MOSAID Reports Results for Third Quarter Fiscal 2011 and Dividend

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by or insolvency of licensees or other debtors; variability in patent licensees' sales of licensed products; failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of R&D activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.

Except as may be required by applicable law or stock exchange regulation, we undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that additional updates will be made with respect to those or other forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at www.sedar.com.

FINANCIAL STATEMENTS AND NOTES TO FOLLOW

MOSAID Technologies Incorporated

Unaudited Pro Forma Consolidated Financial Statements

For the Quarter Ended January 31, 2011

The attached pro forma consolidated financial statements have been prepared by Management of MOSAID Technologies Incorporated and have not been reviewed by an auditor.


MOSAID TECHNOLOGIES INCORPORATED                                            
(Subject to the Canada Business Corporations Act)                           
CONSOLIDATED PRO FORMA STATEMENTS OF INCOME                                 
(In thousands of Canadian Dollars, except per share amounts)                
(Unaudited)                                                                 


                                       Quarter Ended       Nine Months Ended
                                          January 31              January 31
                                    2011        2010        2011        2010
----------------------------------------------------------------------------


Revenues                         $20,211     $17,688     $58,661     $51,224

Operating expenses                                                          
  Patent portfolio                                                          
   management                      2,136       1,670       6,570       5,203
  Patent licensing and                                                      
   litigation                      2,338       3,066       7,326       6,666
  Research and development           827         621       1,988       2,137
  General and administration       1,768       1,615       4,509       4,365
  Foreign exchange loss                                                     
   (gain)                             75         (28)        210         394
----------------------------------------------------------------------------
                                   7,144       6,944      20,603      18,765
----------------------------------------------------------------------------

Pro forma income from                                                       
 operations                       13,067      10,744      38,058      32,459
Investment income                          337                    96                  954                  311
----------------------------------------------------------------------------
Pro  forma  income  before                                                                                                          
  income  tax  expense                              13,404            10,840            39,012            32,770
Income  tax  expense                                  4,021              3,580            11,703            10,816
----------------------------------------------------------------------------
Pro  forma  net  income                            $9,383            $7,260          $27,309          $21,954
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Pro  forma  earnings  per  share                                                                                                
    Basic                                                        $0.79              $0.70              $2.31              $2.14
    Diluted                                                    $0.78              $0.70              $2.29              $2.13

Weighted  average  number  of                                                                                                    
  shares                                                                                                                                          
    Basic                                              11,865,305    10,307,569    11,807,801    10,267,187
    Diluted                                          12,046,946    10,367,317    11,929,406    10,324,734


See  accompanying  Notes  to  the  Consolidated  Financial  Statements                          




Pro  forma  net  income  is  reconciled  to  GAAP  net  income  as  follows:                      

(Dollar  amounts  in                                                                                                                    
  thousands)                                                      Quarter  ended              Nine  Months  ended  
                                                                                  January  31                            January  31  
                                                                      2011                2010                2011                2010  
---------------------------------------------------------------------------  
GAAP  net  income                                    $7,375            $2,224          $19,147          $13,699  
Add  (deduct):                                                                                                                              
Stock-based  compensation                        572                  331              1,415                  789  
Patent  amortization  and                                                                                                          
  imputed  interest                                  4,129              3,631            12,382            11,327  
Special  committee                                          -                      -                      -                  719  
Foreign  exchange  (gain)                        (628)              (282)              (400)          (3,212)
Income  tax  expense  -  for  the                                                                                                
  above  items                                          (1,987)          (1,154)          (4,841)          (3,444)
Future  income  tax                                                                                                                      
  revaluation                                                    -              2,706                (200)            2,706  
Discontinued  operations  (net                                                                                                
  of  tax)                                                        (78)              (196)              (194)              (630)
---------------------------------------------------------------------------  
Pro  forma  net  income                          $9,383            $7,260          $27,309          $21,954  
---------------------------------------------------------------------------  
---------------------------------------------------------------------------  




Pro  forma  foreign  exchange  loss  (gain)  is  reconciled  to  GAAP  foreign                
exchange  (gain)  as  follows:                                                                                                  

(Dollar  amounts  in                                                                                                                    
  thousands)                                                      Quarter  ended              Nine  Months  ended  
                                                                                  January  31                            January  31  
                                                                      2011                2010                2011                2010  
---------------------------------------------------------------------------  
GAAP  foreign  exchange  (gain)            $(553)            $(310)            $(190)        $(2,818)
Less:  foreign  exchange                                                                                                            
  (gain)  on  long-term  debt                    (628)              (282)              (400)          (3,212)
---------------------------------------------------------------------------  
Pro  forma  foreign  exchange                                                                                                    
  loss  (gain)                                                $75                $(28)              $210                $394  
---------------------------------------------------------------------------  
---------------------------------------------------------------------------

MOSAID Technologies Incorporated

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 Next Page »