Press Releases
Intrinsyc Reports 2007 Second Quarter Financial Results
Achieves Second Consecutive Quarter of Record Setting Revenue Secures Soleus™ Platform Design Win
Vancouver, BC – April 10, 2007 – Intrinsyc Software International, Inc. (TSX: ICS), today announced its financial results for the second quarter ended February 28, 2007, reported in Canadian dollars and in accordance with Canadian GAAP.
For the second quarter of FY2007, the Company reported record level revenue of $5.0 million, which represents an increase of 5 percent from $4.8 million in the same quarter in the prior year. The year-over-year increase in revenue was primarily due to strength in the Company’s engineering services business.
“We are very pleased to report record quarterly revenue for the second quarter in a row, resulting in the best first half in the company’s history,” said Glenda Dorchak, Chairman and CEO of Intrinsyc. “These results were driven by another strong quarter for our engineering services business, which is concentrating on strategic customer engagements around our core competencies in wireless platform telephony, power management and board support package development.”
“Additionally, our Soleus business has delivered on key objectives beginning with the production release of version 1.0 early in the quarter; the announcement of our partnership with Marvell to use Soleus on the PXA3xx reference design for consumer feature phones in China, and most recently the announcement of our second Soleus licensing agreement and first design win,” continued Ms. Dorchak. Previously, the company announced that this original equipment manufacturer (OEM), a major personal navigation device (PND) manufacturer, plans to utilize Soleus to integrate telephony features in its personal navigation products, along with other consumer-driven features, such as camera, media player and more.
“This customer engagement agreement will generate site license revenue, invoiced at the time of signing, and unit-based royalty revenue upon the shipment of completed devices. The signing of this license represents a key milestone towards Intrinsyc becoming one of the leading providers in the wireless software business,” concluded Ms. Dorchak.
For the second quarter of FY2007, the EBITDA loss was $3.8 million as compared to the EBITDA loss of $3.4 million in the same quarter of FY2006. Expenditures for Soleus marketing and research and development were $3.8 million in the second quarter of FY2007 compared to $2.5 million in second quarter of FY2006. The calculation of EBITDA excludes stock-based compensation expense. See further discussion on EBITDA under the heading supplemental information later in this press release.
Cash used in operations was $3 million in the second quarter of FY2007 compared to cash used in operations of $2.5 million in the second quarter of FY2006. The increase in cash used in operations is a result of the increased investment in Soleus and as a result of the payment of liabilities during the quarter. Cash on hand at the end of the second quarter was $6.0 million compared to $9.2 million at the end of the first quarter of FY2007.
Supplemental Information
In addition to results in accordance with generally accepted accounting principles (GAAP), Intrinsyc discloses a non-GAAP measure of EBITDA as a method to evaluate the Company’s operating performance. This non-GAAP measure should not be considered a substitute for measurements required by accounting principles generally accepted in Canada such as loss and loss per share. Management believes that this non-GAAP metric provides additional information allowing comparability regarding the Company’s ongoing operating performance and the items excluded are considered to be non-operational and/or non-recurring. EBITDA is defined as earnings before interest, tax, depreciation and amortization. This non-GAAP measure is not necessarily comparable to non-GAAP information provided by other issuers. A reconciliation of the Company’s EBITDA loss to the loss under Canadian GAAP is provided in the table attached.
Conference call
Consolidated unaudited financial statements are attached and a conference call to discuss these results will be held at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), April 11, 2007.
Questions may be submitted to invest@intrinsyc.com prior to the call.
The conference call may be accessed on the Company's Conference Call web page.
To listen to the conference call live by telephone, dial +1-866-400-2280 toll free for participants in North America and +1-416-850-9143 for Toronto area and international participants approximately 10 minutes before the start time. A telephone playback will be available for three business days, beginning approximately two hours after the call. To listen to the telephone replay please dial +1-866-245-6755 toll free and for international callers, dial +1-416-915-1035. Enter access code 933422.
The Audit Committee of the Company has reviewed the contents of this news release.
Q2 2007 Consolidated Financial Statements (PDF, 41 KB)
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About Intrinsyc Software International, Inc.
Intrinsyc empowers device makers, mobile operators, and silicon vendors to deliver compelling, next generation mobile and devices with faster time-to-market, higher quality, and differentiating innovation. Our customers and partners rely on our award-winning device development solutions and our industry-leading navigation software and LBS solutions. Intrinsyc is a 2009 winner of the Microsoft Windows Embedded Excellence Award. Intrinsyc is publicly traded (TSX: ICS) and headquartered in Vancouver, Canada, with offices in China, Taiwan, U.K. and the United States.
www.Intrinsyc.com
© Intrinsyc Software International, Inc. All rights reserved.
Intrinsyc, Soleus, Destinator and their respective logos are trademarks, registered and otherwise, of Intrinsyc Software International, Inc. in Canada, European Union, Taiwan, United States of America and other jurisdictions. Other products and services mentioned in this document are identified by the trademarks or service marks of their respective companies or organizations.
Forward Looking Statements
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the Company’s ability to continue to earn the revenue from Destinator products after the acquisition, and to integrate the acquired business into its own operations; the need to develop, integrate and deploy software solutions to meet our customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on our customer's satisfaction; the timing of entering into significant contracts; our customers’ continued commitment to the deployment of our solutions; the risks involved in developing integrated software solutions and integrating them with third-party products and services; the performance of the global economy and growth in software industry sales; market acceptance of the Company’s products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; the success of certain business combinations engaged in by the Company or by its competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and including but not limited to other factors described in the Company’s reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2007. In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company’s ability to execute on its business plan; the acceptance of the Company’s products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For more information, please contact:
George Reznik
Chief Financial Officer & Corporate Secretary
Email: greznik@intrinsyc.com
Phone: +1-604-678-3734