Tridents results for those who can't get news. From what I could
find, it looks like they beat estimates by a penny. Anyone want
to speculate on how this might affect S3?
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Friday January 17 6:46 AM EDT
Trident Microsystems Reports Record Sales For The
Second Quarter and Six Months
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 17, 1997-- Trident Microsystems Inc
today announced record sales for the second quarter of fiscal 1997 of $51,865,000, an increase
of 25 percent from $41,348,000 for the second quarter of the prior fiscal year, and an increase
of 16 percent from $44,838,000 for the prior quarter.
Net income for the second quarter of fiscal 1997 was $5,365,000 or $0.38 per share, compared
to net income of $5,156,000 or $0.38 per share for the second quarter of the prior fiscal year,
and $3,525,000 or $0.26 per share for the prior quarter.
Sales for the first six months ended December 31, 1996 were $96,703,000, an increase of 24
percent from $77,914,000 for the same period of the prior year. Net income was $8,890,000
for the six months ended December 31, 1996, or $0.64 per share, compared to net income of
$9,661,000 or $0.72 per share the same period of the prior year.
"We are pleased to see both revenue growth and strong demand in all of our main markets,
including our mobile and desktop OEM, and Asia Pacific markets," said Frank Lin, president
and CEO.
Mr. Lin continued, "In the mobile segment, our Cyber(tm) product line continues to perform well.
Sales in the quarter increased as important new customers began their shipments, including a
large number of Original Design Manufacturers, such as: Twinhead, Clevo, Mitac and USI.
Customers such as IBM, NEC, Fujitsu, Sharp, and Seiko-Epson continued their strong
shipments during this quarter. Results in this segment have been particularly gratifying, as we have
grown our unit market share in excess of 20% in just under 2 years.
"In the desktop area, our 64-bit graphics/video accelerators, the ProVidia9680-1(tm) and
ProVidia9682(tm) and the high-performance ProVidia9685(tm) with our proprietary
ClearTV(tm) TV-Out display technology have continued to increase in unit volumes in the
December quarter.
"A key event in the December quarter was the sampling of the 3DImage 975(tm), our PCI 3D
graphics controller to key OEM accounts. Receptivity to this advanced single-cycle SGRAM
controller has been particularly positive because we believe its on-chip 3D setup engine, TV-Out
display capability, and roadmap to collaborative MPEG II decompression have appeared at the
proper time to complement the MMX architecture recently announced by Intel.
"We concurrently announced the 3DImage 975DVD(tm) for on-chip full-motion DVD video
functionality, and the first 3D geometry engine for PC gaming applications, which together form a
unique and total 3D solution.
"During the quarter, our 3DImage 985(tm) was announced. This is a particularly advanced
product supporting Intel's Accelerated Graphics Port (AGP). This 3D graphics chip is designed
to enter the market at the high-end of the consumer space, and on Intel's timeline for
corresponding core-logic availability. Sampling is on schedule before the end of the March
quarter."
Cash, cash equivalents and short-term investments increased to $58.6 million as of December
31, 1996, from $44.9 million as of September 30, 1996. The Company will make additional
capital contributions to UICC, a foundry venture, of $26 million in the March quarter of 1997.
Inventory of $19.6 million decreased during the period by $3 million.
Statements regarding the sampling and availability of announced 3DImage products, and market
and customer reactions to products including 3DImage products are forward-looking statements,
and actual results are subject to certain risks and could vary depending upon a number of factors,
including, in particular, trends in the PC industry, Trident's ability to timely introduce new
products, the occurrence of design wins for Trident products, and competitive pressures,
including pricing and competitors' new product introductions. Additional information regarding
factors that may affect the Company's business are described in detail in the Company's filings
with the Securities and Exchange Commission.
Trident Microsystems, Inc., headquartered in Mountain View, CA, designs, develops and
markets integrated circuit graphics controllers and multimedia video processing chipsets for
IBM-compatible PCs. Its products are sold through a network of OEMs, original design
manufacturers and system integrators worldwide.
Trident Microsystems Inc.
Consolidated Statement of Operations
(in thousands except per share data, unaudited)
Three Months Ended Six Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
1996 1996 1995 1996 1995
Net sales $51,865 $44,838 $41,348 $96,703 $77,914
Cost of sales 33,452 29,575 25,844 63,027 48,842
Gross margin 18,413 15,263 15,504 33,676 29,072
% to net sales 35.5% 34.0% 37.5% 34.8% 37.3%
Research and
development expenses 5,706 5,035 4,277 10,741 8,155
% to net sales 11.0% 11.2% 10.3% 11.1% 10.5%
Selling, general
and administrative
expenses 5,434 5,398 4,188 10,832 7,783
% to net sales 10.5% 12.0% 10.1% 11.2% 10.0%
Income from
operations 7,273 4,830 7,039 12,103 13,134
% to net sales 14.0% 10.8% 17.0% 12.5% 16.9%
Interest income, net 618 354 543 972 1,073
Income before provision
for income taxes 7,891 5,184 7,582 13,075 14,207
% to net sales 15.2% 11.6% 18.3% 13.5% 18.2%
Provision for
income taxes 2,526 1,659 2,426 4,185 4,546
% to net sales 4.9% 3.7% 5.9% 4.3% 5.8%
Net income $5,365 $3,525 $5,156 $ 8,890 $9,661
% to net sales 10.3% 7.9% 12.5% 9.2% 12.4%
Net income per share $0.38 $0.26 $0.38 $0.64 $0.72
Common and common
equivalent shares
used in computing
per share amounts 14,225 13,626 13,591 13,926 13,450
Trident Microsystems Inc.
Consolidated Balance Sheet
(in thousands)
Dec. 31, Sept. 30, June 30,
1996 1996 1996
(unaudited) (unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 58,111 $ 27,301 $ 16,894
Short-term investments 475 17,577 24,334
Accounts receivable, net 18,631 18,714 16,872
Inventories 19,642 22,653 26,866
Deferred income taxes 3,767 3,767 3,838
Prepaid expenses and other assets 5,474 5,363 7,140
Total current assets 106,100 95,375 95,944
Property and equipment, net 5,403 5,260 5,628
Long-term investments and
other assets 23,534 24,673 25,938
Total assets $135,037 $125,308 $127,510
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