CIMdata PLM Industry Summary Online Archive
12 January 2005
Financial News
Nassda Announces Revenue of $11.3 Million for the Quarter Ended December 31, 2004
Nassda Corporation announced financial results for the quarter ended December 31, 2004, the first quarter of Nassda's fiscal 2005. Revenue for the quarter ended December 31, 2004 was $11.3 million, an increase of 16% from $9.7 million for the quarter ended December 31, 2003 and an increase of 2% from $11.0 million for the quarter ended September 30, 2004.
Net income for the quarter ended December 31, 2004 was $1.3 million, or $0.05 per diluted share, an increase of 135% from $572,000, or $0.02 per diluted share, for the quarter ended December 31, 2003 and an increase of $68.6 million from a net loss of $(67.3) million, or $(2.50) per diluted share, for the quarter ended September 30, 2004. Operating expenses for the first quarter of fiscal 2005 were lower than expected, primarily due to lower litigation costs. As a result, Nassda was able to achieve an operating margin of 14% for the quarter ended December 31, 2004.
"First fiscal quarters are always seasonally challenging. We are pleased to have achieved satisfactory financial results, exceeding both the revenue and earnings expectations for the first quarter of our fiscal 2005 and maintaining our total cash, cash equivalents and short-term investments balances at $101.0 million," said Sang Wang, Chief Executive Officer. "Even though the semiconductor industry completed 2004 with good growth, we expect that the customers will continue to be very cautious with their spending. Nevertheless, as design starts steadily move to smaller and smaller geometries, we expect the need for nanometer verification software will become even more prominent."
Although we continue to see signs of some recovery in the global economy and the semiconductor industry, we believe our customers will spend conservatively in the first half of calendar 2005. Therefore, we do not expect our customers' R&D budgets to increase materially during the first half of 2005. As a result, for the quarter ending March 31, 2005, Nassda expects to have total revenue of $11.0 million to $11.3 million. Because the uncertainties surrounding the pending merger between Nassda and a subsidiary of Synopsys, Inc. (Nasdaq: SNPS) (the "Pending Merger") may impact customers' purchasing behavior, Nassda is not providing any forward-looking guidance on future licensing trends.
Nassda intends to continue its efforts to control operating costs and expects its litigation related costs to be substantially lower in the second quarter of fiscal 2005 versus recent quarters. However, we are not able to estimate the costs and timing related to the closing of the Pending Merger at this time. Therefore, Nassda is not providing any forward-looking guidance on its net income for the quarter ending March 31, 2005 or the remaining quarters of fiscal 2005.
Nassda will hold a conference call that includes business outlook with financial analysts and investors at 2:00 p.m. PST 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 January 19, 2005.
Those without internet access may listen to a replay of the call by dialing (719) 457-0820, access code 143551. The replay will be available from 5:00 p.m. PST on January 12, 2005 through January 19, 2005.
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