3rd Q. Earnings -- WOW !!! Take special note of the deferred revenue of over $2 million to be booked in the 4th Q. This stock will move up nicely from here IMHO. Good Luck.
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FDJA
3 1/16
+5/16
delayed 20 mins - disclaimer
Thursday October 14, 4:36 pm Eastern Time
Company Press Release
Faroudja Inc. Announces Third Quarter Results
Positive Trends Continue - Profit Reported
Strong Growth in Home Theater and Broadcast Sales
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 14, 1999-- Faroudja, Inc. (NASDAQ: FDJA - news) today reported results of operations for the third quarter ended September 30, 1999.
Revenues for the third quarter of 1999 were $3,856,000, a 28% increase over the third quarter of 1998 and a 17% increase over the prior quarter. For the third quarter of 1999 the Company reported net income of $23,000, or $.00 per share, on 12.5 million diluted shares. For the third quarter of 1998 Faroudja posted revenues of $3,005,000 and net loss of $1,821,000 or $.15 per share on 12.2 million diluted shares.
As of September 30,1999 the Company's balance sheet showed cash and cash equivalent balances of $19,063,000 with net assets of $24,610,000. The balance sheet reflects the Company's $2.9 million investment in Sage, Inc. stock and deferred revenue of $2.4 million relating to Sage stock received as consideration for the Company's license of technology to Sage. The Company expects to complete all material technology transfer and joint development obligations under its license and joint development agreement with Sage in the fourth quarter and recognize the deferred revenue at that time.
``Our financial results in the third quarter were significantly better than results over the past several quarters in terms of revenue growth, improved gross margins and income,' said Glenn W. Marschel, Jr., President and CEO. ``Revenue growth came from continuing improvement in our Home Theater business and a significant increase in Broadcast product sales.
``New products introduced into our home theater line in the second quarter, the DVP2200 and DVP3000 digital video processor/scalers, continue to perform well. We believe that the market for these products, as well as our market share, is growing.
``Sales of our Digital Format Translator(TM)(DFT) upconverter products almost doubled over the second quarter. DFTs were shipped to station groups that had previously purchased DFTs and to some new station groups. If the pattern of follow-on orders from these new station groups is consistent with our experience with existing customers, we will be very pleased.
``Our strategy for developing and marketing highly integrated, high performance integrated circuit (IC) solutions for the emerging digital video display and computer/television convergence markets is on track. Our results reflect the second shipment of FLI 9000 video processing chip sets to Mitsubishi Electric Corporation (Japan). Development of our next generation chip set continues and preliminary discussions with potential customers are very encouraging.
``Last week we announced the Company's entry into a letter of intent for the merger of FOCUS Enhancements, Inc., a provider of video conversion products for the PC/TV convergence market, into Faroudja. We continue with plans to complete a definitive merger agreement with FOCUS by Thanksgiving, subject to satisfactory completion of due diligence. A larger, growing, combined company will benefit from many economies of scale. With consolidation and cost reductions, it is expected that the transaction will be accretive in the first year. The combined company presents exciting possibilities for short and long term financial performance. A more complete product line, access to new markets and distribution channels and opportunities for cross-fertilizing the companies' technologies are expected to result in a much stronger Faroudja, from marketing, distribution, technology and financial perspectives,' concluded Mr. Marschel.
Faroudja, Inc (NASDAQ: FDJA - news) is a world leader in high performance video processing technologies for markets requiring superior image quality solutions. The company provides innovative products for the HDTV broadcast, home theater, digital television and PC/TV convergence markets. Faroudja's technologies are protected by more than 60 patents. Faroudja has received numerous awards, including an Emmy award for Engineering Development and a Lifetime Achievement Emmy presented in June 1998 to its founder, Yves Faroudja.
Except for historical information contained herein, this press release contains forward-looking statements that are subject to risks and uncertainties, including the failure of the Company to execute a definitive merger agreement or consummate the FOCUS merger, the ability of Faroudja to successfully integrate FOCUS' business and capitalize on the combined technologies and market opportunities, the availability of favorable tax treatment and accounting treatment for the merger, fluctuations in operating results, the timely development and acceptance of new products, product availability from suppliers, the impact of competitive products and pricing, changing TV standards and other risks set forth under the caption ``Factors Affecting Future Operating Results' in Faroudja's Annual Report on Form 10-K for the year ended December 31, 1998, in its quarterly reports on Form 10-Q for the quarters ended March 31, 1999 and June 30, 1999, and other filings with the SEC.
FAROUDJA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
----------------------------------------------------------------------
(Amount in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------------------------
1999 1998 1999 1998
----------------------------------------------------------------------
Revenues:
Product sales $3,856 $3,005 $9,599 $8,966
License and
royalty revenues - - - 750
Total revenues 3,856 3,005 9,599 9,716
Cost of product sales 1,474 1,643 4,597 4,160
Gross profit 2,382 1,362 5,002 5,556
Operating expenses:
Research and
development 1,022 1,338 3,158 3,826
Sales and marketing 888 1,051 2,689 2,853
General and
administrative 679 1,083 2,011 2,780
Total operating
expenses 2,589 3,472 7,858 9,459
Operating loss (207) (2,110) (2,856) (3,903)
Other income
(expense), net 230 289 680 879
Income (loss) before
provision for
income taxes 23 (1,821) (2,176) (3,024)
Benefit for income
taxes 0 0 0 457
----------------------========----========---=========--==========----
Net income (loss) $23 ($1,821) ($2,176) ($2,567)
----------------------========----========---=========--==========----
Net income (loss)
per share:
Basic $0.00 ($0.15) ($0.18) ($0.21)
Diluted $0.00 ($0.15) ($0.18) ($0.21)
Number of shares
used in per
share computation:
Basic 12,291 12,173 12,253 12,126
Diluted 12,509 12,173 12,253 12,126
-0-
September 30, December 31,
1999 1998
------------- ------------
(unaudited) (note)
ASSETS
Current assets:
Cash and cash
equivalents $19,063 $20,419
Accounts receivable 3,036 1,764
Inventories 2,826 3,348
Other current assets 341 1,179
------------- ------------
Total current assets 25,266 26,710
Property and equipment, net 1,291 1,778
Investment 2,925 -
Other assets 194 233
------------- ------------
$29,676 $28,721
============= ============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $662 $1,125
Other current liabilities 1,979 1,098
------------------------- 2,425 - 19456
Deferred revenue
------------- ------------
Total current liabilities 5,066 2,223
Stockholders' equity:
Common stock 12 12
Additional paid-in capital 30,279 30,027
Accumulated deficit (5,681) (3,541)
------------- ------------
Total stockholders' equity 24,610 26,498
------------- ------------
$29,676 $28,721
============= ============
Note - The balance sheet at December 31, 1998 has been derived from
the audited financial statements at that date.
--------------------------------------------------------------------------------
Contact:
Faroudja, Inc.
Ken Boschwitz, Vice President - Business Development
408/735-1492 |
