Genesis Microchip Reports Third Quarter Fiscal 2007 Financial ResultsMonday, January 29th, 2007
Company Introduces Next-Generation Single-Chip HDTV Solution; Begins Actions to Reduce Operating Expenses
SAN JOSE, Calif. — Genesis Microchip Inc. (Nasdaq: GNSS), a world leader in the development of image processing technologies for flat-panel TVs, monitors and other consumer display products, today announced its financial results for the third quarter of fiscal year 2007, which ended December 31, 2006.
Third Quarter Recap
Flat-panel TV controller shipments were 3.3 million units, down approximately 35 percent from 5.1 million units in the September quarter. LCD monitor controller shipments were 10.1 million units, a 12 percent decrease from the prior quarter. TV revenues represented approximately 55 percent of total revenues during the quarter. (2)
The Company’s third quarter net loss includes $4.9 million in charges for non-cash, stock-based compensation and the amortization of intangible assets, a $101.0 million charge for the impairment of goodwill and other intangible assets, and a $16.8 million charge to its tax provision as a result of an increase to its valuation allowance for deferred tax assets in a certain jurisdiction.
GAAP and non-GAAP loss per share also include a one-time charge of $4.5 million for the previously announced settlement with Silicon Image, which is included in selling, general and administrative expenses.
The Company closed the quarter with $193.7 million in cash and short-term investments. The Company had approximately 8 weeks of inventory on hand at the end of the quarter and Days Sales Outstanding (DSO) improved by three days to 51 days.
At the 2007 Consumer Electronics Show (CES) earlier this month, Genesis launched its new, integrated Chaplin DTV system-on-a-chip family, which is currently sampling to major TV manufacturers worldwide. Genesis also announced version 1.1 of the DisplayPort interconnect standard, which adds High Bandwidth Digital Content Protection support, in conjunction with industry leaders Dell, HP, Lenovo, Intel, AMD and others at the VESA press conference held during CES. The event highlighted the growing momentum for DisplayPort as the interconnect standard of the future for the PC industry.