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

To: QuietWon who wrote (131)	6/17/1999 7:03:00 AM
From: Glenn McDougall	Respond to of 219

Mosaid chips in with fourth quarter loss By Susan Taylor OTTAWA, June 16 (Reuters) - Chip designer Mosaid Technology Inc. (Toronto:MSD.TO - news) closed the books on a difficult year on Wednesday, reporting a fourth-quarter loss of 46 Canadian cents after a one-time charge of C$3.6 million. The Ottawa-area firm, which designs memory chips and chip-testing gear, recorded a loss of C$3.3 million on sales of C$7.4 million in the quarter ended April 30. The write-down related to Mosaid's purchase of Accelerix Inc., an Ottawa-area system-on-a-chip designer for the PC market. Excluding that charge, Mosaid would have reported a profit of four Canadian cents a share, above analysts' estimates ranging from a profit of two Canadian cents per share to a loss of two Canadian cents per share. In the fourth quarter last year, Mosaid recorded a profit of C$3,000 on revenue of C$9.6 million. The results are marked by the third consecutive year that the memory sector slumped and a weak Asian market. Mosaid lost C$10.1 million on sales of C$22.8 million, compared to a profit of C$5.2 million on revenue of C$41.4 the previous year. The company is now branching out to avoid reliance on the memory market, which routinely slumps when excess supply drives down prices. ''We have made significant progress in adding more arrows to the quiver,'' said George Cwynar, Chief Executive Officer. Mosaid is pushing into the data-communication chip market, announcing in late May a seven-year-deal to produce a system-on-a-chip for network switching with Toshiba Corp. Efforts are also underway to evolve into a ''fabless'' semiconductor company, producing and selling chips without owning a plant. Mosaid also hopes to strike further deals to license patents following its first such agreement with Fujitsu Ltd. in January. But it's unlikely the road to recovery will be be a quick trip. ''You wouldn't expect that overnight they'll be back to happy days,'' said one analyst who asked not to be named. Shares in Mosaid fell 15 Canadian cents on the Toronto Stock Exchange yesterday to end the session at C$6.55 before the results were released. The 52-week high for the share was C$9.10 whiles its low was C$3.55. ($1=$1.46 Canadian)

To: QuietWon who wrote (131)	6/17/1999 7:20:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 219

Area firm back in the black By KEVIN BELL, Ottawa Sun Mosaid Technologies Inc. reported its first operating profit in four quarters yesterday, but special charges and restructuring costs took their toll on the firm's finances. The company said it made a modest $267,000, or 4cents a share, from operations in its fourth quarter compared to an operating loss of $396,000 in the same period last year. "We like that because it's in the black and the previous four quarters were all in the red," said chief financial officer Richard Boadway. "It should be kept in mind that this was in the midst of a terrible year for our customers." Two analysts who cover the Ottawa firm estimated operating profits of 5cents and 2cents. "Quite frankly, I think we're ahead of consensus estimates," Boadway said. Boadway said the return to profitability should accelerate next year as the semiconductor industry slowly recovers. But when special charges are tabulated, Mosaid had a disastrous year and fourth quarter. In the quarter, a $3.57-million writedown from acquiring Accelerix Inc. translated into a net loss of $3.3 million compared to net earnings of $3,000 in the previous year. The yearly net loss was $10 million compared to a net profit of $5.2 million a year earlier. The loss included the Accelerix charge and restructuring costs of $4.3 million. Duncan Stewart, who manages the Navigator Canadian Technology Fund, said analysts will focus on Mosaid's return to operating profits, not the special charges. "You just have to ignore all that Accelerix stuff," he said. "This is actually a modest positive. It is coming out of the valley of the shadow of death." Chief executive George Cwynar said the company is emerging from a "challenging year." It will build on its new-found profitability as its Asian customers revive and the market for memory chips recovers from its deep doldrums, he said.