Vialta, Inc. Reports Second Quarter Results
Friday August 1, 7:48 am ET
FREMONT, Calif.--(BUSINESS WIRE)--Aug. 1, 2003--Vialta, Inc. (OTC:VLTA - News) today reported a net loss of $1.1 million, or $0.01 per share, for the second quarter ended June 30, 2003. This compares to a net loss of $7.9 million, or $0.09 per share, for the quarter ended June 30, 2002. In addition, the Company reported a net loss of $1.1 million, or $0.01 per share, for the six months ended June 30, 2003 compared to a net loss of $14.4 million, or $0.17 per share, for the six months ended June 30, 2002.
During the second quarter the Company recorded $2.5 million in revenue from sales of its Beamer(TM) videophone. Revenue for the six months ended June 30, 2003 was $6.4 million. Revenues for this period included recognition during the first quarter of 2003 of approximately $2.8 million from shipments that occurred in the fourth quarter of 2002 and had been previously deferred. There were no revenues for the comparable periods in 2002.
Gross margin was $2.0 million for the second quarter, and $4.9 million for the six months ended June 30, 2003. Gross margin was high in relation to revenue, largely because products costs associated with revenues were expensed in the prior year.
Vialta's strong emphasis on improving operating efficiencies has had a positive impact on decreasing operating expenses. The Company's total operating expense was $3.2 million for the second quarter of 2003, and $6.4 million for the six months ended June 30, 2003, a reduction of $5.0 million and $8.8 million respectively, from the comparable periods in the prior year.
"The continued expansion of Vialta's domestic retail distribution channels, coupled with the growth in international distribution -- including our recent agreement with the Portuguese telecom company, PT Comunicacoes, S.A. -- will make the Beamer videophone readily available to an even larger potential consumer market base," said Didier Pietri, Vialta's president and chief executive officer. "Vialta should continue to benefit from the increasing acceptance of the Beamer videophone, by retailers as well as the general public."
About Vialta
Vialta develops, designs and markets unique and innovative home entertainment and communications products for the mainstream consumer. The company was formed in April 1999 and is publicly traded on the OTC Bulletin Board under the symbol VLTA. The company is headquartered in Fremont, California with offices in Los Angeles and Hong Kong.
Forward-Looking Statements
The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending, the timely availability and acceptance of the Company's new and existing products, the impact of competitive products and pricing, the dependence on continued growth in demand for consumer products, the risk that products shipped by the Company will be returned, and the other risks detailed from time to time in the SEC reports of Vialta, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.
VIALTA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, Dec. 31,
2003 2002
--------- ---------
Assets
Current assets:
Cash and cash equivalents $22,752 $21,863
Short-term investments 7,509 10,838
Accounts receivable, net 618 1,362
Inventory 3,010 2,834
Prepaid expenses and other 653 1,253
--------- ---------
Total current assets 34,542 38,150
Property and equipment, net 1,322 2,132
Other assets 29 45
--------- ---------
Total assets $35,893 $40,327
--------- ---------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $929 $1,164
Accrued expenses and other 2,327 3,555
Deferred profit 1,627 3,230
--------- ---------
Total current liabilities 4,883 7,949
--------- ---------
Stockholders' equity:
Common stock, $0.001 par value 94 94
Additional paid-in capital 144,112 144,105
Treasury stock (9,458) (9,163)
Accumulated deficit (103,744) (102,666)
Accumulated other comprehensive income 6 8
--------- ---------
Total stockholders' equity 31,010 32,378
--------- ---------
Total liabilities and stockholders' equity $35,893 $40,327
--------- ---------
VIALTA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenue, net $2,520 $- $6,363 $-
Cost of goods sold 570 - 1,433 -
--------- --------- --------- ---------
Gross profit 1,950 - 4,930 -
--------- --------- --------- ---------
Operating expenses:
Product costs - 1,137 - 1,137
Engineering and development 621 3,981 1,589 8,204
Sales and marketing 641 732 1,083 1,346
General and administrative 1,974 1,427 3,704 3,239
Amortization of content
licenses - 947 - 1,200
--------- --------- --------- ---------
Total operating expenses 3,236 8,224 6,376 15,126
--------- --------- --------- ---------
Operating loss (1,286) (8,224) (1,446) (15,126)
Interest and other income, net 178 360 366 723
--------- --------- --------- ---------
Net loss $(1,108) $(7,864) $(1,080) $(14,403)
========= ========= ========= =========
Net loss per share:
Basic $(0.01) $(0.09) $(0.01) $(0.17)
========= ========= ========= =========
Weighted average common
shares:
Basic 82,151 83,752 82,194 84,492
========= ========= ========= =========
Contact:
Edelman for Vialta
Daniel Munoz, 650-429-2747 (Press)
daniel.munoz@edelman.com
or
Vialta Investor Relations
510-870-3068
IR@vialta-inc.com
Source: Vialta |
