LogicVision Reports First Quarter Financial Results

SAN JOSE, Calif., April 21 /PRNewswire-FirstCall/ -- LogicVision, Inc. (NASDAQ: LGVN), a leading provider of semiconductor built-in-self-test (BIST) and diagnostic solutions, today announced its financial results for the first quarter ended March 31, 2009.

First Quarter 2009 Results

Revenues in the first quarter of 2009 were $3.1 million, compared with $3.0 million in the fourth quarter of 2008.

Net loss in the first quarter of 2009 was $104,000, or $0.01 per share, compared with a net loss of $782,000, or $0.08 per share, reported in the fourth quarter of 2008. The first quarter net loss includes approximately $243,000 in costs associated with considering strategic alternatives, as indicated in the company's December 16, 2008 press release.

Operating expenses were $2.6 million in the first quarter, including $120,000 of stock-based employee compensation charges in accordance with SFAS 123 (R). This compares with $3.0 million of operating expenses in the fourth quarter of 2008, including $83,000 of stock-based employee compensation charges in accordance with SFAS 123(R).

At March 31, 2009, LogicVision had $6.9 million in cash, cash equivalents, and investments compared with $9.4 million at December 31, 2008. In addition, the company had accounts receivable of $1.9 million at March 31, 2009, compared with $500,000 at December 31, 2008. The company has no debt.

New orders received during the fourth quarter totaled $2.6 million. The company exited the first quarter with a 12-month backlog of $10.7 million, compared with a 12-month backlog of $9.9 million at the end of the fourth quarter. The company's total backlog was $17.4 million as of March 31, 2009.

"Operationally, LogicVision performed well during the first quarter of 2009, especially in light of the current state of the economy," said James T. Healy, president and CEO of LogicVision. "This allowed us to achieve solid first quarter financial results, including revenues in line with guidance, cash and cash equivalents at about $6.9 million, with cash and receivables totaling about $8.9 million, and strong quarterly bookings. We were pleased to have recorded our first quarter of operating profit in the past seven years; however, the approximate $243,000 in costs we incurred associated with considering our strategic alternatives resulted in a net loss for the quarter.

"While there are preliminary indications that the economy may be reaching a bottom, we believe that the recovery will take some time. Some of our customers are continuing to express uncertainty about their businesses and as such, we plan to continue our ongoing cost-control measures this quarter. In the longer term, we believe that the economic turmoil has caused some companies to more seriously re-evaluate their 'make' versus 'buy' decisions, which could positively impact us in the future."

Guidance for the Second Quarter of 2009

    --  Revenues are expected to be in the range of $2.9 million to $3.0
    --  Net loss is expected to be in the range of $100,000 to $0, or a net loss
        in the range of $0.01 to $0.00 per share.  We expect to be break-even,
        or profitable, on an operating basis.
    --  Cash, cash equivalents and investments are expected to be between
        approximately $5.5 million and $6.0 million at the end of the second

Conference Call

LogicVision will broadcast its conference call discussion of first quarter of 2009 financial results today, April 21, 2009 at 2 p.m. Pacific time. To listen to the call, please dial 888-603-9710, pass code: "LogicVision." A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, dial 203-369-3653. The LogicVision financial results conference call will be available via a live web cast on the investor relations section of the company's web site at http://www.logicvision.com. An archived web cast of the call will be available at http://www.logicvision.com for one year.

About LogicVision Inc.

LogicVision (NASDAQ: LGVN) provides a comprehensive set of proprietary built-in-self-test (BIST) technologies for achieving the highest quality silicon manufacturing test while reducing test costs for complex System-on-Chip devices. LogicVision's Dragonfly Test Platform(TM) enables integrated circuit designers to embed BIST functionality into a semiconductor design. This functionality is used during semiconductor production test and throughout the useful life of the chip. The complete Dragonfly Test Platform, including the ETCreate(TM), Silicon Insight(TM) and Yield Insight(TM) product families, improves profit margins by reducing device field returns and test costs, accelerating silicon bring-up times and shortening both time-to-market and time-to-yield. For more information on the company and its products, please visit the LogicVision website at www.logicvision.com.


Except for the historical information contained herein, the matters set forth in this press release, including statements as to the effects of economic turmoil on the Company's business, and the Company's expected financial results, including revenues, net loss, breakeven or profitability status on an operating basis, and cash, cash equivalents and investments, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the possibility that orders could be modified or cancelled, existing customer orders may not be renewed, customers may not adopt or expand their use of the Company's products, the ability of the Company to negotiate and sign customer agreements and obtain purchase orders, trends in capital spending in the semiconductor industry, the timing and nature of customer orders, whether customers accept the Company's new and existing products, the impact of competitive products and alternative technological advances, the effects of the Company's consideration of strategic alternatives, and other risks detailed in LogicVision's Annual Report on Form 10-K for the year ended December 31, 2008 and from time to time in LogicVision's SEC reports. These forward-looking statements speak only as of the date hereof. LogicVision disclaims any obligation to update these forward-looking statements.

LogicVision, ETCreate, ScanBurst, ETMemory, Silicon Insight, Yield Insight and LogicVision logos are trademarks or registered trademarks of LogicVision Inc. in the United States and other countries.

- Summary financial data follows -

                             LOGICVISION, INC.
                   (in thousands, except per share data)

                                                March 31,  December 31,
                                                    2009          2008
                                                    ----          ----

        Current  Assets:
              Cash  and  cash  equivalents                                    $6,917                $9,249
              Short-term  investments                                                    -                      150
              Accounts  receivable,  net  of  allowance
                for  doubtful  accounts  of  $20  and  $5,
                respectively                                                              1,944                      504
              Prepaid  expenses  and  other  current
                assets                                                                              831                      593
                                                                                                          ---                      ---
                    Total  current  assets                                          9,692                10,496
        Property  and  equipment,  net                                            347                      411
        Goodwill                                                                              6,846                  6,846
        Other  long-term  assets                                                      203                      206
                                                                                                          ---                      ---
                    Total  assets                                                      $17,088              $17,959
                                                                                                  =======              =======

        Current  Liabilities:
              Accounts  payable                                                          $773                    $516
              Accrued  liabilities                                                  1,578                  1,791
              Deferred  revenue,  current  portion                      7,703                  7,871
                                                                                                      -----                  -----
                    Total  current  liabilities                              10,054                10,178
        Deferred  revenue                                                              1,043                  1,703
        Other  long-term  liabilities                                              76                      187
                                                                                                            --                      ---
                    Total  liabilities                                              11,173                12,068
                                                                                                    ------                ------

        Commitments  and  contingencies

        Stockholders'  Equity:
              Preferred  stock,  $0.0001  par  value:
                    Authorized:  5,000  shares;
                    Issued  and  outstanding:  no  shares  issued
                      and  outstanding                                                          -                          -
              Common  stock,  $0.0001  par  value:
                    Authorized:  50,000  shares;
                    Issued  and  outstanding:  9,474  shares  at
                      March  31,  2009  and  9,460  shares  at
                      December  31,  2008                                                      1                          1
        Additional  paid-in  capital                                      109,383              109,247
        Accumulated  other  comprehensive  income
          (loss)                                                                                    (37)                    (29)
        Accumulated  deficit                                                  (103,432)          (103,328)
                                                                                                --------            --------
                    Total  stockholders'  equity                              5,915                  5,891
                                                                                                      -----                  -----
                    Total  liabilities  and  stockholders'
                      equity                                                                $17,088              $17,959
                                                                                                  =======              =======

                                              LOGICVISION,  INC.
                            (in  thousands,  except  per  share  data)

                                                                                          Three  Months  Ended
                                                                                                    March  31,
                                                                                            2009                2008
                                                                                            ----                ----
            Bundled  license  and  maintenance              $2,720            $2,815
            Upfront  license                                                      61                      -
            Professional  service                                          283                  155
                                                                                              ---                  ---
                    Total  revenues                                          3,064              2,970
                                                                                          -----              -----

        Cost  of  revenues:
            Bundled  license  and  maintenance                    468                  754
            Professional  service                                          136                    77
                                                                                              ---                    --
                    Total  cost  of  revenues                              604                  831
                                                                                              ---                  ---
        Gross  profit                                                          2,460              2,139
                                                                                          -----              -----

        Operating  expenses:
              Research  and  development                                800              1,008
              Sales  and  marketing                                          843              1,506
              General  and  administrative                            687                  894
              Cost  related  to  strategic  alternatives    243                      -
                                                                                              ---                      -
                    Total  operating  expenses                      2,573              3,408
                                                                                          -----              -----

        Loss  from  operations                                            (113)          (1,269)
        Interest  and  other  income,  net                              9                    18
                                                                                                  -                    --

        Loss  before  provision  for  income  taxes        (104)          (1,251)
        Income  tax  provision                                                  -                    15
                                                                                                  -                    --

        Net  loss                                                                  $(104)        $(1,266)
                                                                                          =====          =======
        Net  loss  per  common  share,  basic  and
          diluted                                                                $(0.01)          $(0.13)
                                                                                        ======            ======
        Weighted  average  number  of  shares
          outstanding,  basic  and  diluted                    9,468              9,674
                                                                                          =====              =====

Web site: http://www.logicvision.com/

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