Some companies report sizable gains
I pulled in only the relevant ones...
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C - Cube Microsystems Inc.
01/26/98
Electronic Buyers' News
Page 14
Copyright 1998 CMP Publications Inc.
Revenue: $90.1M, -5.7%
Net Income: $11.6M, -32.9%
While the Milpitas, Calif., company had a lackluster fourth quarter compared with last year's, it did see gains in sales and earnings for the year.
For the year, net income was $44.3 million on sales of $337 million, compared with a net loss of $73 million on revenue of $319.8 million in 1996. Sequentially, sales increased 10.2% from the preceding quarter's $81.7 million, and net income rose 20% from $9.6 million.
The gross-profit margin for the fourth quarter was 53%, down from 56% in the year-ago period and 55% in the previous quarter.
During the quarter, the company, which manufactures highly integrated digital video solutions, said several of its products were selected by OEMs, such as Dell Computer and Toshiba Terca.
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ESS Technology Inc.
Revenue: $70.7M, -7.8%
Net Loss: $17.4M, -203.1%
The Fremont, Calif., company blamed increased inventory reserves for its disappointing fourth quarter.
"While our sales were strong, reflecting seasonal demand, we experienced a surge in inventory late in the quarter, requiring us to take appropriate financial reserves," said Fred Chan, chairman and chief executive.
Chan said the surge was caused by a slower-than-anticipated customer transition to new products, and by an unexpected increase in manufacturing yields from one of the company's wafer fab foundries, which resulted in a greater quantity of products being received.
ESS also took a $22.2 million one-time charge for in-process R&D associated with the acquisition of Platform Technologies Inc.
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LSI Logic Corp.
Revenue: $323M, +7%
Net Income: $30.7M, +.002%
LSI Logic, based in Milpitas, Calif., had a disappointing fourth quarter, marked by flat revenue and lower sequential earnings. But the chip maker still managed to finish 1997 with an 8% increase in net income over 1996.
"Despite a very challenging business environment during the course of 1997, LSI Logic produced record revenues and increased profitability," said Wilfred Corrigan, chief executive.
LSI's net income for the year was $159.2 million, or $1.11 per share diluted, with total revenue of $1.290 billion, an increase of 4% over 1996.
Fourth-quarter net income of $30.7 million netted a fully diluted 22 cents per share after a change to the accounting principle, but was significantly lower than third-quarter net of $47 million, or 33 cents per share. Revenue for the quarter was $323 million, a 7% increase over the prior year's quarter but only a 1% increase over the third quarter.
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SGS-Thomson Microelectronics
Revenue: $1.1B, +2.9%
Net Income: $126.3M, -11.1%
Fourth-quarter and year-end revenue and net income were down slightly for ST, compared with figures for the prior year, although the company did see sequential improvement during the year.
"SGS-Thomson recorded balanced performance within a very competitive and difficult industry environment," said Pasquale Pistorio, president and chief executive of the St. Genis, France, company.
For the year, ST reported net income of $407 million on revenue of $4 billion, compared with net income of $624 million on revenue of $4.1 billion in 1996.
When compared with the third quarter, fourth-quarter revenue was up 10% and net income was up 29.4%.
"Our performance in the fourth quarter was in line with our expectations of sequentially higher revenues and a gross-profit margin approximating third-quarter levels," Pistorio said. "Differentiated and graphics products showed solid sequential sales growth, with particular strength in devices for portable phones and printers."
Ongoing fiscal difficulties in Asia will create pressures on prices in 1998, Pistorio said, although "the full impact on our industry is not yet completely clear. It is creating additional pressures on prices and, to a lesser extent, on unit demand." - Darrell Dunn |
