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ZYCAD ANNOUNCES THIRD QUARTER RESULTS

 FREMONT, Calif., Oct. 21 /PRNewswire/ -- Zycad Corp.(R) (NASDAQ: ZCAD) today reported a net income of $29,000 on revenues of $9,555,000 for the quarter ended Sept. 30, 1993. These results include a gain on the sale of 25,000 shares of Synopsys Inc. common stock, amounting to $1,109,000 or $0.07 per share. Net income for the quarter ended Sept. 30, 1992, was $150,000, or $0.01 per share, on revenues of $11,953,000.
 For the nine month period ended Sept 30, 1993, the company reported a loss of $4,802,000, or $0.30 per share, on revenues of $29,141,000. These results included certain restructuring costs and write-downs amounting to $2,965,000, or $0.19 per share, and a gain on the sale of 100,000 shares of Synopsys Inc. common stock amounting to $3,892,000, or $0.25 per share.
 The net income for the nine month period ended Sept. 30, 1992, was $1,945,000, or $0.11 per share on revenues of $35,150,000. The nine month 1992 results included a gain of $633,000, or $0.03 per share, relating to the disposition of 146,591 shares of Synopsys Inc. common stock.
 In September 1993, the company acquired Integrated Circuit Applications Ltd. (InCA) for cash and stock having an aggregate value at the acquisition
date of $1,770,000. Revenues and costs included in the three and nine-month periods ended Sept. 30, 1993, resulting from the InCA acquisition were approximately $1,100,000 and $200,000, respectively.
 "The company's break-even results for the third quarter were on target with our expectations," said Phillips W. Smith, Zycad's president and chief executive officer. "We accomplished several important milestones during the quarter," Smith continued, "including further reducing our cost structure, the acquisition of InCA for its outstanding emulation and rapid prototyping products, and the formation of the GateField Division of Zycad, to investigate field programmable gate array (FPGA) technology for the emulation/rapid prototyping market."
 "During the fourth quarter we will deliver to our customers the recently announced Paradigm XP product which will provide performance gains from four to six times over the current generation XP product. We expect to finally have our VHDL accelerator product, Paradigm ViP, in beta testing in the fourth quarter and available for production delivery in the first quarter of 1994," added Smith. "Consulting and engineering services will continue to be a major part of our long term strategy to offer our customers value beyond tools."
 Our short-term goal is for operating proifitability in the fourth quarter, with steady, sustained growth in both revenues and profits throughout 1994 and beyond. We remain the leader in high performance simulation and system level verification products and services; and with the advent of our Paradigm XP, Paradigm ViP, and InCA rapid prototyping products, we expect to gain further recognition and reputation for performance excellence," Smith concluded.
 Zycad Corp. is dedicated to providing solutions which help our customers solve complex design and system verification problems. These solutions increase engineering productivity, while decreasing product development cycles. Users gain a competitive advantage in terms of product quality and speed-to-market, which can translate to greater profitability. Zycad markets its solutions worldwide through direct and indirect sales channels.
 NOTE: Zycad Corp. is a registered trademark, and XP, Paradigm XP and Paradigm ViP are trademarks of Zycad Corp.
 ZYCAD CORP.
 Condensed Consolidated Statements of Operations
 (in thousands, except for per-share data)
 (unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues:
 Product $5,268 $7,207 $15,764 $23,653
 Service 4,287 4,746 13,377 11,497
 Total revenues 9,555 11,953 29,141 35,150
 Cost of Revenues:
 Product 1,197 1,569 3,792 4,815
 Service 2,150 2,517 8,052 6,298
 Total cost of
 revenues 3,347 4,086 11,844 11,113
 Gross Profit 6,208 7,867 17,297 24,037
 Operating expenses:
 Sales and marketing 4,159 5,369 14,290 15,052
 Research and
 development 2,377 1,879 6,913 6,283
 General and
 administrative 599 610 1,821 1,849
 Restructuring -- -- 2,965 --
 Total operating
 expenses 7,135 7,858 25,989 23,184
 Operating income (927) 9 (8,692) 853
 Other income (expense):
 Interest income 84 70 171 364
 Interest expense (17) (109) (69) (234)
 Other 889 180 3,788 962
 Other income, net 956 141 3,890 1,092
 Net income (loss) $ 29 $ 150 $(4,802) $1,945
 Net income (loss)
 per share $ -- $ 0.01 $ (0.30) $ 0.11
 Average common and
 common equivalent
 shares outstanding 16,076 17,798 15,735 18,393
 ZYCAD CORP.
 Condensed Consolidated Balance Sheets
 (in thousands)
 Sept. 30, 1993 Dec. 31, 1992
 (unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 5,417 $ 6,627
 Short-term investments 962 422
 Accounts receivable, net 9,013 11,390
 Inventories 551 1,187
 Other current assets 777 1,073
 Total current assets 16,720 20,699
 Property and equipment, net 6,746 6,662
 Other assets 5,440 3,552
 Total assets $28,906 $30,913
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Current portion of debt
 obligations $ 317 $ 578
 Accounts payable 2,651 2,021
 Accrued expenses 3,893 5,140
 Restructuring expenses 652 --
 Deferred revenues 2,698 2,131
 Total current liabilities 10,211 9,870
 Other long-term liabilities 431 327
 Non-current portion of debt
 obligations 34 309
 Total liabilities 10,676 10,506
 Stockholders' equity:
 Common stock, par value 10 cents 1,795 1,627
 Additional paid-in capital 44,888 42,418
 Accumulated deficit (25,614) (20,812)
 Treasury stock (778,000 shares) (2,666) (2,666)
 Accumulated translation adjustments (173) (160)
 Total stockholders' equity 18,230 20,407
 Total liabilities and
 stockholders' equity $28,906 $30,913
 -0- 10/21/93
 /CONTACT: Peter J. Cassidy, executive vice president, Operations and chief financial officer of Zycad, 510-623-4400/
 (ZCAD)


CO: Zycad Corp. ST: California IN: CPR SU: ERN

TB-TM -- SJ014 -- 5500 10/21/93 19:13 EDT
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Date:Oct 21, 1993
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