Product category:
Programmable Logic Devices
News Release from: MathStar
Edited by the Electronicstalk Editorial
Team on 26 February 2007
PLD company announces annual results
Programmable logic devices company sees revenues slide as R and D costs increase
MathStar has announced results for its fourth quarter ended 31st December 2006 For the three months ended 31st December 2006, revenues were US $7,000 compared with $79,000 for the same period last year
This article was originally published on Electronicstalk on 26 Sep 2006 at 8.00am (UK)
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Costs of goods sold for the three months ending 31st December included a $92,000 non-cash charge for excess and obsolete inventory associated with EDA licenses and evaluation boards.
R and D expenses increased $1.4 million or 64% to $3.6 million for the three months ended 31st December 2006, from $2.2 million for the three months ended 31st December 2005.
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The increase was primarily the result of intellectual property purchases for the next generation of the company's field programmable object array (FPOA) of $1.0 million, increased engineering materials of $0.2 million, and increased overhead costs of $0.2 million primarily due to an allocation of certain overhead costs from selling, general and administrative (SG and A).
This increase was offset by lower contract engineering costs of $0.1 million.
For the three months ended 31st December 2006, selling, general and administrative expenses decreased by $0.2 million or 9% to $2.0 million,compared with $2.2 million for the three months ended 31st December 2005.
The decrease was primarily the result of an allocation of $0.2 million to R and D.
Revenues for the year ended 31st December 2006 were $53,000 compared with $134,000 for the year ended 31st December 2005.
Costs of goods sold for the year ended 31st December 2006 included a $92,000 non-cash charge for excess and obsolete inventory associated with electronic design automation (EDA) licenses and evaluation boards.
For the year ended 31st December 2006, research and development costs were $13.9 million, an increase of $5.7 million or 70% compared with research and development costs of $8.2 million for the year ended 31st December 2005.
The increase was the result of increased payroll and engineering consultant costs of $2.2 million, including $0.3 million of non-cash charges for compensation costs related to stock options and restricted stock, engineering and tapeout related expenses of $1.7 million for the company's first production Arrix FPOA and the purchase of intellectual property for the next generation of FPOAs, increased overhead costs of $1.0 million due to an allocation of certain overhead costs from SG and A and other R and D expense increases of $0.8 million.
Selling, general and administrative costs increased $2.5 million or 38 % to $9.1 million for the year ended 31st December 2006, from $6.6 million for the year ended 31st December 2005.
The increase was primarily the result of increased staffing and increased salaries of $2.7 million (which includes $2.4 million of non-cash charges for compensation costs related to expensing of stock options and restricted stock), professional fees and outside consulting expenses of $0.5 million and other administrative expenses of $0.3 million.
These increases were offset by an allocation in the year ended 31st December 2006 of certain overhead costs of $1.0 million to R and D.
Other income for the year ended 31st December 2006 of $0.6 million consisted of interest income on invested cash balances.
For the year ended 31st December 2005 other expenses included $4.4 million of interest expense associated with the convertible notes issued in April 2005 (which included the amortisation of discount recorded for the value of the beneficial conversion feature and the warrants issued to the note holders and interest costs).
This interest expense is partially offset by interest income on invested cash balances of $0.2 million.
The company's cash used in operating activities for the year ended 31st December 2006 was $19.0 million compared with $13.7 million for the same period last year.
The $5.3 million increase was primarily the result of increased R and D expenditures, building the SG andA infrastructure and costs associated with being a public company.
Cash used in investing activities for the year ended 31st December 2006 was $0.4 millioncompared with $0.3 million for the same period last year.
The cash used in investing activities for both years was for the purchase of property and equipment.
Cash flow from financing activities was $12.2 million for the year ended 31st December 2006 compared with $30.1 million for the same period last year.
In 2006, the company completed a private equity placement net to the company of $11.7 million and $0.5 million of warrants were converted to common stock.
In 2005, the company completed a public offering raising net to the company $24.6 million and placed $5.5 million of convertible notes.
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