Printer Friendly

Integrated Micro Products announces year end results.

CONSETT, England--(BUSINESS WIRE)--Nov. 1, 1995--Integrated Micro Products plc (NASDAQ:IMPTY) Wednesday reported results for its fourth fiscal quarter and for the full year ended Oct. 1, 1995.

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-
 (Dollars in thousands)

 Oct. 2, 1994 Oct. 1, 1995
 (audited) (unaudited)

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


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

 (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)
 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
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Nov 1, 1995
Previous Article:Interplay inks deal with FormGen to distribute previews of CD-ROM software.
Next Article:Motorola group awarded light ground station module, low rate initial production program contract.

Related Articles
Micro Focus agrees to acquire Millennium Limited, a Year 2000 consulting company.
Integrated Systems Delivers pOSEK Real-Time Operating System for Motorola PowerPC, Black Oak.
Micro Focus and INTERSOLV Shareholders Approve Merger.
Micro Focus Indicates Preliminary Quarterly Estimates.
eSoft Expands Into Worldwide Markets With Ingram Micro Distribution Deal; eSoft Teams with Largest Wholesale Distributor of Computer Products.
Trend Micro Teams With Compaq for Global Internet Virus Protection.
NetScreen and Trend Micro to Deliver Tighter Integration of Network Security Solutions.
Trend Micro Provides Best Gateway to Desktop Virus Protection for Paramount Energy Trust.
Four Market Leaders Team up to Offer New Cost-Effective Digital Solution for Smaller and Mid-Size Operators.
Four Market Leaders Team Up to Offer New Cost-Effective Digital Solution for Smaller and Mid-Size Operators.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters