Trident has trouble with graphics & multimedia IC biz...........
techweb.cmp.com
A service of Semiconductor Business News, CMP Media Inc.
Story posted at 8 a.m. EST/5 a.m. PST, 1/23/98
Trident streamlines management
to trim losses in multimedia ICs
MOUNTAIN VIEW, Calif.--Graphics and multimedia IC supplier Trident
Microsystems Inc. said it saw sales plunge 48% in the last three months of
1997 compared to the previous year because of economic problems
plaguing Asia.
Trident said it lost $1.9 million vs. a net income of $5.4 million last year. The
company said it restructured and streamlined management as part of
cost-cutting efforts to deal with the tough market conditions in PC graphics
and multimedia.
"As we announced in December, the recent financial turmoil in Asia has
affected the buying patterns of our Asia Pacific customers," said Frank Lin,
president and CEO of the Mountain View-based company. "As a result, our
revenue goals have been impacted. Especially in the desktop segment, there
have been delays in the introduction and acceptance of some of our new
3-D products in the region."
For Trident's second fiscal quarter, ended Dec. 31, revenues fell to $26.9
million compared to $51.9 million in the same period a year ago. The
revenues were 30% lower than Trident's $38.5 million in sales during the
previous quarter, ended Sept. 30.
"Internally, it is our immediate goal to return to profitability by repositioning
our 3-D desktop products and by reducing our operating expenses to the
break-even level," Lin said. "We have taken a critical look at our internal
processes and infrastructure, and implemented a streamlined senior
management team through consolidation of compatible functional areas
within the company."
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