Innoveda down in second quarter

Innoveda has reported financial results for the second quarter ended 30th June 2001.

Innoveda has reported financial results for the second quarter ended 30th June 2001.

Revenue for the quarter was $22.1 million compared with $21.6 million for the second quarter of 2000.

Before amortisation and nonrecurring charges, the company recorded an operating loss of $3.5 million compared with operating income of $1.8 million for the same period last year.

The net loss for the quarter, before amortisation and nonrecurring charges, was $2.4 million, or $0.06 per share, versus net income of $1.3 million, or $0.04 per share, on the same basis for the second quarter of 2000.

Including amortization and nonrecurring charges, Innoveda reported a net loss of $6.7 million, or $0.17 per share, for the latest quarter compared with a net loss of $0.7 million, or $0.02 per share, for the second quarter last year.

Revenue for the six months ended 30th June 2001 equalled $49.3 million compared with $35.9 million for the first half of 2000.

Excluding amortisation and nonrecurring charges, the operating loss for the year-to-date period was $1.7 million compared with operating income for the prior year period of $1.9 million.

The net loss for the first six months of 2001 was $8.8 million, or $0.23 on a per share basis, versus a net loss of $5.1 million, or $0.21 per share, for the first half of 2000.

Commenting on the quarterly results, President and Chief Executive Officer William J Herman said, "Our performance during the second quarter was clearly impacted by the downturn in the overall economy.

We saw customer budgets come under far greater scrutiny than we have previously witnessed - particularly among telecommunications equipment manufacturers.

Our underlying business remains sound and our sales pipeline is strong as a result of our progress during the last 12 months in building our sales force".

"Our outlook remains tempered by the fact that we have seen continued delays or postponements in a number of potential large orders from major electronics companies this year.

Realising that economic uncertainties may affect our business in coming quarters, we are reviewing our business model and considering adjustments to our focus to ensure that we capitalise on our strong market positions and leading technologies in some of the fastest growing EDA market segments", Herman added.

The company expects to provide more information on its strategic realignment and guidance on future financial performance in August.

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