Hifn: Fiscal 1Q09 Financial Results

Hifn reported financial results for the first fiscal quarter ended December 31, 2008. This press release contains both GAAP and non-GAAP financial information for which a reconciliation can be found on the final page.

Revenues for the first quarter of fiscal 2009 were $8.0 million, a decrease of 11 percent from the $9.0 million in revenues reported in the previous quarter and a decrease of 27 percent from the $10.9 million in revenues reported in the first quarter of fiscal 2008.

Net loss for the first quarter of fiscal 2009, on a GAAP basis, was $2.5 million, or $0.17 per share. Non-GAAP net loss for the first quarter of fiscal 2009, adjusted for stock-based compensation expense and amortization of intangible assets, was $1.1 million, or $0.08 per share. Net loss for the first quarter of fiscal 2008, on a GAAP basis, was $680,000, or $0.05 per share. Non-GAAP net income for the first quarter of fiscal 2008, adjusted for stock-based compensation expense, amortization of intangible assets and impairment of investments, was $592,000, or $0.04 per share.

"This was a very difficult quarter in a particularly challenging semiconductor and macro-economic environment, and as a result our revenues declined sequentially," said Albert Sisto, Chairman and Chief Executive Officer. "Customer demand was weaker than we expected this quarter, primarily in our legacy networking products as the economic uncertainty had our customers pushing out orders to minimize inventory. As a result, we continued to reduce our operating expenses and improve our focus on developing strategic products to drive growth," said Sisto. "Our cash balance increased and gross margins were up quarter over quarter as a result of the product mix. During the quarter we introduced the 9150 SentryFlow processor and the Hifn De-Dupe accelerator DR250 and DR255 platforms. These new products are well positioned for the long-term, and we believe they will strengthen our market position as we come out of this economic downturn," Sisto concluded.