Logic Devices Inc. (LOGC, Financial) filed Quarterly Report for the period ended 2008-12-31.
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 $4.63 million; its shares were traded at around $0.55 with and P/S ratio of 1.38.
As a result of the decrease in net revenues being offset by cost decreases, our net loss for the quarter ended December 31, 2008 of $620,900 is a decrease of $142,000 from the net loss for the quarter ended December 31, 2007.
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.
While we had a net loss of $762,800 for the quarter ended December 31, 2007, the net cash used for operations was only $74,300. During the first quarter of fiscal 2008, we wrote-off $348,400 of inventory and $129,900 of capital assets, both of which increased the net loss but did not affect cash flows. We collected net accounts receivable of $42,200 during the quarter and used $127,800 of existing inventories to produce revenues. We converted $75,000 of our available-for-sale securities into cash during the quarter while using $13,600 to purchase additional securities and $12,700 on capital assets.
During fiscal 2008, we reduced our inventory by 67%, or $2,964,000, including write-downs of $2,059,300, and have reduced our inventory by an additional 10%, or $147,000, during the first quarter of fiscal 2009. This reduction in fiscal 2009 includes a write-down of $250,200 for slow-moving inventory.
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 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 $4.63 million; its shares were traded at around $0.55 with and P/S ratio of 1.38.
Highlight of Business Operations:
For the quarter ended December 31, 2008, interest income decreased by $8,200 (49%) compared to the same quarter of fiscal 2008. This decrease is the result of lower cash balances. During the fiscal 2008 quarter, 2008, we wrote off $129,900 of capital equipment no longer in use, while we had no capital equipment write-offs in fiscal 2009.As a result of the decrease in net revenues being offset by cost decreases, our net loss for the quarter ended December 31, 2008 of $620,900 is a decrease of $142,000 from the net loss for the quarter ended December 31, 2007.
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.
While we had a net loss of $762,800 for the quarter ended December 31, 2007, the net cash used for operations was only $74,300. During the first quarter of fiscal 2008, we wrote-off $348,400 of inventory and $129,900 of capital assets, both of which increased the net loss but did not affect cash flows. We collected net accounts receivable of $42,200 during the quarter and used $127,800 of existing inventories to produce revenues. We converted $75,000 of our available-for-sale securities into cash during the quarter while using $13,600 to purchase additional securities and $12,700 on capital assets.
During fiscal 2008, we reduced our inventory by 67%, or $2,964,000, including write-downs of $2,059,300, and have reduced our inventory by an additional 10%, or $147,000, during the first quarter of fiscal 2009. This reduction in fiscal 2009 includes a write-down of $250,200 for slow-moving inventory.
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
