Logic Devices Inc. (LOGC, Financial) filed Quarterly Report for the period ended 2009-12-31.
Logic Devices Inc. has a market cap of $11.6 million; its shares were traded at around $1.7 with and P/S ratio of 3.9.
As a result of the increase in net revenues paired with the slight cost decreases, we had a net income of $83,600 for the quarter ended December 31, 2009, compared to a net loss of $620,900 for the same quarter of fiscal 2009.
While our net income for the quarter ended December 31, 2009 was $83,600, our net cash provided by operations was $310,700, primarily from the sale of existing inventory. During the quarter, we used $146,300 for capital expenditures, including mask tooling for new products.
While the net loss for the quarter ended December 31, 2008 was $620,900, the net cash used for operations was only $230,700. During the first quarter of fiscal 2009, we wrote-off $250,200 of inventory, which increased the net loss but did not affect cash flows. Collections of accounts receivable resulted in net cash inflows of $281,900 for operations. In addition, the opening of a line of credit against our auction rate preferred securities resulted in a net cash inflow of $923,400 for the quarter ended December 31, 2008.
As a fabless semiconductor company with products having longer than normal product life cycles, our investment in inventories has been, and will continue to be, significant. Although high levels of inventory impact liquidity, we believe these costs are a less costly alternative to owning a wafer fabrication facility. Over the past few years, we have attempted to streamline our product offerings, in turn reducing our inventory levels, and we will continue this effort in the upcoming periods. During fiscal 2009, we decreased our inventory by $347,000, including a write-down of $406,700. During the quarter ended December 31, 2009, we have decreased inventory by an additional $222,900 through sales of existing items.
At the time these ARS Rights were exercised, we planned to pay back the no net-cost loan from UBS Bank USA and the line would be closed. In December 2008, UBS liquidated $50,000 of our $975,000 of ARS, which we used to pay down the line of credit. In January 2009, the remaining $925,000 of ARS were liquidated and paid down against the line of credit.
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Logic Devices Inc. has a market cap of $11.6 million; its shares were traded at around $1.7 with and P/S ratio of 3.9.
Highlight of Business Operations:
For the quarter ended December 31, 2009, the other income, net, decreased $1,100 (16%) from the same quarter of fiscal 2009. This decrease was primarily the result of interest income decreases ($8,500) being partially offset by other income from unclaimed property from the state of California ($5,600).As a result of the increase in net revenues paired with the slight cost decreases, we had a net income of $83,600 for the quarter ended December 31, 2009, compared to a net loss of $620,900 for the same quarter of fiscal 2009.
While our net income for the quarter ended December 31, 2009 was $83,600, our net cash provided by operations was $310,700, primarily from the sale of existing inventory. During the quarter, we used $146,300 for capital expenditures, including mask tooling for new products.
While the net loss for the quarter ended December 31, 2008 was $620,900, the net cash used for operations was only $230,700. During the first quarter of fiscal 2009, we wrote-off $250,200 of inventory, which increased the net loss but did not affect cash flows. Collections of accounts receivable resulted in net cash inflows of $281,900 for operations. In addition, the opening of a line of credit against our auction rate preferred securities resulted in a net cash inflow of $923,400 for the quarter ended December 31, 2008.
As a fabless semiconductor company with products having longer than normal product life cycles, our investment in inventories has been, and will continue to be, significant. Although high levels of inventory impact liquidity, we believe these costs are a less costly alternative to owning a wafer fabrication facility. Over the past few years, we have attempted to streamline our product offerings, in turn reducing our inventory levels, and we will continue this effort in the upcoming periods. During fiscal 2009, we decreased our inventory by $347,000, including a write-down of $406,700. During the quarter ended December 31, 2009, we have decreased inventory by an additional $222,900 through sales of existing items.
At the time these ARS Rights were exercised, we planned to pay back the no net-cost loan from UBS Bank USA and the line would be closed. In December 2008, UBS liquidated $50,000 of our $975,000 of ARS, which we used to pay down the line of credit. In January 2009, the remaining $925,000 of ARS were liquidated and paid down against the line of credit.
Read the The complete Report
