Parthus Technologies plc Announces Results for the Quarter Ended March 31, 2001

114% Growth in Licensing and Royalty Revenue, Total Revenue up 58%



Apr 24, 2001, 01:00 ET from Parthus Technologies

    DUBLIN, Ireland, April 24 /PRNewswire/ --
 Parthus Technologies (Nasdaq:   PRTH) (London: PRH) today announced its
 financial results for the quarter ended March 31, 2001.
 
     Highlights for the first quarter ended March 31, 2001 (US GAAP):
 
     *  Licensing and royalty revenue up 114% to $5.9 million (Q1 2000:
        $2.7 million); 14% higher than Q4 2000
 
     *  Total revenue up 58% to $9.8 million (Q1 2000: $6.2 million)
 
     *  Royalty revenue -- first recorded in Q3 2000 grew to $142,000
 
     *  Five new license agreements signed
 
     *  STMicroelectronics Bluetooth licensing agreement
 
     *  Overall gross margin increased to 64% (Q1 2000: 54%); up three points
        from Q4 2000
 
     *  MobiStream -- a full GPRS/2.5G solution -- launched and licensed during
        the quarter
 
     *  Basic and diluted losses before exceptional items(1) amounted to
        $0.0045 per ordinary share for the quarter or $0.045 per ADS(2)
        (Q1 2000: $0.0059 per ordinary share or $0.059 per ADS)
 
     1  Exceptional items include non-cash stock compensation expense and
        amortization costs.
 
     2  Each American Depositary Share (ADS) represents 10 ordinary shares.
 
     Commenting today on the results, Brian Long, chief executive officer,
 said:
     "I am delighted to announce strong results for the first quarter, ahead of
 market expectations and continuing the positive growth momentum into 2001.  In
 a tightening semiconductor market the benefits to our customers of licensing
 our IP platforms, including lower cost and faster time-to-market for new
 products, are even more compelling.  We experienced good licensing activity
 during the quarter and the calibre of our announced customer wins, including
 Hitachi, Sharp, and today STMicroelectronics, is evidence of the strength of
 our platform-level IP licensing business model.  As we go forward we are
 particularly encouraged by the level of licensing interest in, and commitment
 to, planned platform upgrades and new technology developments."
     Elaine Coughlan, chief financial officer, commented further that:
     "We outperformed on all key metrics including revenue growth, revenue mix,
 overall gross margins and ultimately the bottom line loss, despite the current
 economic and market turmoil.  All key aspects of the business continue to
 point towards a return to profitability and most importantly gross margins
 continue to improve.  While in the current climate we remain particularly
 vigilant with regards to costs, budgets and recruitment, we benefit from the
 fact that Parthus' IP licensing business gives good financial visibility."
 
     RESULTS COMMENTARY
 
     Revenue
     Total revenue for the first quarter ended March 31 2001 amounted to
 $9.8 million, representing an increase of 58% year-on-year and a 5% increase
 sequentially from $9.3 million in the fourth quarter 2000.  Revenue continues
 to be well balanced between Europe, the U.S. and Asia, with each market
 showing good growth and a pipeline of business opportunity.
     IP licensing and royalty revenue grew strongly, increasing by 114% to
 $5.9 million over the first quarter 2000 and a 14% sequential increase from
 $5.1 million in the fourth quarter 2000.  Royalty revenue grew to $142,000 for
 the quarter, continuing to validate the licensing and royalty business model.
     Five new license agreements were signed during the quarter.  The company's
 focus on Tier 1 customers continued with announced agreements with Sharp,
 Hitachi and STMicroelectronics.  Sharp signed an agreement for the InfoStream
 mobile computing platform.  Sharp leads the industry in the deployment and
 integration of technology for the world's leading PDA manufacturers.  Hitachi
 signed a co-operation agreement for the development of system-on-chip products
 for Bluetooth deployments including a license for Parthus' BlueStream baseband
 and protocol stack.  Hitachi is one of the world's leading global electronics
 companies and the largest supplier of RF (Radio Frequency) chipsets to the GSM
 market.  Today, the company announced that STMicroelectronics signed a
 licensing and royalty agreement for the development of a single chip Bluetooth
 radio that combines very high performance with low power consumption, ideal
 for next generation mobile devices such as cellular phones or PDAs.
 STMicroelectronics is one of the world's largest suppliers of semiconductor
 products to the wireless marketplace.
     IP creation revenue of $2.4 million in the first quarter 2001 represented
 25% of total revenue.  The change in the mix of business to licensing and
 royalties has resulted in this planned reduction with year-on-year IP creation
 revenue down 30% and down 10% sequentially.  Hard IP revenue amounted to
 $1.5 million for the quarter, a similar level to the fourth quarter 2000.
 
     Gross margins
     Gross margins grew to 64%, a 10 point improvement year-on-year and a
 3 point increase over the fourth quarter 2000 as the proportion of overall
 revenue generated from higher margin licensing and royalty business increased.
 Licensing and royalty revenue now accounts for 60% of total revenue, up from
 55% for the fourth quarter and up from 44% from the first quarter 2000.
 
     Operating expenses
     Investment in research and development (R&D) grew according to plan to
 $6.0 million for the quarter, a 7% increase on the fourth quarter 2000.  Sales
 and marketing expenses increased marginally to $2.7 million.  General and
 administration expenses increased to $1.9 million from $1.7 million in the
 fourth quarter 2000.  This mainly reflects the addition of key management, the
 associated costs of the new R&D center in France and additional office space
 in Dublin.  The foreign exchange impact of the 6% weakening of the U.S. dollar
 against the Euro resulted in significantly higher U.S. dollar reported costs.
 Headcount in the first quarter rose by 16 people to 403 people.  The majority
 of these recruits were in engineering and sales.
     Amortization of intangibles of $366,000 is related to the patents acquired
 through the 2000 acquisitions.  Non-cash stock compensation expenses of
 $336,000 is a recurring charge arising from the amortization of the grant of
 share options to company employees in 1999 and the first quarter 2000.  Both
 of these items are included in operating expenses.
 
     Net loss
     The net loss for the first quarter ended March 31, 2001, excluding
 amortization and non-cash stock compensation expense, amounted to
 $2.4 million, representing a $0.0045 loss per ordinary share or $0.045 per
 ADS.  Including amortization and non-cash stock compensation expense the net
 loss for the first quarter was $3.1 million, representing a $0.0059 loss per
 ordinary share or $0.059 per ADS.
 
     Balance Sheet
     Total assets as at March 31, 2001 were $178.3 million, including cash and
 cash equivalents of $157.0 million.  This compares with total assets as at
 December 31, 2000 of $179.2 million, including cash and cash equivalents of
 $159.9 million.  The decrease in cash of $2.8 million during the quarter
 relates primarily to capital expenditure of $1.6 million, cash outflow from
 operations of $502,000 and a non-cash translation loss of $1 million.
 Accounts receivable grew to $5.0 million from $3.2 million, reflecting the
 overall growth in the underlying business.  Debtors days outstanding rose from
 33 to 41 days.  Deferred revenue amounted to $6.8 million as at March 31,
 2001, representing a three-fold increase year-on-year and 20% increase
 sequentially.
 
     TECHNOLOGY DEVELOPMENT
     During the quarter, Parthus solidified its position as a leading supplier
 of mobile Internet technology with the launch and licensing of a major new
 platform -- MobiStream(TM).  This is a complete GPRS/2.5G platform and one of
 the first all new GSM architectures to be launched in recent years.  It
 includes several innovations, including significantly reduced power
 consumption.  2.5G is not only a key stepping stone to full 3G, but is also a
 critical component of next generation 3G phones.  These phones will require
 dual mode capability delivering the ability to roam between 3G (urban) and
 2.5G (rural) broadband wireless environments.
     Parthus also strengthened and deepened its partnership program, concluding
 some significant technical alliances and agreements including:
 
     *  Condat -- the German-based supplier of G23 GPRS technology is working
        with Parthus on the MobiStream platform.  Currently MobiStream utilizes
        Condat's GTI (Generic Target Interface) enabling the G23 protocol stack
        family.
 
     *  SyncML -- Parthus recently announced its participation in the SyncML
        initiative with Ericsson, IBM, Lotus, Motorola, Matsushita, Nokia,
        Palm, Psion and Starfish Software.  SyncML is a common protocol
        designed to allow all mobile devices and applications synchronize data
        across any network.
 
     *  Java Community Process -- Parthus is working with Ericsson, Eyeshake,
        IBM, Mitsubishi, Motorola, Nokia, RIM, Sun Microsystems, Symbian and
        Zucotto to define a Java(TM) API for a range of mobile Internet
        platforms, including Bluetooth, to help ensure Java technology-based
        devices support the latest protocols for wireless environments.
 
     *  The Bluetooth SiG held a two-day meeting at Parthus' headquarters in
        Dublin where significant progress was made on a key industry issue of
        device interoperability.
 
     Parthus' participation in industry groups and working with lead customers
 is an important part of the company's IP strategy.  It enables semiconductor
 companies to reduce the time to deploy interoperable platforms for next
 generation products.
 
     GOING FORWARD
 
     Commenting today, Kevin Fielding, president, said:
     "Parthus' breadth of core engineering skills, encompassing radio, baseband
 and software expertise, has enabled us to develop a unique portfolio of
 platform-level intellectual property targeting mobile Internet devices.  As
 the major semiconductor companies focus significant resources on delivering
 next generation mobile Internet products, our portfolio of platforms delivers
 competitive advantages.  The Parthus model of delivering complete applications
 to our customers significantly reduces their up-front R&D costs, virtually
 eliminates development risk and greatly speeds the deployment of these
 feature-rich products.  The inherent advantage of our business model has
 attracted a range of blue-chip technology companies, including five of the top
 10 semiconductor companies world-wide, and this compelling 'in-sourcing'
 strategy gives us confidence for the long-term."
 
     ABOUT PARTHUS
     Parthus Technologies plc, headquartered in Ireland, is a leading
 semiconductor intellectual property company.  Parthus' strategy is to develop
 and market a growing portfolio of platform-level intellectual property
 solutions that target and converge mobile computing, mobile communications
 (wireless connectivity) and mobile content applications.  Platform-level IP, a
 concept pioneered by Parthus, delivers the total solution -- the radio, the
 digital baseband, the software stack and the system-level integration.  To
 date the Company has launched and licensed five mobile Internet platforms
 (details below), with a total of 54 license agreements with some of the
 world's leading semiconductor companies and electronic product manufacturers.
 Parthus employs over 400 people at eight development locations and at 13 sales
 offices world-wide.
     BlueStream(TM) is a comprehensive Bluetooth offering, including a full
 radio component with Silicon Germanium BICMOS RF and CMOS 0.18 micron RF, a
 digital baseband and a complete software stack for baseband and host
 interface.
     MediaStream(TM) is one of the industry's most advanced Internet audio
 technologies, enabling a range of mobile multimedia applications, including
 mobile phones, MP3 players, games consoles and high-fidelity in-car audio
 systems.
     NavStream(TM) is a complete GPS platform delivering precise location
 information (under five meters within five seconds) to any device, including
 mobile phones, PDAs and GPS-enabled vehicles, anywhere in the world.
     InfoStream(TM) is a mobile computing platform for wireless devices,
 including 3G Smartphones, PDAs, Internet appliances and wireless portable
 tablets.  InfoStream leads the industry in performance, power consumption and
 levels of on-chip integration.
     MobiStream(TM) is one of the most advanced GPRS platforms combining the
 highest data rates and integrated multimedia with the industry's lowest power
 consumption solution.  GPRS deployment targets the market for mobile data
 services.
 
     FORWARD-LOOKING STATEMENT
     This news release may contain "forward-looking statements" within the
 meaning of section 27a of the securities act of 1933, as amended, and section
 21e of the securities exchange act of 1934, as amended.  Any "forward-looking
 statements" are subject to certain risks and uncertainties that could cause
 actual results to differ materially from those stated.  Any statements that
 are not statements of historical fact  (including, without limitation,
 statements to the effect that the company or its management "believes,"
 "expects," "anticipates," "plans" and similar expressions) should be
 considered forward-looking statements.  Important factors that could cause
 actual results to differ from those indicated by such forward-looking
 statements include uncertainties relating to the acceptance of semiconductor
 intellectual property offering, expansion of our business, quarterly
 variations in results, and other uncertainties that are discussed in the "risk
 factors" section of our follow-on offering prospectus dated November 8, 2000
 which is on file with the SEC and the registrar of companies in the republic
 of Ireland.
 
 
                            PARTHUS TECHNOLOGIES PLC
                CONSOLIDATED STATEMENTS OF OPERATIONS - US GAAP
 
                                                        Quarter      Quarter
                                                          Ended        Ended
                                                       March 31     March 31
                                                           2001         2000
                                                      Unaudited    Unaudited
                                                        US$'000      US$'000
 
     Revenue
     IP creation                                          2,400        3,448
     IP licensing and royalties                           5,850        2,740
     Hard IP                                              1,513           --
     Total revenue                                        9,763        6,188
 
     Cost of revenue
     IP creation                                          1,692        2,288
     IP licensing and royalties                             986          582
     Hard IP                                                824           --
     Total cost of revenue                                3,502        2,870
 
     Gross margin                                         6,261        3,318
 
     Operating expenses
     Research & development                               5,985        3,152
     Sales & marketing                                    2,669        1,550
     General & administrative                             1,901          977
     Amortisation of intangible assets                      366           --
     Non-cash stock compensation expense                    336          211
     Total operating expenses                            11,257        5,890
 
     Loss from operations                                (4,996)      (2,572)
     Interest & similar income, net                       2,113           33
     Foreign exchange (loss) / gain                         (41)         360
     Minority interest                                      (50)         (49)
     Loss before provision for income taxes              (2,974)      (2,228)
     Provision for income taxes                            (150)        (158)
     Net loss                                            (3,124)      (2,386)
     Preference dividends                                    --          (13)
     Net loss attributable to ordinary shareholders      (3,124)      (2,399)
 
     Net loss per ordinary share before exceptional
      items(2) (basic and diluted)                      ($0.005)     ($0.006)
     Net loss per ordinary share (basic and diluted)    ($0.006)     ($0.007)
 
     Net loss per ADS(1) before exceptional items(2)
      (basic and diluted)                               ($0.045)     ($0.059)
     Net loss per ADS  (basic and diluted)              ($0.059)     ($0.066)
     Weighted average number
      of ordinary shares ('000's)                       532,627      362,590
     Weighted average number of ADS ('000)               53,263       36,259
 
     1  Each American Depository Share (ADS) represents 10 ordinary shares.
 
     2  Exceptional items include non-cash stock compensation and amortization
        costs.
 
 
                            PARTHUS TECHNOLOGIES PLC
                     CONSOLIDATED BALANCE SHEETS - US GAAP
 
                                                       31 March  31 December
                                                           2001         2000
                                                      Unaudited      Audited
                                                        US$'000      US$'000
     Assets
 
     Current assets
     Cash and cash equivalents                          157,042      159,865
     Accounts receivable                                  5,019        3,245
     Government grants receivable                           266          904
     Prepayments & other current assets                   2,780        2,851
     Inventory                                            1,207        1,250
     Total current assets                               166,314      168,115
 
     Property, plant & equipment, net                     6,092        4,891
     Intangible assets                                    5,874        6,240
     Total assets                                       178,280      179,246
 
 
     Liabilities & shareholders' equity
 
     Current liabilities
     Accounts payable                                     3,575        3,802
     Accrued liabilities                                 10,260        9,438
     Deferred revenue                                     6,818        5,680
     Taxes payable                                        2,342        1,809
     Total current liabilities                           22,995       20,729
 
     Minority interests                                   1,004        1,001
 
     Shareholders' equity
     Ordinary shares                                        192          191
     Additional paid in capital                         178,291      177,657
     Deferred stock compensation                         (3,811)      (4,147)
     Accumulated other comprehensive income              (2,787)      (1,705)
     Retained earnings                                  (17,604)     (14,480)
     Total shareholders' equity                         154,281      157,516
     Total liabilities & shareholders' equity           178,280      179,246
 
 

SOURCE Parthus Technologies
    DUBLIN, Ireland, April 24 /PRNewswire/ --
 Parthus Technologies (Nasdaq:   PRTH) (London: PRH) today announced its
 financial results for the quarter ended March 31, 2001.
 
     Highlights for the first quarter ended March 31, 2001 (US GAAP):
 
     *  Licensing and royalty revenue up 114% to $5.9 million (Q1 2000:
        $2.7 million); 14% higher than Q4 2000
 
     *  Total revenue up 58% to $9.8 million (Q1 2000: $6.2 million)
 
     *  Royalty revenue -- first recorded in Q3 2000 grew to $142,000
 
     *  Five new license agreements signed
 
     *  STMicroelectronics Bluetooth licensing agreement
 
     *  Overall gross margin increased to 64% (Q1 2000: 54%); up three points
        from Q4 2000
 
     *  MobiStream -- a full GPRS/2.5G solution -- launched and licensed during
        the quarter
 
     *  Basic and diluted losses before exceptional items(1) amounted to
        $0.0045 per ordinary share for the quarter or $0.045 per ADS(2)
        (Q1 2000: $0.0059 per ordinary share or $0.059 per ADS)
 
     1  Exceptional items include non-cash stock compensation expense and
        amortization costs.
 
     2  Each American Depositary Share (ADS) represents 10 ordinary shares.
 
     Commenting today on the results, Brian Long, chief executive officer,
 said:
     "I am delighted to announce strong results for the first quarter, ahead of
 market expectations and continuing the positive growth momentum into 2001.  In
 a tightening semiconductor market the benefits to our customers of licensing
 our IP platforms, including lower cost and faster time-to-market for new
 products, are even more compelling.  We experienced good licensing activity
 during the quarter and the calibre of our announced customer wins, including
 Hitachi, Sharp, and today STMicroelectronics, is evidence of the strength of
 our platform-level IP licensing business model.  As we go forward we are
 particularly encouraged by the level of licensing interest in, and commitment
 to, planned platform upgrades and new technology developments."
     Elaine Coughlan, chief financial officer, commented further that:
     "We outperformed on all key metrics including revenue growth, revenue mix,
 overall gross margins and ultimately the bottom line loss, despite the current
 economic and market turmoil.  All key aspects of the business continue to
 point towards a return to profitability and most importantly gross margins
 continue to improve.  While in the current climate we remain particularly
 vigilant with regards to costs, budgets and recruitment, we benefit from the
 fact that Parthus' IP licensing business gives good financial visibility."
 
     RESULTS COMMENTARY
 
     Revenue
     Total revenue for the first quarter ended March 31 2001 amounted to
 $9.8 million, representing an increase of 58% year-on-year and a 5% increase
 sequentially from $9.3 million in the fourth quarter 2000.  Revenue continues
 to be well balanced between Europe, the U.S. and Asia, with each market
 showing good growth and a pipeline of business opportunity.
     IP licensing and royalty revenue grew strongly, increasing by 114% to
 $5.9 million over the first quarter 2000 and a 14% sequential increase from
 $5.1 million in the fourth quarter 2000.  Royalty revenue grew to $142,000 for
 the quarter, continuing to validate the licensing and royalty business model.
     Five new license agreements were signed during the quarter.  The company's
 focus on Tier 1 customers continued with announced agreements with Sharp,
 Hitachi and STMicroelectronics.  Sharp signed an agreement for the InfoStream
 mobile computing platform.  Sharp leads the industry in the deployment and
 integration of technology for the world's leading PDA manufacturers.  Hitachi
 signed a co-operation agreement for the development of system-on-chip products
 for Bluetooth deployments including a license for Parthus' BlueStream baseband
 and protocol stack.  Hitachi is one of the world's leading global electronics
 companies and the largest supplier of RF (Radio Frequency) chipsets to the GSM
 market.  Today, the company announced that STMicroelectronics signed a
 licensing and royalty agreement for the development of a single chip Bluetooth
 radio that combines very high performance with low power consumption, ideal
 for next generation mobile devices such as cellular phones or PDAs.
 STMicroelectronics is one of the world's largest suppliers of semiconductor
 products to the wireless marketplace.
     IP creation revenue of $2.4 million in the first quarter 2001 represented
 25% of total revenue.  The change in the mix of business to licensing and
 royalties has resulted in this planned reduction with year-on-year IP creation
 revenue down 30% and down 10% sequentially.  Hard IP revenue amounted to
 $1.5 million for the quarter, a similar level to the fourth quarter 2000.
 
     Gross margins
     Gross margins grew to 64%, a 10 point improvement year-on-year and a
 3 point increase over the fourth quarter 2000 as the proportion of overall
 revenue generated from higher margin licensing and royalty business increased.
 Licensing and royalty revenue now accounts for 60% of total revenue, up from
 55% for the fourth quarter and up from 44% from the first quarter 2000.
 
     Operating expenses
     Investment in research and development (R&D) grew according to plan to
 $6.0 million for the quarter, a 7% increase on the fourth quarter 2000.  Sales
 and marketing expenses increased marginally to $2.7 million.  General and
 administration expenses increased to $1.9 million from $1.7 million in the
 fourth quarter 2000.  This mainly reflects the addition of key management, the
 associated costs of the new R&D center in France and additional office space
 in Dublin.  The foreign exchange impact of the 6% weakening of the U.S. dollar
 against the Euro resulted in significantly higher U.S. dollar reported costs.
 Headcount in the first quarter rose by 16 people to 403 people.  The majority
 of these recruits were in engineering and sales.
     Amortization of intangibles of $366,000 is related to the patents acquired
 through the 2000 acquisitions.  Non-cash stock compensation expenses of
 $336,000 is a recurring charge arising from the amortization of the grant of
 share options to company employees in 1999 and the first quarter 2000.  Both
 of these items are included in operating expenses.
 
     Net loss
     The net loss for the first quarter ended March 31, 2001, excluding
 amortization and non-cash stock compensation expense, amounted to
 $2.4 million, representing a $0.0045 loss per ordinary share or $0.045 per
 ADS.  Including amortization and non-cash stock compensation expense the net
 loss for the first quarter was $3.1 million, representing a $0.0059 loss per
 ordinary share or $0.059 per ADS.
 
     Balance Sheet
     Total assets as at March 31, 2001 were $178.3 million, including cash and
 cash equivalents of $157.0 million.  This compares with total assets as at
 December 31, 2000 of $179.2 million, including cash and cash equivalents of
 $159.9 million.  The decrease in cash of $2.8 million during the quarter
 relates primarily to capital expenditure of $1.6 million, cash outflow from
 operations of $502,000 and a non-cash translation loss of $1 million.
 Accounts receivable grew to $5.0 million from $3.2 million, reflecting the
 overall growth in the underlying business.  Debtors days outstanding rose from
 33 to 41 days.  Deferred revenue amounted to $6.8 million as at March 31,
 2001, representing a three-fold increase year-on-year and 20% increase
 sequentially.
 
     TECHNOLOGY DEVELOPMENT
     During the quarter, Parthus solidified its position as a leading supplier
 of mobile Internet technology with the launch and licensing of a major new
 platform -- MobiStream(TM).  This is a complete GPRS/2.5G platform and one of
 the first all new GSM architectures to be launched in recent years.  It
 includes several innovations, including significantly reduced power
 consumption.  2.5G is not only a key stepping stone to full 3G, but is also a
 critical component of next generation 3G phones.  These phones will require
 dual mode capability delivering the ability to roam between 3G (urban) and
 2.5G (rural) broadband wireless environments.
     Parthus also strengthened and deepened its partnership program, concluding
 some significant technical alliances and agreements including:
 
     *  Condat -- the German-based supplier of G23 GPRS technology is working
        with Parthus on the MobiStream platform.  Currently MobiStream utilizes
        Condat's GTI (Generic Target Interface) enabling the G23 protocol stack
        family.
 
     *  SyncML -- Parthus recently announced its participation in the SyncML
        initiative with Ericsson, IBM, Lotus, Motorola, Matsushita, Nokia,
        Palm, Psion and Starfish Software.  SyncML is a common protocol
        designed to allow all mobile devices and applications synchronize data
        across any network.
 
     *  Java Community Process -- Parthus is working with Ericsson, Eyeshake,
        IBM, Mitsubishi, Motorola, Nokia, RIM, Sun Microsystems, Symbian and
        Zucotto to define a Java(TM) API for a range of mobile Internet
        platforms, including Bluetooth, to help ensure Java technology-based
        devices support the latest protocols for wireless environments.
 
     *  The Bluetooth SiG held a two-day meeting at Parthus' headquarters in
        Dublin where significant progress was made on a key industry issue of
        device interoperability.
 
     Parthus' participation in industry groups and working with lead customers
 is an important part of the company's IP strategy.  It enables semiconductor
 companies to reduce the time to deploy interoperable platforms for next
 generation products.
 
     GOING FORWARD
 
     Commenting today, Kevin Fielding, president, said:
     "Parthus' breadth of core engineering skills, encompassing radio, baseband
 and software expertise, has enabled us to develop a unique portfolio of
 platform-level intellectual property targeting mobile Internet devices.  As
 the major semiconductor companies focus significant resources on delivering
 next generation mobile Internet products, our portfolio of platforms delivers
 competitive advantages.  The Parthus model of delivering complete applications
 to our customers significantly reduces their up-front R&D costs, virtually
 eliminates development risk and greatly speeds the deployment of these
 feature-rich products.  The inherent advantage of our business model has
 attracted a range of blue-chip technology companies, including five of the top
 10 semiconductor companies world-wide, and this compelling 'in-sourcing'
 strategy gives us confidence for the long-term."
 
     ABOUT PARTHUS
     Parthus Technologies plc, headquartered in Ireland, is a leading
 semiconductor intellectual property company.  Parthus' strategy is to develop
 and market a growing portfolio of platform-level intellectual property
 solutions that target and converge mobile computing, mobile communications
 (wireless connectivity) and mobile content applications.  Platform-level IP, a
 concept pioneered by Parthus, delivers the total solution -- the radio, the
 digital baseband, the software stack and the system-level integration.  To
 date the Company has launched and licensed five mobile Internet platforms
 (details below), with a total of 54 license agreements with some of the
 world's leading semiconductor companies and electronic product manufacturers.
 Parthus employs over 400 people at eight development locations and at 13 sales
 offices world-wide.
     BlueStream(TM) is a comprehensive Bluetooth offering, including a full
 radio component with Silicon Germanium BICMOS RF and CMOS 0.18 micron RF, a
 digital baseband and a complete software stack for baseband and host
 interface.
     MediaStream(TM) is one of the industry's most advanced Internet audio
 technologies, enabling a range of mobile multimedia applications, including
 mobile phones, MP3 players, games consoles and high-fidelity in-car audio
 systems.
     NavStream(TM) is a complete GPS platform delivering precise location
 information (under five meters within five seconds) to any device, including
 mobile phones, PDAs and GPS-enabled vehicles, anywhere in the world.
     InfoStream(TM) is a mobile computing platform for wireless devices,
 including 3G Smartphones, PDAs, Internet appliances and wireless portable
 tablets.  InfoStream leads the industry in performance, power consumption and
 levels of on-chip integration.
     MobiStream(TM) is one of the most advanced GPRS platforms combining the
 highest data rates and integrated multimedia with the industry's lowest power
 consumption solution.  GPRS deployment targets the market for mobile data
 services.
 
     FORWARD-LOOKING STATEMENT
     This news release may contain "forward-looking statements" within the
 meaning of section 27a of the securities act of 1933, as amended, and section
 21e of the securities exchange act of 1934, as amended.  Any "forward-looking
 statements" are subject to certain risks and uncertainties that could cause
 actual results to differ materially from those stated.  Any statements that
 are not statements of historical fact  (including, without limitation,
 statements to the effect that the company or its management "believes,"
 "expects," "anticipates," "plans" and similar expressions) should be
 considered forward-looking statements.  Important factors that could cause
 actual results to differ from those indicated by such forward-looking
 statements include uncertainties relating to the acceptance of semiconductor
 intellectual property offering, expansion of our business, quarterly
 variations in results, and other uncertainties that are discussed in the "risk
 factors" section of our follow-on offering prospectus dated November 8, 2000
 which is on file with the SEC and the registrar of companies in the republic
 of Ireland.
 
 
                            PARTHUS TECHNOLOGIES PLC
                CONSOLIDATED STATEMENTS OF OPERATIONS - US GAAP
 
                                                        Quarter      Quarter
                                                          Ended        Ended
                                                       March 31     March 31
                                                           2001         2000
                                                      Unaudited    Unaudited
                                                        US$'000      US$'000
 
     Revenue
     IP creation                                          2,400        3,448
     IP licensing and royalties                           5,850        2,740
     Hard IP                                              1,513           --
     Total revenue                                        9,763        6,188
 
     Cost of revenue
     IP creation                                          1,692        2,288
     IP licensing and royalties                             986          582
     Hard IP                                                824           --
     Total cost of revenue                                3,502        2,870
 
     Gross margin                                         6,261        3,318
 
     Operating expenses
     Research & development                               5,985        3,152
     Sales & marketing                                    2,669        1,550
     General & administrative                             1,901          977
     Amortisation of intangible assets                      366           --
     Non-cash stock compensation expense                    336          211
     Total operating expenses                            11,257        5,890
 
     Loss from operations                                (4,996)      (2,572)
     Interest & similar income, net                       2,113           33
     Foreign exchange (loss) / gain                         (41)         360
     Minority interest                                      (50)         (49)
     Loss before provision for income taxes              (2,974)      (2,228)
     Provision for income taxes                            (150)        (158)
     Net loss                                            (3,124)      (2,386)
     Preference dividends                                    --          (13)
     Net loss attributable to ordinary shareholders      (3,124)      (2,399)
 
     Net loss per ordinary share before exceptional
      items(2) (basic and diluted)                      ($0.005)     ($0.006)
     Net loss per ordinary share (basic and diluted)    ($0.006)     ($0.007)
 
     Net loss per ADS(1) before exceptional items(2)
      (basic and diluted)                               ($0.045)     ($0.059)
     Net loss per ADS  (basic and diluted)              ($0.059)     ($0.066)
     Weighted average number
      of ordinary shares ('000's)                       532,627      362,590
     Weighted average number of ADS ('000)               53,263       36,259
 
     1  Each American Depository Share (ADS) represents 10 ordinary shares.
 
     2  Exceptional items include non-cash stock compensation and amortization
        costs.
 
 
                            PARTHUS TECHNOLOGIES PLC
                     CONSOLIDATED BALANCE SHEETS - US GAAP
 
                                                       31 March  31 December
                                                           2001         2000
                                                      Unaudited      Audited
                                                        US$'000      US$'000
     Assets
 
     Current assets
     Cash and cash equivalents                          157,042      159,865
     Accounts receivable                                  5,019        3,245
     Government grants receivable                           266          904
     Prepayments & other current assets                   2,780        2,851
     Inventory                                            1,207        1,250
     Total current assets                               166,314      168,115
 
     Property, plant & equipment, net                     6,092        4,891
     Intangible assets                                    5,874        6,240
     Total assets                                       178,280      179,246
 
 
     Liabilities & shareholders' equity
 
     Current liabilities
     Accounts payable                                     3,575        3,802
     Accrued liabilities                                 10,260        9,438
     Deferred revenue                                     6,818        5,680
     Taxes payable                                        2,342        1,809
     Total current liabilities                           22,995       20,729
 
     Minority interests                                   1,004        1,001
 
     Shareholders' equity
     Ordinary shares                                        192          191
     Additional paid in capital                         178,291      177,657
     Deferred stock compensation                         (3,811)      (4,147)
     Accumulated other comprehensive income              (2,787)      (1,705)
     Retained earnings                                  (17,604)     (14,480)
     Total shareholders' equity                         154,281      157,516
     Total liabilities & shareholders' equity           178,280      179,246
 
 SOURCE  Parthus Technologies