SUNNYVALE, Calif., Feb. 3, 2011 (GLOBE NEWSWIRE) -- LOGIC Devices Incorporated (Nasdaq:LOGC) today reported its revenues and earnings for the first quarter of fiscal 2011. Net revenues aggregated $204,800 for the quarter ended December 31, 2010, an 81 percent decrease from $1,102,200, reported in the same quarter of fiscal 2010. LOGIC reported a net loss of $406,500, or ($0.06) per share, for the fiscal 2011 quarter, compared to a net income of $83,600, or $0.01 per share, for the fiscal 2010 quarter.
"Revenues for the quarter were completely unacceptable. The December quarter has become difficult in recent years as many of our customers slow operations after Thanksgiving and shut down completely for extended periods around the holidays. However, the fundamental problem remains that we have taken too long to bring new products to market and our mature products are experiencing revenue declines," stated Bill Volz, president.
"As a result of completing qualification efforts in the prior quarter, we became recertified to supply 206 variants of one megabit SRAMs as Standard Military Drawing products through DSCC (SMD listing). These products are in a diminishing supply situation. Our presence on the SMD qualified list allows us to quote on the annual purchase agreements that are initiated at the beginning of each year by major defense contractors. During these qualification builds, we assembled more units than were required to complete qualification so that we have modest quantities of the more popular SRAMs in inventory for immediate delivery. In recent years, customers purchasing these components have faced long lead times between placement of order and receipt of product. We are able to respond quickly to customer needs and expect SRAM sales to begin ramping.
Revenues from our integrated modules (iMODs) have proven more elusive. As a result of failing stringent reliability testing due to issues with our manufacturing subcontractor, we have been largely limited to sampling customers for their evaluation, but not shipping many revenue units. Each time a qualification lot failed, we worked with our supplier to identify the cause and started new material. Our recent results indicate that we are now approaching the end of that process, with yields improving, and the number of issues rapidly declining.
As a result of extremely weak revenues, we have become critically short of working capital liquidity. While we have sharply cut expenses, we may be unable to sustain critical operations in the short term without additional capital. Two members of the Board of Directors have provided additional capital over recent months at critical periods. However, it will be essential for us to raise additional equity in order to realize the payoff for the recent new product introductions.
Looking forward, since the start of our fiscal 2011, we have been experiencing significantly better bookings. We expect the March quarter revenues to rebound as a result of the increased backlog from recent orders. These bookings have been across the product lines with sizeable orders for both digital video and military products. Additionally, we have quoted both iMOD and SRAM opportunities during these early weeks of the new year that should break the revenue logjam of recent quarters," concluded Volz.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements in this press release regarding expectations of future events are "forward-looking statements" involving risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions and shifts in supply and demand, the impact of competitive products and pricing, product development, commercialization and technological difficulties, availability of capital, and capacity and supply constraints. Please refer to the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) for a discussion of risks in the most recent LOGIC Devices Annual Report on Form 10-K and the quarterly report under Form 10-Q.
LOGIC Devices Incorporated, an ISO 9001:2000 registered company, is focused on developing high-performance, digital silicon and integrated product solutions for high-performance, power-sensitive applications. Our products meet or exceed the requirements for broadcast video, medical imaging, industrial-embedded computer, surveillance, and instrumentation, as well as telecommunications companies. More information about LOGIC Devices and its products is available at www.logicdevices.com.
CONTACT: Bill Volz, President Kimiko Milheim, CFO (408) 542-5400
