LOGIC Devices Reports Calendar 1995; Earnings $0.26 VS $0.15

Business Wire, March 21, 1996

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 21, 1996--Logic Devices Inc. (Nasdaq: LOGC), today reported net income for the fiscal year ended December 31, 1995 of $1,384,000, or $0.26 per share, up 95 percent from $708,000, or $0.15 per share, for the year ended December 31, 1994. Revenues for the year ended December 31, 1995 were $16,611,000, up 23 percent from the $13,492,000 recorded for the previous year ended December 31, 1994.

Net income for the fourth quarter ended December 31, 1995 was $264,000, or $0.05 per share, up 26 percent from $209,000, or $0.05 per share for the fourth quarter ended December 31, 1994. Revenues for the fourth quarter ended December 31, 1995 were $4,136,000, up 16 percent from $3,577,000 for the final quarter of 1994.

Bill Volz, President of LOGIC Devices commented, "1995 was a record year for the industry. In line with the strong growth of the industry, LOGIC Devices reported record earnings as it completed a tenth consecutive year of profitability. LOGIC's sales growth, as good as it was, had been severely constrained for much of the year by the limited allocations of processed wafers available from our wafer suppliers."

"During 1995, LOGIC acquired the assets of the former STAR Semiconductor Corporation. We undertook a significant expansion of our sales network, opening new sales and applications support offices in the Eastern U.S. and in Europe. The Company was also able to raise additional equity and retire virtually all of the Company's debt."

"Midway through the fourth quarter of 1995, demand for semiconductor products declined dramatically. This decline was a result of customers having double ordered during the period of critical shortages which developed during the second and third quarter of 1995. Due to weaker than expected sales of personal computers and communications products during the holiday season, many of these customers elected to dump their excess semiconductor product inventories onto the market during the first quarter of 1996. Prices for commodity products, particularly dynamic and static memories (DRAMs and SRAMs) have collapsed. New orders have also been impacted by customers who have reduced their order visibility, expecting further price reductions. The industry currently has very limited visibility into expected 1996 business activity levels."

"We have positioned LOGIC's product portfolio with a balance between the high volume, but volatile, SRAM market, and the more stable, strongly growing, but smaller DSP market. We believe this balance and diversity will serve the Company well during this period of supply/demand imbalance. The telecommunications, video broadcast equipment, medical imaging, and smart weapons systems which the Company's products target have historically been less sensitive to external economic forces than the personal computer and wireless communications markets that have largely become consumer products. While we cannot anticipate the economic conditions that will prevail in 1996, we are optimistic that the products which we produce and the markets which we serve will allow us to outperform the industry group in this uncertain period," stated Volz.

LOGIC Devices develops and markets high performance integrated circuits which address computationally intensive applications for industrial applications. The Company may be contacted at: LOGIC Devices Incorporated, 628 East Evelyn Avenue, Sunnyvale, CA 94086, 408/737-3300. -0-