Login

Artisan Components, Inc. Reports Record Total Revenue and Record Net Income for Its Fourth Quarter and Fiscal 2003

23 October 2003

SUNNYVALE, Calif., Oct 23, 2003 (BUSINESS WIRE) -- Artisan Components, Inc., (Nasdaq:ARTI), a leading provider of physical intellectual property (IP), today reported its results for the three and twelve-month periods ended September 30, 2003. For the fourth quarter of fiscal 2003, Artisan reported total revenue of $19.5 million, a 66.4% increase over total revenue of $11.7 million in the fourth quarter of fiscal 2002. For fiscal 2003, Artisan reported total revenue of $68.5 million, an 83.9% increase over total revenue of $37.2 million in fiscal 2002.

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2003 was $2.5 million or $0.10 per diluted share, which included amortization of purchased intangible assets of $1.5 million and deferred stock-based compensation of $119,000 from acquisitions. For the fourth quarter of fiscal 2002, GAAP net income was $1.8 million or $0.10 per diluted share, which included amortization of purchased intangible assets from acquisitions of $491,000. On a GAAP basis, net income for fiscal 2003 was $7.3 million or $0.34 per diluted share, which included amortization of purchased intangible assets of $4.4 million and deferred stock-based compensation of $328,000 from acquisitions. For fiscal 2002, GAAP net income was $2.1 million or $0.12 per diluted share, which included amortization of purchased intangible assets from acquisitions of $2.0 million.

Pro forma net income for the fourth quarter of fiscal 2003 was $2.7 million or $0.11 per diluted share, an 81.9% increase over pro forma net income of $1.5 million or $0.09 per diluted share for the fourth quarter of fiscal 2002. Pro forma net income for fiscal 2003 was $8.2 million or $0.38 per diluted share, a 142% increase over pro forma net income of $3.4 million or $0.19 per diluted share for fiscal 2002. Pro forma net income is comprised of GAAP net income plus, to the extent incurred in any particular quarter, amortization of purchased intangible assets and deferred stock-based compensation from acquisitions, in-process research and development and one-time or extraordinary charges, such as the one-time charge for the lease on our former facility. A detailed reconciliation of GAAP net income to pro forma net income is included with this press release.

"The semiconductor industry is in a period of rapid change, with the number of dedicated manufacturers, as well as the number of companies sending designs to those manufacturers continuing to grow," commented Mark Templeton, Artisan's president and chief executive officer. "Our record results indicate that Artisan's unique combination of products and technologies have been well accepted by the industry. More than 1,200 companies have licensed Artisan's products for their integrated circuit designs and many of our manufacturing partners are reporting improving factory utilizations, possibly signaling the start of a semiconductor recovery. In addition, we are seeing improving royalty results and are forecasting healthy growth through 2004."

Artisan is hosting a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Thursday, October 23, 2003 to discuss the results of the fourth quarter of fiscal 2003 and to review Artisan's progress and outlook. Interested parties may participate in the conference call by dialing 800-299-7635 and the passcode 79215777 or via live webcast available within the investor relations section of Artisan's website at http://access.arm.com. A telephonic replay will be available through Thursday, October 30, 2003 at 888-286-8010. The passcode for the replay is 31476643.

Use of Non-GAAP Financial Measures
This earnings release includes financial information presented on both a pro forma and GAAP basis. Pro forma net income is comprised of GAAP net income plus, to the extent incurred in any particular quarter, amortization of purchased intangible assets and deferred stock-based compensation from acquisitions, in-process research and development and one-time or extraordinary charges, such as the one-time charge for the lease on our former facility. Pro forma net income and net income per share are reduced by the amount of additional tax that would be required to be accrued and expensed by us if pro forma results were used instead of GAAP results to calculate our tax liability.

We provide pro forma financial information to enhance the reader's overall understanding of our current financial performance and our prospects for the future. We believe the pro forma results provide useful information to investors by excluding certain expenses that we believe are not indicative of our core operating results. The pro forma measures are included to provide investors and management with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between quarters. Further, these pro forma results are one of the primary indicators management uses for planning and forecasting in future periods. In addition, since we have historically reported pro forma results to the investment community, we believe the inclusion of pro forma numbers provides consistency in our financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding the rate of growth of the semiconductor industry, improvements in factory utilization rates, the prospect of a recovery in the semiconductor industry, Artisan's future royalty results and the rate of growth of Artisan's business through 2004. These statements are subject to various risk factors including, without limitation, the continued demand for semiconductors including Artisan's products and the production of those semiconductors in volume; delays in the design process or delays in a customer's project that use Artisan's products; the rapid pace of technological development; Artisan's ability to negotiate, structure, monitor and enforce agreements for the determination and payment of royalties; and the continuation of the worldwide slowdown in economic activity, as well as continued weakness in businesses' capital expenditures on technology. We refer you also to the documents that Artisan files from time to time with the Securities and Exchange Commission, in particular the section entitled "Factors Affecting Future Operating Results" in Artisan's annual report on Form 10-K and its quarterly reports on Forms 10-Q.

About Artisan Components
Artisan Components, Inc. is a leading provider of physical intellectual property (IP) components for the design and manufacture of complex system-on-a-chip integrated circuits. Artisan's products include embedded memory, standard cell, input/output, analog, mixed-signal and communications components, which are designed to achieve the best combination of performance, density, power and yield for a given manufacturing process. Artisan has licensed its IP components to over 1,200 companies involved in integrated circuit design. Artisan is headquartered in Sunnyvale, California. More information about Artisan Components, including free library access, can be found at access.arm.com.

Artisan Components and Artisan are registered trademarks of Artisan Components, Inc. All other trademarks or registered trademarks are the property of their respective owners.

                       Artisan Components, Inc.
                 Condensed Consolidated Balance Sheet
                            (In thousands)

                                                           Sep. 30,      Sept. 30,
                                                              2003         2002
                                                          -----------  ------------
ASSETS                                                   (unaudited)
Current assets:
Cash and cash equivalents                    $  98,960    $   29,159
Marketable securities                                 9,873          23,085
Accounts receivable, net                          18,398            7,232
Prepaid expenses and other                        2,197           2,345
current assets        
                                                             -----------  ------------
Total current assets                                  129,428        61,821

Long-term marketable securities                   5,433             -
Property and equipment, net                         7,418         3,499
Goodwill, net                                              36,016        13,741
Purchased intangible assets, net                     8,394         2,271
Other assets                                                     414         1,116
                                                              -----------  ------------
   Total assets                                         $ 187,103    $   82,448
                                                       ===========  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                       $   1,486    $      861
 Accrued liabilities                                            7,201         4,081
 Deferred revenue, current portion                    7,094         5,924
                                                                    -----------  ------------
   Total current liabilities                                  15,781        10,866

Deferred revenue                                                788              812
Other liabilities                                                 1,146           1,610
Deferred tax liability                                         3,257             -
                                                                   -----------  ------------
   Total liabilities                                             20,972         13,288
                                                                   -----------  ------------

Stockholders' equity:
 Common stock                                                     21            17
 Additional paid in capital                              168,443        77,170
 Deferred stock-based compensation                 (368)            -
 Treasury stock                                               (1,399)            -
 Accumulated deficit                                           (684)       (8,027)
 Accumulated other comprehensive income            118             -
                                                                     -----------  ------------
   Total stockholders' equity                             166,131        69,160
                                                                     -----------  ------------
   Total liabilities and stockholders' equity      $ 187,103    $   82,448
                                                             ===========  ============


                       Artisan Components, Inc.
            Condensed Consolidated Statements of Operations
                 (In thousands, except per share data)
                              (Unaudited)

                                     Three Months     Twelve Months
                                         Ended             Ended
                                     September 30,     September 30,
                                   ----------------- -----------------
                                    2003     2002     2003     2002
                                   -------- -------- -------- --------
Gross revenue:
 License                     $16,451  $ 9,219  $57,970  $27,728
 Royalty                         4,001     3,248   14,215     13,310
                                   -------- -------- -------- --------
   Gross revenue          20,452    12,467   72,185   41,038
                                   -------- -------- -------- --------

Net revenue:
 License                            16,451    9,219   57,970   27,728
 Net royalty                         3,038    2,492   10,543    9,518
                                   -------- -------- -------- --------
   Total revenue                19,489   11,711   68,513   37,246
                                   -------- -------- -------- --------

 Cost of revenue *                        4,802    3,089   17,229    8,297
 Product development *               4,992    2,829   18,378   11,869
 Sales and marketing *                 4,102    2,443   14,522    8,782
 General and administrative *        1,564    1,125    6,386    3,499
 Provision for unused facility lease     -       22        -    1,219
 In-process research and development     -        -      520        -
 Amortization of purchased
  intangibles                                  1,457      491    4,366    1,967
                                                  -------- -------- -------- --------
   Total cost and expenses          16,917    9,999   61,401   35,633
                                                     -------- -------- -------- --------
Operating income                        2,572    1,712     7,112     1,613
Other income, net                           345      245      1,337        842
                                                    -------- -------- -------- --------
Income before provision for income
 taxes                                       2,917    1,957    8,449    2,455
Provision for income taxes             379      148    1,106      340
                                             -------- -------- -------- --------
Net income                         $ 2,538  $ 1,809  $ 7,343  $ 2,115
                                   ======== ======== ======== ========
Net income per share - basic       $  0.12  $  0.11  $  0.38  $  0.13
                                   ======== ======== ======== ========
Net income per share - diluted     $  0.10  $  0.10  $  0.34  $  0.12
                                   ======== ======== ======== ========

Shares used in per share
 calculation - basic                22,027   16,858   19,439   16,716
                                   ======== ======== ======== ========
Shares used in per share
 calculation - diluted              24,428   17,272   21,690   17,991
                                   ======== ======== ======== ========

* Includes stock-based compensation
 expense of:                           119        -      328        -


                       Artisan Components, Inc.
            Reconciliation of GAAP to Pro Forma Net Income
                 (In thousands, except per share data)
                              (Unaudited)

                                   Three Months     Twelve Months
                                       Ended             Ended
                                   September 30,     September 30,
                                 ----------------- -----------------
                                   2003     2002      2003     2002
                                 --------- -------- --------- --------

Net income                       $  2,538  $ 1,809  $  7,343  $ 2,115
                                 ========= ======== ========= ========

Adjustments to reported net
 income to arrive
  at pro forma results:
Add:  non-recurring effect of
 acquisitions                           -        -       520        -
Add:  amortization of purchased
 intangible assets
 from acquisitions                  1,457      491     4,366    1,967
Add:  deferred stock-based
 compensation                         119        -       328        -
Add:  effect of loss accrual on
 former lease                           -       22         -    1,219
Pro forma tax adjustment           (1,418)    (840)   (4,359)  (1,916)
                                 --------- -------- --------- --------
Pro forma net income             $  2,696  $ 1,482  $  8,198  $ 3,385
                                 ========= ======== ========= ========
Pro forma net income per share -
 basic                           $   0.12  $  0.09  $   0.42  $  0.20
                                 ========= ======== ========= ========
Pro forma net income per share -
 diluted                         $   0.11  $  0.09  $   0.38  $  0.19
                                 ========= ======== ========= ========

Shares used in per share
 calculation - basic               22,027   16,858    19,439   16,716
                                 ========= ======== ========= ========
Shares used in per share
 calculation - diluted             24,428   17,272    21,690   17,991
                                 ========= ======== ========= ========

 





Cookies

We use cookies to give you the best experience on our website. By continuing to use our site you consent to our cookies.

Change Settings

Find out more about the cookies we set