DVS Announces Record Sales and Earning for Third Quarter
Exceeding Previous Forecast with Sales of $23.5 Million and Per Share Earnings
of $0.21
MOUNTAIN VIEW, Calif., Feb. 14 /PRNewswire/ -- Digital Video Systems, Inc. (Nasdaq: DVID) today announced that revenues for the third quarter ending December 31, 1999 were $23.5 million, a new record for the Company. The revenue growth represents an increase of 51% from the previous quarter of $15.7 million and an increase of 351% from the prior year's third quarter of $5.2 million.
Earnings in this quarter of $931,000, or $0.21 per share, exceeded the forecast by 5% and demonstrated the "turnaround" compared with the losses of $3.7 million in the like quarter of the previous year.
DVS' Co-Chairman and CEO Mali Kuo stated, "The Company continues to meet or exceed the management's forecast of financial results." She added, "In anticipation of 9-digit revenues in the next fiscal year, we have been active in securing additional credit lines and sources of funds to meet our growth plans. To date we have established more than $20 million in credit lines from banks, including letters of credit and loan facilities."
Ms. Kuo said, "We expect some softening in the fourth quarter ending March 31, 2000, with sales of about $17 million and earnings of about $0.13 to $0.15 per share, which still compares favorably with the previous year. The short-term softening is anticipated due to the seasonal factor for the loader business, additional staff to ramp up the operations in China, and the DVD-ROM drive production scaled down by the previous management of our subsidiary in Korea."
Ms. Kuo also announced that the Company has been successful in attracting a seasoned senior executive, Mr. B. H. Lee, as the President for its subsidiary in Korea. Mr. Lee has been a well-respected executive in the Korean electronics industry, who has served more than 25 years at the upper management positions for Samsung and Hyundai Groups, including the position of President and CEO of Hyundai Telecommunication Industries Co., Ltd..
ABOUT DVS
Digital Video Systems, Inc. is a technology company specializing in the development and application of Digital Versatile Disc (DVD) and related technologies. The Company develops and markets DVD-ROM drives, DVD intelligent loaders, DVD players including subassemblies and components, and CD based Video Engine products for the consumer products, commercial video and computer peripherals markets.
Established in 1992, DVS is publicly held company headquartered in Mountain View, Calif., with a branch office or subsidiary in Taiwan, Hong Kong, Bermuda, South Korea, and China. DVS is a trademark of Digital Video Systems, Inc.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the private Securities Litigation Reform Act of 1995 that involve various risks and uncertainties, including, without limitation, statements with respect to DVS' strategy, proposed sales of DVS' products, markets, and the development of DVS' products. DVS' actual results may differ materially from those described in those forward-looking statements due to a number of factors, including, but not limited to, risks of competition and the enforceability of DVS' patents and other intellectual property rights, risks relating to the development and market acceptance of DVS' products, risks related to planned rapid growth of the DVS' business, risks of conducting business in foreign countries, and risks of limited capital after substantial losses in prior years, which factors and others described in documents that DVS files from time to time with the Securities and Exchange Commission, including the Company's' 10-KSB filed June 30, 1999 and Form 10QSB/A filed November 17, 1999. For more information on DVS' products, email to info@dvsystems.com, call 650-564-9699 or visit: www.dvsystems.com.
SOURCE Digital Video Systems, Inc.
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