Vialta, Inc. Reports Second Quarter Results
FREMONT, Calif.--(BUSINESS WIRE)--July 25, 2002--Vialta (OTCBB:VLTA - News) today reported a net loss of $7.9 million for the second quarter of 2002, compared to a net loss of $6.5 million for the first quarter of 2002, and a net loss of $7.7 million for the same quarter the prior year. The net loss per share was $0.09 for the second quarter of 2002, compared to $0.08 for the prior quarter, and $1.23 for the same quarter the prior year.
The second quarter also represents the first time the Company experienced a full quarter's amortization of its content licenses. In the first quarter, content license amortization totaled $253,000 and increased to $947,000 in the second quarter.
"Vialta continues to see the benefits of improved efficiencies and resource allocation with cash used in operating activities decreasing to $4.1 million in the second quarter compared to $4.7 million in the previous quarter and $6.5 million in the same quarter of 2001," stated Didier Pietri, president and chief executive officer. "Vialta benefits from holding cash, cash equivalents and marketable securities of $48.9 million at the close of the second quarter 2002."
"With a new product launch and expanded national retail distribution scheduled for the third quarter, Vialta's natural progression from an R&D phase into a predominantly sales and marketing phase is almost complete," continued Mr. Pietri. "We also re-evaluated our resource requirements and restructured accordingly, which should further enhance our sales and marketing efforts. This is an exciting time for Vialta because consumers will be able to enjoy the benefits of Vialta's unique and innovative products."
About Vialta
Vialta develops, designs and markets unique and innovative home entertainment and communications products for the mainstream consumer. The company was formed in April 1999 and is publicly traded on the OTC Bulletin board under the symbol VLTA. The company is headquartered in Fremont, California, with offices in Los Angeles, Toronto and Hong Kong.
The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending, the timely availability and acceptance of the Company's new products, the impact of competitive products and pricing, the dependence on continued growth in demand for consumer products, and the other risks detailed from time to time in the SEC reports of Vialta, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.
VIALTA, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
(1)
June 30, Dec 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $ 40,183 $ 61,886
Restricted cash 1,738 --
Short-term investments 7,019 5,542
Accounts receivable 124 --
Receivables from related party, net -- 64
Inventory, net -- --
Prepaid expenses and other current assets 2,924 2,925
Total current assets 51,988 70,417
Property and equipment, net 4,630 7,831
Long term investments -- 4,064
Content licenses 10,185 1,342
Other assets 45 212
Total assets $ 66,848 $ 83,866
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,194 $ 760
Accrued expenses and other current
liabilities 3,377 2,827
Payable to related party, net 49 --
Total current liabilities 4,620 3,587
Redeemable convertible preferred stock,
$0.001 par value -- --
Stockholders' equity:
Common stock, $0.001 par value 94 92
Additional paid-in capital 144,099 144,164
Deficit accumulated during the
development stage (74,490) (60,087)
Accumulated other comprehensive income 52 156
Treasury stock (7,527) (4,046)
Total stockholders' equity 62,228 80,279
Total liabilities and stockholders'
equity $ 66,848 $ 83,866
(1) Amounts in previous periods have been reclassified to conform to
current period amounts.
VIALTA, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
Operating expenses:
Research and development $ 5,118 $ 5,363 $ 9,341 $ 9,891
Amortization of content
licenses 947 -- 1,200 --
Sales and marketing 732 1,163 1,346 2,158
General and administrative 1,427 2,247 3,239 4,604
(8,224) (8,773) (15,126) (16,653)
Interest income, net 372 1,055 735 2,285
Other expenses (12) 15 (12) (4)
Net loss $ (7,864) $ (7,703) $(14,403) $(14,372)
Net loss per share:
Basic and diluted $ (0.09) $ (1.23) $ (0.17) $ (2.31)
Weighted average common
shares outstanding 83,752 6,240 84,492 6,235
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Contact:
Vialta Public Relations
Edelman Worldwide
Todd Wilder, 650/429-2786
todd.wilder@edelman.com |
