Mathstar reports good growth in first quarter

MAY 3--MathStar (Hillsboro, OR, USA), a fabless semiconductor company, announced results for its first quarter, ended March 31, 2007.

MAY 3--MathStar (Hillsboro, OR, USA; www.mathstar.com), a fabless semiconductor company specializing in high-performance programmable logic, announced results for its first quarter, ended March 31, 2007. Revenues were $92,000, compared with $7000 in the fourth quarter of 2006 and $8000 reported in the same period last year. Net loss per share was $0.26 in the first quarter of 2007, compared with $0.28 per share in the fourth quarter of 2006 and $0.28 in the first quarter 2006.

"We shipped our first production FPOA's in the first quarter," said Doug Pihl, president and chief executive officer. "MathStar's 1-GHz part is up to four times faster than any other programmable logic device on the market today, clearly making it the performance leader," he said. "We are encouraged by the strong interest from customers, particularly in the professional video market, for our FPOA products.

"MathStar recently announced an agreement with Arrow Electronics, one of the world's largest electronics distributors, as our global supply chain partner. This partnership gives us a fully deployed global sales channel to support our customers from the design and prototyping stage to production, in the Americas, Europe and Asia Pacific," he said.

The company reported first quarter gross margins of 25%. Research-and-development expenses increased $299,000 or 11% to $3.1 million, up from the $2.8 million reported in the same quarter a year ago. The increase is the result of increased payroll costs and additional engineering material. The increase was somewhat offset by lower EDA contract and engineering services expenses.

For the three months ended March 31, 2007, selling, general and administrative expenses increased $260,000 or 12% to $2.5 million, compared with $2.2 million in the same period a year ago. The increase was primarily the result of advertising and promotional costs, consulting fees and other administrative costs. These increases were partially offset by a reduction of employee-related expenses.

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