Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Embedded

IP sector turning sour for vendors

Posted: 06 Aug 2007     Print Version  Bookmark and Share

Keywords:semiconductor IP  IP vendors  revenue 

The semiconductor IP sector is turning out to be non-profit business. Most IP vendors are losing money in the arena. Several had posted losses for the quarter, including Aware, MoSys and Virage.

Last week, Mosaid Technologies Inc. concluded the sale of certain assets of its IP product development business to Synopsys Inc. for Rs.62.44 crore ($15.3 million) in cash.

A few others have kept their heads above water, such as ARM, Rambus and one other vendor. For example, MIPS Technologies Inc. said revenue for Q4 was Rs.96.72 crore ($23.7 million), an increase of 24 percent over the Q3 revenue of Rs. 77.95 crore ($19.1 million), and an increase of 30 percent from revenue of Rs. 74.28 crore ($18.2 million) reported in Q4 a year ago. Net income in Q4 of fiscal 2007 on a generally accepted accounting principles (GAAP) basis was Rs.9.39 crore ($2.3 million), compared to net income of Rs.4.90 crore($1.2 million) in Q3 and Rs.30.61 crore ($7.5 million) in Q4 of fiscal 2006. GAAP net income per share on a diluted basis in Q4 of 2007 was Rs.2.04 ($0.05), compared with GAAP net income per share of Rs.1.22 ($0.03) in Q3 and Rs.6.94 ($0.17) in Q4 2006.

"MIPS fourth fiscal quarter was outstanding in several respects," said John Bourgoin, president and CEO, in a statement. "Record license revenues helped us close a fiscal year in which we enjoyed 30 percent growth over the prior year.''

The picture was not so bright for others. Aware Inc., a supplier of broadband and biometrics IP, said revenues for Q2 2007 were Rs.26.12 crore ($6.4 million), an increase of 34 percent compared to Rs.19.59 crore ($4.8 million) in the same quarter last year.

GAAP net loss for Q2 2007 was Rs.4.08 crore ($1 million), or minus Rs.1.63 ($0.04) per share, which included Rs.1.22 crore ($0.3 million) of stock-based compensation charges in accordance with the provisions of FAS 123.

This compared to a GAAP net loss of Rs.4.90 crore ($1.2 million), or minus Rs.2.04 ($0.05) per share, for the same period a year ago. GAAP net loss for the six months ended June 30, 2007 was Rs.4.49 crore ($1.1 million), or Rs.1.63 ($0.04)per share, compared to a net loss of RS.2.86 crore ($0.7 million), or minus Rs.1.22 ($0.03) per share, for the same period a year ago.

Another IP vendor, MoSys Inc., said revenue for the second quarter of 2007 was Rs.17.55 crore ($4.3 million), representing a 38 percent increase compared to RS.12.65 crore ($3.1 million) in Q1 2007. Q2 total revenue increased 85 percent as compared to Rs.9.39 crore ($2.3 million) for Q2 2006.

On a GAAP basis, MoSys' net loss for the quarter was Rs.59.58 lakh ($146,000), or breakeven per share. This compares to a net loss of RS.3.95 crore ($969,000), or minus Rs.1.22 ($0.03) per share, in the previous quarter and a net loss of Rs.8.57 crore ($2.1 million), or minus Rs.2.86 ($0.07) per share, in Q2 2006.

More losses
Meanwhile, Virage Logic Corp. said revenue for Q3 fiscal 2007 was Rs.46.12 crore ($11.3 million), compared with Rs.62.44 crore ($15.3 million) for the comparable quarter of fiscal 2006 and Rs.43.26 crore ($10.6 million) in the prior quarter.

As reported under U.S. GAAP, net loss for Q3 of fiscal 2007 was Rs.4.90 crore ($1.2 million), or minus Rs.2.04 ($0.05) per share, compared with a net loss of Rs.6.53 crore ($1.6 million), or minus Rs.2.86 ($0.07) per share, for the same period a year ago and with a net loss of Rs.7.35 crore ($1.8 million), or minus Rs.3.26 ($0.08) per share, for Q2 of fiscal 2007.

During the quarter the company incurred Rs.2.45 crore ($0.6 million) of restructuring charges in connection with consolidation of some of our operations, including the closing of its Seattle R&D site.

Dan McCranie, president and CEO of Virage Logic, painted a mixed picture. "While we were able to grow revenue 7 percent sequentially to Rs.46.12 crore ($11.3 million), we did not meet our minimum revenue guidance of Rs.46.93 crore ($11.5 million),'' he said in a statement.

For the current quarter, the company anticipates total revenues to increase to approximately Rs.48.97 crore ($12 million) to Rs.53.05 crore ($13 million) in Q4 of fiscal 2007. The company expects to report a GAAP net loss of approximately 0.41 paise ($0.01) to Rs.1.63 ($0.04) per share.

- Mark LaPedus
EE Times

Comment on "IP sector turning sour for vendors"
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top