Exhibit 99.1
Neomagic(R) Corporation Reports Third Quarter Fiscal 2005 Results
SANTA CLARA, Calif., Nov. 18 /PRNewswire-FirstCall/ -- NeoMagic
Corporation (Nasdaq: NMGC), a pioneer in Applications Processors for
multimedia-rich mobile phones and other wireless handheld systems, today
reported its third quarter fiscal year 2005 financial results. Net sales for
the third quarter of fiscal 2005, ended October 31, 2004, were $552 thousand,
compared to net sales of $1.0 million for the second quarter of fiscal 2005.
Net loss for the third quarter of fiscal 2005 was $6.0 million, or a loss of
$0.18 per share, compared to a net loss of $6.7 million, or a loss of $0.20
per share, in the second quarter of fiscal 2005. Cash, cash equivalents and
short-term investments totaled $30.8 million at October 31, 2004.
"Despite near term revenue weakness, we are seeing several new design
opportunities with OEM customers, particularly in Japan. These customers are
interested in our H.264 technology for television devices, both for
terrestrial and satellite television services," said Prakash Agarwal,
president and chief executive officer of NeoMagic. "Our early success with
the Mobile Broadcast Corporation has helped us make inroads with a number of
other large, brand name Japanese companies. Mobile phone manufacturers are
forecasting that mobile television phones and devices will demonstrate a
growth rate similar to that of the camera phone and we hope to capitalize on
this trend."
Conference Call Highlights
Third quarter fiscal 2005 highlights and fiscal 2005 expectations to be
covered on NeoMagic's quarterly conference call include, but are not limited
to, the following:
-- At CEATEC Japan in October, one of Japan's largest consumer
electronics companies demonstrated two H.264 MiMagic 6-based devices.
One prototype was the first terrestrial H.264 television mobile phone
and the other was an H.264 television car navigation system.
-- The Pantech & Curitel MiMagic 6 program has been put on hold while
that company re-evaluates its Smartphone strategy.
-- MiMagic 5 programs with NeoNode and TCL Corporation are progressing,
but more slowly than expected. These programs, together with the
MiMagic 3 program for MBCO and the DTCT MiMagic 3 program, are
expected to account for the majority of NeoMagic's revenue forecast in
the next few quarters.
-- Due to push-outs in customer programs and a lack of visibility from
customers on new programs, NeoMagic expects fourth quarter revenue to
be lower than that of the third quarter.
Dial-in Information
NeoMagic will hold its third quarter fiscal 2005 conference call to
discuss the information contained in this press release today at 2:00 p.m. PST
(5:00 p.m. EST). The call can be accessed via the Internet at
www.neomagic.com, "Investor Resources." The call can also be accessed by
dialing 866-804-3550 in the US and 703-639-1330 internationally. There is no
pass code. There will be an audio replay through November 25, 2004, which can
be accessed by dialing 888-266-2081 in the US and 703-925-2533
internationally. The pass code is 586662.
About NeoMagic
NeoMagic Corporation, based in Santa Clara, California, enables new
generations of handheld systems with its Applications Processors that are
designed to offer the lowest power, smallest form-factor and best multimedia
features and performance. The company is a pioneer in the integration of
complex logic, memory and analog circuits into single-chip solutions.
Information on the company may be found on the World Wide Web at
www.neomagic.com.
This press release contains forward-looking statements within the meaning
of the Securities Act of 1933, including statements regarding the expectations
for product sales and new product and technology development efforts.
Examples of forward-looking statements include expectations for future revenue
growth, market developments, and the ability for our customers to accurately
forecast shipments of end products based on the MiMagic family. These
statements reflect current expectations. However, actual events and results
could vary significantly based on a variety of factors including but not
limited to customer acceptance of NeoMagic products, the market acceptance of
mobile phones developed and marketed by customers that use the Company's
products, our customer's plans to develop smart phones and feature phones, the
acceptance of advanced multimedia services such as H.264 television on mobile
phones, and the Company's ability to execute product and technology
development plans on schedule. NeoMagic makes no representation that current
or future design wins will result in revenue for NeoMagic. Additional risks
that could affect the Company's future operating results are more fully
described in the Company's most recent annual report, its most recent
quarterly report and other filings with the United States Securities and
Exchange Commission (SEC), and are available online at http://www.sec.gov .
NeoMagic may, from time to time, make additional written or oral forward-
looking statements, including statements contained in filings with the SEC and
reports to shareholders. NeoMagic does not undertake the obligation to update
any forward-looking statements that may be made by or on behalf of the
company.
NOTE: NeoMagic, and the NeoMagic circle logo are registered trademarks,
and MiMagic is a trademark, of NeoMagic Corporation. All other trademarks are
the property of their respective owners. NeoMagic disclaims any proprietary
interest in the marks and names of others.
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Oct. 31, July 31, Oct. 31, Oct. 31, Oct. 31,
2004 2004 2003 2004 2003
Net sales $552 $1,041 $486 $2,244 $1,332
Cost of sales 663 1,044 623 2,422 1,630
Gross loss (111) (3) (137) (178) (298)
Operating expenses:
Research and development 4,189 4,819 5,340 13,876 14,849
Sales, general and
administrative 1,643 1,880 1,835 5,663 5,379
Total operating expenses 5,832 6,699 7,175 19,539 20,228
Loss from operations (5,943) (6,702) (7,312) (19,717) (20,526)
Interest income and other 123 92 363 318 742
Interest and other expense (173) (53) (66) (250) (226)
Loss before income taxes (5,993) (6,663) (7,015) (19,649) (20,010)
Income tax provision 5 7 33 19 39
Net loss $(5,998) $(6,670) $(7,048) $(19,668) $(20,049)
Basic and diluted net loss
per share $(0.18) $(0.20) $(0.23) $(0.61) $(0.66)
Weighted common shares
outstanding 32,829 32,549 30,759 32,475 30,498
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
October 31, July 31, January 31,
2004 2004 2004
ASSETS
Current assets:
Cash and cash equivalents $13,547 $7,731 $12,342
Short-term investments 17,213 23,595 30,240
Accounts receivable, net 302 14 384
Inventory 785 501 102
Other current assets 1,064 1,173 974
Total current assets 32,911 33,014 44,042
Property, plant and equipment, net 4,265 3,160 3,302
Other assets 2,656 2,893 3,517
Total assets $39,832 $39,067 $50,861
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,483 $1,694 $1,344
Compensation and related benefits 1,600 1,201 1,257
Income taxes payable 3,672 3,672 3,675
Other accruals 258 259 203
Current portion of capital lease
obligations 1,445 1,488 1,756
Total current liabilities 8,458 8,314 8,235
Capital lease obligations 2,555 1,105 799
Mandatorily redeemable preferred stock 2,775 0 0
Stockholders' equity:
Common stock 33 33 32
Additional paid-in-capital 95,506 91,954 90,496
Deferred compensation (1,648) (480) (535)
Accumulated other comprehensive loss (19) (29) (6)
Accumulated deficit (67,828) (61,830) (48,160)
Total stockholders' equity 26,044 29,648 41,827
Total liabilities and stockholders'
equity $39,832 $39,067 $50,861
SOURCE NeoMagic Corporation
-0- 11/18/2004
/CONTACT: Willa McManmon, Director, Corporate Communications of NeoMagic
Corporation, +1-408-486-3955/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
AP Archive: http://photoarchive.ap.org
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/Web site: http://www.neomagic.com /
(NMGC)
CO: NeoMagic Corporation
ST: California
IN: CPR SEM ECP HRD
SU: ERN CCA