More good news at Intrinsyc Software

To the delight of the institutions that played on the recent GMP-led $30 million bought deal financing for Wellington Financial Fund II portfolio co. Intrinsyc Software International Inc. (ICS:TSX), the company announced last evening another important Soleus design win. Here is Paradigm Capital’s Research dept.’s take on the news (“Buy” rating and $2.00 share price target):

“Awarded New Design Win with Existing Customer

Yesterday, Intrinsyc announced its latest Soleus design win, its fifth in total (excluding two
silicon platform wins). The win comes from an existing customer with a family of navigational
GPS devices, believed to be MiTAC, a company located in Taiwan. This is the third design win with MiTAC and comes as part of a trend towards handheld navigational GPS devices adding cellphone capabilities. Intrinsyc receives $3-5 per unit, with the software factory installed in processor chips produced by others. The timeline and financial terms of the deal were not disclosed but in our opinion this win could generate $1-5m per year starting in 2009.

The company will be showcasing its products next week at CTIA in Las Vegas. We also look for the company to complete an acquisition in the near term to diversify beyond Microsoft’s Windows CE platform, possibly including a foray into Symbian, the leading smartphone platform today.”

And this from Canaccord:

“~$0.34/share in cash. Intrinsyc announced another Soleus design win. The company signed an agreement with an existing Soleus licensee will develop its third Soleus-based product. The unnamed original equipment manufacturer (OEM) is a global handset producer, which originally signed an agreement to license the Soleus software platform in March 2007 for the development of a GPS-enabled handset, and signed an additional agreement in October 2007 to see Soleus used in a Personal Navigation Device (PND) with mobile phone capabilities. This OEM has now launched development of a third connected device to be based on Soleus. This agreement marks Intrinsyc’s fifth Soleus design win, in addition to its two silicon platform wins. Intrinsyc just reported its four-month transition period results with revenues of $5.2 million and a GAAP loss per share of $0.06. The headline results were slightly below expectations due to a series of one-time items. The company continues to target one new Soleus contract per quarter, which is conservative in our view. Intrinsyc has a market capitalization of approximately $96.8 million and has roughly $40 million in cash.”

MRM
(Fund II holds warrants in ICS)