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Virage Logic Corp. Reports Operating Results (10-Q)

August 09, 2010 | About:
10qk

10qk

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Virage Logic Corp. (VIRL) filed Quarterly Report for the period ended 2010-06-30.

Virage Logic Corp. has a market cap of $310.29 million; its shares were traded at around $11.96 with and P/S ratio of 6.54. VIRL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Royalty revenues for the three months ended June 30, 2010 and 2009 were $6.1 million and $1.2 million, respectively. Royalty revenues for the nine months ended June 30, 2010 and 2009 were $16.9 million and $5.9 million, respectively.

Revenues for the three months ended June 30, 2010 totaled $27.1 million, increasing 127.7% from $11.9 million for the three months ended June 30, 2009. The increase resulted from a $9.3 million increase in license revenues, $1.0 million increase in maintenance revenues, and an increase of $5.0 million in royalty revenues.

Revenues for the nine months ended June 30, 2010 totaled $74.0 million, increasing 115.9% from $34.3 million for the nine months ended June 30, 2009. The increase resulted from a $27.0 million increase in license revenues, $1.8 million increase in maintenance revenues, and an increase of $10.9 million in royalty revenues.

License revenues for the three months ended June 30, 2010 were $18.3 million, representing an increase of $9.3 million, or 103.0%, as compared to $9.0 million for the three months ended June 30, 2009. License revenues for the nine months ended June 30, 2010 were $50.1 million, representing an increase of $27.0 million, or 117.3%, as compared to $23.0 million for the nine months ended June 30, 2009. The license revenue increases for the three and nine months ended June 30, 2010 are mainly attributed to the revenues generated from the acquisition of ARC and the transaction we entered into with NXP along with a progressive change occurring in the semiconductor industry towards the use of third-party wafer foundries by an increasing number of SoC integrated circuit manufacturers, including most major IDMs.

Maintenance revenues for the three months ended June 30, 2010 were $2.7 million, representing an increase of $1.0 million, or 56.6%, as compared to $1.7 million for the three months ended June 30, 2009. Maintenance revenues for the nine months ended June 30, 2010 were $7.1 million, representing an increase of $1.8 million, or 33.4%, as compared to $5.3 million for the nine months ended June 30, 2009. The maintenance revenue increases for the three and nine months ended June 30, 2010 are mainly attributed to the revenues generated from the acquisition of ARC.

Royalty revenues for the three months ended June 30, 2010 were $6.1 million, representing a increase of $5.0 million, or 418.8%, as compared to $1.2 million for the three months ended June 30, 2009. Royalty revenues for the nine months ended June 30, 2010 were $16.9 million, representing an increase of $10.9 million, or 184.4%, as compared to $5.9 million for the nine months ended June 30, 2009. The increases in royalty revenues for the three and nine months ended June 30, 2010 are mainly attributed to increased sales of advanced technology semiconductor wafers from our foundry partners, and royalty income from semiconductor manufacturers for our ARC® processor product portfolio.

Read the The complete Report

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