SUNNYVALE, Calif., Nov. 19, 2010 (GLOBE NEWSWIRE) -- LOGIC Devices Incorporated (Nasdaq:LOGC) today reported its revenues and results of operations for its fiscal year ended September 30, 2010. Revenues for fiscal 2010 were $2,193,300 down 27 percent versus $3,013,200 for fiscal 2009, with a net loss of $1,084,500 or $(0.16) per share in fiscal 2010, compared to a net loss of $811,300 or $(0.12) per share in fiscal 2009.
"Fiscal 2010 was a very difficult and disappointing year for LOGIC Devices. Our mature product revenues fell by 33% and our newly developed products were not ready to make up that loss. Our sales of chips related to a digital cinema application fell over 60% from the prior year, and while sales related to military programs were relatively flat, we saw a steep fall-off in the latter half of the year. Sales of our other legacy products were relatively flat year to year," stated Bill Volz, president of LOGIC Devices.
"During fiscal 2010, we introduced a number of new products. Our integrated module line now includes DDR1, 2 and 3 performance levels with word widths up to 80 bits and 5 Gb density. We experienced some delay during the year in qualifying these products due to manufacturing issues with a key subcontractor. However, the target customer programs have also been slow to perform their qualifications due to current funding issues on many government programs. As 2011 unfolds, we expect both of these issues to abate.
"We recently received qualification approval from the Defense Supply Center Columbus (DSCC) to sell military grade SMD level 1 Mb SRAMs. This marks a return to a market we previously supported during the 1990-2000 period. As a result of upgrades to wafer fabrication facilities, there are no longer readily available sources for the underlying silicon chips to make these products. The DSCC qualification opens this market to us.
"As a result of our disappointingly weak revenue levels and a high rate of cash outflows on new product development and qualification, our liquidity has recently reached critical levels. We tightened other expenditures during the year to mitigate losses and are seeking additional sources of liquidity, including debt financing and private equity infusions. We expect this liquidity challenge to continue in the early quarters of fiscal 2011, as we ramp accounts receivable and inventory to support new product sales, and then be mitigated as revenues increase from the ongoing sales of those products," concluded Volz.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements in this press release regarding expectations of future events are "forward-looking statements" involving risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions and shifts in supply and demand, the impact of competitive products and pricing, product development, commercialization and technological difficulties, availability of capital, and capacity and supply constraints. Please refer to the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) for a discussion of risks in the most recent LOGIC Devices Annual Report on Form 10-K and the quarterly report under Form 10-Q.
LOGIC Devices Incorporated, an ISO 9001:2008 registered company, is focused on developing high-performance, digital silicon and integrated product solutions for high-performance, power-sensitive applications. Our products meet or exceed the requirements for broadcast video, medical imaging, industrial-embedded computer, surveillance, and instrumentation, as well as telecommunications companies. More information about LOGIC Devices and its products is available at www.logicdevices.com.
CONTACT: LOGIC Devices Incorporated Bill Volz, President Kimiko Milheim, CFO (408) 542-5400