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Mosaid Reports Year End Results.

OTTAWA--(BUSINESS WIRE)--June 18, 1997--(TSE See Tokyo Stock Exchange.


1. See Tokyo Stock Exchange (TSE).

2. See Toronto Stock Exchange (TSE).
 MSD (MicroSoft Diagnostics) A utility that accompanied Windows 3.1 and DOS 6 that reported on the internal configuration of the PC. A variety of information on disks, video, drivers, IRQs and port addresses was provided. . ) MOSAID Technologies Incorporated (TSE:MSD) reported revenues of $39,799,000 for its fiscal year ended May 2, 1997, representing an increase of 5 percent over fiscal 1996 revenues of $37,778,000. Net earnings for fiscal 1997 were $3,748,000 representing a decrease of 52 percent from fiscal 1996 net earnings of $7,818,000. Earnings per share, on a fully diluted di·lute  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 basis, were $0.49 for fiscal 1997 compared to $1.03 for fiscal 1996. Net earnings reflect an unusual item, the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation.
     2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation.
 costs associated with the Company's decision to build new facilities; and its non-controlling interest, its equity share of Accelerix Inc.'s loss for the year. Earnings before unusual item, income tax and non-controlling interest were $9,863,000 for fiscal 1997, a decrease of 23 percent from the $12,820,000 result for fiscal 1996.

Revenues of $10,309,000 were reported for the fourth fiscal quarter ended May 2, 1997, compared to $10,764,000 for the fourth quarter ended April 30, 1996, a decrease of 4 percent. Net earnings for the quarter were $241,000, compared to $2,103,000 for the fourth quarter ended April 30, 1996, a decrease of 89 percent. Earnings per share, on a fully diluted basis, for the quarter were $0.03, compared to $0.27 for the corresponding quarter last year.

"In fiscal 1997 we did not meet the financial objectives we had set for ourselves last year when the memory markets were robust, but considering the downturn Downturn

The transition point between a rising, expanding economy to a falling, contracting one.


A decline in security prices or economic activity following a period of rising or stable prices or activity.
 in the market which occurred this year, and MOSAID's increased level of investment in R&D ($3,202,000 more than fiscal 1996) and Accelerix, we are satisfied with our performance. Not only have we laid the foundation for continued growth in both the memory design and the engineering tester markets, we maintained profitability throughout the year, and we managed modest growth in a year when most of our customers' revenues declined significantly," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait).  J.J. Cwynar, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The highlights of the year centre around the themes of investment and growth: we continued to grow our memory design team, in the face of burgeoning demand for our expertise and were selected by the SLDRAM (Synchronous Link DRAM) An enhanced version of SDRAM memory that uses a multiplexed bus to transfer data to and from the chips rather than fixed pin settings. Similar to Rambus DRAM (RDRAM), but not proprietary, SLDRAM never came to fruition.  Consortium to develop the reference design for a new generation of memory chips; we shipped several of the new MS4105 engineering test system series in the fourth quarter; we launched Accelerix, our first component initiative; we continued to add to our intellectual property portfolio, and licensed our HDRAM(R) macrocell technology to two companies for sublicensing; we bought land and commenced the design and construction of our new facilities; and finally, we exited the year with a strengthened backlog Backlog

The total value of sales orders waiting to be fulfilled.

This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings.
 of business in both our Semiconductor and Systems Divisions."

MOSAID Chairman Richard Ri·chard   , Joseph Henri Maurice Known as "Rocket." 1921-2000.

Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a
 C. Foss commented on the industry environment and trends relevant to the Company: "While the semiconductor memory market continues to demonstrate its capacity for volatility Volatility

1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time.

2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the
, we are very comfortable with the positioning of MOSAID. The basic trends of the market - its rapid transition, its continued specialization A career option pursued by some attorneys that entails the acquisition of detailed knowledge of, and proficiency in, a particular area of law.

As the law in the United States becomes increasingly complex and covers a greater number of subjects, more and more attorneys are
, its broadening broad·en  
tr. & intr.v. broad·ened, broad·en·ing, broad·ens
To make or become broad or broader.

 from computers to include all manner of digital electronics products, the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous

 of both Application Specific Memory solutions and fabless semiconductor companies A fabless semiconductor company specializes in the design and sale of hardware devices implemented on semiconductor chips. It achieves an advantage by outsourcing the fabrication of the devices to a specialized semiconductor manufacturer called a semiconductor foundry or "fab.  - are fundamental to MOSAID's vision of the future and its adopted strategic direction."

MOSAID designs advanced chips for standard memory and Application Specific Memory (ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. ) requirements. The Company also designs, manufactures and distributes engineering test systems for memory chips. MOSAID is a leading independent memory chip design house and the leading supplier of engineering memory test systems in the world.


(incorporated under the Ontario Business Corporations Act)
(in thousands of Canadian dollars)

                                            As at           As at
                                           May 2,       April 30,
                                             1997            1996
                                      (Unaudited)       (Audited)
Current Assets
 Cash and short term marketable
   securities                             $18,337         $21,818
 Accounts receivable                       11,250          12,656
 Revenues recognized in excess
   of amounts billed                        3,656             832
 Inventories                                4,490           2,978
 Prepaid expenses                             576             343
                                          -------         -------
                                           38,309          38,627

Capital assets                              7,440           4,327
Technology acquisitions                       995             -
Long-term investments                       1,712           1,376
                                          -------         -------
                                          $48,456         $44,330

Current Liabilities
  Accounts payable and accrued
    liabilities                           $ 4,988         $ 4,557
  Income taxes payable                        301           1,761
  Deferred revenue                            636             138
  Deferred income taxes                       383             252
                                          -------         -------
                                            6,308           6,708

Obligations under capital leases              -                16
Deferred income taxes                         713             795
                                          -------         -------
                                            7,021           7,519
                                          -------         -------
Shareholders' Equity
  Share capital                            20,825          19,949
  Retained Earnings                        20,610          16,862
                                          -------         -------
                                           41,435          36,811
                                          -------         -------
                                          $48,456         $44,330
                                          -------         -------
                                          -------         -------

(in thousands of Canadian dollars, except per share amounts)

                        13 weeks    months         Year ended
                           ended     ended
                          May 2,  April, 30      May 2,  April 30,
                            1997     1996         1997     1996

  Operations             $10,135   $10,423     $38,853    $36,395
  Interest                   174       341         946      1,383
                        --------   -------     -------    -------
                          10,309    10,764      39,799     37,778
                        --------   -------     -------    -------
 Labour and materials      2,556     2,534       9,051      8,185
 Research and development  3,157     1,950      10,009      6,807
 Selling and marketing     1,700     1,197       6,276      5,109
 General and
   administration          1,169     1,483       5,270      4,557
 Gain on sale of assets      -         -         (670)        -
 Other                       -         -           -          300
                        --------   -------     -------     -------
Total expenses             8,582     7,164      29,936      24,958
                        --------   -------     -------     -------

Earnings before unusual item,
  income tax, and non-controlling
  interest                 1,727     3,600       9,863      12,820
Unusual item                 500       -           500         -
                         -------    -------     -------     -------
                           1,227     3,600       9,363      12,820

Income tax                   403     1,497       3,381       5,002

Non-controlling interest     583       -         2,234         -
                         -------    -------     -------     -------

Net Earnings                 241     2,103       3,748       7,818
Retained Earnings,
  beginning of year       20,369    14,759      16,862       9,044
                         -------   -------     -------     -------
Retained Earnings,
  end of year            $20,610   $16,862     $20,610     $16,862
                         -------   -------     -------     -------
                         -------   -------     -------     -------

Earnings per share
 Basic                     $0.03     $0.30       $0.53       $1.13
 Fully diluted             $0.03     $0.27       $0.49       $1.03

Weighted average number of shares
  Basic                7,104,104 7,000,577   7,071,576   6,940,236
  Fully diluted        7,863,129 7,667,795   7,781,487   7,621,287

            (in thousands of Canadian dollars)

                                                 Year ended
                                            May 2,       April 30,
                                              1997          1996

 Net earnings                             $  3,748       $  7,818
 Items not affecting cash
   Amortization                              2,405          1,276
   Loss on disposal of capital
     assets                                     22             89
   Non-controlling interest                  2,234            -
   Investment tax credits                     -               700
   Deferred income taxes                        49             42
                                         ---------       --------
                                             8,458          9,925
                                         ---------       --------

Change in non-cash working capital
  items                                    (3,694)        (4,034)
                                         ---------       --------
                                         ---------       --------
                                            4,764          5,891
  Acquisition of capital assets -net      (5,366)        (2,884)
  Acquisition of technology               (1,169)           -
  Long-term investments                   (2,570)        (1,376)
                                         ---------       --------
                                          (9,105)        (4,260)
                                         ---------       --------

  Repayment of obligations under
    capital leases                          (16)            (43)
  Issue of common shares                     876             866
                                         ---------       --------
                                             860             823
                                         ---------       --------

Net cash outflow                         (3,481)           2,454
Cash position, beginning of period        21,818          19,364
                                         ---------       --------
Cash position, end of period             $18,337         $21,818
                                         ---------       --------
Cash comprises the following:
  Cash                                   $ 3,028         $ 5,032
  Marketable Securities                   15,309          16,786
                                         ---------       --------
                                         $18,337         $21,818
                                         ---------       --------
                                         ---------       --------

CONTACT: Mosaid Technologies Incorporated

Sue Rutherford Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. , 613/836-3134
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Date:Jun 18, 1997
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