Pixelplus Reports Financial Results for Fiscal First Quarter 2011
SEOUL, South Korea, May 31, 2011 /PRNewswire/ — Pixelplus Co., Ltd. (PXPLY), a fabless semiconductor company in South Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today announced unaudited financial results for the first quarter of fiscal 2011, which ended on March 31, 2011.
Based on these unaudited results of operations which were prepared in accordance with Korean GAAP on a non-consolidated basis, revenue for the first quarter of fiscal 2011 was 7.3 billion Korean won (US$6.7 million), compared to 7.5 billion Korean won (US$6.8 million) in the fourth quarter of fiscal 2010, and 4.1 billion Korean won (US$3.7 million) in the first quarter of fiscal 2010.
Net income in the first quarter of fiscal 2011 was 1.0 billion Korean won (US$0.9 million), or a net income of 292 Korean won (US$0.27) per diluted ADS, compared to a net income of 0.9 billion Korean won (US$0.8 million), or a net income of 263 Korean won (US$0.24) per diluted ADS, in the fourth quarter of fiscal 2010, and a net income of 0.3 billion Korean won (US$0.3 million), or a net income of 94 Korean won (US$0.09)per diluted ADS, in the first quarter of fiscal 2010.
Gross margin for the first quarter of fiscal 2011 was 36.8%, compared to 34.7% in the fourth quarter of fiscal 2010.
The Company’s SG&A expenses in the first quarter of fiscal 2011 were about 1.0 billion Korean won (US$0.9 million), compared to roughly 1.0 billion Korean won (US$0.9 million) in the fourth quarter of fiscal 2010, and approximately 0.8 billion Korean won (US$0.8 million) in the first quarter of fiscal 2010. Moreover, the Company’s operating expenses in the first quarter of fiscal 2011 were around 1.6 billion Korean won (US$1.5 million), compared to about 1.5 billion Korean won (US$1.4 million) in the fourth quarter of fiscal 2010, and approximately 1.3 billion Korean won (US$1.1 million) in the first quarter of fiscal 2010.
The U.S. dollar amounts disclosed in this earnings release are presented solely for the convenience of the reader, and have been converted at the rate of 1097.25 Korean won to one U.S. dollar, which is the noon buying rate of the U.S. Federal Reserve Bank of New York in effect on March 31, 2011. Such conversions should not be construed as representations that the Korean won amounts represent, have been, or could be, converted into, U.S. dollars at that or any other rate.
“The key to our consistent growth and success will be our ability to transform our organization to achieve long-term profitability. For this aim, I believe our strategic and ongoing cost-control measures should help us decrease our cash requirements, concentrate on our core business, maintain our continuity, and improve the efficiency of our operations,” said Dr. S.K. Lee, CEO and Founder of Pixelplus. “While we positively pursue these cost-control measures, we continue to design and introduce new products, technologies, and approaches to image sensor manufacturing and release to the market other innovative technologies currently in research and development later this year. We also continue to develop our core strategic business for automobile and security and surveillance applications, as well as with medical endoscope manufacturers in South Korea and key distributors and manufacturers in China, Hong Kong, Taiwan, and Japan. Separately, to improve profitability, we are committed to enhancing the quality, capacity, and production yields for all of our products and are working vigorously with all parts of our supply chain to increase efficiencies, streamline the production process, and drive down costs to ensure that we operate under the most cost-effective model possible.”
Korean GAAP
The financial results mentioned in this earnings release were prepared and presented in accordance with Korean GAAP on a non-consolidated basis. Significant differences exist between Korean GAAP and U.S. GAAP, including accounting principles with respect to the consolidation of financial results of any subsidiary, which might be material to the non-consolidated financial information provided in this release.
About Pixelplus Co., Ltd.
Pixelplus is a South Korea-based developer of high-performance, high-resolution, and cost-effective CMOS image sensors for use primarily in mobile camera phones. In addition to mobile phones, Pixelplus provides CMOS image sensors and SoC solutions for use in webcams and notebook embedded cameras, toys and games, and security and surveillance system applications.
As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop CMOS image sensors with sharp, colorful and enhanced image quality, size efficiency, and low power consumption.
Forward Looking Statement
This earnings release contains certain statements that are not historical in nature but are “forward-looking statements” within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” or “continue” or the negative of such words or other similar words. Pixelplus cautions readers that forward-looking statements are based on the Company’s current expectations, estimates and assumptions about our company and our industry, and are subject to a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. These factors may cause Pixelplus’ results to differ materially from the forward-looking statements made in this release. The forward-looking statements speak only as of the date of this earnings release, and Pixelplus assumes no duty or obligation to update them to reflect new, changing, or unanticipated events or circumstances. The financial results for the first quarter of fiscal 2011 contained in this document have not been audited by Pixelplus’ independent registered public accountants.
Contact:
Hae-Su Hwang
Pixelplus Co., Ltd.
6th Floor, Gyeonggi R&DB Center
906-5 Iui-dong, Yeongtong-gu
Suwon-si, Gyeonggi-do, 443-766
Republic of Korea
+82-31-888-5307
OR
Taylor Rafferty:
London -Emilia Whitbread at +44 (0)20 7614 2909
Rob Newman at +44 (0)20 7614 2900
E-mail pixelplus@taylor-rafferty.com
Pixelplus Co., Ltd.
Non-Consolidated Statements of Operations
(In millions of Korean won, except per ADS data)
(Unaudited)
THREE MONTHS ENDED
------------------
Mar. 31 2011 Mar. 31 2010
------------ ------------
Revenues 7,367 4,063
Products 7,304 3,756
Services 63 306
Cost of revenues 4,656 2,416
Products 4,656 2,414
Services 0 2
Gross profit 2,711 1,646
----- -----
Operating expenses 1,627 1,254
Selling,
general and
administrative 1,045 829
Research and
development,
net of
government
grants 582 425
Income(loss) from operations 1,084 393
----- ---
Other income(expense)
Interest
income(expense),
net (50) (99)
Foreign exchange
gain (loss),
net (54) (2)
Others, net 13 75
Income(loss) before income
taxes 994 366
Income tax expenses - -
Income(loss) before
gain(loss) from equity
method investments, net and
minority interest 994 366
Gain(loss) from equity method
investments, net 0 (45)
Minority interest
Before cumulative effect of
change in accounting
principle 994 321
Cumulative effect of change
in accounting principle 0 0
Net Income (loss) 994 321
=== ===
Accretion of preferred shares - -
--- ---
Net income(loss) attributable
to common shareholders 994 321
=== ===
Income(Loss) per ADS
-basic and
diluted 292 94
ADSs used in computing
Income(loss) per ADS 3,403,433 3,403,433
-basic and
diluted
Pixelplus Co., Ltd.
Non-Consolidated Balance Sheets
(In millions of Korean won, except per ADS data)
(Unaudited)
Mar. 31, 2011 Dec. 31, 2010
------------- -------------
Assets
Cash and cash
equivalents 2,350 2,851
Restricted cash 400 5,000
Accounts receivable,
net 131 133
Inventories, net 2,507 1,522
Other current assets 2,017 1,818
----- -----
Total current assets 7,405 11,324
Other non current
assets 1,150 1,268
Total assets 8,555 12,592
===== =====
Liabilities, minority interest
and Shareholders' equity
Trade accounts
payable 2,003 1,880
Other accounts
payable 383 413
Short-term borrowings 1,600 7,690
Bond with warrants 958 0
Other current
liabilities 106 276
--- ---
Total current
liabilities 5,049 10,259
Long-term borrowings
Other non current
liabilities 1,106 971
----- ---
Total liabilities 6,154 11,229
Shareholders' equity
Common stock 3,403 3,403
Additional paid-in
capital 109 7,450
Accumulated other
comprehensive
loss
Accumulated deficit (1,111) (9,491)
------- ------
Total Shareholders'
equity 2,401 1,362
----- -----
Total liabilities, minority
interest and Shareholders'
equity 8,555 12,592
===== ======
The Company’s functional currency on its financial statements is the Korean won. Please note that the above non-consolidated financial statements were prepared in accordance with Korean GAAP.
SOURCE Pixelplus Co., Ltd.