LOGIC Devices Reports Third Quarter of Fiscal 2010

SUNNYVALE, Calif., July 30, 2010 (GLOBE NEWSWIRE) -- LOGIC Devices Incorporated (Nasdaq:LOGC) today reported its revenues and earnings for the third quarter of fiscal 2010. Net revenues aggregated $272,100 for the quarter ended June 30, 2010, a decrease from the $803,300 reported in the same quarter of fiscal 2009 and the $553,200 in the immediately preceding quarter. LOGIC reported a net loss of $404,800, or $(0.06) per share, for the fiscal 2010 quarter, compared to a net income of $30,700, or $0.00 per share, for the fiscal 2009 quarter.

"We had a very disappointing quarter with respect to revenues. The decrease was primarily due to shortfalls in significant programs of previous quarters: our sales for military systems and digital cinema systems. While we expected some decline in the digital cinema project and the military programs are often sporadic, we did not anticipate such a sharp decline during the quarter ended June 30, 2010. Unfortunately, our feedback from the field suggests that funds for military programs are extremely tight and prime contractors are being forced to delay projects," stated Bill Volz, president of LOGIC Devices.

"During this quarter ended June 30, 2010, we sampled our iMOD high-density memory module family and trained our sales channel on the target applications and programs for these products. We received initial orders for both the DDR2 and DDR3 iMODs during the quarter. We also introduced a 1Mb high-rel static RAM (SRAM), have nearly completed a full military qualification on the products, and have begun to manufacture quantities in multiple package styles to provide immediate deliverability to customers that are finding this type of product increasingly hard to find.

"With extremely weak revenues, we used a considerable amount of cash compared to prior periods where we may have posted a loss that did not impact liquidity. We also spent very heavily on completing the test and characterization of prototypes of the many new products recently introduced. Fortunately, we have nearly completed these procedures and the few remaining tasks relate to tightening the cost and efficiency in manufacturing these products at production volumes. An additional demand on our current capital is the money we must commit to build our initial inventory of the 13 iMOD and four SRAM product introductions," continued Volz.

"In an attempt to summarize all these items, I would say we are in the throes of a classical, but very significant, product transition. After a number of years of intensive product development, we have finally completed a large number of products at the same time. Near-term revenues will continue to suffer from the delays in completing these products, as our maturing products are past their peak revenue-generating years and are now declining. Revenues will be difficult to project until a few of the larger target projects for our new products reach run-rate production schedules. Our liquidity will be stretched by the need for working capital to ramp up our inventory and receivable for the new products. As a result, we will move aggressively to reduce costs further, including scaling back further new product development for a short period, and attempt to judiciously select which products, and at what quantities, we build into inventory. Concurrently, we will look for financing opportunities to maintain this ramp-up," concluded Volz.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements in this press release regarding expectations of future events are "forward-looking statements" involving risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions and shifts in supply and demand, the impact of competitive products and pricing, product development, commercialization and technological difficulties, availability of capital, and capacity and supply constraints. Please refer to the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) for a discussion of risks in the most recent LOGIC Devices Annual Report on Form 10-K and the quarterly report under Form 10-Q.

LOGIC Devices Incorporated, an ISO 9001:2008 registered company, is focused on developing high-performance, digital silicon and integrated product solutions for high-performance, power-sensitive applications. Our products meet or exceed the requirements for broadcast video, medical imaging, industrial-embedded computer, surveillance, and instrumentation, as well as telecommunications companies. More information about LOGIC Devices and its products is available on our website, www.logicdevices.com.