The license revenue for the first quarter of fiscal 2009 was $8.5 million, compared with $10.8 million for the same period a year ago and $12.1 million for the prior quarter. Royalties for the first quarter of fiscal 2009 were $2.8 million, compared with $3.3 million for the first quarter of fiscal 2008 and $3.4 million for the fourth quarter of fiscal 2008.
Excluding the effects of FAS123R expenses, acquisition related expenses and amortization of intangibles, the company would have reported a net loss of $1.4 million, or $0.06 per share. The reconciliation of GAAP to Non-GAAP financial results includes $75,000 of stock-based compensation expense and $2.0 million of amortization of intangibles and other acquisition related charges reduced by $922,000 tax effect for a net total of $1.2 million.
Our first quarter fiscal 2009 proved to be challenging. We began with a solid backlog and strong sales pipeline, but the rapid decline of the semiconductor industry impacted our business towards the end of the quarter, said Alex Shubat, president and chief executive officer (CEO), Virage Logic. A number of customers delayed orders that we now expect will close in the next one to two quarters. We also experienced a small number of cancellations, something the company has never seen before. Our decline in royalties is attributed to lower wafer starts at our major foundry partners.
Last week we announced a restructure that will increase efficiencies as part of our on-going transformation. We consolidated two smaller research and development (R&D) sites into four major R&D centers and realigned our sales resources to market opportunities. We expect to realize approximately a 13% reduction in labor expenses and additional overhead savings from site consolidations.
The combination of our strong cash position and the transformational efforts to date allows us to take advantage of the economic environment and execute on both organic and inorganic growth initiatives.
Broadening our product portfolio. We announced earlier this week the acquisition of silicon proven standards-based IP and development expertise: PCIe, HDMI and MIPI that are used in AMD’s extensive graphics processor product line. These products will substantially increase our Interface IP portfolio.
Being first-to-market with next generation advanced technology products. At the 32-nanometer (nm) process node, we began shipping front ends of our SiWare(TM) Memory products. At the 40/45nm process node, we added blue chip customers for our Intelli(TM) DDR3 product. We also received record orders with the latest release of our STAR(TM) Memory System.
In summary, despite the current economic uncertainty, we remain confident that executing our transformation initiatives will enable us to retain our leadership position. We anticipate second quarter fiscal 2009 revenues of $11.25 million to $12.75 million and non-GAAP loss per share of ($0.06) to $0.00 per share. The company expects to realize, before tax, approximately $2.2 to $2.4 million in non-GAAP expenses comprised of FAS123R stock compensation, acquisition related and restructuring expenses.
