RELEASE DATE: October 27, 1997
CONTACT: Susan Schoenhals, Investor Relations, 604-421-5422
Email: Susan_Schoenhals@spectrumsignal.com
SPECTRUM SIGNAL PROCESSING ACHIEVES 65% GROWTH IN
DSP SYSTEMS BUSINESS
Burnaby, B.C., Canada - October 27, 1997 - Spectrum Signal Processing (NASDAQ NMS: SSPIF / TSE: SSY) today reports quarterly revenue for the three months ended September 30,
1997 of $10,644,000 compared to $9,828,000 for the same period ended September 30, 1996. The Company reports net income of $541,000 or $0.06 per share as compared with net income
of $553,000 or $0.06 per share in the same quarter a year ago. Over the nine months ending September 30, 1997 the Company's revenue totaled $25,613,000 compared to $23,935,000 for
the same period last year and net income totaled 1,550,000 or $0.17 per share compared with net income of $937,000 or $0.10 per share for the same nine month period in 1997.
"We are executing on our strategy to phase out the low margin Desktop CT business in order to concentrate on higher margin DSP Systems business which is ahead of plan at 65%
revenue growth in the first nine months of the year. This transition is evident in the third quarter increase in gross margin from 48% in 1996 to 55% in 1997, reflecting the higher contribution of
DSP Systems business," said Barry Jinks, Spectrum president and CEO. "However, this transition is slowing our traditional year over year revenue and earnings growth in the short term and
we expect this trend to continue in the fourth quarter," he added. The company continues to invest significantly in new research and development efforts, particularly in `C6x products which
have seen strong initial demand as witnessed in the first sales wins announced last month.
Spectrum recently announced the most significant product launch in the company's history with the introduction of the industry's highest performance product solutions based on Texas
Instruments new `C6x chip. Spectrum received industry recognition for being the first to demonstrate working `C6x multi-processing capabilities at DSP World, the industry's largest trade
show, which took place in mid September. Although `C6x products will not be available until early 1998, Spectrum has already received its first two sales wins totaling $1.2 million for `C6x
product solutions. The company believes these early successes are an indication of the future demand for Spectrum's `C6x solutions and expects to see significant `C6x revenue in 1998,
when the product suite starts shipping. |
