Hi Tom, solid Quarter.
Genesis Microchip Announces Results for Second Quarter Fiscal 2001
Sequential Revenues Grow 17%
SAN JOSE, Calif., Oct 19, 2000 (BUSINESS WIRE) --
Genesis Microchip Inc. (Nasdaq: GNSS chart, msgs), a leading provider of digital display and video/graphics-processing
integrated circuit products, today reported results for its second quarter fiscal 2001, which concluded September 30, 2000.
Revenues for the quarter were $15.0 million, up 17% sequentially from $12.8 million reported for the quarter ended June 30,
2000. The company's continued growing quarterly revenue trend is driven by rising demand for its products from existing
and new customers.
Net income of $2.0 million for the September 2000 quarter increased over the $1.6 million reported for the June 2000
quarter. This growth in net income resulted from an increase in income from operations to $1.5 million driven by gross
margins of 62.7%. Diluted earnings per share for the quarter was $0.10, up sequentially from the $0.08 recorded for the June
quarter.
"We are extremely pleased with the company's continued growth and solid quarterly results," said Genesis President and
CEO Amnon Fisher. "We continue to see strong demand for our products across all markets. The new products introduced
last quarter, including the industry's first fully integrated digital and analog (dual) interface controller for the flat panel
monitor market, gained wide market acceptance with several design wins. We believe these products will represent a
meaningful and growing portion of our business. These products further strengthen our competitive edge and we expect to
maintain our leadership position in this market."
The company will hold a conference call today, October 19, at 5:00 p.m. EDT. Genesis's management team will discuss the
quarter's results, the general business outlook and trends going forward. To participate in the call, dial 212/748-2797
(reservation no. 16484370).
Investors can listen to the conference call over the Internet through Vcall at www.vcall.com. For those who cannot listen to
the live broadcast, a replay will be available shortly after the call at www.vcall.com. In addition, a playback of the call will
be available by phone. The replay can be accessed by calling 800/633-8286 (reference reservation no. 16484370).
International callers should call 619/812-6440.
Business Outlook
The following statements are forward-looking in nature and are subject to risks and uncertainties. These statements are based
on current expectations, and are the company's targets, not predictions of actual performance. The company's performance
has deviated, often materially, from its targets as of the beginning of a quarter. The company will not update these targets
during the quarter or comment on its progress in the quarter to analysts or investors until after it has closed its books on the
quarter. Any statements by persons outside the company speculating on the progress of the quarter will not be based on
internal company information and should be assessed accordingly by investors.
-- The company expects that revenues in the second half of our
2001 and 2002 fiscal years will continue to be dominated by
shipments of product into the flat panel monitor market. As a
result of the timing of the introduction of new products such
as the gm5020 and gm3020, together with the expected growth of
the flat panel monitor market the company anticipates
sequential quarterly growth in the December 2000 quarter in
the range of 14-16% over the September quarter and similar
sequential growth from the December quarter to the March 2001
quarter. For fiscal 2002 as a whole it is targeting growth of
65 to 75% over fiscal 2001.
-- The company expects gross margins will average in the high 50%
range for fiscal 2001, moving toward the low 50% range in
fiscal 2002 as it increases revenues in higher volume markets.
-- The company expects that operating expenses in the December
quarter will be relatively unchanged from the September
quarter. For fiscal 2001 it is targeting operating expenses
averaging in the mid-40% range as a percentage of revenue,
declining to the mid-30% range in fiscal 2002.
-- In the current year the company has tax losses and credits
available to it that it anticipates will reduce its tax rate
to approximately 10%. The company is targeting a longer-term
effective income tax rate of about 20%.
About Genesis Microchip
Genesis Microchip Inc. -- an ISO9001-registered company -- is the leading supplier of digital LCD monitor controllers.
Genesis processors are available with integrated dual interfaces (digital and analog) as well as with digital-only or
analog-only interfaces for use with DVI and VGA-compatible computers. The company's highly integrated semiconductors
are also used in DVD players, digital displays, home theater equipment and many other consumer applications. Genesis
chips have been used in products from Acer, Apple Computer, Daewoo, Dell, Fujitsu, IBM, In Focus Systems, Hitachi, LG
Electronics, Mitsubishi, NEC, Philips, Samsung, SGI, Sharp, Sony, Tatung, ViewSonic and many more industry leaders.
Genesis has offices in Silicon Valley (Alviso, California), Taiwan and Thornhill, Ontario, Canada. Further information is
available at www.genesis-microchip.com.
Safe Harbor Statement
The statements by Amnon Fisher and the statements regarding business outlook contain "forward-looking" information within
the meaning of the United States securities laws that involve risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, the
growth rate of the markets into which the Company sells its products; market acceptance of and demand for the products of
the Company and those of the Company's customers; unanticipated delays or problems in the introduction of the Company's
products or its customers' products; the Company's ability to introduce new products in accordance with OEM design
requirements and design cycles; new product announcements or product introductions by the Company and the Company's
competitors; availability and cost of manufacturing sources for the Company's products; supply constraints for components
incorporated into the Company's customers' products; the volume of orders that are received and can be filled in a quarter;
the rescheduling or cancellation of orders by customers; costs associated with protecting the Company's intellectual
property; changes in product mix; changes in product costs and pricing; and currency exchange rate fluctuations. These and
other important risk factors are more fully detailed in the Company's SEC filings. Statements contained herein are made as of
the date hereof and the Company assumes no responsibility for updating such information. |
