Vialta, Inc. Reports First Quarter Results
Tuesday May 6, 9:05 am ET
FREMONT, Calif.--(BUSINESS WIRE)--May 6, 2003--Vialta, Inc. (OTC:VLTA - News) today reported net income of $28,000, or $0.00 per share, for the first quarter ended March 31, 2003. This compares to a net loss of $6.5 million, or $0.08 per share, for the comparable prior-year quarter, and a net loss of $13.4 million, or $0.16 per share for the fourth quarter of 2002.
The Company's first quarter results reflect recognition for the first time of revenues generated from sales of its Beamer(TM) Videophone Station. The Company recorded Beamer sales of $3.8 million, which included approximately $2.8 million from shipments that occurred in the fourth quarter of 2002 and had been previously deferred. Gross margin for the quarter was $3.0 million. Gross margin was high in relation to revenue, largely because products costs associated with revenues recognized in the first quarter were expensed in prior periods.
During 2002 the Company commenced a number of initiatives that has enabled it to streamline operations and reduce operating expense. These initiatives focused on increasing operating efficiencies and discontinuing non-core businesses, which led to a reduction in personnel. As a result of these ongoing initiatives, the Company's total operating expense was $3.1 million for the first quarter of 2003, a reduction of $3.8 million from the comparable prior-year quarter.
"Vialta's efforts to develop and market unique, benefit-oriented consumer electronics goods, enabled Vialta to achieve the first quarter 2003 results," said Didier Pietri, Vialta's president and chief executive officer. "In addition, the acceptance of the Beamer Videophone Station in a growing number of retail and non-retail sales channels has helped to raise consumer awareness of Beamer and Vialta."
Pietri concluded, "Vialta will continue to leverage the advantages of its internal design and engineering teams to develop new products that offer convenience, quality and simplicity of use, that it believes have an opportunity to capture major market share."
About Vialta
Vialta develops, designs and markets unique and innovative home entertainment and communications products for the mainstream consumer. The company was formed in April 1999 and is publicly traded on the OTC Bulletin board under the symbol VLTA. The company is headquartered in Fremont, California with offices in Los Angeles and Hong Kong.
Forward-Looking Statements
The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending, the timely availability and acceptance of the Company's new and existing products, the impact of competitive products and pricing, the dependence on continued growth in demand for consumer products, the risk that products shipped by the Company will be returned, and the other risks detailed from time to time in the SEC reports of Vialta, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.
VIALTA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share)
Three months ended
March 31,
---------------------
2003 2002
---------- ----------
Revenues, net $3,843 $-
Cost of goods sold 863 -
---------- ----------
Gross profit 2,980 -
Operating expenses:
Engineering and development 968 4,223
Amortization of content licenses - 253
Sales and marketing 442 614
General and administrative 1,730 1,812
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Total operating expenses 3,140 6,902
---------- ----------
Operating loss (160) (6,902)
Other income :
Interest income, net 188 363
---------- ----------
Net income (loss) $28 $(6,539)
========== ==========
Net income (loss) per share:
Basic $- $(0.08)
========== ==========
Diluted $- $(0.08)
========== ==========
Weighted average common shares:
Basic 82,238 85,240
========== ==========
Diluted 84,153 85,240
========== ==========
VIALTA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
March 31, 2003 December 31, 2002
----------------- -----------------
Assets
Current assets:
Cash and cash equivalents $28,137 $21,863
Short-term investments 51 10,838
Accounts receivable, net 426 1,362
Inventory 2,945 2,834
Prepaid expenses and other
current assets 942 1,253
----------------- -----------------
Total current assets 32,501 38,150
Property and equipment, net 1,571 2,132
Long term investments 2,084 -
Other assets 24 45
----------------- -----------------
Total assets $36,180 $40,327
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Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $771 $1,164
Accrued expenses and other
current liabilities 2,194 3,555
Deferred profit 1,108 3,230
----------------- -----------------
Total current liabilities 4,073 7,949
----------------- -----------------
Stockholders' equity:
Common stock, $0.001 par value 94 94
Additional paid-in capital 144,105 144,105
Treasury stock (9,458) (9,163)
Accumulated deficit (102,638) (102,666)
Accumulated other comprehensive
income 4 8
----------------- -----------------
Total stockholders' equity 32,107 32,378
----------------- -----------------
Total liabilities and
stockholders' equity $36,180 $40,327
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Contact:
Edelman (for Vialta)
Daniel Munoz, 650/429-2747
daniel.munoz@edelman.com
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Source: Vialta |
