September quarter revenue grew 34% sequentially
SUNNYVALE, Calif., Oct 25, 2006 /PRNewswire-FirstCall via COMTEX News Network/ --
Trident Microsystems, Inc. (Nasdaq: TRID) a leading provider of digital TV technology for the consumer digital video marketplace today announced for the first fiscal quarter of 2007, ending September 30, 2006, the company achieved net revenues of $70,109,000, a sequential increase of 34% from the $52,213,000 reported in the June 30, 2006 quarter and a 111% year over year increase from the $33,204,000 reported in the quarter ended September 30, 2005.
The company's cash and short term investments at September 30, 2006 totaled $166.9 million -- an increase of $14.2 million over the comparable $152.7 million June 30, 2006 balance. This also represented an increase of $60.9 million over the comparable $106.0 million balance at September 30, 2005.
Accounts receivable, net of an allowance for doubtful accounts and sales returns, was $11.3 million as compared to $3.6 million at June 30, 2006 and $6.1 million at September 30, 2005.
Although days of inventory on hand decreased by approximately 2 days, because of the increased volume of business and the fact that the company believes it is heading into a front-end loaded quarter, absolute inventory increased to $20.1 million from $15.0 million at June 30, 2006, and $5.0 million at the end of September 30, 2005.
As previously discussed, a Special Committee of the company's Board of Directors is continuing to conduct an independent investigation regarding the company's practices in administering stock option grants. Although the investigation and review of these matters is continuing, the company has reached a preliminary conclusion that the actual measurement dates for financial accounting purposes of certain stock option grants issued in the past may have differed from the recorded grant dates of such awards. Accordingly, the company believes it will have to record additional non-cash charges for stock-based compensation expense and restate previous financial statements, but is not yet able to determine the final amount of such charges or the resulting tax and accounting impact of these actions. Accordingly, the company is not providing detailed GAAP or Non-GAAP financial information for the quarter or fiscal year ended June 30, 2006 or the quarter ended September 30, 2006.
The company intends to issue full results for the fiscal year ended June 30, 2006, and to file its Annual Report on Form 10-K for that period, together with any restated historical financial statements, as soon as practicable after completion of the Special Committee review.
"This is an exciting time for Trident. We are pleased to report strong sequential revenue growth of 34% in the September quarter," said Mr. Frank Lin, Trident's Chairman and CEO. "Our growth has been broad based. Our top-tier OEM's, namely, Sony, Samsung and Sharp, continued to be the major driver -- growing in aggregate by approximately 24% and accounting for approximately 70% of our total revenue. The rest of the customer base also showed strong sequential growth of approximately 67%," continued Mr. Lin. "Trident's revenue growth momentum remains strong in the flat panel TV marketplace. We expect to add one more top-tier OEM account into our customer base and occupy significant share of such customer's worldwide volume in calendar 2007. We have also expanded our penetration into other key OEM's, including but not limited to the recently announced Toshiba LCDTV design win."
"For the HiDTV product family, we are currently working closely with a few top-tier OEM's and we believe we're on track to deliver design wins by the end of this year. Furthermore, we do expect to continue building up design-win momentum and market share with our HiDTV SOC product offering into 2007/2008. Our strength comes mainly from the quality of our video processing and we continue to hold a strong position in the mid to high end quality segment for the calendar 2007 design cycle," said Mr. Lin.
On the development front, we are very pleased to report that our 7th generation product SVP UX/WX and HiDTV Pro CX are coming on-line smoothly and in accordance with our product development plan, and these products have been very well received by the market. These exciting products will move our video quality even higher by including new advanced features such as ME/MC (motion-estimation/motion-compensation) judder-free technology that greatly improves picture quality in fast motion scenes, which is particularly important in the European market. We expect to start generating revenue from the SVP UX/WX starting in the quarter ending March 31, 2007 and from HiDTV Pro CX in the second half of calendar 2007.
Having experienced much stronger sequential growth in the September quarter than our original expectation, we now expect the December quarter to be relatively flat or slightly up from the September quarter revenue levels |
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