Analogy Reports Fiscal Third Quarter Results
31 January 2000
Analogy Reports Fiscal Third Quarter Results
BEAVERTON, Ore., Jan. 28 -- Analogy, Inc.
today announced its financial results for the third fiscal quarter ended
December 31, 1999.
Total revenue for the third quarter of fiscal 2000 was $5,952,000, down
from the prior year's third quarter total of $7,258,000. Product license
revenue decreased 15% to $3,656,000 in the third fiscal quarter this year
compared to $4,316,000 in the third fiscal quarter last year. Service and
other revenue decreased 22% to $2,296,000 in the third fiscal quarter this
year from $2,942,000 in the third fiscal quarter last year. The net loss for
the third fiscal quarter was $143,000 or a loss of $0.01 per share, compared
with net income of $53,000 or $0.01 per share in the third quarter a year ago.
"While we are disappointed in the revenue this quarter as compared to the
third quarter last year, we are pleased to have returned to breakeven from
operations for the quarter," said Gary Arnold, Chairman, CEO and President of
Analogy.
"The previously announced acquisition of Analogy by Avant! Corporation is
proceeding according to our expectations. The company is planning its special
meeting of shareholders to approve the transaction for mid-March. The
acquisition is expected to be completed shortly thereafter."
The statements above regarding the company's expectations concerning the
acquisition by Avant! Corporation are forward-looking statements, which are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Act of 1995. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements, including, without limitation, the failure to
satisfy conditions necessary to consummate the proposed acquisition which are
outside of Analogy's and Avant!'s control, including certain regulatory
approval actions. The forward-looking statements should be considered in
light of these risks and uncertainties, as well as those highlighted in the
company's reports filed with the Securities and Exchange Commission.
Analogy, Inc. founded in January 1985, develops and markets high
performance software and model libraries for top-down design and behavioral
simulation of mixed-signal and mixed-technology systems.
ANALOGY, INC.
Consolidated Statements of Operations
(000, except per share data)
Quarter Ended Nine Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenue:
Product licenses $ 3,656 $4,316 $9,497 $11,196
Service and other 2,296 2,942 7,453 7,891
Total revenue 5,952 7,258 16,950 19,087
Cost of Revenue:
Product licenses 511 478 1,563 1,407
Service and other 163 450 497 988
Total cost of revenue 674 928 2,060 2,395
Gross profit 5,278 6,330 14,890 16,692
Operating expenses:
Research and development 1,831 2,081 5,688 6,773
Sales and marketing 2,948 3,383 9,400 10,066
General and administrative 395 586 1,478 1,892
Amortization of intangibles 86 92 270 276
Restructuring charges -- -- -- 557
Total operating expenses 5,260 6,142 16,836 19,564
Operating income (loss) 18 188 (1,946) (2,872)
Other expense, net (20) (15) (91) (246)
(Loss) income before
income taxes (2) 173 (2,037) (3,118)
Income tax expense 141 120 333 346
Net (loss) income $(143) $53 $(2,370) $(3,464)
Basic net income (loss)
per common share $ (0.01) $0.01 $(0.25) $(0.37)
Diluted net income (loss)
per common share $ (0.01) $0.01 $(0.25) $(0.37)
Weighted average shares
outstanding - Basic 9,639 9,437 9,617 9,404
Weighted average shares
outstanding - Diluted 9,639 9,674 9,617 9,404
ANALOGY, INC.
Consolidated Statements of Operations
(000, except per share data)
December 31, March 31,
1999 1999
Cash and cash equivalents $1,385 $2,008
Accounts receivable 6,357 6,738
Prepaid expenses 987 1,033
Other assets, net 2,132 2,271
Total current assets 10,861 12,050
Furniture, fixtures and equipment, net 1,550 2,416
Library costs, net 4,434 4,495
Other assets, net 1,328 2,257
Total assets $ 18,173 $ 21,218
Accounts payable and accrued expenses 1,588 1,320
Bank factoring agreement 385 --
Short term note payable 2,000 --
Bank line of credit -- 400
Current portion of capital leases 288 403
Accrued salaries and benefits 1,991 2,709
Unearned revenue 7,190 8,657
Total current liabilities 13,442 13,489
Non-current portion of capital leases 87 219
Deferred contract revenue 649 1,455
Other liabilities 46 65
Total long-term liabilities 782 1,739
Preferred stock
Common stock 18,936 18,569
Foreign currency translation (307) (269)
Accumulated deficit (14,680) (12,310)
Total shareholders' equity 3,949 5,990
Total liabilities and equity $ 18,173 $ 21,218