PixTech Announces Fourth Quarter and Year-End 1999 Results
Tuesday March 9, 7:00 am Eastern Time
Company Press Release
SOURCE: PixTech, Inc.
PixTech Announces Fourth Quarter and Year-End 1999 Results
SANTA CLARA, Calif., and ROUSSET, France, March 9 /PRNewswire/ -- PixTech, Inc. (Nasdaq: PIXT; EASDAQ: PIXT) today announced financial results for the three-month and twelve month periods ended December 31, 1998.
Revenues for the fourth quarter ended December 31, 1998 were $423,000 compared to $598,000 in the third quarter of 1998. The net loss for the fourth quarter of 1998 was $6.4 million or $0.43 per share of common stock compared to a net loss of $3.9 million or $0.26 per share of common stock in the third quarter of 1998. Of the $2.5 million increase in net loss in the fourth quarter over the third quarter, unrealized foreign exchange losses represented $2.0 million. These foreign exchange losses are attributable to the sudden strengthening of the New Taiwanese dollar versus the Euro that occurred in the fourth quarter of 1998.
Revenues for the year ended December 31, 1998 were $3.7 million, compared to $3.6 million for the 1997 fiscal year. The net loss for 1998 was $17.9 million, or $1.23 per share of common stock, compared to $14.7 million, or $1.12 per share of common stock for fiscal 1997. The $3.2 million increase in net loss is primarily attributable to a $4.0 million increase in operating expenses, from $19.4 million in 1997 to $23.4 million in 1999. The increase in operating expenses is primarily related to increased expenses at the Company's high volume manufacturing plant, Unipac.
Dieter Mezger, President and CEO stated, ''We continued our steady progress during the fourth quarter of 1998. At Unipac, we have identified some areas where more engineering work is required to increase manufacturing yields. To address these areas we have significantly increased our engineering resources at Unipac. While display shipments from Unipac are made on a weekly basis, we acknowledge that the current volume is not acceptable. We are confident that, over the year, our efforts will lead to improved manufacturing yields and, finally, volume shipments of our FED displays from Unipac.''
Mezger continued, ''On the technology front, the fourth quarter of 1998 was marked by the demonstration of the world's first 15-inch color display and our announcement of a second development agreement with our Japanese CRT partner. Under this agreement, we will jointly develop a 15-inch flat-CRT prototype, targeted for multimedia desktop computer applications.''
The Company announced that, during the first quarter of 1999, Roger W. Johnson and Jean-Pierre Noblanc resigned from the Board of Directors. It also announced the election of Dieter Mezger, the Company's President and Chief Executive Officer to PixTech's Board of Directors.
About PixTech, Inc.
PixTech designs, develops and manufactures field emission displays (FEDs), a new type of flat-panel display. The Company operates a flat-panel display pilot manufacturing facility in Montpellier, France and an R&D facility and sales office in Santa Clara, Calif. PixTech is currently developing high-volume manufacturing capabilities for its FEDs in Taiwan, under a contract manufacturing arrangement with Unipac, a Taiwanese AM-LCD manufacturer. PixTech has also established a marketing partnership with Sumitomo Corporation, its exclusive distributor in Japan. More information is available from the Company's web site at www.pixtech.com.
Statements that are not historical facts, including statements about PixTech's confidence and strategies, the timing of its manufacturing plans with Unipac, and its distribution agreement with Sumitomo, the development of new or existing products, technologies and opportunities, marked demand or acceptance of new or existing products are forward-looking statements that involve risks and uncertainties. These uncertainties include but are not limited to, the risk associated with transitioning to high volume manufacturing of FED displays at Unipac, product demand and market acceptance risks, commitment of Unipac and/ or of PixTech licensees, ability of the Company to grant other licenses under FED technology, validity and enforceability of PixTech's patent rights, infringement by PixTech of other patent rights, impact of competitive product and prices, product development, commercialization or technological delays or difficulties, trade, legal, social and economic risks detailed in PixTech's Securities and Exchange Commission filing including its form 10-K for the year 1997 and any subsequent filings.
PixTech, Inc.
(a development stage company)
Selected Financial Information
(in thousands, except share and per share amounts)
The following selected financial data for the three-month period are derived from unaudited consolidated financial statements of PixTech, Inc. The data should be read in conjunction with consolidated financial statements, related notes, and other financial information included in the Company's 10-K Form for the year ended December 31, 1997 and any subsequent filings with the SEC.
Three months ended Year ended
(unaudited)
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
1998 1998 1997 1998 1997
Revenues:
Cooperation
and license
revenues -- $238 $214 $1,239 $ 1,932
Product sales $223 135 165 445 745
Other revenues 200 225 138 1,968 1,142
Total revenues 423 598 517 3,652 3,819
Cost of revenues
Licenses fees
and royalties 305 (80) (120) 24 (181)
Gross margin 728 518 397 3,676 3,638
Operating expenses:
Research and development:
Acquisition
of intellectual
property rights -- -- -- 125 --
Other 5,829 5,107 4,192 19,289 15,497
Total 5,829 5,107 4,192 19,414 15,497
Sales
and marketing 369 371 345 1,433 1,496
General
and administrative 653 639 520 2,515 2,419
Total operating expenses 6,851 6,117 5,057 23,362 19,412
Loss from operations (6,123) (5,599) (4,660) (19,686) (15,774)
Other income/(expense):
Interest
income/(expense) (246) (208) 46 (708) 470
Foreign exchange
gains/(loss) (1,181) 844 193 372 54
(1,427) 636 239 (336) 524
Loss before income
tax benefit (7,550) (4,963) (4,421) (20,022) (15,250)
Income tax benefit 1,112 1,047 586 2,159 586
Net loss $(6,438) $(3,916) $(3,835) $(17,863) $(14,664)
Net loss per share
of Common Stock $(.43) $(.26) $(.28) $(1.23) $(1.12)
Shares of Common Stock
used in computing
loss per share 14,802 14,778 13,762 14,548 13,140
Dec 31, Dec 31,
1998 1997
Cash available $10,166 $12,428
Other current assets 2,951 3,903
Restricted cash 10,112 10,075
Property
and equipment (net) 18,826 9,353
Other assets 5,339 5,889
Total assets $47,394 $41,648
Current liabilities $14,657 $8,300
Deferred revenues 2,162 2,546
Long-term debt
and liabilities 17,318 12,022
Stockholders' equity 13,257 18,780
Total liabilities
and stockholder's
equity $47,394 $41,648
SOURCE: PixTech, Inc. |
