Mosaid Reports Year End Results.OTTAWA--(BUSINESS WIRE)--June 18, 1997--(TSE See Tokyo Stock Exchange.TSE 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. downturn 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. Notes: 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. broad 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 pro·lif·er·a·tion n. 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. THREE FINANCIAL STATEMENTS TO FOLLOW
MOSAID TECHNOLOGIES INCORPORATED
(incorporated under the Ontario Business Corporations Act)
CONSOLIDATED BALANCE SHEET
(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
------- -------
------- -------
MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
Three
13 weeks months Year ended
ended ended
May 2, April, 30 May 2, April 30,
1997 1996 1997 1996
Revenues
Operations $10,135 $10,423 $38,853 $36,395
Interest 174 341 946 1,383
-------- ------- ------- -------
10,309 10,764 39,799 37,778
-------- ------- ------- -------
Expenses
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
MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENT OF
CHANGES IN FINANCIAL POSITION
(in thousands of Canadian dollars)
(unaudited)
Year ended
May 2, April 30,
1997 1996
Operating
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
Investing
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)
--------- --------
Financing
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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