Contacts:
James Cruckhank Alexis Pascal
MathStar, Inc. Stapleton Communications
info@mathstar.com alexis@stapleton.com
503.726.5500 650.470.0200
MathStar Announces Financial Results for Q4 and Fiscal Year 2007
Record Q4 and Fiscal Year Revenue
HILLSBORO, Ore., Feb. 19, 2008 -- MathStar, Inc. (NASDAQ: MATH), a fabless
semiconductor company specializing in high-performance programmable logic, today
announced results for its fourth quarter and fiscal 2007, ended Dec. 31, 2007.
Revenue in the fourth quarter was $313,000, compared with $63,000 in the third
quarter and $7,000 in the same period last year. Total revenue for 2007 was
$588,000, compared with $53,000 in 2006.
Net loss in the fourth quarter was $5,970,000, or $0.13 per share, compared with
a net loss of $5,699,000, or $0.28 per share, in the same period last year. Net
loss for 2007 was $20,365,000, or $0.59 per share, compared with $22,643,000, or
$1.26 per share, for fiscal year 2006.
"We made significant progress during 2007, penetrating tier-one customers in the
professional and broadcast video industry, such as LG and LodgeNet," said Dan
Sweeney, MathStar's president and chief operating officer. "We believe that we
are starting to see the revenue ramp for MathStar, as we demonstrate similar
success with additional customers," he added.
The company has scheduled its fourth quarter 2007 financial results conference
call for Tuesday, Feb. 19, 2008 at 1:30 p.m. Pacific time. To listen to the
call, please dial 303-205-0044 or 800-366-3964. A replay of the call will be
made available on the company's website at http://www.mathstar.com.
About MathStar, Inc.
MathStar is a fabless semiconductor company offering best-in-class, high
performance programmable logic solutions. MathStar's Field Programmable Object
Array (FPOA) can process arithmetic and logic operations at clock rates at 1
gigahertz, which is up to four times faster than even the most advanced FPGA
architectures in many applications. MathStar's Arrix family of FPOAs are
high-performance programmable solutions that enable customers in the machine
vision, high-performance video, medical imaging, security and surveillance and
military markets to rapidly and cost effectively innovate and differentiate
their products. FPOAs are available now and are supported by development tools,
IP libraries, application notes and technical documentation. For more
information, please visit www.mathstar.com.
Statements in this press release, other than historical information, may be
"forward-looking" in nature within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to various risks, uncertainties
and assumptions. These statements are based on management's current
expectations, estimates and projections about MathStar and its industry and
include, but are not limited to, those set forth in the section of MathStar's
Annual Report on Form 10-K filed with the Securities and Exchange Commission on
March 14, 2007 under the heading "Risk Factors." MathStar undertakes no
obligation to update any forward-looking statements in order to reflect events
or circumstances that may arise after the date of this release.
MathStar, Inc.
Unaudited Balance Sheet
(in thousands)
December 31, December 31,
2006 2007
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 12,891 $ 4,339
Restricted cash 103 107
Investments - short term -- 22,200
Accounts receivable 14 271
Inventory 610 623
Prepaid expenses and other current assets 1,231 1,326
------------ ------------
Total current assets 14,849 28,866
Property and equipment, net 487 557
Investments - long term -- 2,599
Other assets 278 435
------------ ------------
Total assets $ 15,614 $ 32,457
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 1,791 $ 930
Deferred revenue -- 162
Accrued expenses 1,206 1,416
------------ ------------
Total Current Liabilities 2,997 2,508
Long Term Liabilities -- 453
------------ ------------
Total liabilities 2,997 2,961
------------ ------------
Stockholders' equity
Common stock, $0.01 par value; 90,000 shares authorized;
20,922 and 45,907 shares issued and outstanding
at December 31, 2006 and December 31, 2007, respectively 209 459
Additional paid-in capital 118,545 155,539
Retained earnings (106,137) (126,502)
------------ ------------
Total stockholders' equity 12,617 29,496
------------ ------------
Total liabilities and stockholders' equity $ 15,614 $ 32,457
============ ============
MathStar, Inc
Unaudited Statement of Operations
(in thousands except for per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2006 2007 2006 2007
---------- ---------- ---------- ----------
Revenue $ 7 $ 313 $ 53 $ 588
Cost of goods sold 98 474 126 655
---------- ---------- ---------- ----------
Gross margin
(91) (161) (73) (67)
---------- ---------- ---------- ----------
Operating expenses:
Research and development 3,797 4,060 14,090 12,447
Selling, general and
administrative 2,002 2,132 9,133 8,865
---------- ---------- ---------- ----------
Total Operating Expenses
5,799 6,192 23,223 21,312
---------- ---------- ---------- ----------
Operating loss (5,890) (6,353) (23,296) (21,379)
Interest income 191 393 653 1,048
Other income /(loss), net -- (10) -- (34)
---------- ---------- ---------- ----------
Net loss $ (5,699) $ (5,970) $ (22,643) $ (20,365)
========== ========== ========== ==========
Basic and diluted net loss per
share $ (0.28) $ (0.13) $ (1.26) $ (0.59)
========== ========== ========== ==========
Weighted average basic and
diluted shares outstanding 20,678 45,907 18,001 34,312
========== ========== ========== ==========