Exhibit 99.1
NEOMAGIC(R) CORPORATION REPORTS Q1 FISCAL YEAR 2007 RESULTS
SANTA CLARA, Calif., June 8 /PRNewswire-FirstCall/ -- NeoMagic Corporation
(Nasdaq: NMGC), today reported its first quarter fiscal year 2007 financial
results. Total revenue for the first quarter of fiscal 2007, ended April 30,
2006, was $86 thousand, compared to total revenue of $104 thousand for the
fourth quarter of fiscal 2006. Our total revenue for the first quarter of fiscal
2006 was $299 thousand. The decline in revenue from the first quarter of fiscal
2006 to the first quarter of fiscal 2007 was primarily the result of a reduction
in sales of our MiMagic 3, MiMagic 5 and companion chip products. Net loss for
the first quarter of fiscal 2007 was $5.0 million, or a loss of $0.53 per share,
compared to net loss of $4.0 million, or a loss of $0.48 per share, in the
fourth quarter of fiscal 2006.
"Since our last quarterly call we have received an initial order for our
MiMagic 6+. In addition, our traction with customers indicates that we are well
positioned to address our chosen markets. I am very excited about the progress
that we are making with sales prospects and the number of new programs that are
underway," said Douglas Young, president and chief executive officer of
NeoMagic.
Conference Call Highlights
Topics to be covered on NeoMagic's quarterly conference call include the
following:
-- NeoMagic continues to be in discussions with multiple companies with
respect to the possible licensing of NeoMagic's embedded DRAM
patents.
-- Development of the new NeoMobileTV product has been completed.
-- The MiMagic 6+ based digital mobile TV solution that was announced in
February 2006 in a joint press release between NeoMagic, TTP and the
BT Movio subsidiary of British Telecom, has attracted the interest of
several OEMs and ODMs.
-- NeoMagic announces a design win for a BT Movio product that is
expected to be released in 2007 to serve both the Chinese and
European mobile TV markets. NeoMagic is engaged with several other
ODMs and OEMs to develop phones for the BT Movio opportunity.
-- A customer in Asia plans to go into production with a MiMagic 3-based
product later this year.
-- NeoMagic is actively engaged with Neonode to bring its next
generation mobile phone to market.
-- Last quarter, management discussed a Japanese OEM customer that had
finished a MiMagic 6+ mobile digital TV phone and had completed
successful field-testing. Based upon the feedback management has
received from this customer, it is not clear whether this phone will
go into production. However, discussions with the customer are
continuing.
-- NeoMagic announces that it has a new design win for an ISDB-T
smartphone for the Japanese market.
-- The Japanese mobile phone carrier, mentioned last quarter in
connection with a platform design win, is working on the next level
product plan. NeoMagic is currently in discussions with this carrier
about which segment or segments of the market will best be served by
the MiMagic 6+ platform.
-- Outside of the mobile phone market, the MiMagic 6+ has been selected
for a wireless camera module developed by a major Korean OEM.
Dial-in Information
NeoMagic will hold its first quarter fiscal 2007 conference call to discuss
the information contained in this press release today at 5:00 p.m. Eastern Time
(2:00 p.m. Pacific Time). The call can be accessed via the Internet at
www.neomagic.com, "Investor Resources." The call can also be accessed by dialing
866-244-4637 in the U.S. and 703-639-1179 internationally. There is no passcode
for the live call. A replay of the call will be available for seven days
beginning on June 8th at 9 p.m. Eastern Time (6 p.m. Pacific Time). The replay
number is 888-266-2081 in the U.S. and 703-925-2533 internationally. The
passcode for the replay is 898444.
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 delivers semiconductor chips and software that provide
mobile solutions that enable new multimedia features for handheld devices. These
solutions offer low power consumption, small form-factor and high performance
processing. The Company demonstrated one of the first solutions used for H.264
video decoding in a mobile digital TV phone, and is developing and delivering
solutions for audio/video processing of the dominant mobile digital TV
standards, including ISDB-T, DMB, and DVB-H. For its complete system solution,
NeoMagic delivers a suite of middleware and sample applications for imaging,
video and audio functionality, and provides multiple operating system ports with
customized drivers for the MiMagic product family. NeoMagic has a patent
portfolio of over 25 patents that cover NeoMagic's proprietary array processing
technology, embedded DRAM and other technology. 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 design wins, expected orders, production timing, availability of
new products, revenue opportunities and the Company's ongoing patent licensing
efforts. These forward-looking 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, customers' 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. There is no certainty that current or future
design wins will result in revenue for NeoMagic or that customer forecasts will
be accurate. Customers may cancel or delay projects or customers may fail to
achieve their expected sales objectives due to competitive or other reasons. Our
patent licensing activities involve various risks and uncertainties, including,
without limitation, uncertainties as to the willingness of other companies to
pay material fees to license our intellectual property, the length and uncertain
outcome of licensing negotiations, the possibility that litigation may be
required to enforce patents, and the risks and costs inherent in any patent
litigation. 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,
2006 2006 2005
----------- ----------- -----------
Product revenue $ 86 $ 104 $ 299
Licensing revenue 0 0 0
Total revenue 86 104 299
Cost of product revenue 86 101 332
Cost of licensing revenue 0 0 0
Total cost of revenue 86 101 332
Gross margin (loss) 0 3 (33)
Operating expenses:
Research and development 3,284 3,193 3,083
Sales, general and
administrative 1,940 2,049 1,790
Gain on sale of patents 0 0 (3,481)
Total operating expenses 5,224 5,242 1,392
Loss from operations (5,224) (5,239) (1,425)
Interest income and other 270 238 117
Interest expense (37) (1,893) (288)
Loss before income taxes (4,991) (6,894) (1,596)
Income tax provision (benefit) 16 (2,919) 49
Net loss $ (5,007) $ (3,975) $ (1,645)
Basic net loss per share $ (0.53) $ (0.48) $ (0.25)
Diluted loss per share $ (0.53) $ (0.48) $ (0.25)
Weighted average common shares
outstanding for basic 9,521 8,217 6,647
Weighted average common shares
outstanding for diluted 9,521 8,217 6,647
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
April 30, January 31,
2006 2006
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 21,235 $ 26,695
Short-term investments 513 0
Accounts receivable, net 7 9
Inventory 152 171
Other current assets 1,039 800
Total current assets 22,946 27,675
Property, plant and equipment, net 1,994 2,368
Other assets 414 451
Total assets $ 25,354 $ 30,494
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,184 $ 1,735
Compensation and related benefits 1,260 1,024
Income taxes payable 1,065 1,059
Other accruals 228 264
Current portion of capital lease
obligations 1,637 1,525
Total current liabilities 5,374 5,607
Capital lease obligations 407 624
Other long-term liabilities 145 149
Registration obligation 606 606
Stockholders' equity:
Common stock 36 36
Additional paid-in-capital 109,485 109,696
Deferred compensation 0 (531)
Accumulated other comprehensive loss (1) (2)
Accumulated deficit (90,698) (85,691)
Total stockholders' equity 18,822 23,508
Total liabilities and stockholders'
equity $ 25,354 $ 30,494
(Logo: http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO)
SOURCE NeoMagic Corporation
-0- 06/08/2006
/CONTACT: Scott Sullinger, Chief Financial Officer of NeoMagic
Corporation, +1-408-486-3879; or investors, Erica Mannion of Sapphire Investor
Relations, LLC, +1-212-766-1800, for NeoMagic Corporation/
/Photo: http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk photodesk@prnewswire.com/
/Web site: http://www.neomagic.com/
(NMGC)