NSDA Nassda Corp (MM)

Nassda Announces Revenue of $11.0 Million for the Quarter Ended June 30, 2004 Net Income of $1.1 Million, or $0.04 per Diluted Share SANTA CLARA, Calif., July 14 /PRNewswire-FirstCall/ -- Nassda Corporation (NASDAQ:NSDA), a leading provider of full-chip circuit simulation and analysis software for the design and verification of complex semiconductors, today 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. A live webcast of the call will be available on Nassda's Web site at http://www.nassda.com/ or http://www.fulldisclosure.com/. 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. About Nassda Nassda Corporation is a leading provider of full-chip circuit verification software for complex nanometer semiconductors. Headquartered in Santa Clara, California, the company develops and markets simulation and analysis solutions for advanced ICs, especially for analog, memory, high-performance digital, and mixed-signal SoC designs. Nassda's products enable first silicon success and improve product quality and production yield for its consumer, communication, computer and memory customers. The company has sales and distribution offices throughout the world. For more information about Nassda, please visit the company's website at http://www.nassda.com/ . Forward Looking Statements This press release contains forward-looking statements regarding future product releases, anticipated revenue, operating expenses, diluted earnings per share, time-based license bookings as a percent of total bookings and total revenue that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the availability of customer budgets for Nassda's products, Nassda's cost control measures, the timing and extent of legal expenses related to Nassda's on-going litigation, Nassda's product development schedules, the design performance of Nassda's existing and new electronic design automation software and other tools, customers' adoption of Nassda's products, whether customers purchase time-based or perpetual licenses and those customers' design and manufacturing schedules. In addition, continued reduced capital spending or delayed implementation of programs due to adverse general economic conditions and reduced demand for products containing complex nanometer-scale semiconductors may impact Nassda's future performance. These risks, uncertainties and other factors may cause Nassda's actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In addition, historical information should not be considered a predictor of future performance. Neither Nassda nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Nassda disclaims any obligation to update information contained in any forward-looking statement. 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. NOTE: Nassda and HSIM are registered trademarks and HSIMplus is a trademark of Nassda Corporation. Nassda Corporation Condensed Unaudited Consolidated Balance Sheets (unaudited) (in thousands) June 30, Sept. 30, 2004 2003 ASSETS Current assets: Cash, cash equivalents and short-term investments $99,854 $92,165 Accounts receivable, net of allowance 2,045 1,874 Prepaid expenses and other current assets 1,247 996 Deferred income taxes 3,010 2,568 Total current assets 106,156 97,603 Property and equipment, net 512 704 Other assets 1,035 1,165 Total assets $107,703 $99,472 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,777 $230 Accrued compensation 2,979 2,689 Accrued liabilities 2,314 3,281 Income taxes payable 1,451 1,712 Deferred revenue 11,155 8,982 Total current liabilities 19,676 16,894 Deferred revenue 622 849 Other long-term liabilities 60 64 Total liabilities 20,358 17,807 Stockholders' equity: Common stock 27 26 Additional paid-in capital 73,002 70,343 Deferred stock-based compensation (401) (1,117) Accumulated other comprehensive loss (90) (4) Retained earnings 14,807 12,417 Total stockholders' equity 87,345 81,665 Total liabilities and stockholders' equity $107,703 $99,472 Nassda Corporation Consolidated Income Statements (unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 2004 2003 2004 2003 Revenue Product $2,643 $1,892 $7,217 $9,735 Subscription 5,793 3,558 15,790 10,749 Maintenance 2,519 2,058 7,462 6,158 Total revenue 10,955 7,508 30,469 26,642 Cost of revenue Cost of product revenue 49 69 214 198 Cost of subscription revenue 108 90 317 260 Cost of maintenance revenue 268 211 753 609 Total cost of revenue 425 370 1,284 1,067 Gross profit 10,530 7,138 29,185 25,575 Operating expenses: Research and development 2,419 1,968 6,461 5,203 Sales and marketing 3,245 2,659 8,585 8,408 General and administrative 3,735 2,457 11,132 7,335 Stock-based compensation 189 229 631 725 Total operating expenses 9,588 7,313 26,809 21,671 Income (loss) from operations 942 (175) 2,376 3,904 Other income, net 254 233 712 727 Income before income taxes 1,196 58 3,088 4,631 Provision for (benefit from) income taxes 130 (138) 698 1,390 Net income $1,066 $196 $2,390 $3,241 Earnings per share: Basic $0.04 $0.01 $0.09 $0.13 Diluted $0.04 $0.01 $0.08 $0.11 Shares used in computing earnings per share: Basic 26,666 25,326 26,291 24,859 Diluted 28,959 28,546 29,107 28,652 DATASOURCE: Nassda Corporation CONTACT: Tammy Liu of Nassda Corporation, +1-408-327-7710, or or Web site: http://www.nassda.com/

Copyright