Genesis Microchip Reports First Quarter Fiscal 2008 Financial Results

Thursday, July 26th, 2007

Expects Further Revenue Growth in Second Fiscal Quarter

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 first quarter of its fiscal year 2008, which ended June 30, 2007.

Financial results for the first quarter ended June 30, 2007:

  • Total revenues were $44.0 million, compared with $38.6 million for the quarter ended March 31, 2007;
  • GAAP gross margins were 38.5 percent, compared with 36.4 percent for the quarter ended March 31, 2007;
  • Non-GAAP (1) gross margins were 38.9 percent, compared with 37.0 percent for the quarter ended March 31, 2007;
  • The Company’s GAAP net loss was $10.7 million or $(0.29) per share, compared with a net loss of $15.5 million, or $(0.42) per share in the quarter ended March 31, 2007;
  • On a non-GAAP basis, the Company recorded a net loss of $6.7 million, or $(0.18) per share, compared with a net loss of $10.7 million, or $(0.29) per share in the quarter ended March 31, 2007.

“Our financial results for the first quarter came in at the upper end of our guidance and reflected increased demand for our LCD monitor offerings,” said Elie Antoun, president and CEO of Genesis Microchip. “We expect to achieve continued revenue growth in our fiscal second quarter, driven primarily by increases in our flat-panel TV controller business.”

First Quarter Highlights

The Company shipped 2.7 million flat-panel TV controller units and 9.9 million LCD monitor units during the quarter.

Genesis began shipments of its Torino product, the latest in its Cortez family of products, to four of the top ten flat-panel TV manufacturers worldwide.

The Company won initial designs for its DisplayPort controller solutions for the tier one PC market.

The Company closed the quarter with $186.4 million in cash and short-term investments. The Company had approximately 6 weeks of inventory supply at the end of the quarter. Days Sales Outstanding for the quarter were 47 days.