ESS Technology Updates Guidance for 2nd Quarter Revenue and Earnings Expected to Exceed Previous Expectations
FREMONT, Calif., Jun 18, 2002 /PRNewswire-FirstCall via COMTEX/ -- ESS
Technology, Inc. (Nasdaq: ESST), a leading provider of silicon solutions for
digital video, home networking, and digital home entertainment systems, today
announced updated guidance for the second quarter of 2002.
ESS expects second quarter revenue and earnings to exceed previous guidance. The
Company expects second quarter revenue to be greater than $84 million, compared
with previous guidance of $76 - $79 million. The Company also expects to report
net income per diluted share of greater than $0.34 in the second quarter,
compared to previous guidance of $0.24 to $0.28.
Robert Blair, president and CEO of ESS Technology said, "Once again, demand for
our video products continues to surpass expectations. We believe this growth in
our shipments is due to the growth in ESS's DVD market share and to the
continued strong demand for DVD players worldwide. As we have previously stated,
we believe the markets for DVD and VCD players are larger and growing faster
than industry estimates and that ESS continues to be the leading supplier to
both of these video markets."
Mr. Blair continued, "We previously reported record DVD chip shipments in April
of over 2 million units. I am pleased to announce that our May DVD unit
shipments were again over 2 million units and we are comfortable that we will
meet our guidance of over 6 million DVD units for this quarter. Additionally, we
expect to set a new record for VCD shipments this quarter, surpassing the record
VCD shipments set last quarter."
"When we increased our second quarter guidance, during our earnings release in
April, we were seeing strong demand for all of our video products. This demand
has continued to be strong as our new customers ramp up their production. Our
performance this quarter reflects our customers' success in the retail market,
ESS's success in winning new DVD designs, and the rapid transition to DVD
players with progressive scan technology. These new design wins and the
continued introduction of new products and industry-leading features should
enable continued growth opportunities in both digital video products and the
digital home entertainment market. The second half of 2002 is also looking
stronger than previously expected, and we will provide new, increased guidance,
with additional details and updates, when we report our second quarter results
on July 24, 2002," Mr. Blair concluded. |
