Exhibit 99.1
NEOMAGIC(R) CORPORATION REPORTS Q1 FISCAL 2006 RESULTS
SANTA CLARA, Calif., June 9 /PRNewswire-FirstCall/ -- NeoMagic Corporation
(Nasdaq: NMGC), a pioneer in Applications Processors for multimedia-rich mobile
phones and other wireless handheld systems, today reported its first quarter
fiscal 2006 financial results. Net sales for the first quarter of fiscal 2006,
ended April 30, 2005, were $299 thousand, compared to net sales of $222 thousand
for the fourth quarter of fiscal 2005. Net loss for the first quarter of fiscal
2006 was $1.6 million, or a loss of $0.05 per share, compared to a net loss of
$8.6 million, or a loss of $0.26 per share, in the fourth quarter of fiscal
2005. During the quarter, the Company recorded a $3.5 million gain on the sale
of unused patents.
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"We are happy about the $3.5 million gain on the sale of patents during the
first quarter. This gain reduced our net loss and cash burn during the quarter
and demonstrated a non-dilutive way for us to raise capital. Looking forward, we
are excited about the progress of our customer engagements, our market
opportunities and the way our solutions address market needs," said Douglas
Young, president and chief executive officer of NeoMagic.
Conference Call Highlights
First quarter fiscal 2006 highlights to be covered on NeoMagic's quarterly
conference call include the following:
-- NeoMagic's Digital Mobile Broadcast (TV on mobile device) solution
positions the Company to serve a market expected to grow rapidly and
generate significant revenue opportunities for NeoMagic.
-- NeoNode, a Swedish Mobile Phone Manufacturer, has the potential to drive
NeoMagic's MiMagic 5 revenue during the second half of calendar year
2005.
-- During the first quarter, one of NeoMagic's ODM partners told the
Company about a new OEM customer that expects to begin shipping a
MiMagic 5-based phone during the fourth quarter of calendar year 2005.
-- Another ODM program with a Top Five Mobile Phone OEM that was discussed
last quarter continues to move forward.
-- The MiMagic 6-based feature phone program at Compal Communications
continues to move forward.
-- NeoMagic continues to work with two OEMs in Japan on digital TV phones.
-- The Company continues to work with a major phone carrier that is
considering the MiMagic 6 for a 3G phone platform.
-- The Company has efforts underway to raise additional cash through the
sales and licensing of its unused patent portfolio.
-- The Company expects cash expenditures to be in the $5 million range
during the second quarter of fiscal year 2006.
Dial-in Information
NeoMagic will hold its first quarter fiscal 2006 conference call to discuss
the information contained in this press release today at 2:00 p.m. PDT (5:00
p.m. EDT). The call can be accessed via the Internet at www.neomagic.com,
"Investor Resources." The call can also be accessed by dialing 866-206-5917 in
the US and 703-639-1106 internationally. There is no passcode. There will be an
audio replay through June 16, 2005, which can be accessed by dialing
888-266-2081 in the US and 703-925-2533 internationally. The passcode for the
replay is 709396.
The webcast is also being distributed over CCBN's Investor Distribution
Network to both institutional and individual investors. Individual investors can
listen to the call through CCBN's individual investor center at
www.fulldisclosure.com or by visiting any of the investor sites in CCBN's
Individual Investor Network. Institutional investors can access the call via
CCBN's password-protected event management site, StreetEvents
(www.streetevents.com).
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 and the Securities Exchange Act of 1934, including
the Company's revenue opportunities, the Company's expectations of quarterly
cash expenditures in the second quarter of fiscal year 2006 and the Company's
ability to raise cash through sales and licensing of its unused patent
portfolio. 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, 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
------------------------------------------
April 30, January 31, April 30,
2005 2005 2004
------------ ------------ ------------
Net sales $ 299 $ 222 $ 651
Cost of sales 332 773 715
Impairment of certain licensed
intellectual property 0 89 0
Gross loss (33) (640) (64)
Operating expenses:
Research and development 3,083 4,332 4,868
Sales, general and administrative 1,790 1,784 2,140
Gain on sale of patents (3,481) 0 0
Impairment of certain licensed
intellectual property 0 1,437 0
Total operating expenses 1,392 7,553 7,008
Loss from operations (1,425) (8,193) (7,072)
Interest income and other 117 97 103
Interest expense (288) (284) (24)
Loss before income taxes (1,596) (8,380) (6,993)
Income tax provision 49 177 7
Net loss $ (1,645) $ (8,557) $ (7,000)
Basic and diluted net loss per share $ (0.05) $ (0.26) $ (0.22)
Weighted common shares outstanding 33,235 33,065 32,077
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, January 31,
2005 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 15,677 $ 8,944
Short-term investments 8,381 16,082
Accounts receivable, net 55 12
Inventory 228 376
Other current assets 874 792
Total current assets 25,215 26,206
Property, plant and equipment, net 3,425 3,835
Other assets 587 673
Total assets $ 29,227 $ 30,714
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,004 $ 1,084
Compensation and related benefits 1,299 1,017
Income taxes payable 3,895 3,851
Other accruals 212 225
Current portion of capital lease obligations 1,167 1,602
Total current liabilities 7,577 7,779
Capital lease obligations 2,044 2,004
Mandatorily redeemable preferred stock 3,168 2,971
Other long-term liabilities 12 0
Stockholders' equity:
Common stock 33 33
Additional paid-in-capital 95,386 95,606
Deferred compensation (959) (1,280)
Accumulated other comprehensive loss (4) (14)
Accumulated deficit (78,030) (76,385)
Total stockholders' equity 16,426 17,960
Total liabilities and stockholders' equity $ 29,227 $ 30,714
SOURCE NeoMagic Corporation
-0- 06/09/2005
/CONTACT: Scott Sullinger, Chief Financial Officer of NeoMagic Corporation,
+1-408-486-3879/
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