CIMdata PLM Industry Summary Online Archive
19 October 2004
Financial News
Nassda Announces Revenue of $11.0 Million for the Quarter Ended September 30, 2004
Nassda Corporation announced financial results for the quarter ended September 30, 2004, the fourth quarter of Nassda's fiscal 2004. Revenue for the quarter ended September 30, 2004 was $11.0 million, a 31% increase from $8.4 million for the quarter ended September 30, 2003 and was substantially unchanged from $11.0 million for the quarter ended June 30, 2004.
Net income for the quarter ended September 30, 2004 was $175,000, or $0.01 per diluted share, a decrease of $148,000 from $323,000, or $0.01 per diluted share, for the quarter ended September 30, 2003 and a decrease of $891,000 from $1.1 million, or $0.04 per diluted share, for the quarter ended June 30, 2004.
Fiscal 2004 Results
Total revenue for fiscal 2004 was $41.5 million, an 18% increase from $35.1 million for fiscal 2003. Net income for fiscal 2004 was $2.6 million, or $0.09 per diluted share, a decrease of $1.0 million as compared to net income for fiscal 2003 of $3.6 million, or $0.12 per diluted share.
"Nassda again achieved its highest level of quarterly revenue and our cash, cash equivalents and short-term investments increased by approximately $1.6 million during the quarter to a total of $101.4 million, as of September 30, 2004," said Sang Wang, Chief Executive Officer. "Our customers' continued support and our employees' dedication contributed to our success during fiscal 2004. In fiscal 2005, we expect to face similar economic and competitive challenges as we create both sales and research and development strategies to meet these challenges and take advantage of the opportunities in front of us."
Business Outlook
We believe that our customers will remain cautious with regards to their spending and EDA budgets are likely to continue to be tight. As a result, for the quarter ending December 31, 2004, Nassda expects total revenue of $10.8 million to $11.0 million and fully diluted per share earnings of approximately $0.00 to a net loss of $0.05. This $0.05 per share range is largely due to the uncertainty relating to the timing and magnitude of our spending on our litigation defense.
For fiscal 2005, Nassda anticipates total revenue of $44.0 million to $46.0 million and fully diluted net loss per share of approximately $0.05 to $0.15. Due to seasonally lower bookings expected in the first half fiscal 2005, Nassda expects quarterly revenue for the first half of fiscal 2005 to be relatively flat but expects sequential quarterly revenue growth in the second half of fiscal 2005. With time-based licenses accounting for 57% of our total bookings in fiscal 2004, Nassda expects time-based license bookings as a percent of total bookings to increase slightly in fiscal 2005 to over 60%. As a result, time-based license revenue as a percent of total revenue is expected to increase to between 55% to 65%.
Nassda intends to continue its efforts to control operating costs, but also anticipates making additional investments in Nassda's worldwide sales, support, research and development organizations. We expect the cost of the Synopsys litigation to increase as we continue to defend ourselves vigorously and the lawsuits move toward trials and the additional defense costs related to the class action and derivative cases will also increase our general and administrative expenses. The guidance provided for the fully diluted net loss per share of fiscal 2005 includes approximately $18.0 million to $20.0 million of litigation related costs. Additionally, we also expect costs related to being a public company, such as directors' and officers' liability insurance, compliance with corporate governance rules adopted by The Nasdaq Stock Market and the Securities and Exchange Commission, professional fees and various filing fees to increase our general and administrative expenses.
Nassda will host 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 October 26, 2004.
Those without internet access may listen to a replay of the call by dialing (719) 457-0820, access code 900477. The replay will be available from 5:00 p.m. PDT on October 19, 2004 through October 26, 2004.
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