inSilicon misses revenue and earnings targets

inSilicon misses revenue and earnings targets
By EBN Staff,
January 4, 2001 (11:44 a.m. EST)
URL: http://www.eetimes.com/story/OEG20010104S0013

Semiconductor intellectual-property vendor inSilicon Corp., San Jose, Calif. today said that it generated lower-than-expected revenue during December, which will result in revenue and earnings for its first fiscal quarter being below expectations.

For the quarter ended December 31, inSilicon expects to report revenue of approximately $6 million, as compared to $5.3 million in the same quarter of the prior year, and earnings before goodwill and other non-cash charges of between 2 and 4 cents per share, as compared to break-even pro forma results in the year-earlier quarter.

The company said it has historically generated a large proportion of its revenue during the final weeks of each quarter. "The lower than expected revenue was due to the delay of several significant anticipated customer license contractsat quarter-end. The company believes these delays were largely due to recent market conditions and uncertainty that caused customers to postpo ne development projects."

None of the delayed contracts have been lost to competition to date, inSilicon said. "Further, the company believes that a number of the delayed agreements will be closed in January and the majority in the current quarter ending March 31, 2001. The company expects it will generate sequential revenue growth in the current quarter, and it remains well-funded to pursue its ongoing business objectives, with expected quarter-end cash and investments of approximately $34 million," it added.

inSilicon is scheduled to release full first quarter results on January 16, 2001, and expects to give further guidance on this year's expected financial results at that time.

During the fourth quarter, inSilicon Corp. moved to expand its position in the communications market by agreeing to acquire two small design firms with mixed-signal and wireless-technology know-how.

The move, inSilicon's first outside the digital realm, was a step toward creating platforms from which customers can quickly build system-on-a-chip devices for a wide range of communication protocols.

The acquisitions included Xentec Inc., a privately held mixed-signal communications-IP company, as well as the wireless design group of Hd Lab K.K. Each is developing analog technologies to enable inSilicon to offer licensable cores for Bluetooth and 802.11 wireless LAN.