-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O/Ubp1RxmM067nun1/5IzS2Tkhx5yYxOLf0WbObO0MeNQz69QD1eAA5Y3KAcL2FT aES4K4+Mdt5PCZNJB5+kmA== 0000912057-97-012568.txt : 19970411 0000912057-97-012568.hdr.sgml : 19970411 ACCESSION NUMBER: 0000912057-97-012568 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970409 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970410 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUICKTURN DESIGN SYSTEMS INC CENTRAL INDEX KEY: 0000914252 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 770159619 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22738 FILM NUMBER: 97578291 BUSINESS ADDRESS: STREET 1: 440 CLYDE AVE CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 BUSINESS PHONE: 4159673300 MAIL ADDRESS: STREET 1: 440 CLYDE AVE CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 8-K 1 FORM 8-K 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) 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. -2- 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 ----------------------------- Raymond K. Ostby Vice President, Finance and Administration, Chief Financial Officer and Secretary -3- INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION OF DOCUMENT - ------ ----------------------- 20.1 Press Release of Quickturn, dated April 9, 1997. EX-20.1 2 EXHIBIT 20.1 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. 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. ### Quickturn, SpeedSim, CoBALT and virtual silicon are trademarks of Quickturn Design Systems, Inc. QUICKTURN DESIGN SYSTEMS, Inc. Condensed Consolidated Statements of Operations (amounts in thousands except per share data) THREE MONTHS ENDED MARCH 31, --------------------- 1997 1996* ---- ----- (unaudited) (unaudited) Revenue $21,402 $23,868 Cost of Revenue 6,834 7,144 -------- ------- 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 -------- ------- Total operating expenses 18,029 13,017 Operating income (loss) (3,461) 3,707 Other income, net 392 312 -------- ------- Net income (loss) before provision for income taxes (3,069) 4,019 Provision for income taxes (951) 1,275 -------- ------- Net income (loss) $ (2,118) $ 2,744 -------- ------- -------- ------- Net income (loss) per share $ (0.13) $ 0.16 -------- ------- -------- ------- Shares used in per share calculations 16,562 17,445 -------- ------- -------- ------- * Q1 1996 restated to reflect pooling-of-interests merger with SpeedSim, Inc. QUICKTURN DESIGN SYSTEMS, Inc. Condensed Consolidated Balance Sheets (amounts in thousands) MARCH 31, DECEMBER 31, 1997 1996* --------- ------------ 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 -------- -------- 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 -------- -------- $110,738 $111,977 -------- -------- -------- -------- 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 -------- -------- Total current liabilities 29,114 27,932 STOCKHOLDERS' EQUITY Stockholders' equity 81,624 84,045 -------- -------- $110,738 $111,977 -------- -------- -------- -------- *Restated to reflect pooling-of-interests merger with SpeedSim, Inc. -----END PRIVACY-ENHANCED MESSAGE-----