Dublin-Based Parthus Bucks Semiconductor Trend

by Jason Gorringe, Tax-News.com, London

01 February 2002

Dublin-based Parthus Technologies plc (LSE: PRH; Nasdaq: PRTH) yesterday announced its financial results for the fourth quarter and for the full year ended December 31, 2001, reporting a strong sales pipeline for its products and a 30% increase in full-year revenues.

Highlights for the full year included licensing and royalty revenue up 87% year-on-year to $30.0 million, and total revenue up year-on-year from $31.9 million to $40.9 million. 25 licensing and royalty agreements were signed and 14 new customers were added - six of the world's top 10 semiconductor companies are now licensees. Pro forma basic and diluted net losses per share amounted to $0.021 per ordinary share or $0.215 per ADS; basic and diluted net losses per share amounted to $0.062 per ordinary share or $0.62 per ADS.

Total revenue for the fourth quarter amounted to $10.5 million, a 13% year-on-year increase, and up by $52,000 on third quarter 2001 revenue. IP licensing and royalty revenue grew to $8.7 million, up 70% from $5.1 million in the fourth quarter of 2000 and up 6% from $8.2 million in the third quarter of 2001. Royalty revenue was $115,000, up 55% year-on-year but down approximately 14% compared with the third quarter. Higher margin IP licensing and royalty revenue represented 83% of total revenue, up from 55% a year ago and from 79% of total revenue in the third quarter 2001.

Commenting, Brian Long, Chief Executive Officer, said:

"I am pleased by Parthus' robust performance in 2001, particularly against the backdrop of the worst semiconductor downturn on record. We successfully grew our key licensing and royalties revenue line by 87% this year and formed engagements with six of the world's top ten semiconductor companies. Unquestionably near term market conditions in the semiconductor industry remain challenging. Notwithstanding, we have a strong sales pipeline illustrating the continued demand for our technology. We look forward to sustaining Parthus' growth and development and returning to profitability in the second half of 2002."

Elaine Coughlan, Chief Financial Officer, said:

"Despite the ongoing difficult operating environment, the positive quarterly trends in growth of licensing revenue, improving gross margins and a declining pro forma net loss per share continued. The flexibility in our business model enabled us to make progress in aligning our cost base with current and forecasted external conditions during the quarter. These measures give us confidence in achieving breakeven and returning to profitability in the second half of 2002."

Parthus Technologies plc is a leading provider of complete platform level intellectual property (IP) solutions targeting the mobile Internet market. Incorporating radio, baseband and software design solutions, Parthus' range of mobile Internet platforms are used by the world's largest microprocessor companies and electronics manufacturers in MP3, GPS, GPRS, GSM, 3G and Bluetooth applications. Parthus' broad range of platforms power a diverse range within the mobile Internet economy, such as cellular handsets, Smartphones, automobiles, personal audio players and PDAs. Parthus is headquartered in Dublin with offices in eight countries.

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