Integrated Micro Products announces year end results.
Revenues for the quarter were $3.84 million, up 38 percent from $2.78 million in the like quarter last year and for the year were $11.55 million, up 7 percent from $10.82 million in 1994. Net income for the quarter was $44,000, compared to a net income of $458,000 in the like quarter last year.
For the year there was a loss of $2.16 million compared to net income of $1.26 million in 1994, primarily reflecting planned increases in research and development and selling, general and administrative expenses as well as previously disclosed delays in product shipments to Motorola. There was a loss per share of $0.77 compared to income per share of $0.54 in fiscal 1994.
Total revenue, at $3.84 million for the fourth quarter, was 23 percent higher than in the third quarter of this year, the company's previous quarterly high. Product sales for the quarter grew by 81 percent compared to the like quarter last year.
ft-SPARC systems were shipped to several new customers in the quarter, bringing the ft-SPARC current customer list to 12 including two different sectors of Motorola, Fujitsu, in both Japan and the United States, DSC, Ericsson, NEC and Qualcomm.
In eight of these customers the ft-SPARC has been designed into specific new product lines, in some cases multiple product lines, all of which are currently in the development and testing phase. Four of these customers are planning to begin field deployment of the ft-SPARC in the near future, and the rest over the course of 1996.
A further eight prospective customers, including some of the largest telecom equipment manufacturers and service providers have evaluated ft-SPARC and without exception have reported positively on the product. The company expects to generate revenue in the coming year from sales of ft-SPARC to many of these prospective customers.
As well as the success of ft-SPARC, sales of XM systems to Motorola's Land Mobile Products Sector remained strong in the fourth quarter. Both the XM and the ft-SPARC product lines contribute to an excellent order backlog going into fiscal 1996.
"This year we have taken ft-SPARC from concept to reality," commented Chief Executive Officer, Mark I'Anson. "Only nine months since its launch in January we have shipped systems to half of the world's top ten equipment manufacturers and revenues from this product have grown to represent more than a third of our total revenues.
"This impressive revenue growth is entirely based on systems sold for development. As those projects reach the stage of real field deployments by our customers we expect to see substantial increases in ft-SPARC revenue. Sales of our older products to Motorola continue to be strong and, coupled with the prospects for ft-SPARC, provide a solid base on which to build our business in future years."
Gross product margin for the quarter was 65 percent compared to 38 percent for the like quarter last year and for the full year was 47 percent compared to 44 percent in 1994. The fourth quarter figure was impacted by one-time adjustments subsequent to a review of inventory values. The underlying gross product margin was 51 percent, itself a marked improvement from previous quarters.
Research and development expenditure of $813,000 for the quarter was in line with expectations. This compares with $875,000 in the previous quarter and $454,000 in the like quarter of 1994. For the full year research and development expenditure was $2.93 million compared to $1.84 million for 1994.
Selling, general and administrative expenses of $1.59 million for the quarter, compared to $1.23 million in the previous quarter and $742,000 in the like quarter last year, were affected by non-recurring items totalling $270,000. Selling, general and administrative expenses were $5.14 million for the full year, compared to $2.25 million in 1994.
The fourth quarter saw the introduction of Release 3 of the ft-SPARC system. This brings the product up to full compatibility with the latest release of Sun's Solaris operating system and adds new communications and systems facilities which the company believes will be of great benefit in the telecommunications marketplace.
A second custom-designed package for use in a customer's broadband switching system began shipments in the quarter. The new, 68060-based, products designed for Motorola reached general availability, but shipments were restricted by availability of microprocessor chips. The company expects that this situation will be resolved in the first quarter of fiscal 1996.
Management has again been strengthened by the appointment of Colin Proudfoot as chief financial officer and David Lonsdale as vice president sales. Before joining IMP Proudfoot was managing director of finance and operations at Commodore (UK) and at Wang (UK) where he was responsible for finance and planning.
Lonsdale was previously president of Logistics Data Systems, a subsidiary of Dunn & Bradstreet.
IMP is an international supplier of fault-tolerant systems and embedded computing elements to telecommunications equipment and solution providers. IMP has its headquarters in Consett, County Durham, England, and its Worldwide Marketing Center in Dallas. IMP's North American headquarters is in Bannockburn, Ill. -0-
INTEGRATED MICRO PRODUCTS plc CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
Oct. 2, 1994 Oct. 1, 1995 (audited) (unaudited) ASSETS
Current Assets Cash $ 6,588 $ 4,215 Short term investments 5,000 2,540 Accounts receivable, less allowance for doubtful accounts 1,982 2,992 Inventories 2,128 2,813 Pre-paid expenses etc 1,076 755 Total current assets 16,774 13,315
Property and equipment -- at cost 2,258 3,401 Less depreciation (1,322) (1,706) Property and equipment -- net 936 1,695
Other assets -- -- Total assets $17,710 $15,010
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Short term debt $ 800 $ 286 Accounts payable 1,570 1,591 Accrued liabilities 1,131 810 Deferred income 209 399 Other current liabilities 244 335 Total current liabilities 3,954 3,421
Commitments and contingencies -- -- Shareholders' equity 13,756 11,589 Total liabilities and shareholders equity $17,710 $15,010
INTEGRATED MICRO PRODUCTS plc CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands)
Three Months Ended Year to Date Oct. 2, Oct. 1, Oct. 2, Oct. 1, 1994 1995 1994 1995 (Unaudited)(Unaudited) (Audited)(Unaudited) Revenues Products $2,111 $3,840 $8,982 $10,562 Contract development 671 -- 1,839 985 Total revenues 2,782 3,840 10,821 11,547
Costs and expenses Cost of product revenues 1,260 1,329 5,321 5,499 Cost of contract development revenues 472 -- 723 610 Research and development expenses 454 813 1,837 2,933 Selling, general and administrative expenses 742 1,589 2,251 5,135 Total costs and expenses 2,928 3,731 10,132 14,177
Operating income (loss) (146) 109 689 (2,630)
Other income (expenses) Interest expense (net) 80 118 74 425 Foreign currency transactions 594 (183) 559 44 Other -- -- 77 6 Total other income (expense) 674 (65) 710 475 Income (loss) before tax 528 44 1,399 (2,155) Income taxes 70 -- 140 -- Net income (loss) $458 $44 $1,259 $(2,155) Net income per ordinary share $0.14 $0.02 $0.54 $(0.77) Weighted average shares outstanding (thousands) 3,302 2,801 2,331 2,801
CONTACT: Integrated Micro Products plc, Consett, England
Mark I'Anson or Colin Proudfoot, +44-120-758-0000
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|Date:||Nov 1, 1995|
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