Dublin, Ireland - 23 October 2002 - Parthus Technologies plc
(Nasdaq: PRTH and LSE: PRH) today announced results for the third quarter,
ended September 30, 2002. Results are prepared and reported under US
Results for the third quarter, ended September 30,
Total revenue for the third quarter 2002 amounted to $9.5 million
compared with $10.4 million in the third quarter 2001, a decrease of 9%
year-on-year. This reflects in part the impact of the streamlining of the
company's RF and Security Hardware Acceleration businesses announced on
August 26, 2002 and the continuing sustained downturn in the semiconductor
Gross margin grew to 81% in the third quarter 2002 from 73% in the
third quarter 2001, reflecting the change in revenue mix. Higher-margin
licensing and royalty revenues accounted for 90% of revenues in the third
quarter 2002, compared with 79% of revenues in the third quarter 2001.
Total operating costs for the third quarter 2002 amounted to $16.9
million, compared with total operating costs of $27.9 million for the
third quarter 2001, a decrease of 38% year-on-year. (On a pro forma basis,
such costs amounted to $8.1 million, excluding amortization, merger costs,
restructuring charges and non-cash stock compensation expense, for the
third quarter 2002, compared with $12.1 million, excluding amortization,
in-process R&D charges and non-cash stock compensation expenses, for
the third quarter 2001.) This decrease reflects the ongoing cost reduction
actions taken by the company over the past 12 months, including the
streamlining of the company's RF and Security Hardware Acceleration
businesses announced on August 26, 2002.
Net loss for the third quarter 2002 was $8.7 million, representing a
net loss per share of $0.015. Excluding amortization, merger costs,
restructuring charges and non-stock cash compensation costs, the net
earnings for the third quarter 2002 were $147,000.
Combination with Ceva
It is anticipated that the combination with Ceva will close within a
week, and a conference call will be scheduled at that time to discuss the
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Safe Harbor Statement
This document may contain "forward-looking statements".
Any "forward-looking statements" in this document are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those stated. Any statements that are not statements of
historical fact (including, without limitation, statements to the effect
that the company or its management "believes," "expects," "anticipates,"
"plans" and similar expressions) should be considered forward-looking
statements. Important factors that could cause actual results to differ
from those indicated by such forward-looking statements include
uncertainties relating to the ability of management to complete the
planned merger with Ceva, Inc. and to successfully integrate the
operations of the two companies, uncertainties relating to the acceptance
of semiconductor intellectual property offerings, expansion of our
business, quarterly variations in results, and other uncertainties that
are discussed in Amendment No. 2 to the company's 2001 Annual Report on
Form 20-F filed with the SEC on July 22, 2002.