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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 9, 1997
QUICKTURN DESIGN SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22738 77-0159619
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
440 CLYDE AVENUE, MOUNTAIN VIEW, CALIFORNIA 94043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 967-3300
N/A
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On April 9, 1997 Quickturn Design Systems, Inc. ("Quickturn") announced
a loss of $0.13 per share on revenue of $21.4 million for the first quarter
of 1997. The press release announcing this loss is attached hereto as
exhibit 20.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) EXHIBITS
20.1 Press Release of Quickturn, dated April 9, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 10, 1997 QUICKTURN DESIGN SYSTEMS, INC.
/s/ Raymond K. Ostby
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Raymond K. Ostby
Vice President, Finance and Administration,
Chief Financial Officer and Secretary
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
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20.1 Press Release of Quickturn, dated April 9, 1997.
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EXHIBIT 20.1
QUICKTURN DESIGN SYSTEMS REPORTS FIRST QUARTER 1997 RESULTS
MOUNTAIN VIEW, Calif., April 9, 1997. Quickturn Design Systems, Inc.
(Nasdaq:QKTN) today announced that for the quarter ended March 31, 1997,
revenue was $21.4 million versus $23.9 million in the first quarter of 1996.
The reported net loss was $2,118,000 or $0.13 per share, compared to net
income and earnings per share in the first quarter of 1996 of $2,744,000 or
$0.16 per share. This net loss includes a one-time expense of $1.2 million or
$0.05 per share net of tax from the February 1997 pooling-of-interests merger
with SpeedSim, Inc.
Keith R. Lobo, president and CEO said, "The decrease in revenue for the
first quarter of 1997 was clearly a departure from the company's steady
performance of the last eight quarters. Recently we have seen customer
decisions on design verification purchases get pushed out. We believe this
action is a combination of our customers reacting to structural changes
within their respective segments of the electronics industry and to near-term
uncertainty generated by new competition."
"While we continue to express short-term caution about the potential
timing of a return to historic order rates, we remain firmly committed to our
fundamental goal of being the leading supplier of high performance design
verification technologies to the semiconductor and electronics industries,"
said Lobo.
"Two important initiatives launched during the fiscal first quarter
evidence our focus on our fundamental goal. Quickturn announced a strategic
technology and marketing partnership with Cadence Design Systems to create a
combined methodology for the co-verification of complex IC and electronic
system designs. The cooperative effort will develop integration between the
companies' product lines, delivering a seamless design verification flow to
common customers. Quickturn also unveiled its Affinity Partnership Program, a
new initiative formalizing the company's strategic relationships with
third-party design and verification technology suppliers. Quickturn's purpose
in establishing Affinity is to collaborate with other vendors to provide
robust, "best-in-class" solutions for the verification of complex chips and
electronic systems," said Lobo.
Continued Lobo, "On the new product front, we made our first production
shipments during the first quarter of the CoBALT technology developed in
cooperation with IBM. In addition, our newly acquired SpeedSim' product
continues to lead the industry in the technology of cycle-based simulation."
"CoBALT and SpeedSim both reinforce Quickturn's technology and market
lead at a time when our customers demand state-of-the-art solutions for the
toughest design verification problems," concluded Lobo.
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This press release contains forward-looking statements. Actual results
could differ materially from those described in the forward-looking
statements as a result of factors including, but not limited to, the
following: (i) the company expects increased competition which could result
in lost sales or price erosion; (ii) the company's patents and other
proprietary rights may not ensure adequate protection against competition;
(iii) the company serves the electronics and semiconductor industries which
are noted for rapidly changing needs, and there can be no assurance that
Quickturn's product enhancements or new product introductions will keep pace
with or meet those rapidly changing needs or that new products offered by
others will not be superior to those offered by Quickturn; (iv) there can be
no assurance that Quickturn can retain the services of key employees and key
suppliers upon which the company is dependent to provide product advances,
timely production and high levels of product quality and reliability; and (v)
the decision of customers to purchase the company's products involves a
lengthy sales cycle, which could result, among other things, in fluctuations
of operating results and inventory obsolescence if expected orders are
delayed or not received.
Quickturn Design Systems, Inc. is the industry pioneer in cycle-based
simulation and reprogrammable emulation products for design verification of
complex ICs and electronic systems. The company's emulation products create a
"virtual silicon"-TM- representation of an electronic design to permit
concurrent verification of ASICs and full-custom ICs with system hardware and
software. The company's high performance cycle-based simulation software is
used to verify digital logic designs. Quickturn's customers are the leading
electronics companies in the high-performance computing, multimedia, graphics
and communications markets. Quickturn's verification solutions enable these
companies to improve design quality, lower overall development cost and
shorten time to market. Quickturn Design Systems is headquartered at 440
Clyde Avenue, Mountain View, CA 94043; Telephone: 415-967-3300. For more
information, send e-mail to info@ quickturn.com or visit the Quickturn
website at http://www.quickturn.com.
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Quickturn, SpeedSim, CoBALT and virtual silicon are trademarks of
Quickturn Design Systems, Inc.
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QUICKTURN DESIGN SYSTEMS, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands except per share data)
THREE MONTHS ENDED
MARCH 31,
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1997 1996*
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(unaudited) (unaudited)
Revenue $21,402 $23,868
Cost of Revenue 6,834 7,144
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Gross Profit 14,568 16,724
Operating expenses:
Research and development 5,787 4,267
Sales and marketing 8,534 7,187
General and administrative 2,508 1,563
Merger related costs 1,200 0
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Total operating expenses 18,029 13,017
Operating income (loss) (3,461) 3,707
Other income, net 392 312
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Net income (loss) before provision
for income taxes (3,069) 4,019
Provision for income taxes (951) 1,275
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Net income (loss) $ (2,118) $ 2,744
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Net income (loss) per share $ (0.13) $ 0.16
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Shares used in per share calculations 16,562 17,445
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* Q1 1996 restated to reflect pooling-of-interests merger with SpeedSim, Inc.
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QUICKTURN DESIGN SYSTEMS, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
MARCH 31, DECEMBER 31,
1997 1996*
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ASSETS
Current assets
Cash and marketable securities $22,918 $36,404
Accounts receivable, net 21,668 21,768
Inventories 14,163 10,141
Prepaid expenses and other current assets 8,497 8,862
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Total current assets 67,246 77,175
Marketable securities 27,972 18,198
Fixed assets, net 10,560 11,243
Other assets 4,960 5,361
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$110,738 $111,977
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LIABILITIES
Current liabilities
Current portion of long-term debt $2,961 $3,502
Accounts payable and accrued liabilities 15,467 15,480
Deferred revenue 10,686 8,950
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Total current liabilities 29,114 27,932
STOCKHOLDERS' EQUITY
Stockholders' equity 81,624 84,045
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$110,738 $111,977
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*Restated to reflect pooling-of-interests merger with SpeedSim, Inc.
