SUNNYVALE, Calif., July 22, 2011 (GLOBE NEWSWIRE) — LOGIC Devices Incorporated (OTCQX:LOGC) today reported its revenues and earnings for the third quarter of fiscal 2011. Net revenues increased 49% to 6,400 for the quarter ended June 30, 2011, compared to 2,100 reported in the quarter ended June 30, 2010. The Company reported a net loss of 9,800, or $(0.02) per share, for the fiscal 2011 quarter, compared to a net loss of 4,800, or $(0.06) per share, for the fiscal 2010 quarter.
“Revenues for the quarter were considerably improved over the comparable quarter a year ago. We continued to see improved activity on sales to defense contractors that was absent last year when no federal budget had been approved. Revenue growth continues to be constrained by our aging product line. During the quarter, we finally saw improved yields from our iMOD integrated module assembly subcontractor. We are in the process of life test qualification of those modules now and will see results about mid-quarter. Our loss was significantly reduced, both as a result of the high earnings leverage of increasing revenues and a favorable product mix. Reaching profitability will require modestly higher revenue levels in order to offset fixed operating costs that we have cut as much as possible while retaining our ability to deliver products and address our dearth of new products. With our loss rate declining, we selectively added key staff in critical areas during the quarter,” stated Bill Volz, president of LOGIC Devices.
“In addition, while operating liquidity is extremely tight, we initiated tooling of our integrated modules with a large, very credible, assembly source. While we expect that our initial source will continue to show improved results, the impact of their poor performance has been so detrimental to our results and has extended over such a long period of time, that this additional investment in alternative tooling outweighs the severe challenge to our liquidity that funding this additional tooling requires. Among several initiatives to generate much needed additional working capital, the S-1 registration statement we had previously announced as filed with the SEC became effective on July 14, 2011. This will allow us to sell, at our option, registered shares through the equity distribution agreement we put in place with Dutchess Capital. While this will add one more tool to raise capital, we do not anticipate that it will be totally sufficient to completely meet our capital needs, so we continue to develop and rely on multiple mechanisms to seek capital. Among those mechanisms, several members of the board of directors again purchased shares to help the company fund its operating cash needs,” concluded Volz.
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.
“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.
CONTACT: Bill Volz, President
Kimiko Milheim, CFO
(408) 542-5400
http://bit.ly/rclDBO
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