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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 3, 1998
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QUICKTURN DESIGN SYSTEMS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-22738 77-0159619
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
55 W. TRIMBLE ROAD, SAN JOSE, CALIFORNIA 95131-1013
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408) 914-6000
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N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On April 3, 1998, the Registrant announced preliminary financial results
for the first quarter of 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 Press Release dated April 3, 1998.
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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 3, 1998 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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99.1 Press Release dated April 3, 1998.
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FOR IMMEDIATE RELEASE
FOR MORE INFORMATION CONTACT:
Raymond K. Ostby
Vice President Finance & Administration, CFO
Quickturn Design Systems, Inc.
(408) 914-6633
QUICKTURN ANNOUNCES PRELIMINARY FIRST QUARTER 1998 RESULTS
SAN JOSE, CALIF. - April 3, 1998 - Quickturn Design Systems, Inc., (Nasdaq:
QKTN) today announced that revenue for the first quarter ended March 31, 1998,
will be approximately $23.5 million, compared to 1997 first quarter results of
$21.4 million. The company expects to incur a loss for the quarter of between
$0.09 and $0.11 per share, compared to a loss per share of $0.13 in the first
quarter of 1997, which included approximately $0.05 of loss net of tax
associated with the merger of Quickturn and SpeedSim-TM-, Inc.
Keith R. Lobo, Quickturn President and CEO said, "Revenue from the
Asia-Pacific region came in significantly below our expectations for the
first quarter. We have also seen weakness in certain segments of the U.S.
market, particularly those that are heavily dependent on sales to the
Asia-Pacific region. Europe has slightly exceeded our expectations, although
not sufficiently to compensate for the shortfall elsewhere."
Lobo added, "Although we have seen certain customers slow down their
purchasing decisions during the first quarter, we also continue to see
increases in the density and complexity of new design projects that are
candidates for
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Quickturn's verification products. We are closely assessing our customers new
design activity to better understand when the current slowdown is likely to
reverse itself."
"Given this result, our current assessment for 1998 is for revenue to
increase 15-20% over 1997 revenue of $110.4 million," continued Lobo. "We have
tightened expense controls in light of this quarter's performance. However,
there are no plans for workforce reductions."
"During the first quarter, we met all of our internal development
milestones on several key projects for advanced technologies and future
products. We will continue to invest in those projects as we believe they are
critical to addressing emerging industry needs. In addition, we have been
increasing our direct presence in several key regions, most recently Israel,
where we are opening our first office to serve this important market."
This press release contains forward-looking statements, including
statements regarding expected results for the first quarter and future periods
as well as statements regarding the company's markets. 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
is uncertain whether the recent weakness experienced in the Asia-Pacific and
domestic markets will continue in the foreseeable future; (ii) many of the
company's customers order on an as-needed basis and often delay delivery of firm
purchase orders; (iii) the decision of customers to purchase the company's
products involves a lengthy sales cycle which could result, among other things,
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in fluctuations of operating results and inventory obsolescence if expected
orders are delayed or not received; (iv) the company expects increased
competition, which could result in lost sales or price erosion; (v) the
company's patents and other proprietary rights may not ensure adequate
protection against competition; (vi) 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; and (vii) 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.
Quickturn Design Systems, Inc. is the industry pioneer in cycle-based
simulation, reprogrammable logic emulation products and services for design
verification of complex ICs and electronic systems. The company's high
performance cycle-based simulation software is used to verify digital logic
designs as they are being created. 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.
Quickturn's customers, which include the leading electronics companies in
the high-performance computing, multimedia, graphics and
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communications markets, are able to use these verification solutions to
improve design quality, lower overall development costs and shorten
time-to-market of their new products. Quickturn Design Systems, Inc. is
headquartered at 55 W. Trimble Road, San Jose, CA 95131-1013; Telephone:
408-914-6000. For more information, visit the Quickturn website at
http://www.quickturn.com or send e-mail to [email protected].
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Quickturn, the Quickturn logo, SpeedSim and virtual silicon are trademarks of
Quickturn Design Systems, Inc. All other trademarks are the property of their
respective owners.
