SUNNYVALE, Calif., -- July 18, 2002 -- Artisan Components, Inc. (Nasdaq: ARTI), a leading provider of semiconductor intellectual property (IP), today reported third quarter operating results for fiscal 2002. Net revenue for the third quarter was $10.0 million, up 24% sequentially from $8.0 million in the second quarter of fiscal 2002 and up 40% from $7.1 million for the same period in the prior year. Gross royalty revenue for the third quarter was $3.6 million, of which $2.5 million was reported as net royalty revenue, which is consistent with net royalty revenue in the second quarter of fiscal 2002 and up 118% from $1.2 million in net royalty revenue for the same period in the prior year.
Pro forma net income for the third quarter of fiscal 2002, excluding the recurring amortization related to Artisan's acquisition of the physical library group of Synopsys, was $1.0 million or $0.06 per share on a fully diluted basis, up from $464,000 or $0.03 per share on a fully diluted basis in the second quarter of fiscal 2002 and up from $57,000 or $0.00 per share on a fully diluted basis for the same period in the prior year. Including amortization of these intangible assets acquired, the net income for the third quarter was $1.1 million or $0.06 per share on a fully diluted basis, as compared to a net loss of $954,000 or ($0.06) per basic share in the second quarter of fiscal 2002 and compared to a net loss of $1.3 million or ($0.08) per basic share for the same period in the prior year.
"Our record total revenue and net income this quarter represent a combination of strong royalty performance and exceptional product licensing growth," commented Mark Templeton, president and chief executive officer of Artisan Components. "We believe that the semiconductor climate is slowly improving, with the more aggressive companies beginning to invest in new design and manufacturing solutions. We feel that the large number of Artisan-based manufacturers combined with our user community of over 900 companies positions us well to continue to succeed in these challenging times. We are very pleased with our progress during our third fiscal quarter."
Artisan is hosting a conference call beginning at 2:00 p.m. PST (5:00 p.m. EST) on Thursday, July 18, 2002 to discuss the results of the third quarter of fiscal 2002 and to review Artisan's progress and outlook. Interested parties may participate in the conference call by dialing 719-457-2641. The conference call can also be accessed via the Internet by going to www.vcall.com. A telephonic replay will be available through Friday, July 26, 2002 at 719-457-0820. The passcode for both Artisan's live conference call and telephonic replay is 707747.
Safe Harbor Statement
This press release contains projections and other forward-looking statements, including statements regarding Artisan's prospects for continued success and the slow improvement in the semiconductor climate. 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; 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 semiconductor intellectual property (IP) provider. The company's design platforms are in use by design teams at over 900 companies worldwide. Artisan's design platforms provide IC designers with a common interface to a range of process technologies from the world's leading foundries. Built on Artisan's Process-Perfect(TM) memory generators, standard cell and I/O libraries, Artisan's design platforms include a comprehensive set of views and models supporting leading design tools and methodologies. Artisan's worldwide network of EDA, IP and design service partners extend the Artisan standard to a complete set of system level design and integration solutions. Artisan is headquartered in Sunnyvale, California. More information about Artisan Components, including free library access can be found at: http://access.arm.com.
Artisan Components is a registered trademark and Artisan, Process-Perfect and SAGE-X are trademarks of Artisan Components, Inc. All other trademarks or registered trademarks are the property of their respective owners.