LogicVision Reports First Quarter 2007 Financial Results

SAN JOSE, Calif. -- April 24, 2007 -- LogicVision, Inc. (Nasdaq: LGVN), a leading provider of silicon test and yield learning solutions, today announced its financial results for the first quarter of 2007, ended March 31, 2007.

First Quarter 2007 Results

Revenues in the first quarter of 2007 were $2.6 million, compared with $2.7 million in the fourth quarter of 2006.

Net loss in the first quarter of 2007 was $1.2 million, or $0.05 per share, compared with a net loss of $1.4 million, or $0.07 per share, reported in the fourth quarter of 2006.

Gross margins in the first quarter were 71 percent, the same as in the fourth quarter of 2006.

Operating expenses were $3.2 million in the first quarter, including $170,000 of stock-based employee compensation charges in accordance with SFAS 123 ( R ). This compares with $3.4 million of operating expenses in the fourth quarter of 2006, including $59,000 of stock-based employee compensation charges in accordance with SFAS 123 ( R ).

At March 31, 2007, LogicVision had $7.1 million in cash, cash equivalents and investments, compared with $9.2 million at December 31, 2006. The company has no bank debt.

New orders received during the first quarter totaled $2.7 million. The company exited the first quarter with a 12-month backlog of $8.6 million, compared with a 12-month backlog of $8.3 million at the end of the fourth quarter.

"In the first quarter, revenues and net loss were within the guidance range we forecasted on our last earnings conference call, and cash exceeded our guidance. We were again able to lower our operating expenses this quarter, making this the eighth consecutive quarter of reduced operating expenses," said James T. Healy, president and CEO of LogicVision.

"We booked three new accounts in the first quarter -- SanDisk, Micron Technology and a new division of Sharp in Japan. In addition, we amended a contract with Matsushita and expect to start eight new evaluations during the second quarter. We are seeing increasing interest for our products to replace internal solutions as well as part of a bundled solution, and are also having successes in broadening the adoption of our solutions within existing customers," said Mr. Healy.

Guidance for the Second Quarter of 2007

- Revenues are expected to be in the range of $2.7 million to $3.0 million.
- Net loss is expected to be in the range of $1.0 million to $1.2 million or a net loss in the range of $0.04 to $0.05 per share.
- Cash, cash equivalents and investments are expected to be approximately $5 million at the end of the second quarter.

Conference Call

LogicVision will broadcast its conference call discussion of first quarter 2007 financial results today, April 24, 2007 at 2 p.m. Pacific time. To listen to the call, please dial 888-566-5772, pass code: "LogicVision." A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, dial 203-369-0638. The LogicVision financial results conference call will be available via a live web cast on the investor relations section of the company's web site at http://www.logicvision.com. An archived web cast of the call will be available at http://www.logicvision.com for one year.

About LogicVision Inc.
LogicVision (NASDAQ: LGVN) provides proprietary technologies for embedded test that enable the more efficient design and manufacture of complex semiconductors. LogicVision's embedded test solution allows integrated circuit designers to embed into a semiconductor design test functionality that can be used during semiconductor production and throughout the useful life of the chip. For more information on the company and its products, please visit the LogicVision website at www.logicvision.com.