This compares with $40.8 million in revenues, $9.6 million in operating income and $7.3 million in net income, or $0.26 per diluted share, for the same period last fiscal year.
The Company’s core operations produced a net loss of $0.10 per share. These results exclude the impact of inSilicon and other special non-cash charges reported for the quarter. The disappointing results for the core operations are directly related to lower than expected revenues in all geographic markets. Additionally, the Company’s effective tax rate changed for the fiscal year due to significant losses incurred late in fiscal year. This change had an adverse impact of $0.10 per share for the quarter.
The largest impact on the Company’s consolidated results is due primarily to the results of inSilicon, a majority-owned subsidiary of the Company, which reported a GAAP loss of $14.4 million yesterday, representing a loss of $0.40 per share to Phoenix’s results. During the quarter, inSilicon conducted an assessment of its long-lived assets and recorded a reduction in carrying value of goodwill and other intangible assets of approximately $9.4 million. inSilicon also recorded a write-down of its other investments totaling $0.8 million.
During the quarter, Phoenix also recorded an additional impairment charge of $2.2 million related to certain equity and stock investments, which had an impact of $0.09 per share.
We are very disappointed with the results of this quarter. The global economic downturn continues to impact all our customers’ buying patterns. All our business units were impacted by this downturn. In light of the uncertainties of the business outlook, we are committed to reduce our cost structure and return to profitability. We have taken steps to reduce our global workforce by approximately 15%. This reduction will result in a one-time charge of approximately $4 million in the first quarter of fiscal 2002. In addition, we are restructuring the executive management team and streamlining the Company’s organizational structure. These actions combined with our market reach and new line of FirstWare products are a strong foundation for profitability in the upcoming fiscal year said Albert E. Sisto, Chairman, CEO and President.
