NEOMAGIC CORPORATION 
By SAN JOSE, Calif., Dec. 15 /PRNewswire-FirstCall/ -- NeoMagic Corporation (Pink Sheets: NMGC) today reported its financial results for the third quarter of fiscal 2010. Total revenue for the third quarter of fiscal 2010, ended November 1, 2010, was $348 thousand, compared to total revenue of $500 thousand for the third quarter of fiscal 2009. Net income for the third quarter of fiscal 2010 was $2.5 million, or $0.14 per share, compared to a net loss of $5.0 million, or $0.40 per share, in the third quarter of fiscal 2009.
"The past year has been difficult and yet quite successful," said Douglas Young, President and Chief Executive Officer of NeoMagic. "I am very pleased with our accomplishments, and we are now in a position to take advantage of new opportunities. Our balance sheet has been greatly improved and, we have completed an equity financing, and appointed three new members to our Board of Directors".
Dial-in Information
NeoMagic will hold its third quarter fiscal 2010 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 conference call is being webcast and can be accessed on NeoMagic's website at http://www.neomagic.com. The call can also be accessed via telephone by dialing 866-206-6509 in the U.S. and 703-639-1108 internationally. There is no passcode for the live call. An audio replay of the call will be available for seven days beginning December 15th at 8:00 p.m. Eastern Time (5:00 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 1419203.
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 http://www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call at http://www.streetevents.com.
The webcast replay will be available on December 15, 2009, at approximately 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) and remain available until midnight on Tuesday, December 22, 2009.
About NeoMagic
NeoMagic designs and delivers consumer electronic device solutions with semiconductors and software offering exciting new product functionality for Video, TV, Imaging, Graphics, and Audio. We provide low cost, innovative multimedia chip technology for tomorrow's entertainment and communication needs. Our capabilities give our partners and their customers' high quality answers to excite and enhance the consumer's lifestyle.
Safe Harbor Statement
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 of our customers' products, availability of new products and revenue opportunities. 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 devices developed and marketed by customers that use the Company's products, customers' development plans, the Company's ability to execute product and technology development plans on schedule, and the timely availability of sufficient manufacturing capacity at the Company's foundry to meet future customer demand for products. 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 their production orders, projects or switch to other vendors. In addition, customers may fail to achieve their expected sales objectives due to competitive or other reasons resulting in excess or obsolete inventory requiring write-downs and charges to cost of revenue. Our patent licensing activities involve various risks and uncertainties, including, without limitation, uncertainties as to the willingness of other companies to pay significant 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, except as may be required by law.
NeoMagic and the NeoMagic circle logo are registered trademarks 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20091210/SF24618LOGO)
NEOMAGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 1, October 26, November 1, October 26,
2009 2008 2009 2008
---- ---- ---- ----
Net revenue $348 $500 $1,204 $1,476
Cost of revenue 174 1,468 532 4,533
--- ----- --- -----
Gross profit (loss) 174 (968) 672 (3,057)
Operating expenses:
Research and development 131 1,359 (366) 7,615
Sales, general and
administrative 269 1,203 2,252 4,474
Restructuring expense (282) 1,516 (349) 1,645
Gain on sale of patents - - - (9,500)
--- --- --- ------
Total operating expenses 118 4,078 1,537 4,234
--- ----- ----- -----
Operating income (loss) 56 (5,046) (865) (7,291)
Other income (expense),
net:
Interest income and other - 69 25 170
Interest expense - (7) - (26)
Loss on marketable equity
securities - (37) - (191)
Gain (loss) from change in
fair value of warrant
liability (7) 4 (7) 38
Gain on debt forgiveness 2,456 - 2,492 -
----- --- ----- ---
Profit (loss) before
income taxes 2,505 (5,017) 1,645 (7,300)
Income tax provision - 4 - 27
--- --- --- ---
Net income (loss) $2,505 $(5,021) $1,645 $(7,327)
====== ======= ====== =======
Basic net income (loss)
per share: $0.14 $(0.40) $0.12 $(0.59)
Diluted net income (loss)
per share: $0.14 $(0.40) $0.12 $(0.59)
Weighted average shares
common shares outstanding
- basic 17,313 12,571 14,112 12,517
Weighted average shares
common shares outstanding
-diluted 17,313 12,571 14,112 12,517
NEOMAGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except per share data)
November 1, January 25,
2009 2009
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $354 $183
Accounts receivable, less allowance for
doubtful accounts of $8 at November 1, 2009
and $0 at January 25, 2009 127 41
Inventory, net 68 98
Prepaid deposits - 176
Prepaid expense 17 23
Other current assets - 14
--- ---
Total assets $566 $535
==== ====
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $557 $2,009
Compensation and related benefits 328 1,483
Income taxes payable 104 104
Other accruals 225 259
--- ---
Total current liabilities 1,214 3,855
----- -----
Commitments and contingencies (Note 11)
Stockholders' deficit:
Preferred stock, $.001 par value:
Authorized shares-2,000,000
Issued and outstanding shares - none at
November 1, 2009 and January 25, 2009 - -
Common stock, $.001 par value: Authorized
shares-100,000,000 Issued and outstanding
shares - 38,051,394 at November 1, 2009 and
12,570,914 at January 25, 2009 65 40
Additional paid-in-capital 124,372 123,371
Accumulated deficit (125,085) (126,731)
-------- --------
Total stockholders' deficit (648) (3,320)
---- ------
Total liabilities and stockholders' deficit $566 $535
==== ====
SOURCE NeoMagic Corporation
