Sage Inc. Reports Fourth Fiscal Quarter Results

Apr 26, 2001, 01:00 ET from Sage, Inc.

    MILPITAS, Calif., April 26 /PRNewswire/ -- Sage, Inc. (Nasdaq:   SAGI), a
 leading supplier of digital display processors, announced today its results
 for its fourth fiscal quarter and year ended March 31, 2001.
     Revenues for the three months ended March 31, 2001 were $6.7 million
 compared to $5.6 million for the three months ended March 31, 2000, and
 $9.7 million for the preceding three months ended December 31, 2000. On a pro-
 forma adjusted cash basis, net loss and net loss per share for the three
 months ended March 31, 2001 were $1.7 million and $0.12, respectively,
 compared to $0.0 million and $0.0 for the three months ended March 31, 2000,
 and $0.1 million and $.01 for the three months ended December 31, 2000. Net
 loss and net loss per share, before adjusting for pro-forma non-cash charges,
 for the three months ended March 31, 2001 amounted to $99.4 million and
 $7.17 respectively, compared to a net loss and net loss per share of
 $0.1 million and $(0.01), respectively, for the three months ended March 31,
 2000, and $6.3 million and $0.46, respectively, for the preceding three months
 ended December 31, 2000.
     Included in these results for the three months ended March 31, 2001, were
 non-cash charges amounting to $97.7 million arising principally from the
 impairment of goodwill. In view of the recent declining market value of
 technology stock, Sage conducted a re-evaluation of the acquired goodwill and
 other intangibles relating to Faroudja Labs and determined that there had been
 an impairment of $91.5 million.  Sage believes the write-off of impaired
 goodwill will clean up the balance sheet and make it easier for investors to
 see the underlying performance of the Company going forward.
     Revenues for the fiscal year ended March 31, 2001 were $31.4 million
 compared to $17.9 million for the year ended March 31, 2000. Net loss and net
 loss per share on a pro-forma adjusted cash basis for the fiscal year ended
 March 31, 2001 amounted to $2.0 million and $0.16, respectively compared to a
 net loss and net loss per share of $1.5 million and $0.33 for the fiscal year
 ended March 31, 2000.  Net loss and net loss per share, before adjusting for
 pro-forma non-cash charges, for the fiscal year ended March 31, 2001 were
 $121.1 million and $9.48 respectively, compared to a net loss and net loss per
 share of $4.6 million and $1.04, respectively, for the year ended March 31,
 2000.  Included in the results for the year ended March 31, 2001 were non-cash
 charges amounting to $119.1 million arising principally from the impairment of
 goodwill.
     Chandra Reddy, president and CEO stated, "As expected, the slowdown in
 demand from our PC monitor customers and late entry into the integrated analog
 interface market resulted in a 31% reduction in sales this quarter.  While it
 is difficult to anticipate the impact of future macro-economic trends on our
 core PC monitor business, I believe that the forthcoming availability of our
 new integrated analog and de-interlacing chips provides us with incremental
 sales opportunities in the analog interface PC monitor and digitally enhanced
 consumer display markets.  We have recently seen significant reductions in the
 prices of LCD panels, and expect to see resumed sales growth in the next
 quarter.  We are also seeing a strong interest in progressive DVD and
 digitally enhanced TV and expect sales into this segment to show an
 encouraging increase in the June quarter.  According to DisplaySearch, the
 total market for digital display processors is forecast to triple over the
 next three years and we intend to gain a significant share of this market. "
 
     About Sage
     Sage, Inc. is a leader in flat panel monitor digital interface chips and
 associated software.  The Company's system on a chip technology provides
 highly integrated mixed signal and system functionality with higher picture
 quality and best price/performance. Sage recently acquired Faroudja
 Laboratories, one of the world's leading providers of video processing
 technology and products satisfying the demands of broadcast and home theater
 applications.  Employing Faroudja technology, Sage is developing products that
 bring the home theater experience to the mass consumer market through
 digitally enhanced TVs, DVDs, internet appliances and projection displays.
 Sages' display processors including Faroudja's video processors are used by
 world renowned consumer and PC electronics manufacturers such as Acer, Compaq,
 Fujitsu, LG, NEC, Sony, Sanyo, Samsung and Toshiba.
     Sage's fourth fiscal quarter conference call is scheduled for April 26,
 2001 at 14.00 hrs PST. Investors are invited to listen to the call live via
 the webcast available through Sage's investor relations web site at
 www.sageinc.com or dial in for the call to 800-982-3654 at least five minutes
 prior to the start time.
     Sage (Nasdaq:   SAGI) is a publicly traded company located in Milpitas, CA
 and can be reached at 408-383-5300 (Phone), 408-383-5310 (Fax) or through its
 web site at www.sageinc.com .
     The statements in the business outlook above are forward-looking
 statements within the meaning of the Securities Litigation Reform Act of 1995.
 Such statements, including statements concerning sales opportunities in the
 analog interface PC monitor and digitally enhanced consumer display markets
 and sales growth in the digitally enhanced TV segments are based on current
 expectations, estimates and projections about the company's business and
 consumer and customer behaviour. These statements are not guarantees of future
 performance and involve certain risks, uncertainties and assumptions that are
 difficult to predict. Actual results could vary materially from the
 description contained herein due to many factors including those described
 above and the following: business and economic conditions, changes in growth
 in the flat panel monitor and digitally enhanced television industries,
 changes in customer ordering patterns, competitive factors such as rival chip
 architectures, pricing pressures, insufficient, excess or obsolete inventory
 and variations in inventory valuation, continued success in technological
 advances, shortages of manufacturing capacity from our third-party foundries,
 litigation involving antitrust and intellectual property, the non-acceptance
 of the combined technologies by leading manufacturers, and other risk factors
 listed from time to time in the Company's Securities and Exchange Commission
 filings. In addition, such statements are subject to the risks inherent in
 investments in and acquisitions of technologies and businesses, including the
 timing and successful completion of technology and product development through
 volume production, integration issues, unanticipated costs and expenditures,
 changing relationships with customers, suppliers and strategic partners,
 potential contractual, intellectual property or employment issues and
 accounting treatment and charges. The forward- looking statements contained in
 this press release speak only as of the date on which they are made, and the
 company does not undertake any obligation to update any forward-looking
 statement to reflect events or circumstances after the date of this news
 release.  If the Company does update one or more forward-looking statements,
 investors and others should not conclude that the Company will make additional
 updates with respect thereto or with respect to other forward-looking
 statements.
 
                                     SAGE, INC.
                   CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                  (In thousands, except per share data, Unaudited)
 
                                             Three Months          Year
                                             Ended March 31,   Ended March 31,
                                              2001   2000       2001     2000
     Revenue                                $6,673  $5,594    $31,399  $17,881
 
     Cost of revenue                         3,495   2,877     16,085   10,026
     Amortization of intangibles charged
      to cost of revenue                       250     -          813      -
 
     Gross profit                            2,928   2,717     14,501    7,855
 
     Operating expenses:
 
             Research and development        2,428   1,263      8,136    4,107
 
             Charge for in-process
              technology                       -       -        7,200    2,500
 
             Selling, general and
              administration                 3,277   2,048     12,148    6,124
 
             Amortization and write-off
              of intangibles                97,400     -      110,773      -
 
             Stock compensation                 47     127        257      641
 
                      Total operating
                       expenses            103,152   3,438    138,514   13,372
 
     Loss from operations                 (100,224)   (721)  (124,013)  (5,517)
 
     Interest and other income (expense),
      net                                      804     573      2,932      922
 
     Net loss                             $(99,420)  $(148) $(121,081) $(4,595)
 
     Number of primary shares               13,855  10,309     12,776    4,414
 
     Primary earnings per share  (Note 1)   $(7.18) $(0.01)    $(9.48)  $(1.04)
 
 
     Adjusted pro-forma results
 
     Adjusted net (loss) after adding
      back non cash charges (Note 2)       $(1,723)   $(21)   $(2,038) $(1,454)
 
     Shares used in computing pro-forma
      net loss per share
         Basic and diluted  (Note 1)        13,855  10,309     12,776    4,414
 
     Adjusted net loss before non-cash
      charges per share
         Basic and diluted                  $(0.12) $(0.00)    $(0.16)  $(0.33)
 
 
     Note 1:   Fully diluted earnings per share are not reported as the results
               would be anti-dilutive.
     Note 2:   After adding back charge for in-process technology, amortization
               of intangibles and deferred stock compensation expense.
               Adjusted net income (loss) is not computed nor is it intended
               to be an alternative to net loss computed in accordance with
               generally  accepted accounting principles.
     Note 3:   Includes results of Faroudja Labs, Inc. for the period from
               June 8, 2000 to December 31,2000.
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands, Unaudited)
                                      ASSETS
 
 
                                                 March 31,          March 31,
                                                    2001               2000
     Current assets:
            Cash and cash equivalents              $41,384            $38,936
            Accounts receivable, net                 6,479              3,398
            Inventory                                6,861              1,132
            Prepaids & other assets                  1,220                765
                 Total current assets               55,944             44,231
 
     Property & equipment, net                       4,440              1,180
     Other non-current assets                        1,906                -
     Goodwill & other intangibles, net              10,280                -
                       Total assets                $72,570            $45,411
 
 
                       LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
     Current liabilities:
            Accounts payable                         $3,312            $1,755
            Accrued expenses and other
             liabilities                              3,299             2,379
                         Total current liabilities    6,611             4,134
     Commitments
     Stockholders' equity (deficit):
           Common stock, $0.01 par value;
            50,000,000 shares authorized;
            13,925,000 and 10,467,000 issued
            and outstanding                             139               105
           Additional paid-in capital               200,844            54,889
           Notes receivable from
            stockholders                               (558)              (75)
           Deferred compensation related
            to stock options and restricted stock      (115)             (372)
           Accumulated deficit                     (134,351)          (13,270)
                       Total
                        stockholders' equity         65,959            41,277
                        Total liabilities
                         & stockholders' equity     $72,570           $45,411
 
 
     Note 1:  All shares and per share amounts have been adjusted in all
              periods to reflect a three-for-one reverse split effective
              November 10, 1999.
     Note 2:  March 2001 amounts include the assets and liabilities of
              Faroudja, Inc. purchased on June 7, 2000.
 
 
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SOURCE Sage, Inc.
    MILPITAS, Calif., April 26 /PRNewswire/ -- Sage, Inc. (Nasdaq:   SAGI), a
 leading supplier of digital display processors, announced today its results
 for its fourth fiscal quarter and year ended March 31, 2001.
     Revenues for the three months ended March 31, 2001 were $6.7 million
 compared to $5.6 million for the three months ended March 31, 2000, and
 $9.7 million for the preceding three months ended December 31, 2000. On a pro-
 forma adjusted cash basis, net loss and net loss per share for the three
 months ended March 31, 2001 were $1.7 million and $0.12, respectively,
 compared to $0.0 million and $0.0 for the three months ended March 31, 2000,
 and $0.1 million and $.01 for the three months ended December 31, 2000. Net
 loss and net loss per share, before adjusting for pro-forma non-cash charges,
 for the three months ended March 31, 2001 amounted to $99.4 million and
 $7.17 respectively, compared to a net loss and net loss per share of
 $0.1 million and $(0.01), respectively, for the three months ended March 31,
 2000, and $6.3 million and $0.46, respectively, for the preceding three months
 ended December 31, 2000.
     Included in these results for the three months ended March 31, 2001, were
 non-cash charges amounting to $97.7 million arising principally from the
 impairment of goodwill. In view of the recent declining market value of
 technology stock, Sage conducted a re-evaluation of the acquired goodwill and
 other intangibles relating to Faroudja Labs and determined that there had been
 an impairment of $91.5 million.  Sage believes the write-off of impaired
 goodwill will clean up the balance sheet and make it easier for investors to
 see the underlying performance of the Company going forward.
     Revenues for the fiscal year ended March 31, 2001 were $31.4 million
 compared to $17.9 million for the year ended March 31, 2000. Net loss and net
 loss per share on a pro-forma adjusted cash basis for the fiscal year ended
 March 31, 2001 amounted to $2.0 million and $0.16, respectively compared to a
 net loss and net loss per share of $1.5 million and $0.33 for the fiscal year
 ended March 31, 2000.  Net loss and net loss per share, before adjusting for
 pro-forma non-cash charges, for the fiscal year ended March 31, 2001 were
 $121.1 million and $9.48 respectively, compared to a net loss and net loss per
 share of $4.6 million and $1.04, respectively, for the year ended March 31,
 2000.  Included in the results for the year ended March 31, 2001 were non-cash
 charges amounting to $119.1 million arising principally from the impairment of
 goodwill.
     Chandra Reddy, president and CEO stated, "As expected, the slowdown in
 demand from our PC monitor customers and late entry into the integrated analog
 interface market resulted in a 31% reduction in sales this quarter.  While it
 is difficult to anticipate the impact of future macro-economic trends on our
 core PC monitor business, I believe that the forthcoming availability of our
 new integrated analog and de-interlacing chips provides us with incremental
 sales opportunities in the analog interface PC monitor and digitally enhanced
 consumer display markets.  We have recently seen significant reductions in the
 prices of LCD panels, and expect to see resumed sales growth in the next
 quarter.  We are also seeing a strong interest in progressive DVD and
 digitally enhanced TV and expect sales into this segment to show an
 encouraging increase in the June quarter.  According to DisplaySearch, the
 total market for digital display processors is forecast to triple over the
 next three years and we intend to gain a significant share of this market. "
 
     About Sage
     Sage, Inc. is a leader in flat panel monitor digital interface chips and
 associated software.  The Company's system on a chip technology provides
 highly integrated mixed signal and system functionality with higher picture
 quality and best price/performance. Sage recently acquired Faroudja
 Laboratories, one of the world's leading providers of video processing
 technology and products satisfying the demands of broadcast and home theater
 applications.  Employing Faroudja technology, Sage is developing products that
 bring the home theater experience to the mass consumer market through
 digitally enhanced TVs, DVDs, internet appliances and projection displays.
 Sages' display processors including Faroudja's video processors are used by
 world renowned consumer and PC electronics manufacturers such as Acer, Compaq,
 Fujitsu, LG, NEC, Sony, Sanyo, Samsung and Toshiba.
     Sage's fourth fiscal quarter conference call is scheduled for April 26,
 2001 at 14.00 hrs PST. Investors are invited to listen to the call live via
 the webcast available through Sage's investor relations web site at
 www.sageinc.com or dial in for the call to 800-982-3654 at least five minutes
 prior to the start time.
     Sage (Nasdaq:   SAGI) is a publicly traded company located in Milpitas, CA
 and can be reached at 408-383-5300 (Phone), 408-383-5310 (Fax) or through its
 web site at www.sageinc.com .
     The statements in the business outlook above are forward-looking
 statements within the meaning of the Securities Litigation Reform Act of 1995.
 Such statements, including statements concerning sales opportunities in the
 analog interface PC monitor and digitally enhanced consumer display markets
 and sales growth in the digitally enhanced TV segments are based on current
 expectations, estimates and projections about the company's business and
 consumer and customer behaviour. These statements are not guarantees of future
 performance and involve certain risks, uncertainties and assumptions that are
 difficult to predict. Actual results could vary materially from the
 description contained herein due to many factors including those described
 above and the following: business and economic conditions, changes in growth
 in the flat panel monitor and digitally enhanced television industries,
 changes in customer ordering patterns, competitive factors such as rival chip
 architectures, pricing pressures, insufficient, excess or obsolete inventory
 and variations in inventory valuation, continued success in technological
 advances, shortages of manufacturing capacity from our third-party foundries,
 litigation involving antitrust and intellectual property, the non-acceptance
 of the combined technologies by leading manufacturers, and other risk factors
 listed from time to time in the Company's Securities and Exchange Commission
 filings. In addition, such statements are subject to the risks inherent in
 investments in and acquisitions of technologies and businesses, including the
 timing and successful completion of technology and product development through
 volume production, integration issues, unanticipated costs and expenditures,
 changing relationships with customers, suppliers and strategic partners,
 potential contractual, intellectual property or employment issues and
 accounting treatment and charges. The forward- looking statements contained in
 this press release speak only as of the date on which they are made, and the
 company does not undertake any obligation to update any forward-looking
 statement to reflect events or circumstances after the date of this news
 release.  If the Company does update one or more forward-looking statements,
 investors and others should not conclude that the Company will make additional
 updates with respect thereto or with respect to other forward-looking
 statements.
 
                                     SAGE, INC.
                   CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                  (In thousands, except per share data, Unaudited)
 
                                             Three Months          Year
                                             Ended March 31,   Ended March 31,
                                              2001   2000       2001     2000
     Revenue                                $6,673  $5,594    $31,399  $17,881
 
     Cost of revenue                         3,495   2,877     16,085   10,026
     Amortization of intangibles charged
      to cost of revenue                       250     -          813      -
 
     Gross profit                            2,928   2,717     14,501    7,855
 
     Operating expenses:
 
             Research and development        2,428   1,263      8,136    4,107
 
             Charge for in-process
              technology                       -       -        7,200    2,500
 
             Selling, general and
              administration                 3,277   2,048     12,148    6,124
 
             Amortization and write-off
              of intangibles                97,400     -      110,773      -
 
             Stock compensation                 47     127        257      641
 
                      Total operating
                       expenses            103,152   3,438    138,514   13,372
 
     Loss from operations                 (100,224)   (721)  (124,013)  (5,517)
 
     Interest and other income (expense),
      net                                      804     573      2,932      922
 
     Net loss                             $(99,420)  $(148) $(121,081) $(4,595)
 
     Number of primary shares               13,855  10,309     12,776    4,414
 
     Primary earnings per share  (Note 1)   $(7.18) $(0.01)    $(9.48)  $(1.04)
 
 
     Adjusted pro-forma results
 
     Adjusted net (loss) after adding
      back non cash charges (Note 2)       $(1,723)   $(21)   $(2,038) $(1,454)
 
     Shares used in computing pro-forma
      net loss per share
         Basic and diluted  (Note 1)        13,855  10,309     12,776    4,414
 
     Adjusted net loss before non-cash
      charges per share
         Basic and diluted                  $(0.12) $(0.00)    $(0.16)  $(0.33)
 
 
     Note 1:   Fully diluted earnings per share are not reported as the results
               would be anti-dilutive.
     Note 2:   After adding back charge for in-process technology, amortization
               of intangibles and deferred stock compensation expense.
               Adjusted net income (loss) is not computed nor is it intended
               to be an alternative to net loss computed in accordance with
               generally  accepted accounting principles.
     Note 3:   Includes results of Faroudja Labs, Inc. for the period from
               June 8, 2000 to December 31,2000.
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands, Unaudited)
                                      ASSETS
 
 
                                                 March 31,          March 31,
                                                    2001               2000
     Current assets:
            Cash and cash equivalents              $41,384            $38,936
            Accounts receivable, net                 6,479              3,398
            Inventory                                6,861              1,132
            Prepaids & other assets                  1,220                765
                 Total current assets               55,944             44,231
 
     Property & equipment, net                       4,440              1,180
     Other non-current assets                        1,906                -
     Goodwill & other intangibles, net              10,280                -
                       Total assets                $72,570            $45,411
 
 
                       LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
     Current liabilities:
            Accounts payable                         $3,312            $1,755
            Accrued expenses and other
             liabilities                              3,299             2,379
                         Total current liabilities    6,611             4,134
     Commitments
     Stockholders' equity (deficit):
           Common stock, $0.01 par value;
            50,000,000 shares authorized;
            13,925,000 and 10,467,000 issued
            and outstanding                             139               105
           Additional paid-in capital               200,844            54,889
           Notes receivable from
            stockholders                               (558)              (75)
           Deferred compensation related
            to stock options and restricted stock      (115)             (372)
           Accumulated deficit                     (134,351)          (13,270)
                       Total
                        stockholders' equity         65,959            41,277
                        Total liabilities
                         & stockholders' equity     $72,570           $45,411
 
 
     Note 1:  All shares and per share amounts have been adjusted in all
              periods to reflect a three-for-one reverse split effective
              November 10, 1999.
     Note 2:  March 2001 amounts include the assets and liabilities of
              Faroudja, Inc. purchased on June 7, 2000.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64618798
 
 SOURCE  Sage, Inc.