S3 Reports Fourth Quarter and Fiscal Year 1996 Financial Results
SANTA CLARA, Calif., Jan. 20 /PRNewswire/ -- S3(R) Incorporated (Nasdaq: SIII) today
reported that net revenues for the fourth quarter of 1996 increased 28% to $132.0 million
compared to $103.5 million for the fourth quarter of 1995. Net income for the quarter increased
35% to $15.5 million, or $0.29 per share, compared to net income for the same quarter last year
of $11.5 million, or $0.23 per share.
S3's net revenues for the fourth quarter of 1996 increased by 11% over the third quarter 1996
revenue of $119.4 million. Fourth quarter 1996 earnings per share increased by 26% compared
to the third quarter 1996 earnings of $0.23 per share. Common and equivalent shares for the
fourth quarter increased to 57.8 million from 52.9 million from the previous quarter. The
increase in shares reflects the full as converted impact of the convertible note offering
completed in September, 1996.
The 1996 fiscal year end results marks the sixth consecutive year of top line growth for the
company as reported net revenues for 1996 increased 47% to $465.4 million, compared to
$316.3 million for 1995. Net income for 1996 was $48.4 million, or $0.94 per share, compared to
net income of $35.4 million, or $0.75 per share for 1995.
"This has been an exceptional year of growth and leadership for S3," said Gary Johnson, S3's
president and CEO. "In the coming year our customers will be offered a breadth of products
that will bring differentiation to their expanding product lines. S3's graphic, video and audio
acceleration offerings together with Intel's MMX technology, can bring the optimum
multimedia experience to the PC consumer. In addition, we once again intend to pioneer new
technologies to heighten the computing experience through the combination of consumer
electronics and the PC platform."
In separate announcements today, S3 introduced their initiatives for 1997. S3 plans to bring
technology differentiation to the PC platform by integrating the best of consumer electronics
proprietary technologies, including compression, communications, high quality video and audio,
and video quality 3D graphics. These technologies, as well as a new tagline and logo, bring S3
into 1997 with opportunities to further drive the S3 brand and ensure the richest possible
computing experience.
"During the year S3 significantly strengthened its balance sheet by raising $103.5 million in a
private placement of convertible debt and reducing days sales outstanding from 73 days in the
fourth quarter 1995 to 52 days at the end of the fourth quarter 1996. We also exited 1996 with
what we believe is a balanced and appropriate inventory level," stated George Hervey, Senior
VP of Finance and CFO. "This strong balance sheet places S3 in an excellent position to
continue investing in manufacturing and new technologies."
The company today also announced the establishment of a $20 million investment program
designed to seed innovative software companies in the 2D/3D graphics, video, audio and
Internet areas. |
