Faroudja Inc. Announces First QuarterResults
April 19, 1999 04:08 PM
SUNNYVALE, CA --(BUSINESS WIRE)--April 19, 1999--Faroudja, Inc. FDJA today reported results of
operations for the quarter ended March 31, 1999.
Revenues for the first quarter of 1999 were $2,435,000. For the quarter, the Company reported a net loss of
$1,478,000, or $.12 per share, on 12.2 million diluted shares. For the first quarter of 1998, Faroudja posted
revenues of $3,358,000 and net income of $8,000 or $.00 per share on 12.8 million diluted shares.
As of March 31, 1999 the Company's balance sheet shows cash balances of $20,301,000 with net assets of
$25,120,000.
"The fact that television broadcasters are rolling out HDTV more slowly than expected was the major factor
affecting our results in the first quarter. This resulted in fewer unit sales of our Digital Format Translator(TM)
("DFT") upconverter, that we began shipping last July", said Glenn W. Marschel, Jr., President and CEO. "This
was partially offset by improved performance in the home theater market driven by sales of our new high end LCD
projector - the LS(TM)700."
Mr. Marschel continued, "While we were disappointed with first quarter results, we remain confident that our sales
of the DFT upconverters will begin to ramp back up in the next two quarters. Sales should be aided by FCC
mandated "on air" dates for digital television for the next wave of stations. DFTs continue to receive accolades from
broadcast customers and in April we received purchase orders from a major network that had not previously
purchased our product, the CBS Television Stations Division, a unit of CBS Corporation.
"We continue to make significant additions to our Home Theater product line. In the first quarter, the Company
successfully launched its new high-end LCD projector. In Focus Systems, Inc. ("In Focus"), the world leader in the
data/video projector market, and Faroudja with its superior video processing, have combined their technologies to
provide the first LCD-based projector with home theater quality video - the LS(TM) 700. This month we will start
shipping our newest digital video processor for the Home Theater market - the DVP2200. The DVP2200
introduces many improvements over the product it replaces, our very successful VP251, including advanced scaling
capabilities.
"Looking forward, we are committed to refine and pursue strategies for - developing and marketing highly
integrated, high performance integrated circuit solutions for the emerging digital video display and
computer/television convergence markets. The Company continues to commit increased research and development
resources in this area.
"Our focus is on revenue growth and returning the Company to profitability," concluded Mr. Marschel. "In the near
term, we expect increased sales of DFTs and In Focus/Faroudja LCD projectors."
Faroudja, Inc FDJA is a world leader in high performance video processing technologies for markets requiring
superior image quality solutions. The company provides innovative products for the HDTV broadcast, home
theater, digital television and PC/TV convergence markets. Faroudja's technologies are protected by more than 50
patents. Faroudja has received numerous awards, including an Emmy award for Engineering Development and a
Lifetime Achievement Emmy presented in June, 1998 to its founder, Yves Faroudja.
Except for historical information contained herein, this press release contains forward-looking statements that are
subject to risks and uncertainties, including fluctuations in operating results, the timely development and acceptance
of new products, product availability from suppliers, the impact of competitive products and pricing, changing TV
standards and other risks set forth under the caption "Factors Affecting Future Operating Results" in Faroudja's
Annual Report on Form 10-K for the year ended December 31, 1998, and other filings with the SEC.
FAROUDJA, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 20,301 $ 20,419
Accounts receivable 1,844 1,763
Inventories 3,272 3,349
Other current assets 345 1,179
-------- --------
Total current assets 25,762 26,710
Property and equipment, net 1,637 1,778
Other assets 206 233
-------- --------
$ 27,605 $ 28,721
======== ========
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 1,011 $ 1,125
Other current liabilities 1,474 1,098
-------- --------
Total current liabilities 2,485 2,223
Stockholders' equity:
Common stock 12 12
Additional paid-in capital 29,954 30,027
Accumulated deficit
retained earnings (4,846) (3,541)
-------- --------
Total stockholders' equity 25,120 26,498
-------- --------
$ 27,605 $ 28,721
======== ========
FAROUDJA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amount in thousands, except per share data)
Three Months Ended
March 31,
---------------------------
1999 1998
---------- ---------
Revenues:
Product sales $ 2,435 $ 2,608
License and royalty revenues -- 750
-------- --------
Total revenues 2,435 3,358
Cost of product sales 1,585 1,104
-------- --------
Gross profit 850 2,254
Operating expenses:
Research and development 1,090 1,077
Sales and marketing 792 752
General and administrative 676 690
Financing expenses -- --
-------- --------
Total operating expenses 2,558 2,519
-------- --------
Operating loss (1,708) (265)
Other income (expense), net 230 278
-------- --------
(Loss) income before provision for
income taxes (1,478) 13
Provision for income taxes 0 5
-------- --------
Net (loss) income ($ 1,478) $ 8
======== ========
Net (loss) per share:
Basic ($ 0.12) $ 0.00
Diluted ($ 0.12) $ 0.00
Number of shares used in
per share computation:
Basic 12,167 12,079
Diluted 12,167 12,766
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