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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: John Rieman who wrote (32577)	4/22/1998 5:24:00 PM
From: Don Dorsey	Read Replies (4) \| Respond to of 50808

ESST is losing the price war. ESS Technology Reports First Quarter Results PR Newswire - April 22, 1998 16:19 FREMONT, Calif., April 22 /PRNewswire/ -- ESS Technology Inc. (Nasdaq: ESST) today reported a net loss of ($12.4) million, or ($0.30) per share, on net revenues of $52.9 million for the quarter ended March 31, 1998 primarily due to inventory reserves for video products. The Company reported a net profit for the first quarter of 1997 of $17.8 million, or $0.43 per share on revenues of $81.5 million. "We are disappointed with our current video business in the China market. We are experiencing intense price competition and slow seasonal demand. After a recent review of the China market, we decided to initiate a more aggressive marketing program for our video products which resulted in substantial inventory reserves for video products. Other factors contributing to our loss for the first quarter were higher costs associated with production shipments of our new modem products and a legal expense reserve associated with the patent lawsuit recently filed against the Company," said Fred Chan, Chairman and CEO. "In contrast to the video business, we are pleased with the performance of the audio business, the design wins for our new PCI audio products, and the acceptance we are receiving in our modem products. Looking forward, we expect the second quarter to continue to have slow seasonal demand with improved performance in the second half of the year."