Cash Exceeds Guidance
First Quarter 2007 Results
Revenues in the first quarter of 2007 were $2.6 million, compared with $2.7 million in the fourth quarter of 2006.
Net loss in the first quarter of 2007 was $1.2 million, or $0.05 per share, compared with a net loss of $1.4 million, or $0.07 per share, reported in the fourth quarter of 2006.
Gross margins in the first quarter were 71 percent, the same as in the fourth quarter of 2006.
Operating expenses were $3.2 million in the first quarter, including $170,000 of stock-based employee compensation charges in accordance with SFAS 123 ( R ). This compares with $3.4 million of operating expenses in the fourth quarter of 2006, including $59,000 of stock-based employee compensation charges in accordance with SFAS 123 ( R ).
At March 31, 2007, LogicVision had $7.1 million in cash, cash equivalents and investments, compared with $9.2 million at December 31, 2006. The company has no bank debt.
New orders received during the first quarter totaled $2.7 million. The company exited the first quarter with a 12-month backlog of $8.6 million, compared with a 12-month backlog of $8.3 million at the end of the fourth quarter.
"In the first quarter, revenues and net loss were within the guidance range we forecasted on our last earnings conference call, and cash exceeded our guidance. We were again able to lower our operating expenses this quarter, making this the eighth consecutive quarter of reduced operating expenses," said James T. Healy, president and CEO of LogicVision.
"We booked three new accounts in the first quarter -- SanDisk, Micron Technology and a new division of Sharp in Japan. In addition, we amended a contract with Matsushita and expect to start eight new evaluations during the second quarter. We are seeing increasing interest for our products to replace internal solutions as well as part of a bundled solution, and are also having successes in broadening the adoption of our solutions within existing customers," said Mr. Healy.
Guidance for the Second Quarter of 2007 -- Revenues are expected to be in the range of $2.7 million to $3.0 million. -- Net loss is expected to be in the range of $1.0 million to $1.2 million or a net loss in the range of $0.04 to $0.05 per share. -- Cash, cash equivalents and investments are expected to be approximately $5 million at the end of the second quarter.
LogicVision will broadcast its conference call discussion of first quarter 2007 financial results today, April 24, 2007 at 2 p.m. Pacific time. To listen to the call, please dial 888-566-5772, pass code: "LogicVision." A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, dial 203-369-0638. The LogicVision financial results conference call will be available via a live web cast on the investor relations section of the company's web site at http://www.logicvision.com. An archived web cast of the call will be available at http://www.logicvision.com for one year.
About LogicVision, Inc.
LogicVision, Inc. provides unique test and yield learning capabilities in the design for manufacturing space. These capabilities enable its customers, leading semiconductor companies, to more quickly and efficiently learn to improve product yields. The company's advanced Design for Test (DFT) product line, ETCreate, works together with ETAccess and Yield Insight yield learning applications to enable increased profit by reducing device field returns, reducing test costs, and accelerating both time to market and time to yield. LogicVision solutions are used in the development of semiconductor ICs for products ranging from digital consumer goods to wireless communications devices and satellite systems. LogicVision was founded in 1992 and is headquartered in San Jose, Calif. For more information visit www.logicvision.com.
FORWARD LOOKING STATEMENTS
Except for the historical information contained herein, the matters set forth in this press release, including statements as to the Company's outlook, the number of expected evaluation starts for the second quarter, interest for the Company's products, successes in adoption of the Company's solutions, and the Company's expected financial results, including revenues, net loss, and cash, cash equivalents and investments are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the possibility that orders could be modified, cancelled or not renewed, the ability of the Company to negotiate and sign customer agreements and obtain purchase orders, trends in capital spending in the semiconductor industry, the timing and nature of customer orders, whether customers accept the Company's new and existing products, the impact of competitive products and alternative technological advances, and other risks detailed in LogicVision's Annual Report on Form 10-K for the year ended December 31, 2006 and from time to time in LogicVision's SEC reports. These forward-looking statements speak only as of the date hereof. LogicVision disclaims any obligation to update these forward-looking statements.
LogicVision, Embedded Test and LogicVision logos are trademarks or registered trademarks of LogicVision, Inc. in the United States and other countries. All other trademarks and service marks are the property of their respective owners.
- Summary financial data follows - LOGICVISION, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) March 31, December 31, 2007 2006 ASSETS Current Assets: Cash and cash equivalents $4,891 $7,087 Short-term investments 2,209 2,155 Accounts receivable, net of allowance for doubtful accounts of $12 and $6, respectively 1,211 615 Prepaid expenses and other current assets 1,268 1,226 Total current assets 9,579 11,083 Property and equipment, net 630 743 Intangible assets, net 125 178 Goodwill 6,846 6,846 Other long-term assets 496 641 Total assets $17,676 $19,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $216 $308 Accrued liabilities 1,780 2,008 Deferred revenue, current portion 4,885 5,089 Total current liabilities 6,881 7,405 Deferred revenue - 285 Total liabilities 6,881 7,690 Commitments and contingencies Stockholders' Equity: Preferred stock, $0.0001 par value: Authorized: 5,000 shares; Issued and outstanding: no shares issued and outstanding - - Common stock, $0.0001 par value: Authorized: 125,000 shares; Issued and outstanding: 24,122 shares at March 31, 2007 and 24,081 shares at December 31, 2006 2 2 Additional paid-in capital 108,054 107,860 Accumulated other comprehensive income (loss) 3 - Accumulated deficit (97,264) (96,061) Total stockholders' equity 10,795 11,801 Total liabilities and stockholders' equity $17,676 $19,491 LOGICVISION, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended March 31, 2007 2006 Revenues: License $1,105 $1,219 Service 1,525 1,130 Total revenues 2,630 2,349 Cost of revenues: License 231 257 Service 523 424 Total cost of revenues 754 681 Gross profit 1,876 1,668 Operating expenses: Research and development 955 1,087 Sales and marketing 1,301 1,880 General and administrative 912 964 Total operating expenses 3,168 3,931 Loss from operations (1,292) (2,263) Interest and other income, net 105 72 Loss before provision for income taxes (1,187) (2,191) Provision for income taxes 16 57 Net loss $(1,203) $(2,248) Net loss per common share, basic and diluted $(0.05) $(0.12) Weighted average number of shares outstanding, basic and diluted 24,108 18,921
Web site: http://www.logicvision.com//