the trend appears to
be continuing. In fiscal Q4, for example, NeoMagic identified 106 new notebook PC models that were introduced during the quarter. Seventy, or roughly
two-thirds, of these new mobile computers used NeoMagic accelerators.
Mr. Agarwal stated that NeoMagic, as the pioneer and clear leader in the technology of memory and logic integration, is not only in a position of strength in the
mainstream portable PC market, but well-positioned to bring the benefits of high-performance, low-power, smaller-form-factor semiconductor solutions to other
portable platforms.
Mr. Agarwal explained that NeoMagic's multi-market strategy extends beyond the notebook arena into two new market areas: DVDs and digital cameras. He
stated that DVD is becoming the technology of choice for the storage of multimedia content with the growing internet. The Mitel Optical Drive Storage Group's
significant experience in mixed-signal analog design and DVD optical storage read-channel technology, when coupled with NeoMagic's embedded DRAM
technology, will increase the Company's ability to deliver to DVD drive manufacturers. In addition, he explained that ACL's array processing technology, when
combined with NeoMagic's commercially proven embedded DRAM technology, may enable the Company to develop exceptional image processing performance,
including MPEG-2 encoding, for web-friendly digital cameras.
In summary, Agarwal stated that NeoMagic's strategy reflects a coherent, multi-faceted approach to delivering digital multimedia. It is NeoMagic's vision to become
the source for fundamental technologies for mobilizing the capture, manipulation, storage, and playback of digital multimedia content for rich internet experiences for
users anytime, everywhere.
Mr. Agarwal then introduced Ms. Merle McClendon, chief financial officer, who reviewed NeoMagic's revenues, gross margins, operating results, selected financial
ratios, operating model, and balance sheet.
NOTE: This press release contains forward-looking statements, which reflect management's current intentions and expectations. However, actual results could vary
significantly based on a variety of factors including and not limited to: general seasonal conditions in the PC industry, channel inventory levels in the notebook PC
market, continued success in development and ramping of the Company's new products in a timely and cost-effective manner, foreign exchange rate fluctuations,
manufacturing sub-contractors' ability to make timely deliveries, customer acceptance of the Company's new products, and market acceptance of customers'
machines utilizing the Company's products. Additional risk factors are listed in the Company's Fiscal Year 1998 Form 10K and Fiscal 1999 Form 10Qs.
SOURCE: NeoMagic Corporation |
