NeoMagic(R) Corporation Reports Q1 Fiscal Year 2007 Results
June 08 2006 - 5:30PM
PR Newswire (US)
SANTA CLARA, Calif., June 8 /PRNewswire-FirstCall/ -- NeoMagic
Corporation (NASDAQ:NMGC), today reported its first quarter fiscal
year 2007 financial results. Total revenue for the first quarter of
fiscal 2007, ended April 30, 2006, was $86 thousand, compared to
total revenue of $104 thousand for the fourth quarter of fiscal
2006. Our total revenue for the first quarter of fiscal 2006 was
$299 thousand. The decline in revenue from the first quarter of
fiscal 2006 to the first quarter of fiscal 2007 was primarily the
result of a reduction in sales of our MiMagic 3, MiMagic 5 and
companion chip products. Net loss for the first quarter of fiscal
2007 was $5.0 million, or a loss of $0.53 per share, compared to
net loss of $4.0 million, or a loss of $0.48 per share, in the
fourth quarter of fiscal 2006. "Since our last quarterly call we
have received an initial order for our MiMagic 6+. In addition, our
traction with customers indicates that we are well positioned to
address our chosen markets. I am very excited about the progress
that we are making with sales prospects and the number of new
programs that are underway," said Douglas Young, president and
chief executive officer of NeoMagic. Conference Call Highlights
Topics to be covered on NeoMagic's quarterly conference call
include the following: -- NeoMagic continues to be in discussions
with multiple companies with respect to the possible licensing of
NeoMagic's embedded DRAM patents. -- Development of the new
NeoMobileTV product has been completed. -- The MiMagic 6+ based
digital mobile TV solution that was announced in February 2006 in a
joint press release between NeoMagic, TTP and the BT Movio
subsidiary of British Telecom, has attracted the interest of
several OEMs and ODMs. -- NeoMagic announces a design win for a BT
Movio product that is expected to be released in 2007 to serve both
the Chinese and European mobile TV markets. NeoMagic is engaged
with several other ODMs and OEMs to develop phones for the BT Movio
opportunity. -- A customer in Asia plans to go into production with
a MiMagic 3-based product later this year. -- NeoMagic is actively
engaged with Neonode to bring its next generation mobile phone to
market. -- Last quarter, management discussed a Japanese OEM
customer that had finished a MiMagic 6+ mobile digital TV phone and
had completed successful field-testing. Based upon the feedback
management has received from this customer, it is not clear whether
this phone will go into production. However, discussions with the
customer are continuing. -- NeoMagic announces that it has a new
design win for an ISDB-T smartphone for the Japanese market. -- The
Japanese mobile phone carrier, mentioned last quarter in connection
with a platform design win, is working on the next level product
plan. NeoMagic is currently in discussions with this carrier about
which segment or segments of the market will best be served by the
MiMagic 6+ platform. -- Outside of the mobile phone market, the
MiMagic 6+ has been selected for a wireless camera module developed
by a major Korean OEM. Dial-in Information NeoMagic will hold its
first quarter fiscal 2007 conference call to discuss the
information contained in this press release today at 5:00 p.m.
Eastern Time (2:00 p.m. Pacific Time). The call can be accessed via
the Internet at http://www.neomagic.com/, "Investor Resources." The
call can also be accessed by dialing 866-244-4637 in the U.S. and
703-639-1179 internationally. There is no passcode for the live
call. A replay of the call will be available for seven days
beginning on June 8th at 9 p.m. Eastern Time (6 p.m. Pacific Time).
The replay number is 888-266-2081 in the U.S. and 703-925-2533
internationally. The passcode for the replay is 898444. The webcast
is also being distributed over CCBN's Investor Distribution Network
to both institutional and individual investors. Individual
investors can listen to the call through CCBN's individual investor
center at http://www.fulldisclosure.com/ or by visiting any of the
investor sites in CCBN's Individual Investor Network. Institutional
investors can access the call via CCBN's password-protected event
management site, StreetEvents (http://www.streetevents.com/). About
NeoMagic NeoMagic Corporation delivers semiconductor chips and
software that provide mobile solutions that enable new multimedia
features for handheld devices. These solutions offer low power
consumption, small form-factor and high performance processing. The
Company demonstrated one of the first solutions used for H.264
video decoding in a mobile digital TV phone, and is developing and
delivering solutions for audio/video processing of the dominant
mobile digital TV standards, including ISDB-T, DMB, and DVB-H. For
its complete system solution, NeoMagic delivers a suite of
middleware and sample applications for imaging, video and audio
functionality, and provides multiple operating system ports with
customized drivers for the MiMagic product family. NeoMagic has a
patent portfolio of over 25 patents that cover NeoMagic's
proprietary array processing technology, embedded DRAM and other
technology. Information on the company may be found on the World
Wide Web at http://www.neomagic.com/. This press release contains
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, including the
Company's design wins, expected orders, production timing,
availability of new products, revenue opportunities and the
Company's ongoing patent licensing efforts. These forward-looking
statements reflect current expectations. However, actual events and
results could vary significantly based on a variety of factors
including but not limited to customer acceptance of NeoMagic
products, the market acceptance of mobile phones developed and
marketed by customers that use the Company's products, customers'
plans to develop smart phones and feature phones, the acceptance of
advanced multimedia services such as H.264 television on mobile
phones, and the Company's ability to execute product and technology
development plans on schedule. There is no certainty that current
or future design wins will result in revenue for NeoMagic or that
customer forecasts will be accurate. Customers may cancel or delay
projects or customers may fail to achieve their expected sales
objectives due to competitive or other reasons. Our patent
licensing activities involve various risks and uncertainties,
including, without limitation, uncertainties as to the willingness
of other companies to pay material fees to license our intellectual
property, the length and uncertain outcome of licensing
negotiations, the possibility that litigation may be required to
enforce patents, and the risks and costs inherent in any patent
litigation. Additional risks that could affect the Company's future
operating results are more fully described in the Company's most
recent annual report, its most recent quarterly report and other
filings with the United States Securities and Exchange Commission
(SEC), and are available online at http://www.sec.gov/. NeoMagic
may, from time to time, make additional written or oral
forward-looking statements, including statements contained in
filings with the SEC and reports to shareholders. NeoMagic does not
undertake the obligation to update any forward-looking statements
that may be made by or on behalf of the company. NOTE: NeoMagic,
and the NeoMagic circle logo are registered trademarks, and MiMagic
is a trademark, of NeoMagic Corporation. All other trademarks are
the property of their respective owners. NeoMagic disclaims any
proprietary interest in the marks and names of others. NEOMAGIC
CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In
thousands, except per share data) (Unaudited) Three Months Ended
April 30, January 31, April 30, 2006 2006 2005 Product revenue $86
$104 $299 Licensing revenue 0 0 0 Total revenue 86 104 299 Cost of
product revenue 86 101 332 Cost of licensing revenue 0 0 0 Total
cost of revenue 86 101 332 Gross margin (loss) 0 3 (33) Operating
expenses: Research and development 3,284 3,193 3,083 Sales, general
and administrative 1,940 2,049 1,790 Gain on sale of patents 0 0
(3,481) Total operating expenses 5,224 5,242 1,392 Loss from
operations (5,224) (5,239) (1,425) Interest income and other 270
238 117 Interest expense (37) (1,893) (288) Loss before income
taxes (4,991) (6,894) (1,596) Income tax provision (benefit) 16
(2,919) 49 Net loss $(5,007) $(3,975) $(1,645) Basic net loss per
share $(0.53) $(0.48) $(0.25) Diluted loss per share $(0.53)
$(0.48) $(0.25) Weighted average common shares outstanding for
basic 9,521 8,217 6,647 Weighted average common shares outstanding
for diluted 9,521 8,217 6,647 NEOMAGIC CORPORATION CONSOLIDATED
CONDENSED BALANCE SHEETS (In thousands) April 30, January 31, 2006
2006 ASSETS (Unaudited) Current assets: Cash and cash equivalents
$21,235 $26,695 Short-term investments 513 0 Accounts receivable,
net 7 9 Inventory 152 171 Other current assets 1,039 800 Total
current assets 22,946 27,675 Property, plant and equipment, net
1,994 2,368 Other assets 414 451 Total assets $25,354 $30,494
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $1,184 $1,735 Compensation and related benefits 1,260 1,024
Income taxes payable 1,065 1,059 Other accruals 228 264 Current
portion of capital lease obligations 1,637 1,525 Total current
liabilities 5,374 5,607 Capital lease obligations 407 624 Other
long-term liabilities 145 149 Registration obligation 606 606
Stockholders' equity: Common stock 36 36 Additional paid-in-capital
109,485 109,696 Deferred compensation 0 (531) Accumulated other
comprehensive loss (1) (2) Accumulated deficit (90,698) (85,691)
Total stockholders' equity 18,822 23,508 Total liabilities and
stockholders' equity $25,354 $30,494 (Logo:
http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO)
http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
http://photoarchive.ap.org/ DATASOURCE: NeoMagic Corporation
CONTACT: Scott Sullinger, Chief Financial Officer of NeoMagic
Corporation, +1-408-486-3879; or investors, Erica Mannion of
Sapphire Investor Relations, LLC, +1-212-766-1800, for NeoMagic
Corporation Web site: http://www.neomagic.com/
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