LogicVision makes a semiconductor-testing technology called built-in self-test, or BIST, particularly useful in the newer state-of-the-art, system-on-a-chip (SoC) designs. Its BIST technology is a perfect fit for these advanced chips. The most important recent developments and drivers for LogicVision are the renewals of existing contracts and the signing of new contracts, such as the one with Qualcomm, a leader in wireless technologies including CDMA (code division multiple access). These developments — coupled with the recent trend of customer pull replacing LogicVision’s push — support the Company’s technological superiority and prospects for growth in the market. We believe that the recent market softness will have a limited impact of LogicVision as its success is driven in large part by its customers’ goals to save costs which will only become more critical during a recession. In addition, LogicVision has implemented some cost-cutting measures itself, which should help it achieve its profitability goals despite the slowdown in the marketplace. We find the Company to be a compelling, if speculative, investment opportunity. In view of the growing complexity that comes with today’s SoCs, we believe LogicVision has never had a better opportunity to see its technology experience fast and widespread adoption. In 2009, revenues are forecast at $14.3 million and EPS of ($.07) versus $12.3 million and ($.35) this year, respectively.
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Dutton Associates is one of the largest independent investment research firms in the U.S. Its 20 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 120 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
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