Press release regarding earthquake effects:
Tuesday September 28, 2:17 pm Eastern Time
Company Press Release
Genesis Microchip Comments On Impact of
Taiwan Earthquake
TORONTO--(BUSINESS WIRE)--Sept. 28, 1999--Genesis Microchip (Nasdaq:GNSS - news) used today's annual
shareholder meeting to answer questions about the impact of last week's earthquake in central Taiwan.
''First, we are deeply concerned about the people of Taiwan,'' said Paul M. Russo, Genesis Chairman and CEO.
''We have a number of employees originally from Taiwan -- plus we have sales reps there -- and though our people
are safe, we are worried about some of their family members.''
The Sept. 21 earthquake and subsequent aftershocks have affected the entire fabless semiconductor industry, as
has been widely reported by industry analysts and the media. The majority of Genesis's chip products are
manufactured in Taiwan by UMC and TSMC.
''We believe there will be a temporary disruption in the supply of some of our products in the near term,'' said
Russo, ''which may adversely affect both the current (September) quarter as well as the December quarter. But we
still expect the current (September) sequential revenue and earnings numbers to modestly exceed those of the
previous (June) quarter.''
Russo added a number of significant customers are located in Taiwan and they may delay receiving chip products
because of issues at their own assembly lines. The company also believes the earthquake may delay some of the
new Taiwanese LCD panel plants from coming online and producing LCD modules, which would continue to
constrain the growth of the overall flat-panel LCD monitor market in the near term.
''The bottom line is, we believe there will be some short-term negative impact on our business as a result of the
earthquake,'' Russo said. ''But we don't anticipate these problems to affect business beyond 1999.''
etc with disclaimers. |
