Logic Devices Inc. (LOGC, Financial) filed Quarterly Report for the period ended 2009-06-30.
LOGIC DEVICES develops and markets high-performance digital integrated circuits that address the requirements of original equipmentmanufacturers (OEMs) to provide high-speed electronic computation in digital signal processing (DSP) video image processing and telecommunications applications. The Company\'s product strategy is to develop and market proprietary circuits that offer superior performance to meet specific application requirements. Logic Devices Inc. has a market cap of $3.5 million; its shares were traded at around $0.52 with and P/S ratio of 1.1.
For the quarter and nine months ended June 30, 2009, interest income decreased by $12,100 (100%) and $35,600 (78%) compared to the same periods of fiscal 2008. This decrease is the result of lower cash balances and lower interest rates. Write-offs of capital equipment decreased in fiscal 2009 from $129,900 in fiscal 2008 to $49,400.
The decrease in inventory write-downs and expenditures helped the Company to recognize a small net income of $30,700 for the quarter ended June 30, 2009 compared to a net loss of $1,116,800 for the fiscal 2008 quarter, while also decreasing the nine-month periods net loss from $2,671,300 in fiscal 2008 to $1,011,000 for fiscal 2009.
While the net loss for the nine months ended June 30, 2009 was $1,011,000, the net cash used for operations was only $545,400. During the first nine months of fiscal 2009, we wrote-off $250,200 of inventory, which increased the net loss but did not affect cash flows. Reductions of accounts receivable resulted in net cash inflows of $109,200 for operations. The liquidating of auction rate securities during January 2009 also resulted in an increase in net cash of $975,000, while the Company used $246,500 for the purchase of capital equipment to prepare for testing of new products.
Although we had a net loss of $2,671,300 for the nine months ended June 30, 2008, we used net cash of only $40,400, primarily because the net loss included inventory write-downs totaling $1,911,000 and a loss on the disposal of capital equipment no longer in use totaling $129,900. Both these items contributed to the net loss but did not affect cash. In addition, we produced cash from the collection of accounts receivable aggregating $256,900 and from the sale of existing inventory aggregating $166,300. During the nine months ended June 30, 2008, we also spent $229,400 on capital equipment.
During fiscal 2008, we reduced our inventory by 47%, or $2,077,300, including write-downs of $1,911,000, and have reduced our inventory by an additional 9%, or $132,800, during the first nine months of fiscal 2009. This reduction in fiscal 2009 includes a write-down of $250,200 for slow-moving inventory.
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LOGIC DEVICES develops and markets high-performance digital integrated circuits that address the requirements of original equipmentmanufacturers (OEMs) to provide high-speed electronic computation in digital signal processing (DSP) video image processing and telecommunications applications. The Company\'s product strategy is to develop and market proprietary circuits that offer superior performance to meet specific application requirements. Logic Devices Inc. has a market cap of $3.5 million; its shares were traded at around $0.52 with and P/S ratio of 1.1.
Highlight of Business Operations:
Our cost of revenues for the quarter and nine months ended June 30, 2009 decreased $984,400 (85%) and $2,048,800 (70%) compared to the same periods of fiscal 2008. This decrease is the result of the decrease in net revenues and a decrease in write-downs of inventory in fiscal 2009. During fiscal 2008, the Company wrote down $1,911,000 of slow-moving and/or obsolete inventory as of June 30, 2008, while in fiscal 2009, the inventory write-downs aggregate $250,200.For the quarter and nine months ended June 30, 2009, interest income decreased by $12,100 (100%) and $35,600 (78%) compared to the same periods of fiscal 2008. This decrease is the result of lower cash balances and lower interest rates. Write-offs of capital equipment decreased in fiscal 2009 from $129,900 in fiscal 2008 to $49,400.
The decrease in inventory write-downs and expenditures helped the Company to recognize a small net income of $30,700 for the quarter ended June 30, 2009 compared to a net loss of $1,116,800 for the fiscal 2008 quarter, while also decreasing the nine-month periods net loss from $2,671,300 in fiscal 2008 to $1,011,000 for fiscal 2009.
While the net loss for the nine months ended June 30, 2009 was $1,011,000, the net cash used for operations was only $545,400. During the first nine months of fiscal 2009, we wrote-off $250,200 of inventory, which increased the net loss but did not affect cash flows. Reductions of accounts receivable resulted in net cash inflows of $109,200 for operations. The liquidating of auction rate securities during January 2009 also resulted in an increase in net cash of $975,000, while the Company used $246,500 for the purchase of capital equipment to prepare for testing of new products.
Although we had a net loss of $2,671,300 for the nine months ended June 30, 2008, we used net cash of only $40,400, primarily because the net loss included inventory write-downs totaling $1,911,000 and a loss on the disposal of capital equipment no longer in use totaling $129,900. Both these items contributed to the net loss but did not affect cash. In addition, we produced cash from the collection of accounts receivable aggregating $256,900 and from the sale of existing inventory aggregating $166,300. During the nine months ended June 30, 2008, we also spent $229,400 on capital equipment.
During fiscal 2008, we reduced our inventory by 47%, or $2,077,300, including write-downs of $1,911,000, and have reduced our inventory by an additional 9%, or $132,800, during the first nine months of fiscal 2009. This reduction in fiscal 2009 includes a write-down of $250,200 for slow-moving inventory.
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