7/20...GNSS...Microchip Announces Results for First Quarter Fiscal 2001; Sequential Revenues Grow 21%
Toronto, Ontario
Genesis Microchip Inc. (Nasdaq:GNSS - news), a leading provider of digital display and video/graphics-processing integrated circuit products, today reported results for its first quarter fiscal 2001, which concluded June 30, 2000.
Revenues for the quarter were $12.8 million, up 21% sequentially from $10.6 million reported in the March quarter. This quarter's improved results are attributable to product design wins with new and existing customers, the end of excessive flat panel monitor inventories and an increasing availability of LCD panels.
Revenues from sales into the flat panel monitor market grew by 42% over the March quarter to $9.8 million from $6.9 million. Unit shipments of chipsets into the flat panel monitor market grew to more than 725,000 in the June quarter, a record for Genesis, up 245,000 sequentially over the 480,000 chipsets shipped in the March quarter.
Net income of $1.6 million for the June 2000 quarter increased substantially over the $509,000 reported in March 2000 and up over net income of $1.3 million in the quarter ended June 30, 1999.
Diluted earnings per share for the quarter was $0.08, up sequentially from the $0.03 recorded in the March quarter. In the quarter ended June 1999, the company reported diluted earnings per share of $0.06.
``We are extremely pleased with the company's results this quarter,'' said Genesis President and CEO Amnon Fisher. ``We believe the panel capacity issue is behind us and our growing revenue trend will continue. We introduced three exciting new products this quarter, including the industry's first fully integrated digital and analog interface controller for the flat panel monitor market. All three new products integrate the patent-pending Genesis Ultra-Reliable DVI digital receiver technology. In addition, Genesis continues to address the emerging digital CRT monitor and progressive scan TV markets.''
Fisher added the increase in unit shipments of Genesis chipsets indicates growing demand for the company's products.
``We believe we are well positioned for continued growth and success as we pursue our targeted high-volume market opportunities,'' he said.
Financial information in this release is expressed in United States dollars and is prepared in accordance with U.S. generally accepted accounting principles.
Genesis Microchip Inc. -- an ISO9001-registered company -- is a leading supplier of analog, digital and dual analog-digital interface solutions for the LCD monitor markets. The company's highly integrated semiconductors are also used in digital displays, DVDs, home theater equipment, projection systems, video workstation gear and many other applications. You can find Genesis chips in products from Acer, Apple Computer, Daewoo, Dell, Fujitsu, IBM, In Focus Systems, Hitachi, LG Electronics, Mitsubishi, NEC, Philips, Samsung, SGI, Sharp, Sony, Tatung, ViewSonic and more than 200 other companies.
Parts of this release contain ``forward-looking'' information within the meaning of the United States securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, as well as, the growth rate of the markets into which the Company sells its products; market acceptance of and demand for the products of the Company and those of the Company's customers; unanticipated delays or problems in the introduction of the Company's products; the Company's ability to introduce new products in accordance with OEM design requirements and design cycles; new product announcements or product introductions by the Company and the Company's competitors; availability and cost of manufacturing sources for the Company's products; supply constraints for components incorporated into the Company's customers' products; changes in the mix of sales to OEMs and distributors; incorrect forecasting of future revenues; the volume of orders that are received and can be filled in a quarter; the rescheduling or cancellation of orders by customers; costs associated with protecting the Company's intellectual property; changes in product mix; changes in product costs and pricing; and currency exchange rate fluctuations. These and other important risk factors are more fully detailed in the Company's SEC filings. Statements contained herein are made as of the date hereof and the Company assumes no responsibility for updating such information.
Genesis is headquartered in Thornhill, Ontario, Canada, while its U.S. subsidiary is located in Alviso, California. Further information is available at: genesis-microchip.com.
GENESIS MICROCHIP INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands of U.S. dollars,
except per share amounts)
(unaudited)
Three Months Ended
June 30, March 31, June 30,
2000 2000 1999
-------- -------- --------
Revenues $ 12,812 $ 10,605 $ 16,306
Cost of revenues 4,354 3,492 5,264
-------- -------- --------
Gross profit 8,458 7,113 11,042
Operating expenses:
Research and development 4,048 4,149 3,579
Selling, general and administrative 3,189 2,988 3,273
Merger-related costs -- -- 3,455
-------- -------- --------
Total operating expenses 7,237 7,137 10,307
-------- -------- --------
Income from operations 1,221 (24) 735
Interest income 514 459 417
-------- -------- --------
Income before income taxes 1,735 435 1,152
Provision for income taxes 170 (74) (121)
-------- -------- --------
Net income $ 1,565 $ 509 $ 1,273
======== ======== ========
Earnings per share:
Basic $ 0.08 $ 0.03 $ 0.07
Diluted $ 0.08 $ 0.03 $ 0.06
Weighted average number of common
shares outstanding (in thousands):
Basic 19,183 19,081 18,375
Diluted 19,858 19,991 19,817
GENESIS MICROCHIP INCORPORATED
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands of U.S. dollars)
(unaudited)
ASSETS
June 30, March 31,
2000 2000
-------- --------
Current assets:
Cash and cash equivalents $ 42,489 $ 42,942
Accounts receivable trade 7,594 6,023
Income taxes recoverable 1,104 1,111
Inventory 5,192 4,714
Other 2,417 1,897
-------- --------
Total current assets 58,796 56,687
Capital assets 11,364 12,000
Deferred income taxes 3,118 3,024
Other -- 80
-------- --------
Total assets $ 73,278 $ 71,791
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,615 $ 1,963
Accrued liabilities 2,756 3,967
Current portion of loans payable 95 96
-------- --------
Total current liabilities 5,466 6,026
Long-term liabilities:
Loans payable 453 518
-------- --------
Total liabilities 5,919 6,544
-------- --------
Shareholders' equity:
Share capital 74,033 73,518
Cumulative other comprehensive loss (94) (94)
Deferred compensation (241) (273)
Deficit (6,339) (7,904)
-------- --------
Total shareholders' equity 67,359 65,247
-------- --------
Total liabilities and
shareholders' equity $73,278 $71,791
======== ========
CONTACT: Genesis Microchip Inc.
Eric Erdman, 905/889-5400
or
Shelton Communications Group
Cathy Grittner, 972/239-5119
SOURCE: GENESIS MICROCHIP
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