- For fiscal 2009, total revenues were $47.4 million compared to $59.3 million for the prior year. Revenues for the fourth quarter of fiscal 2009 were $13.1 million, compared with $15.5 million for the fourth quarter of fiscal 2008 and $11.9 million for the third quarter of fiscal 2009.

- License and maintenance revenue for the fourth quarter of fiscal 2009 was $10.9 million, compared with $12.1 million for the same period a year ago and $10.7 million for the prior quarter. Royalties for the fourth quarter of fiscal 2009 were $2.2 million, compared with $3.4 million for the fourth quarter of fiscal 2008 and $1.2 million for the third quarter of fiscal 2009.

- Net loss for the fourth quarter ended September 30, on a GAAP basis was $3.2 million, or $(0.14) per share, compared with a net loss of $47,000, or $(0.00) per share in the fourth quarter of 2008. For the 2009 fiscal year net loss was $34.1 million or ($1.48) per share fully diluted compared to net income of $0.6 million or $0.02 per share for fiscal 2008.

- On a non-GAAP basis which excludes the effects of stock-compensation expense, restructuring and acquisition-related charges, the company would have reported a net income of $0.5 million, or $0.02 per share for the quarter ended September 30, and a net loss of $3.4 million or $0.15 per share for the full fiscal year ended September 30. The reconciliation of GAAP to non-GAAP for the quarter includes $1.5 million of stock-based compensation expense, $1.4 million of deferred tax allowance and approximately $3.7 million of acquisition-related charges reduced by $2.9 million tax effect for a net total of $3.7 million.

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"The combination of ARC and Virage Logic creates a synergistic product portfolio with zero overlap that will further enhance the company's ability to serve as a single source trusted IP partner to the global semiconductor industry. With approximately $24 million in revenue for the trailing twelve months ended June 30, 2009, the addition of ARC expands our product portfolio to include microprocessor cores and media subsystems and software, representing the largest segment of the semiconductor IP market," said Dr. Alex Shubat, president and CEO of Virage Logic. "Initial feedback from many of our key customers confirms our belief that there is a critical need to provide additional IP building blocks to enable successful and timely development of large SoC products. The ARC processor solutions, with more than 150 customers and 400 million ARC-based products shipped annually, is an industry standard architecture in multimedia, portable, consumer, storage, and networking SoCs, and expands Virage Logic's overall customer base to more than 400 customers."

About Virage Logic's ARC Solutions and Sonic Focus Solutions

Virage Logic's ARC processors are used in many of the digital products that consumers use every day. As the second most widely used processor architecture, ARC cores ship in more than 425 million products annually in products such as PCs and laptops, digital and mobile TVs, portable media players, flash storage, digital cameras, and network appliances, as well as in medical and government systems. Combined with training, excellent support, and award-winning, vertically integrated audio and video solutions, the ARC configurable 32-bit processors offer SoC designers a complete system solution with a rapid and low risk path to market. For more information on Virage Logic's ARC processor solutions, visit www.viragelogic.com.

About Virage Logic

Virage Logic is a leading provider of both functional and physical semiconductor intellectual property (IP) for the design of complex integrated circuits. The company's highly differentiated product portfolio includes processor centric solutions, interface IP solutions, embedded SRAMs and NVMs, embedded memory test and repair, logic libraries, and memory development software. As the industry's trusted semiconductor IP partner, more than 400 foundry, IDM and fabless customers rely on Virage Logic to achieve higher performance, lower power, higher density and optimal yield, as well as shorten time-to-market and time-to-volume. For further information, visit www.viragelogic.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Forward Looking Statements

Any statements in this press release about Virage Logic's expectations, beliefs, plans, objectives, assumptions or future events or performance, including with respect to the future operations of Virage Logic and ARC International and the integration of the Virage Logic, ARC and Sonic Focus products, and any assumptions underlying such statements, are not historical facts and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as believe, will, expect, anticipate, estimate, intend, plan and would. Forward-looking statements also include the following: (1) statements concerning the synergies of the product portfolio; (2) the combined company's future market position; and (3) statements of the assumptions underlying or relating to any statement described in (1) and (2). Actual results could differ materially from those predicted by these forward-looking statements. Forward-looking statements are not guarantees of performance. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied. Some of these risks, uncertainties and assumptions include, but are not limited to (i) the outcome of any legal proceedings instituted against Virage Logic, Abigail (UK) and others in connection with the acquisition; (ii) competition generally and the increasingly competitive nature of our industry; (iii) the effect of war, terrorism or catastrophic events; (iv) stock price, foreign currency exchange and interest rate volatility; and (v) the failure of Virage Logic to successfully integrate ARC's business and operations with its own and the failure to achieve the cost savings and other synergies Virage Logic expects to result from the acquisition of ARC.

The foregoing list sets forth some, but not all, of the factors that could affect Virage Logic's ability to achieve results described in any forward-looking statements. For additional information about risks and uncertainties Virage Logic faces and a discussion of its financial statements and footnotes, see documents Virage Logic files with the SEC, including its most recent annual report on Form 10-K and all subsequent periodic reports. Virage Logic assumes no obligation and expressly disclaims any duty to update forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of subsequent events.

All trademarks are the property of their respective owners and are protected herein.

SOURCE: Virage Logic Corporation

Virage Logic Corporation 
Sabina Burns, 510-743-8115 
sabina.burns@viragelogic.com 
or 
McClenahan Bruer Communications 
Tarah Hartzler, 503-546-1014 
tarah@mcbru.com

For fiscal 2009, the company has posted a net loss of $34.12 million, or $1.48 per diluted share, compared to a net income of $554,000, or $0.02 per diluted share, for fiscal 2008. For fiscal 2009, total revenues declined to $47.44 million from $59.33 million for fiscal 2008.

Alex Shubat, president and CEO of the company, said: "Fiscal 2009 marked an inflection point and represented a pivotal year for Virage Logic. We executed well on our inorganic growth initiatives, made continued significant progress on becoming a standard product company versus custom shop, and established deeper, strategic engagements.

"Our sales pipeline continues to increase and points to strong future growth in terms of both dollar value and individual deal size. Finally, the continuing shift the large semiconductor IDMs are making towards a fabless or fab-lite business model, plays to our core strengths and enables us to serve as an increasingly trusted IP partner."

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"The combination of ARC and Virage Logic creates a synergistic product portfolio with zero overlap that will further enhance the company's ability to serve as a single source trusted IP partner to the global semiconductor industry. With approximately $24 million in revenue for the trailing twelve months ended June 30, 2009, the addition of ARC expands our product portfolio to include microprocessor cores and media subsystems and software, representing the largest segment of the semiconductor IP market," said Dr. Alex Shubat, president and CEO of Virage Logic. "Initial feedback from many of our key customers confirms our belief that there is a critical need to provide additional IP building blocks to enable successful and timely development of large SoC products. The ARC processor solutions, with more than 150 customers and 400 million ARC-based products shipped annually, is an industry standard architecture in multimedia, portable, consumer, storage, and networking SoCs, and expands Virage Logic's overall customer base to more than 400 customers."

About Virage Logic's ARC Solutions and Sonic Focus Solutions

Virage Logic's ARC processors are used in many of the digital products that consumers use every day. As the second most widely used processor architecture, ARC cores ship in more than 425 million products annually in products such as PCs and laptops, digital and mobile TVs, portable media players, flash storage, digital cameras, and network appliances, as well as in medical and government systems. Combined with training, excellent support, and award-winning, vertically integrated audio and video solutions, the ARC configurable 32-bit processors offer SoC designers a complete system solution with a rapid and low risk path to market. For more information on Virage Logic's ARC processor solutions, visit www.viragelogic.com.

About Virage Logic

Virage Logic is a leading provider of both functional and physical semiconductor intellectual property (IP) for the design of complex integrated circuits. The company's highly differentiated product portfolio includes processor centric solutions, interface IP solutions, embedded SRAMs and NVMs, embedded memory test and repair, logic libraries, and memory development software. As the industry's trusted semiconductor IP partner, more than 400 foundry, IDM and fabless customers rely on Virage Logic to achieve higher performance, lower power, higher density and optimal yield, as well as shorten time-to-market and time-to-volume.

CONTACT: Virage Logic WWW: http://www.viragelogic.com

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