ViXS reports fourth quarter and fiscal 2014 results

TORONTO, ON — ViXS Systems Inc. (TSX: VXS), a pioneer and leader in media processing solutions, reported its fourth quarter and fiscal year results for the period ended January 31st, 2014. All results are reported under International Financial Reporting Standards (“IFRS”) and in U.S. dollars, unless otherwise specified. ViXS reported Q4FY14 revenue of $7.0 million, gross margin of 40.7%, total comprehensive loss of $7.5 million, and non-IFRS net loss of $6.7 million.

                         Three Month Period Ended       Fiscal Years Ended
                        January    October    January
                            31,        31,        31,      January 31,
Dollar amounts in
 U.S. dollars              2014       2013       2013       2014       2013
                     -------------------------------------------------------
Amounts in thousands

Revenues                 $7,039     $7,294     $9,576    $30,416     35,697
                     -------------------------------------------------------
Comprehensive income
 (loss) for the
 period                 ($7,620)   ($5,161)   ($3,702)  ($32,614)     4,937
                     =======================================================

Products / Customer Developments

• ViXS began shipments of XCode6400 family in F4Q14, the only shipping system-on-a-chip to support UltraHD 4K 10-bit HEVC.
• XCodePro Chipsets became the first to support HEVC processing up to Ultra UD 4 Resolutions for Cloud Content Distribution.
• ViXS announced RDK license and commencement of development of RDK platform
• ViXS 10-bit HEVC decoder the de facto standard for testing 4K HEVC streams at NAB

Customer and Partnership Announcements

• Intel selects ViXS as partner for its DOCSIS-based media processing platform supporting 10-bit HEVC for the large cable, IPTV and satellite markets. Intel has roughly half of the DOCSIS 3.0 market share.
• NTT-Plala selects XCode6400 to drive its UltraHD 4K HEVC 60p “Hikari-TV” VOD trial throughout Japan, on Sumitomo STB.
• Panasonic began shipments of their latest UltraHD 4K consumer ready television, based on ViXS XCode 6403.
• NGCodec and ViXS partnered to license technology and intellectual property for H.265/High Efficiency Video Codec Main 10 Profile decoder, targeting the mobile market.