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

May 10, 2010 | About:
10qk

10qk

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Virage Logic Corp. (VIRL) filed Quarterly Report for the period ended 2010-03-31.

Virage Logic Corp. has a market cap of $214.41 million; its shares were traded at around $8.34 with and P/S ratio of 4.52. VIRL is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Royalty revenues for the three months ended March 31, 2010 and 2009 were $6.0 million and $1.9 million, respectively. Royalty revenues for the six months ended March 31, 2010 and 2009 were $10.7 million and $4.7 million, respectively.

Revenues for the three months ended March 31, 2010 totaled $25.2 million, increasing 129.0% from $11.0 million for the three months ended March 31, 2009. The increase resulted from a $9.4 million increase in license revenues, $0.7 million increase in maintenance revenues, and an increase of $4.1 million in royalty revenues.

Revenues for the six months ended March 31, 2010 totaled $46.9 million, increasing 109.6% from $22.4 million for the six months ended March 31, 2009. The increase resulted from a $17.8 million increase in license revenues, $0.8 million increase in maintenance revenues, and an increase of $6.0 million in royalty revenues.

License revenues for the three months ended March 31, 2010 were $16.9 million, representing an increase of $9.4 million, or 126.2%, as compared to $7.5 million for the three months ended March 31, 2009. License revenues for the six months ended March 31, 2010 were $31.8 million, representing an increase of $17.8 million, or 126.5%, as compared to $14.0 million for the six months ended March 31, 2009. The license revenue increases for the three and six months ended March 31, 2010 are mainly attributed to the revenues generated from the acquisitions of ARC and the transaction we entered into with NXP along with a seminal change occurring in the semiconductor industry towards the use of third-party wafer foundries by almost every SoC integrated circuit manufacturer, including most major IDMs.

Maintenance revenues for the three months ended March 31, 2010 were $2.3 million, representing an increase of $0.7 million, or 42.2%, as compared to $1.7 million for the three months ended March 31, 2009. Maintenance revenues for the six months ended March 31, 2010 were $4.4 million, representing an increase of $0.8 million, or 22.2%, as compared to $3.6 million for the six months ended March 31, 2009. The maintenance revenue increases for the three and six months ended March 31, 2010 are mainly attributed to the revenues generated from the acquisition of ARC.

Royalties for the three months ended March 31, 2010 were $6.0 million, representing a increase of $4.1 million, or 215.3%, as compared to $1.9 million for the three months ended March 31, 2009. Royalties for the six months ended March 31, 2010 were $10.7 million, representing an increase of $6.0 million, or 125.9%, as compared to $4.7 million for the six months ended March 31, 2009. The increases in royalties for the three and six months ended March 31, 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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