Genesis Microchip Announces Record First Quarter Fiscal 1999 Results;
Revenues Increased 182% Year-Over-Year; Creates New Position to Support
Continued Growth
09/17/98
Business Wire
(Copyright (c) 1998, Business Wire)
TORONTO--(BUSINESS WIRE)--Sept. 17, 1998--Genesis Microchip Inc. (NASDAQ:GNSSF), a leader in imaging, digital video and graphics processing integrated circuits (ICs), today reported record revenues for its first quarter fiscal 1999, which ended on August 31.
Revenues for the first quarter of fiscal 1999 increased 182% to $6.2 million from $2.2 million in the year-ago period. Sequentially, revenues grew 12% from the fourth quarter of fiscal 1998, due to increased sales in the flat panel LCD monitor market and increased revenues from the high-end imaging market, in part as a result of the recently announced development contract with Kaiser Electronics.
Net income in the first quarter was $1.9 million, up 15% from the fourth quarter of fiscal 1998 and up substantially from $0.1 million in the year-ago period. Fully diluted earnings per share were $0.13, up 8% from $0.12 in the previous quarter and up significantly from $0.01 in the year-ago period. No provision for income taxes has been reflected in the above amounts as a result of available tax loss carryforwards.
"We are pleased with the favorable results we achieved in a somewhat challenging quarter," said Paul Russo, Genesis's Chairman and Chief Executive Officer. "We entered the quarter facing an inventory correction in the projection market and anticipating the ramp of several customers in the LCD monitor market. The opportunity and growth for Genesis in the LCD monitor market has exceeded our expectations.
"To ensure our leadership and competitiveness in this market, we plan to introduce two new additions to our highly successful Z1 chip. These new products will offer our customers the highest image quality, requisite 'plug and play' attributes, along with several new features at significantly improved prices."
The Company also noted progress with its VLX1 chip targeted at the DVD, home theater and PDP TV markets. This device, which has already demonstrated the highest video quality ever produced by a Genesis chip, is expected to start limited commercial shipments into consumer products in time for the Christmas 1998 season.
Also, the Company announced today that Stephen J. Solari has been named Executive Vice President and Chief Operating Officer, a newly created position.
"Genesis has experienced significant growth over the last four years," observed Mr. Russo. "Having Steve as COO will better position the Company to pursue our aggressive growth plan."
Mr. Solari, 42, joined Genesis in January 1997 as Vice President of Marketing and Business Development. Prior to Genesis, he held management positions at both C - Cube Microsystems and Philips Semiconductor. Mr. Solari holds a B.S. degree in Electrical Engineering and an M.B.A. degree from the University of California, Berkeley.
Financial information in this release is expressed in United States dollars and is prepared in accordance with generally accepted accounting principles as applied in Canada.
Parts of this release contain "forward-looking" information within the meaning of the United States securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, the growth rate of the markets into which the company sells its products; market acceptance of and demand for the products of the company and those of the company's customers; unanticipated delays or problems in the introduction of the company's products; the company's ability to introduce new products in accordance with OEM design requirements and design cycles; new product announcements or product introductions by the company and the company's competitors; availability and cost of manufacturing sources for the company's products; supply constraints for components incorporated into the company's customers' products; changes in the mix of sales to OEMs and distributors; incorrect forecasting of future revenues; the volume of orders that are received and can be filled in a quarter; the rescheduling or cancellation of orders by customers; costs associated with protecting the company's intellectual property; changes in product mix; changes in product costs and pricing; and currency exchange rate fluctuations.
Genesis Microchip Inc. -- an ISO9001-registered company -- is a leader in imaging and digital video/graphics processing technologies. Customers include Apple Computer, CTX Opto-Electronics Corp., Hitachi, Ltd., In Focus Systems, LG Electronics, Philips Multimedia, Samsung Electronics, Sharp Corp., Silicon Graphics Inc., Sony Corp., Texas Instruments and more than 180 other companies. |
