NOVEMBER 14--MathStar (Hillsboro, OR, USA; www.mathstar.com), which designs, manufactures, and markets field-programmable object arrays (FPOAs), has announced results for its third quarter, ended September 30, 2006. For the quarter, revenues were $28,000 compared to $15,000 for the same quarter last year. Research-and-development (R&D) costs for the quarter were $4.3 million compared to $1.7 million for the same quarter last year. The increase of $2.6 million was primarily the result of costs related to the tape out of the company's first production version of its Arrix FPOA, increased payroll, and contract engineering costs and allocation of rent and other overhead costs from selling, general, and administrative to R&D.

Selling, general, and administrative costs were $2.6 million compared to $1.6 million for the same quarter last year. The increase of $1.0 million was primarily the result of increased payroll costs of about $0.9 million, of which approximately $0.7 million was the noncash expense associated with restricted stock awards and employee options and increased costs of $0.3 million associated with being a public company and other administrative costs. The increase was offset by an allocation of $0.2 million of rent and overhead costs to R&D.

"We are excited about the interest we have seen for our new Arrix family of products in the marketplace," said Douglas Pihl, CEO and president. "I believe we have the right product for the market and the management team to make our company successful."

Tue Nov 14 11:06:00 CST 2006