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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: straight life who wrote (8549)	10/20/1999 4:59:00 PM
From: James Sinclair	Read Replies (1) \| Respond to of 54805

GENESIS MICROCHIP ANNOUNCES RESULTS FOR SECOND QUARTER FISCAL 2000 TORONTO (Oct. 20, 1999) -- Genesis Microchip Inc. [Nasdaq: GNSS], a leading provider of digital display and video/graphics-processing integrated circuit products, today reported results for its second quarter fiscal 2000, which ended September 30, 1999. Revenues for the quarter were $16.4 million, rising 145% over the year-ago August 1998 quarter and up modestly over revenues in the June 1999 quarter. The modest sequential revenue growth is primarily attributable to the continued short-term supply constraints of LCD panels and the effect of the September 21 Taiwan earthquake on business in the last two weeks of the quarter. Overall gross margins increased to 69.4% in the September quarter from 67.7% in the June quarter, primarily as a result of customer transition to newer, cost-reduced products. Net income of $4.0 million for the quarter increased substantially over the $617,000 reported in August 1998 and over net income of $1.3 million, after merger-related costs, in the quarter ended June 30, 1999. Diluted earnings per share for the quarter was $0.20, up from the $0.03 recorded in the August 1998 quarter. In the quarter ended June 1999, the company reported diluted earnings per share of $0.06, which reflected merger-related charges. Unit shipments of chipsets into the LCD monitor market grew to more than 640,000 in the quarter, an increase of 80,000 units or 14%, over unit shipments reported in the June 1999 quarter. "We are pleased with our results in the quarter given the challenges of ongoing LCD panel supply constraints and the tragic earthquake in Taiwan," said Paul M. Russo, Chairman and Chief Executive Officer. "We are continuing to assess the effect of the earthquake on our business and anticipate tight supply from our Taiwanese supplier, TSMC, in the December quarter. In the September quarter we derived approximately one-third of our revenues from products supplied by TSMC. We believe that we can obtain adequate supply from our other manufacturers, including Taiwan-based UMC, for our other products in this quarter." Current and prior period results reflect the company's merger with Paradise Electronics in May 1999. Because of the change in its fiscal year to March from May, the company is using the most closely aligned fiscal periods of the prior year for financial comparisons in fiscal 2000. For example, the period ended September 1999 is compared to the equivalent period ended August 1998. Historical amounts have been restated to include the results of Paradise as required in pooling-of-interest accounting. ----------------------------------------------------- Comment: Revenue growth: 145% year over year Net Income growth: 548% EPS growth: 567% Gross Margins: 69.4% And remember, this is in a quarter when a key vendor has had to deal with an earthquake. If the manufacturers of the LCD panels ever get their production lines ramped up this company could really do well. Seems cheap at under $20 a share.