Jan 30

Written by: Russ Henke
1/30/2009 5:39 AM 

On January 22, 2009, a blog entry in this space discussed the impact of the general US economic collapse on a small EDA IP supplier (Virage Logic) located in Silicon Valley. We promised the following: “Virage Logic's management will announce first-quarter fiscal year 2009 results on Wednesday, January 28, 2009. We’ll keep an eye on them for ya.”

Well, Virage Logic followed through and on January 28, 2009 did report its financial results for the first fiscal quarter ended December 31, 2008.

Total revenue for the first quarter of fiscal 2009 was reported as $11.3 million, compared with $14.1 million for the first quarter of fiscal 2008 and $15.5 million for the fourth quarter of fiscal 2008. The $11.3 million was right in the middle of the revised revenue range estimated on December 30, 2008.

As reported under US generally accepted accounting principles (GAAP), Virage Logic’s official net loss for the first quarter of fiscal 2009 was reported January 28 at $2.6 million, or ($0.11) per share, compared with net income of $1.1 million, or $0.05 per share for the first quarter of fiscal 2008 and net loss of $47,000 or ($0.00) per share for the fourth quarter of fiscal 2008.
Excluding the effects of FAS123R expenses, acquisition related expenses and amortization of intangibles, the company would have reported a net loss of $1.4 million, or ($0.06) per share for the first quarter of fiscal 2009. Recall that on December 30, 2008, non-GAAP per share results were predicted to fall into a (loss) range of ($0.08) to ($0.06).

Virage Logic stock closed at $2.65 a share on January 28, 2009, but it has recovered somewhat to $3.02 a share as this blog entry is posted, yielding a current Market Cap of $71.7 million. Virage Logic shares closed as high at $4.52 per share as recently as October 31, 2008.