CIMdata PLM Industry Summary Online Archive

14 July 2004

Financial News

Nassda Announces Revenue of $11.0 Million for the Quarter Ended June 30, 2004

Nassda Corporation announced financial results for the quarter ended June 30, 2004, the third quarter of Nassda's fiscal 2004. Revenue for the quarter ended June 30, 2004 was $11.0 million, a 46% increase from $7.5 million for the quarter ended June 30, 2003 and a 12% increase from $9.8 million for the quarter ended March 31, 2004. Time-based license bookings as a percent of total bookings was 68% and 56% for the three months and nine months ended June 30, 2004, respectively.

Net income for the quarter ended June 30, 2004 was $1.1 million, or $0.04 per diluted share, an increase of 444% from $196,000, or $0.01 per diluted share, for the quarter ended June 30, 2003 and an increase of 42% from $752,000, or $0.03 per diluted share, for the quarter ended March 31, 2004.

For the nine months ended June 30, 2004, revenue was $30.5 million, a 14% increase from $26.6 million for the nine months ended June 30, 2003. Net income for the nine months ended June 30, 2004 was $2.4 million, or $0.08 per diluted share, a decrease from $3.2 million, or $0.11 per diluted share, for the nine months ended June 30, 2003.

"We are very excited to have achieved our highest level of revenue and met our earnings target. In addition, our cash, cash equivalents and short-term investments increased by approximately $3.7 million during the quarter and totaled $99.9 million as of June 30, 2004," said Sang Wang, Chief Executive Officer. "On the product development front, we also released our new HSIMplus platform during the quarter and now offer a suite of options to help address the major stumbling blocks to the success of large and complex IC designs at 130 nanometer and below, such as reliability of power and signal networks, the timing impact of dynamic voltage drop and the effects of crosstalk noise."

Business Outlook

Over the last few fiscal quarters, there have been some improvements in the global economy and the semiconductor industry. However, we believe that our customers will continue to spend conservatively in the second half of calendar 2004 with tight controls on their electronic design automation tools' budgets. As a result, for the quarter ending September 30, 2004, Nassda expects total revenue of $10.8 million to $11.0 million and fully diluted earnings per share of approximately $0.00 to $0.01. Due to the seasonality of renewals, budget constraints and the market and competitive environment, Nassda expects that time-based license bookings as a percent of total bookings will be between 50% to 70% for the fourth quarter of fiscal 2004. As a result, time-based license revenue as a percent of total revenue is expected to be between 50% to 60% for the fourth quarter of fiscal 2004.

Nassda intends to continue to control operating costs, but also anticipates making additional investments in Nassda's worldwide sales, support, and research and development organizations. Additionally, Nassda expects the legal fees related to its on-going litigation with Synopsys, Inc. to increase as the cases get closer to trial. As a result, Nassda expects overall operating expenses to increase 10% to 15% for the fourth quarter of fiscal 2004 as compared to the third quarter of fiscal 2004.

For fiscal 2004, Nassda anticipates total revenue of $41.2 million to $41.5 million and fully diluted earnings per share of approximately $0.08 to $0.09.

Nassda will hold a conference call that includes business outlook with financial analysts and investors at 2:00 p.m. PDT today. Following completion of the call, a rebroadcast of the webcast will be available at http://www.nassda.com/ or http://www.fulldisclosure.com/ through July 21, 2004.

Those without Internet access may listen to a replay of the call by dialing (719) 457-0820, access code 769790. The replay will be available from 5:00 p.m. PDT on July 14, 2004 through July 21, 2004.

For additional information and considerations regarding the risks faced by Nassda, see Nassda's Annual Report on Form 10-K for the fiscal year ended September 30, 2003 and Quarterly Reports on form 10-Q for the quarters ended December 31, 2003 and March 31, 2004, as filed with the Securities and Exchange Commission.

 

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