FDJA Hits Consensus $0.00:
biz.yahoo.com
Tuesday April 21, 4:07 pm Eastern Time
Company Press Release
Faroudja Inc. Reports First-Quarter Results
Digital Format Translator for Broadcasters Introduced
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 21, 1998--Faroudja Inc. (NASDAQ/NMS:FDJA - news) Tuesday reported revenues of $3,358,000 and net income of $8,000, or $0.00 per share, on 12,766,000 diluted shares for the first quarter ended March 31, 1998.
These results compare to revenues of $3,585,000 and net income of $249,000, or $0.03 per share, on 9,054,000 diluted shares for the first quarter last year.
''Product sales in the first quarter are typically lower than other quarters, due to seasonal factors,'' commented Michael Hoberg, vice president-finance and chief financial officer. ''Sales to the home-theater market in 1998's first quarter were further limited by constraints with regard to the production of our new family of video processors following their introduction at the Consumer Electronics Show in January.
''Our dealer network has relayed the fact that some consumers in the high-end display market are postponing purchase decisions until the digital television (DTV)/high-definition television (HDTV) landscape becomes more clearly delineated.
''Faroudja is well positioned to invest in new opportunities in the emerging digital video market. We have an extensive portfolio of patented video processing technologies that were developed through 26 years of focused research and development, and a superb brand name that is well known in both the broadcast and home-theater industries.
''The company's balance sheet remains strong, with more than $21 million in cash and equivalents, and no long-term debt. Stockholders' equity totaled $29 million at March 31.
''As a result of the significant market opportunity ahead, Faroudja has focused, and will continue to aggressively focus, the appropriate level of research and development on maintaining Faroudja's leadership in digital video processing products as well as the continuing migration of our technology to semiconductors.
''Examples of this increased R&D activity are the introduction of Faroudja's Digital Format Translators for broadcasters, and
development of the new FLI-2000 super decoder chip for PC, DTV, TV set-top box, and large-screen home-theater applications,'' Hoberg concluded.
Michael Moone, president and chief executive officer, noted: ''We introduced our new family of Digital Format Translators at the National Association of Broadcasters (NAB) convention in early April. The response from the broadcast industry to our picture quality, product features, modular design and pricing was outstanding.
''The DFT 5000 Digital Format Translator with Aspect Ratio Control capability won the 'Pick of the Show' Editor's Choice Award from Television Broadcast Magazine for 'advancement in the art and science of television broadcast'. We announced alliances with the FOX Broadcasting company; Tribune Broadcasting; and Modern Videofilm, who, along with Four Media, have contributed importantly to the success of the DFT.
''The Digital Format Translators utilize Faroudja's patented technology to deliver HDTV-quality video images from today's
analog (NTSC) and digital sources in all industry formats (480P, 720P and 1080I). The system is intended to afford broadcast stations, cable and post-production houses the ability to leverage their existing equipment and systems to provide programming, local news and commercials in the new DTV formats, as well as the ability to convert archived materials into the new DTV formats.''
Moone continued: ''In the area of PC/TV convergence, Faroudja and S3 Incorporated [Nasdaq:SIII - news] recently announced that the PC exclusivity provisions of S3's license agreement, and associated minimum royalty payments, would cease as of April 1, 1998. Our strategy now encompasses plans for licensing Faroudja technology to other companies in the PC market, selling chipsets to PC manufacturers for use in multimedia PCs and PC/TV-convergence products, as well as
providing chipsets to PC-board manufacturers.''
Faroudja's growing number of consumer and commercial products are designed to bring HDTV-quality images to the digital broadcast, display, PC/TV convergence and home-theater markets. Faroudja is recognized around the world for its superior video processing technology, and holds more than 50 patents. Faroudja has received numerous awards, including an Emmy award for Engineering Development.
Except for historical information contained herein, the matters set forth in this news release, such as statements relating to the
acceptance and timing of product introductions, seasonality of operating results, the impact of digital television, the
development of new products, increased research and development activities, and the licensing of technologies, are forward-looking statements that are subject to risks and uncertainties, including timely development and acceptance of new products, the impact of competitive products and pricing, fluctuations in operating results and seasonality, changing TV standards, dependence on strategic relationships and key employees, and other risks set forth under the caption ''Factors Affecting Future Operating Results'' in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1997 filed with the Securities and Exchange Commission. |
