PixTech First Quarter 1998 Results
SANTA CLARA, Calif. and ROUSSET, France, April 23 /PRNewswire/ -- PixTech, Inc.
(Nasdaq: PIXT; Easdaq) today announced financial results for the three-month period ended
March 30, 1997.
Revenues for the first quarter ended March 30, 1998 were $1.3 million compared to $517,000
in the fourth quarter of 1997. Product revenues declined from $165,000 dollars in the fourth
quarter to $21,000 for the first quarter of 1998. This decrease reflects a rapid transition from
prototype unit prices to volume unit prices, which has not yet been offset by a sufficient increase
in the number of displays shipped. The net loss for the first quarter of 1998 was $3.5 million or
$(0.25) per share compared to a net loss of $3.8 million or $(0.28) per share in the fourth
quarter of 1997.
Operating expenses for the first quarter totaled $4.9 million, compared to $5.1 million in the
fourth quarter of 1997. First quarter 1998 operating expenses include a one-time expense of
$125,000 representing the cost of a fully paid, non-exclusive license for FED-related patents
owned by Coloray in Ohio. PixTech has the option to extend the license to more patents within
the next 12 months.
Jean-Luc Grand-Clement, PixTech's Chairman and Chief Executive Officer, stated, ''We
continue to make progress at Unipac, our foundry partner in Taiwan. We have installed and
debugged all the equipment and are now in the last phase of process installation. We are on
schedule to start manufacturing of our displays at Unipac. Our first quarter was also highlighted
by two key events: first, the completion of the private placement with the Kaufmann Fund, which
will support our ramp up at Unipac; second, the announcement of PixTech's new President,
Dieter Mezger. We are pleased to have Dieter on board and in his short time with the company
he is already making an impact.''
The Company also announced that Richard Rodriguez, Executive Vice President and Chief
Operating Officer has resigned to pursue other interests and will be leaving the company in
early June.
About PixTech, Inc.
PixTech designs, develops and manufactures field emission displays (FEDs), a new type of
flat-panel display. The company operates a flat-panel display pilot manufacturing facility in
Montpellier, France and a R&D facility and sales office in Santa Clara, Calif. PixTech is
currently developing high-volume manufacturing capabilities for its FEDs in Taiwan, under a
contract manufacturing arrangement with Unipac, a Taiwanese AM-LCD manufacturer. PixTech
has also established a marketing partnership with Sumitomo Corporation, its exclusive
distributor in Japan. In addition, PixTech has formed an industrial alliance, sharing FED
technology, patents and know-how with Motorola, Raytheon and Futaba (Japan). More
information is available from the company's web site at www.pixtech.com.
Statements that are not historical facts, including statements about PixTech's confidence and
strategies, the timing of its manufacturing plans with Unipac, and its distribution agreement with
Sumitomo, the development of new or existing products, technologies and opportunities, marked
demand or acceptance of new or existing products are forward-looking statements that involve
risks and uncertainties. These uncertainties include but are not limited to, the ease or the
difficulty of the transfer of the FED technology to Unipac, product demand and market
acceptance risks, commitment of Unipac and/or of members of the FED Alliance, ability of the
company to expand the FED Alliance, validity and enforceability of PixTech's patent rights,
infringement by PixTech of other patent rights, impact of competitive product and prices,
product development, commercialization or technological delays or difficulties, trade, legal
social and economic risks and other risks detailed in PixTech's Securities and Exchange
Commission filing including its Form 10-K for the year 1997.
PixTech, Inc.
(a development stage company)
Selected Financial Information
(in thousands, except share and per share amounts)
The following selected financial data for the three-month period are derived from unaudited
consolidated financial statements of PixTech, Inc. The data should be read in conjunction with
consolidated financial statements, related notes, and other financial information included in the
Company's Registration Statement on Form S-1 as amended (Reg. No. 33-93024) and with the
Company's 10-K Form for the year ended December 31, 1997.
Three months ended (unaudited)
March 31, March 31, Dec. 31,
1998 1997 1997
Revenues:
Cooperation and license revenues $-- $707 $214
Product sales 21 173 165
Other revenues 1,232 673 138
Total Revenues 1,253 1,553 517
Cost of revenues
Licenses fees and royalties (79) -- (120)
Gross Margin 1,174 1,553 397
Operating expenses:
Research and development:
Acquisition of intellectual
property rights 125 -- --
Other 3,800 4,174 4,192
Total 3,925 4,174 4,192
Sales and marketing 339 380 345
General and administrative 637 606 520
Total operating expenses 4,901 5,160 5,057
Loss from operations (3,727) (3,607) (4,660)
Other income / (expense):
Interest income/(expense) (80) 131 46
Foreign exchange gains/(loss) 285 (238) 193
205 (107) 239
Income (loss) before income
tax benefit (3,522) (3,714) (4,421)
Income tax benefit -- -- 586
Net income (loss) $(3,522) $(3,714) $(3,835)
Net income (loss) per share $(0.25) $(.33) $(.28)
Shares used in computing proforma net
income (loss) per share 13,821 11,144 13,762
March 31, Dec. 31,
1998 1997
(unaudited)
Cash available $13,094 $12,428
Restricted cash - short term 1,676 1,259
Other current assets 2,468 3,903
Restricted cash - long term 8,380 8,816
Property and equipment (net) 20,824 9,353
Goodwill (net) 208 226
Other assets 5,161 5,663
Total assets $51,811 $41,648
Current liabilities $9,451 $8,300
Deferred revenues - long-term 1,294 2,546
Long-term debt and liabilities 22,307 12,022
Stockholders' equity 18,759 18,780
Total liabilities and
stockholders' equity $51,811 $41,648
SOURCE: PixTech, Inc. |
