Business News

NeoMagic(R) Corporation Reports Fiscal Q1 2009 Results

Tuesday 20. May 2008 - NeoMagic Corporation (NASDAQ:NMGC) today reported its financial results for the first quarter of fiscal 2009, ended April 27, 2008.

Total revenue for the first quarter of fiscal 2009 was $592 thousand, compared to total revenue of $830 thousand for the fourth quarter of fiscal 2008, and $482 thousand for the first quarter of fiscal 2008. Net income for the first quarter of fiscal 2009 was $4.9 million, or $0.39 per share, compared to a net loss of $4.5 million, or $0.36 per share, in the fourth quarter of fiscal 2008 and a net loss of $3.2 million, or $0.26 per share, in the first quarter of fiscal 2008. Included in the first quarter results was a gain on the sale of patents of $9.5 million or $0.76 per share.

The first quarter fiscal 2009 non-GAAP net loss was $4.2 million, or $0.33 per share, compared to $4.1 million, or $0.33 per share, in the previous quarter and compared to a $3.8 million net loss, or $0.31 per share, in the first quarter of fiscal 2008. Non-GAAP results exclude the impact of stock-based compensation expenses, gains on the sale of patents, and gains and losses recorded for the changes in fair value of warrant liabilities.

“In fiscal Q1 we experienced a pause in our revenue growth, consistent with other handset chip providers in this post-holiday quarter. But I am very pleased with the new design wins we are gathering for our recently introduced MiMagic 8 Applications Processor and our NeoMobileTV Co-processor. Both of these new products have been recognized by our new customers for the exciting mobile TV features they enable. These customers have indicated that they anticipate going into production this calendar year,” said Douglas Young, President and CEO of NeoMagic Corporation.

“We are pleased to have completed a patent sale transaction in February 2008 for net proceeds of $9.5 million,” stated Steve Berry, CFO of NeoMagic.