ESS Technology Updates Guidance for 2nd Quarter
Revenue and Earnings Expected to Exceed Previous Expectations
FREMONT, Calif., June 18 /PRNewswire-FirstCall/ -- ESS Technology, Inc. (Nasdaq: ESST - News), 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.
About ESS Technology
ESS Technology, Inc., is a leading supplier of high-performance feature- rich products for the rapidly growing DVD and digital entertainment markets. The Company is also a leading provider of products that enable the emergence of digital home systems delivering and managing entertainment and information in the home.
ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS Technology's web site address is: esstech.com .
The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, the timely availability and acceptance of the Company's new products, the dependence on continued growth in demand for consumer multimedia products, and the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.
SOURCE: ESS Technology, Inc. |
