Genesis Microchip Reports Record Fiscal Third Quarter 2002 Results; Revenues Of $49.8 Million Up 188 Percent Over Previous Year
SAN JOSE, Calif., Jan 17, 2002 (BUSINESS WIRE) -- Genesis Microchip Inc. (GNSS), a world leader in the development and marketing of LCD monitor technology, today announced revenues of $49.8 million and net income of $10.1 million in the third quarter of its 2002 fiscal year. The third quarter for Genesis Microchip ended on December 31, 2001.
Revenues for the quarter represent an increase of 188 percent over the year-ago quarter and 38 percent over the previous (September) quarter. Earnings in the quarter were 42 cents per diluted share. Net income grew 410 percent over the year-ago quarter and 52 percent over the previous quarter.
The company attributes its strong financial performance and increased revenues to a combination of strong demand for its products and the timely response to this demand by its suppliers.
"As the display system marketplace evolves and continues to grow, Genesis Microchip's innovative and unique technology enables us to meet our customers' price and performance requirements," said Amnon Fisher, Genesis Microchip's President and Chief Executive Officer.
At the end of its second quarter, Genesis Microchip announced it had reached a definitive agreement to acquire Sage, Inc. (SAGI). This transaction is scheduled to close in late February 2002.
Business Outlook
The company believes that its revenues will continue to be dominated by shipments of its products into flat-panel monitor applications.
Consequently, on a standalone basis, the company believes there may be seasonal impacts on the March 2002 quarter. It currently anticipates that March revenues would see modest growth sequentially over December, to about $50 million, with gross margins and operating expenses similar to the December quarter.
The company's financial results will be materially impacted by the acquisition of Sage, Inc. As a result, the company intends to update its business outlook after the completion of that acquisition, currently scheduled for late February 2002.
About Genesis Microchip
Genesis Microchip is a leading supplier of cost-effective integrated circuits and software solutions, enabling the convergence of Internet information and video. Flat-panel displays, digital televisions, digital CRTs and consumer video products all benefit from Genesis technology, which connects and formats any kind of source content to be displayed with the highest image quality on any type of display. "Genesis Display Perfection" components are used by all leading brand-name monitor vendors. Founded in 1987, Genesis has offices in Silicon Valley, California; Taipei, Taiwan; Toronto, Canada and Seoul, Korea. Further information is available at .
Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, forward-looking statements regarding the company's financial performance in the fourth quarter of fiscal 2002, including anticipated revenues, gross margins, operating and other expenses and tax losses and credits. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The risks and uncertainties include general economic conditions, the actual growth rate of the flat-panel monitor market, the continued acceptance of the company's products in that market, the company's ability to introduce new products in a timely basis, the company's ability to secure or retain design wins with customers, the company's ability to secure supply of products from its third-party suppliers, the company's ability to successfully complete the restructuring of certain of its operations, the company's ability to manage inventory, pricing pressure due to pricing actions by competitors, and changes in estimated product costs, product yields, or product mix. Other risk factors are listed in the company's SEC reports, including but not limited to Genesis's report on Form 10-K for the fiscal year ended March 31, 2001.
The company's agreement to acquire Sage is subject to the satisfaction of certain closing conditions, which, if not satisfied, could delay or prevent the consummation of the acquisition.
The forward-looking statements in this press release 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 plans to update these targets during the quarter following the completion of the acquisition of Sage, Inc. 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.
GENESIS MICROCHIP INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands of U.S. dollars,
except per share amounts)
(Unaudited)
Three months ended Nine months ended
Dec 31, Dec 31, Dec 31, Dec 31,
2001 2000 2001 2000
Revenues $49,823 $17,304 $107,266 $45,156
Cost of revenues 27,109 7,697 58,019 17,654
----------------- -------------------
Gross profit 22,714 9,607 49,247 27,502
Operating expenses:
Research and development 5,292 4,792 14,677 13,257
Selling, general and
administrative 5,380 3,833 14,134 10,575
----------------- -------------------
Total operating
expenses 10,672 8,625 28,811 23,832
----------------- -------------------
Income from operations 12,042 982 20,436 3,670
Interest and other income 378 642 1,131 1,895
----------------- -------------------
Income before income taxes 12,420 1,624 21,567 5,565
Provision for income taxes 2,317 (354) 3,235 57
----------------- -------------------
Net income $10,103 $1,978 $18,332 $5,508
================= ===================
Earnings per share:
Basic $0.47 $0.10 $0.89 $0.29
Diluted $0.42 $0.10 $0.80 $0.28
Weighted average number of
common shares outstanding
(in thousands):
Basic 21,623 19,378 20,683 19,293
Diluted 23,798 19,860 22,817 19,869
GENESIS MICROCHIP INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands of U.S. dollars)
(Unaudited)
ASSETS
December 31, March 31,
2001 2001
------------------------------
Current assets:
Cash and cash equivalents $84,586 $32,827
Accounts receivable trade 24,133 14,412
Income taxes recoverable 809 1,029
Inventory 12,191 10,505
Investment held for resale 1,100 1,100
Other 5,940 3,964
-----------------------------
Total current assets 128,759 63,837
Capital assets 10,465 10,406
Deferred income taxes 3,600 6,561
Other 772 642
-----------------------------
Total assets $143,596 $81,446
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $15,097 $6,851
Accrued liabilities 5,824 3,707
Current portion of loans payable 90 89
-----------------------------
Total current liabilities 21,011 10,647
Long-term liabilities:
Loans payable 328 410
-----------------------------
Total liabilities 21,339 11,057
-----------------------------
Shareholders' equity:
Share capital 109,358 75,912
Cumulative other comprehensive loss (94) (94)
Deferred compensation (97) (187)
Retained earnings (deficit) 13,090 (5,242)
-----------------------------
Total shareholders' equity 122,257 70,389
-----------------------------
Total liabilities and
shareholders' equity $143,596 $81,446
=============================
Editor note:
-- Genesis is a registered trademark of Genesis Microchip Inc.
-- Genesis Display Perfection is a trademark of Genesis Microchip Inc.
CONTACT: Genesis Microchip Inc.
Eric Erdman, 905/889-5400
or
Nagle & Ferri
Investor Relations, 415/575-1999
URL:
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