Logic Devices Inc. (LOGC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Logic Devices Inc. has a market cap of $10.1 million; its shares were traded at around $1.48 with and P/S ratio of 3.3. LOGC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
During the quarter ended March 31, 2010, there was no other income or expense, compared to other expense, net, of $2,500 in the same quarter of fiscal 2009 (result of a loss on disposal of capital equipment). For the six months ended March 31, 2010, we received other income from unclaimed property from the State of California aggregating $5,600, compared to other income, net, of $4,300 (interest income of $10,300 offset by the loss on disposal of capital equipment and interest expense) for the same period of fiscal 2009.
While we had a net loss of $334,800 for the six months ended March 31, 2010, our operations provided net cash of $165,100, principally from the reduction of accounts receivable by $85,800 and the sale of existing inventories of $244,500. During the six months ended March 31, 2010, we used $211,600 of cash for capital equipment purchases, mainly for the testing and production of new products.
While the net loss for the six months ended March 31, 2009 was $1,041,700, the net cash used for operations was only $408,100. During the first six 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 $290,800 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 $120,300 for the purchase of capital equipment to prepare for testing of new products.
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 six months ended March 31, 2010, we have decreased inventory by an additional $244,500 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 $10.1 million; its shares were traded at around $1.48 with and P/S ratio of 3.3. LOGC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our cost of revenues for the quarter and six months ended March 31, 2010 decreased $34,600 (12%) and $14,300 (2%), respectively, compared to the same periods of fiscal 2009. However, our cost of revenues for the six-month period would have increased as a result of the increase in net revenues if not for an one-time inventory write-down of $250,200 in fiscal 2009. There were no inventory write-downs in the first six months of fiscal 2010.During the quarter ended March 31, 2010, there was no other income or expense, compared to other expense, net, of $2,500 in the same quarter of fiscal 2009 (result of a loss on disposal of capital equipment). For the six months ended March 31, 2010, we received other income from unclaimed property from the State of California aggregating $5,600, compared to other income, net, of $4,300 (interest income of $10,300 offset by the loss on disposal of capital equipment and interest expense) for the same period of fiscal 2009.
While we had a net loss of $334,800 for the six months ended March 31, 2010, our operations provided net cash of $165,100, principally from the reduction of accounts receivable by $85,800 and the sale of existing inventories of $244,500. During the six months ended March 31, 2010, we used $211,600 of cash for capital equipment purchases, mainly for the testing and production of new products.
While the net loss for the six months ended March 31, 2009 was $1,041,700, the net cash used for operations was only $408,100. During the first six 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 $290,800 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 $120,300 for the purchase of capital equipment to prepare for testing of new products.
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 six months ended March 31, 2010, we have decreased inventory by an additional $244,500 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
