Nassda Announces Revenue of $12.3 Million for the Quarter Ended March 31, 2005

Nassda Announces Revenue of $12.3 Million for the Quarter Ended
March 31, 2005
Net Income of $1.9 million, or $0.07 per Diluted Share 


SANTA CLARA, Calif., April 14  /PRNewswire-FirstCall/ -- Nassda Corporation
(NASDAQ:NSDA), a leading provider of full-chip circuit simulation and analysis
software for the design and verification of complex semiconductors, today
announced financial results for the quarter ended March 31, 2005, the second
quarter of Nassda's fiscal 2005.  Revenue for the quarter ended March 31, 2005
was $12.3 million, an increase of 26% from $9.8 million for the quarter ended
March 31, 2004 and an increase of 10% from $11.3 million for the quarter ended
December 31, 2004.

Net income for the quarter ended March 31, 2005 was $1.9 million, or $0.07 per
diluted share, an increase of 157% from $752,000, or $0.03 per diluted share,
for the quarter ended March 31, 2004 and an increase of $8.9 million from a net
loss of $(7.0) million, or $(0.25) per diluted share, for the quarter ended
December 31, 2004.

For the six months ended March 31, 2005, revenue was $23.6 million, a 21%
increase from $19.5 million for the six months ended March 31, 2004.  Net loss
for the six months ended March 31, 2005 was $(5.0) million, or $(0.18) per
diluted share, a decrease from $1.3 million, or $0.05 per diluted share, for
the six months ended March 31, 2004.

"We are very proud to have achieved another quarter of sequential revenue
growth and returned to profitability with a 12% operating income, despite the
substantial costs incurred related to the pending acquisition.  Our total cash,
cash equivalents and short-term investments balances have also increased to
$107.9 million at March 31, 2005," said Sang Wang, Chief Executive Officer.
"Due to the pending acquisition, we are not providing any business outlook or
guidance for the coming quarters."

Nassda will hold a conference call with financial analysts and investors at
2:00 p.m. PDT today.  A live webcast of the call will be available on Nassda's
Web site at http://www.nassda.com/ or http://www.fulldisclosure.com/. Following
completion of the call, a rebroadcast of the webcast will be available at
http://www.nassda.com/ or http://www.fulldisclosure.com/ through April 21,
2005.

Those without internet access may listen to a replay of the call by dialing
[phone], access code 4347246.  The replay will be available from 5:00
p.m. PDT on April 14, 2005, through April 21, 2005.

About Nassda

Nassda Corporation is a leading provider of full-chip circuit verification
software for complex nanometer semiconductors. Headquartered in Santa Clara,
California, the company develops and markets simulation and analysis solutions
for advanced ICs, especially for analog, memory, high-performance digital, and
mixed-signal SoC designs. Nassda's products enable first silicon success and
improve IC quality and yield for its consumer, communication, computer and
memory customers. The company has sales and distribution offices throughout the
world. For more information about Nassda, please visit the company's website at
http://www.nassda.com/.

Forward Looking Statements

This press release contains forward-looking statements regarding the proposed
acquisition by Synopsys that are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.  Investors are cautioned
that all forward-looking statements in this release involve risks and
uncertainty, including without limitation the availability of customer budgets
for Nassda's products, Nassda's cost control measures, the timing, receipt of
regulatory approvals and stockholders' votes related to the Pending Merger, the
time and extent of legal and other expenses related to Nassda's litigation and
the Pending Merger, Nassda's product development schedules, the design
performance of Nassda's existing and new electronic design automation software
and other tools, customers' adoption of Nassda's products, whether customers
purchase time-based or perpetual licenses and those customers' design and
manufacturing schedules.  In addition, continued reduced capital spending or
delayed implementation of programs due to adverse general economic conditions
and reduced demand for products containing complex nanometer-scale
semiconductors may impact Nassda's future performance.  These risks,
uncertainties and other factors may cause Nassda's actual results, levels of
activity, performance or achievements to differ materially from those expressed
or implied by the forward-looking statements.  In addition, historical
information should not be considered a predictor of future performance. 
Neither Nassda nor any other person assumes responsibility for the accuracy and
completeness of these forward-looking statements.  Nassda disclaims any
obligation to update information contained in any forward- looking statement.

For additional information and considerations regarding the risks faced by
Nassda, see Nassda's Annual Report on Form 10-K for the fiscal year ended
September 30, 2004 and Quarterly Report on form 10-Q for the quarter ended
December 31, 2004, as filed with the Securities and Exchange Commission.

Additional Information About the Pending Merger and Where to Find It

Nassda filed a definitive proxy statement with the SEC in connection with the
Pending Merger.  Nassda urges investors and security holders to read the proxy
statement and any other relevant documents filed with the SEC because they
contain important information.  Investors and security holders may obtain these
documents free of charge at the website maintained by the SEC at
http://www.sec.gov/. Additionally, documents filed with the SEC by Nassda are
available free of charge by contacting Investor Relations, Nassda, 2650 San
Tomas Expressway, Santa Clara, California 95051 (Telephone: [phone]) and
on Nassda's website at http://www.nassda.com/.  Documents on Nassda's website
will not be a part of the filing.

Nassda's directors and executive officers may be deemed to be participants in
the solicitation of proxies from the stockholders of Nassda in connection with
the Pending Merger.  A description of certain of the interests of directors and
executive officers of Nassda is set forth in the proxy statement for Nassda's
2004 annual meeting of stockholders, which was filed with the SEC on March 10,
2005.  Sang S. Wang, Nassda's Chief Executive Officer and Chairman, An-Chang
Deng, Nassda's President and Chief Operating Officer, and the other individual
defendants have entered into certain settlement and release agreements with
Synopsys, which will be effective upon the closing of the Pending Merger, which
is described in the proxy statement.  The remaining directors and officers of
Nassda are expected to enter into a release agreement with Synopsys, effective
upon closing of the Pending Merger, which are described in the proxy statement.
 Investors and security holders are able to obtain additional information
regarding the direct and indirect interests of Nassda's directors and executive
officers in the transaction by reading the definitive proxy statement.

  Nassda is a registered trademark of Nassda Corporation.


                            Nassda Corporation
             Unaudited Consolidated Statements of Operations
                  (in thousands, except per share data)

                                        Three Months Ended  Six Months Ended
                                              March 31,        March 31,
                                            2005     2004    2005     2004
  Revenue
    Product                                $2,620   $1,571   $4,827  $4,574
    Subscription                            6,875    5,755   13,289   9,997
    Maintenance                             2,851    2,461    5,493   4,943
      Total revenue                        12,346    9,787   23,609  19,514

  Cost of revenue
    Cost of product revenue                    33       74       66     165
    Cost of subscription revenue              149      104      317     209
    Cost of maintenance revenue               371      259      748     485
      Total cost of revenue                   553      437    1,131     859

  Gross profit                             11,793    9,350   22,478  18,655

  Operating expenses:
    Research and development                2,205    2,010    4,356   4,042
    Sales and marketing                     2,750    2,662    5,564   5,340
    General and administrative              5,236    3,623    9,295   7,397
    Litigation settlement                      --       --    9,000      --
    Stock-based compensation                   83      218      182     442
      Total operating expenses             10,274    8,513   28,397  17,221

  Income (loss) from operations             1,519      837   (5,919)  1,434
  Other income, net                           517      238      894     458

  Income (loss) before income taxes         2,036    1,075   (5,025)  1,892
  Provision for income taxes                 (103)    (323)      (8)   (568)
  Net income (loss)                        $1,933     $752  $(5,033) $1,324

  Earnings (loss) per share:
    Basic                                   $0.07    $0.03   $(0.18)  $0.05
    Diluted                                 $0.07    $0.03   $(0.18)  $0.05

  Shares used in computing earnings per
   share:
    Basic                                  27,746   26,251   27,532  26,104
    Diluted                                29,688   29,213   27,532  29,181


                            Nassda Corporation
             Unaudited Condensed Consolidated Balance Sheets
                              (in thousands)

                                                    March 31,  September 30,
                                                       2005        2004

                    ASSETS
  Current assets:
    Cash, cash equivalents and short-term
     investments                                     $107,937    $101,440
    Accounts receivable, net of allowance               2,310       1,302
    Prepaid expenses and other current assets             789       1,093
    Deferred income taxes                               7,577       3,768
      Total current assets                            118,613     107,603
  Property and equipment, net                             378         483
  Other assets                                            887         921
  Total assets                                       $119,878    $109,007

         LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                                   $2,271      $2,168
    Other accrued liabilities                          10,210       8,342
    Accrued litigation settlement                      76,463      67,463
    Deferred revenue                                   13,170      10,143
      Total current liabilities                       102,114      88,116
  Deferred revenue                                        543         482
  Other long-term liabilities                              20          57
      Total liabilities                               102,677      88,655

  Stockholders' equity:
    Common stock                                           28          27
    Additional paid-in capital                         74,824      73,117
    Deferred stock-based compensation                     (27)       (235)
    Accumulated other comprehensive loss                 (109)        (76)
    Accumulated deficit                               (57,515)    (52,481)
      Total stockholders' equity                       17,201      20,352
  Total liabilities and stockholders' equity         $119,878    $109,007


DATASOURCE: Nassda Corporation



CONTACT:  Tammy Liu of Nassda Corporation, [phone],

, or 



Web site:  http://www.nassda.com/ 

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