IKOS Systems Reports Record Third Quarter Results

CUPERTINO, CA - July 19, 2000 -- IKOS Systems Inc. (NASDAQ:IKOS), a leading provider of design verification solutions, today announced results for the third quarter of fiscal 2000. Revenues for the quarter ended July 1, 2000, grew 23 percent to $18.4 million, compared with $15.0 million for the same quarter of fiscal 1999. Net income nearly tripled for the quarter to $2.3 million, or $0.23 per diluted share, compared with net income of $784,000, or $0.08 per diluted share, for the same quarter last year.

"We are very pleased with our record results and with the continued market adoption of our latest emulation products," said Ramon Nunez, president and chief executive officer of IKOS. "The quarter marked a significant milestone in our transition to the emulation market, with emulation products accounting for approximately 50 percent of international product bookings and over 65 percent of worldwide product bookings. The emulation segment of our business continues to grow at an impressive rate, with emulation product revenues for the quarter growing by over 70 percent versus the same period last year and by over 40 percent sequentially. This growth rate is several times the projected growth rate of the EDA industry, according to recent data published by Dataquest," he said.

Overall product revenues for the third quarter of fiscal 2000 were $13.9 million, up 25 percent from $11.1 million last year. Maintenance revenues increased 17 percent to $4.6 million, up from $3.9 million a year ago.

For the first nine months of fiscal 2000, revenues increased 26 percent to $50.7 million, compared with $40.0 million for the nine-month period of fiscal 1999. Net income for the first nine months of fiscal 2000 was $5.0 million, or $0.52 per diluted share, compared with $1.1 million, or $0.12 per diluted share, for the same period last year.

During the quarter, the company announced the introduction of its Vstation-5M (Verification Station) system. The Vstation-5M provides SoC design engineers with a better productivity tool for enhanced verification performance, as well as added flexibility in adapting to newer verification protocols. "This system is one of several new products we plan to launch in the coming months, as part of our long-term strategy to address a broad spectrum of verification methods," said Nunez.

IKOS Systems, Inc. is a technology leader in high-performance design verification solutions including hardware and software simulation for language-based design, logic emulation for system integration and compatibility verification, and verification services. The Company's mission is to help customers realize their high complexity electronic systems through innovative design verification solutions. IKOS supports direct sales operation in North America, UK, France, Germany, Japan and India, and a distribution network throughout Asia-Pacific and Israel. The corporate headquarters are located at 19050 Pruneridge Ave., Cupertino, Calif., 95014, (408) 255-4567.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance and development of the company's existing and new products, increased levels of competition for the company, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time-to-time in the company's periodic reports filed with the Securities and Exchange Commission.

IKOS is a registered trademark of IKOS Systems. All other brand or product names may be trademarks or registered trademarks of their respective companies and should be treated as such.
 
 

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