Genesis Microchip Reports Second Quarter Fiscal 2008 Financial ResultsThursday, November 1st, 2007
Announces Solid Revenue Growth, Key Executive Management Appointments
SANTA CLARA, Calif. — Genesis Microchip Inc. (Nasdaq:GNSS), a world leader in the development of image and video processing technologies for flat-panel TVs, monitors and other consumer display products, today announced its financial results for the second quarter of its fiscal year 2008, which ended September 30, 2007.
Financial results for the second quarter ended September 30, 2007:
- Total revenues were $57.5 million, compared with $44.0 million for the quarter ended June 30, 2007;
- GAAP gross margins were 33.1 percent, compared with 38.5 percent for the quarter ended June 30, 2007. In the current quarter, we recorded a charge of approximately $2.0 million related to the write-off of mask sets and related inventory. This write-off impacted our gross margins by 3.5 percent;
- Non-GAAP gross margins were 33.5 percent, compared with 38.9 percent for the quarter ended June 30, 2007. In the current quarter, we recorded a charge of approximately $2.0 million related to the write-off of mask sets and related inventory. This write-off impacted our gross margins by 3.5 percent;
- The Company’s GAAP net loss was $16.8 million or $(0.45) per share, compared with a net loss of $10.7 million or $(0.29) per share in the quarter ended June 30, 2007. In the second fiscal quarter, Genesis recorded a non-cash write-down of $8.7 million or $(0.23) per share from its investment in Mobilygen Corporation;
- On a non-GAAP basis, the Company recorded a net loss of $4.6 million or $(0.12) per share, compared with a net loss of $6.7 million, or $(0.18) per share in the quarter ended June 30, 2007.
“Our fiscal second quarter saw solid revenue growth driven by an expected increase in our TV business,” said Elie Antoun, president and CEO of Genesis Microchip. “In order to further strengthen the Company’s customer support and engineering focus, we decided to migrate all of our HDTV customer designs to the Douglas platform, which impacted our gross margins in the quarter.
“On the organizational front, I am very pleased to welcome to the Genesis executive management team Rick Martig, our new Chief Financial Officer, and Robert Haefling, our new General Manager of the DisplayPort/Monitor business,” concluded Antoun.
As was announced earlier today, the Company has appointed Rick Martig as Chief Financial Officer and Senior Vice President of Finance, effective November 5, 2007. Mr. Martig previously served as Senior Director of Corporate Finance at Xilinx, Inc., where he managed worldwide accounting operations in San Jose, Dublin and Singapore.
Robert Haefling was appointed as General Manager and Senior Vice President of the Company’s DisplayPort and monitor business, effective November 1, 2007. Mr. Haefling previously served as CEO of Meridian Audio Group, a UK-based high-end home theater solutions provider and prior to that was employed by Genesis from 2002 until 2006.
The Company shipped 3.9 million flat-panel TV controller units and 10.9 million LCD monitor units during the quarter.
The Company expects to ramp its Douglas HDTV solution into mass production with one of its leading Tier-1 OEMs by the end of the December quarter, with additional Tier-1 and China OEM customers expected to commence production within the next two quarters.
The Company closed the quarter with $182.8 million in cash and short-term investments. The Company had approximately 5.1 weeks of inventory at the end of the quarter. Days Sales Outstanding for the quarter were 48 days.