Q3 results are in and things look great.|
"SUNNYVALE, Calif.--(BUSINESS WIRE)--July 27, 1999--LOGIC Devices, Inc. (Nasdaq:LOGC) today announced results for its third fiscal quarter ended June 30, 1999. The Company reported revenues of $3,532,100. This is an increase of eight percent over $3,256,100 recorded in the immediately preceding quarter ended March 31, 1999. Revenues for the same period of the previous year ended June 30, 1998 were $3,298,700.
Reported earnings for the quarter were up sharply to $199,400, or $0.03 per share, compared to earnings of $700, or, $0.00 per share
during the same period of last year. Earnings for the immediately preceding quarter ended March 31, 1999 were $40,200, or $0.01 per
Bill Volz, President of LOGIC Devices, announced, "The quarter just ended was a particularly eventful time for the Company. We obtained a new banking relationship, strengthened our team with a number of important staffing moves, and we enjoyed strong cash flow as a result of the restructuring which we undertook at the end of the last fiscal year, which allowed us to significantly improve balance sheet liquidity."
"By the close of the third quarter of 1999, LOGIC Devices had reduced total liabilities by 37% ... Bank borrowings have dropped from a high of $5.85 million to $3.5 million ...Accounts payable is down approximately $850,000 since the beginning of the fiscal year. The Company has generated $2.7 million of cash flow in excess of its burn rate since the beginning of the fiscal year.
"However, because cash flow was heavily weighted toward the end of the quarter, the Company continued to tighten expenses during the June quarter. Earlier in the quarter, the Company was limited in achieving its sales goals due to working capital constraints," continued Volz.
"The challenge going forward will be to rebuild our product development activities to accelerate new product introductions. With the highly competitive conditions which exist within the industry, skilled engineering talent is not quickly recruited."
"The Company expects the current quarter to provide additional net positive cash flow. As a result, the Company anticipates shifting its priorities to funding growth initiatives over cost containment as the quarter progresses."
"The Company faces new challenges in the months ahead. The adoption rate of HDTV studio equipment has been slower than earlier forecasts suggested. The Company's newer products are designed into a wide variety of systems that address this market. Fortunately, strong sales in related communications applications have provided upside revenue opportunities to overcome this short-term delay."
"The supply chain which LOGIC depends on is changing rapidly. Since January, wafer fabrication utilization has increased dramatically, to nearly full capacity. However, the Company has not experienced any difficulties in obtaining wafers. Due to the high value of the Company's new products, relatively few wafers are required to support sales growth.
"At the other end of the chain, the Company's outsourcing of its order fulfillment activities has not met expectations to date. This area will be carefully monitored and evaluated during the current quarter," concluded Volz.
Now let's try that $5 mark again, shall we? Go LOGC!