Ess Technology Q4 Dil Shr Profit $0.11 Vs. Loss $0.30
ESS Technology, Inc. Reports Fourth Quarter and Fiscal Year Results
FREMONT, Calif., Jan. 27 /PRNewswire/ -- ESS Technology Inc. (Nasdaq:
ESST - news) today reported net income of $4.8 million, or $0.11 per
share, on net revenues of $78.2 million for the quarter ended
December 31, 1998 compared to a reported net loss of ($12.0) million
or ($0.30) per share, on net revenues of $70.7 million in the fourth
quarter of 1997. Revenues for the year ended December 31, 1998,
totaled $218.3 million, a decrease of 13 percent from fiscal 1997
revenues of $249.5 million. Reported net loss for the year was
($28.0) million, or ($0.68) per share, compared to a reported net
loss of ($10.9) million or ($0.27) per share, for the year ended
December 31, 1997.
''We are pleased with the financial results for the fourth quarter of
1998 and our return to profitability, as we had forecasted,'' said
Fred Chan, Chairman and CEO. ''During the fourth quarter, ESS
increased its cash position, introduced several new products and
announced design wins which should allow us to grow market share in
our Audio, Communications and Video product lines. ESS is also very
excited about leveraging our core technology into the Internet
systems, services and application market. As a result, we expect the
company to be profitable for 1999,'' he added.
ESS Technology, Inc. supplies Internet, modem, PC audio and digital
video solutions for the Internet, PC and consumer markets. ESS
designs, develops, and markets highly integrated mixed signal
semiconductor, hardware, software and system solutions for Internet,
PC and multimedia applications. ESS, headquartered in Fremont,
California, has sales and technical support offices in Austin and
Houston, Texas; Irvine, California; Bellevue, Washington; Beijing and
Shenzhen, China; Tokyo, Japan; Taipei, Taiwan; Seoul, Korea; and Hong
Kong. ESS Technology is listed on the Nasdaq Market System under the
symbol ESST. World Wide Web site: esstech.com.
The matters discussed in this news release include certain forward-
looking statements that involve risks and uncertainties, including,
not limited to, 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 PC and
consumer multimedia products, as well as the other risks detailed
from time to time in the SEC reports of ESS, including the reports on
Form 10-K and Form 10Q. Actual results could differ materially from
those projected in the forward-looking statements.
ESS TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1998 1997 1998 1997
Net revenues $78,232 $70,735 $218,252 $249,517
Cost of revenues 56,326 67,668 182,417 171,859
Gross profit 21,906 3,067 35,835 77,658
Operating expenses:
Research and development 7,370 8,501 30,529 29,471
Research and development
in process -- -- -- 22,200
Selling, general and
administrative 9,813 7,722 36,289 25,198
Operating income (loss) 4,723 (13,156) (30,983) 789
Nonoperating income 296 320 1,478 2,183
Income (loss) before
provision for
income taxes 5,019 (12,836) (29,505) 2,972
Provision for
(benefit from)
income taxes 251 (798) (1,489) 13,838
Net income (loss) $4,768 $(12,038) $(28,016) $(10,866)
Net income (loss)
per share - basic $0.12 $(0.30) $(0.68) $(0.27)
Net income (loss)
per share - diluted $0.11 $(0.30) $(0.68) $(0.27)
Shares used in
calculating net income
(loss) per share - basic 40,991 40,537 40,955 39,593
Shares used in calculating
net income (loss)
per share - diluted 44,566 40,537 40,955 39,593
ESS TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
Dec. 31 Dec. 31
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $65,752 $27,760
Short-term investments 16,719 14,524
Account receivable, net 37,830 36,265
Inventories 22,882 47,285
Deferred income taxes 6,372 4,898
Prepaid expenses and other assets 4,142 4,053
Total current assets 153,697 134,785
Property and equipment, net 38,000 32,922
Other assets 22,948 63,947
$214,645 $231,654
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $57,930 $50,858
Income taxes payable and deferred income taxes 14,643 9,689
Total current liabilities 72,573 60,547
Shareholders' equity:
Common stock 137,312 137,452
Retained earnings 4,760 33,655
Total shareholders' equity 142,072 171,107
$214,645 $231,654
SOURCE: ESS Technology, Inc. |
