Knobias Clip Report (10-22-2008) VLTR
Submitted By Knobias ClipReport
LGVN: CEO Comments on Q3 Results, Guidance and Cost Cutting Initiatives
By Fain Hughes, fhughes@knobias.com
Shares of LogicVision, Inc. (LGVN) declined during Wednesday’s session after the Company reported financial results for the third quarter of 2008, ended September 30, 2008.
Revenues in the third quarter of 2008 were $3.2 million, compared with $3.0 million in the second quarter of 2008. Net loss in the third quarter of 2008 was $499,000, or $0.05 per share, compared with a net loss of $1.0 million, or $0.10 per share, reported in the second quarter of 2008.
The Company expects fourth quarter revenues in the range of $3.0 million to $3.2 million. Net loss in the fourth quarter is expected to be in the range of $600,000 to $800,000, or a net loss in the range of $0.06 to $0.08 per share.
James T. Healy, President and CEO of LogicVision, commented in a conference call, “Our Q3 revenue, net loss, and cash balance were all at the high-end or better than the guidance that we gave on our last conference call. Our 12-month backlog, the best leading indicator of our future performance, remained high at $10.4 million. We are confident that revenues from new orders booked during the next year and our backlog will result in average quarterly revenues continuing to grow.”
Mr. Healy explained, “The current state of the economy has resulted in delayed orders. We have recently undertaken cost cutting measures that will help us achieve our goal of profitability and positive cash flow from operations, even during this tough economic time. Last week, we reassigned our CFO, VP-sales and VP-Marketing positions to other internal team members, and the executives are no longer with the Company. This and some other initiatives will reduce our overhead by about $300,000 per quarter beginning in Q1 of 2009.”
He continued, “Although bookings are expected to continue to be quite lumpy, our revenue will remain predictable due to our $24 million backlog, of which $10.4 million will result in revenue over the next 12 months. Additionally, we have $7.5 million in cash and no debt. Our cost reduction measures have impacted overhead only, and we have not made any reductions in R&D, application engineering or the sales force. Therefore, we believe that we are well positioned to develop new products, support the customer base and expand the business through these turbulent times. Our overall objective is to adapt quickly to this changing environment and conserve cash while gaining market share. It is also still our objective to be profitable in 2009, and the steps that we have taken should help insure that we do so even in a soft semiconductor market. The actions that we have taken, along with our sound technical and financial foundation, will provide our business the opportunity to thrive and not merely survive.”
Visit 1800blogger to see all of our industry leading blogs.
