Published: March 25, 2011
Pixelplus Reports Financial Results for Fiscal Fourth Quarter 2010
SEOUL, South Korea, March 25, 2011 /PRNewswire/ -- Pixelplus Co., Ltd. (Pink Sheets: 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 fourth quarter of fiscal 2010, which ended on December 31, 2010.
Based on these unaudited results of operations which were prepared in accordance with Korean GAAP on a non-consolidated basis, revenue for the fourth quarter of fiscal 2010 was 7.5 billion Korean won (US$6.6 million), compared to 7.0 billion Korean won (US$6.1 million) in the third quarter of fiscal 2010, and 6.0 billion Korean won (US$5.3 million) in the fourth quarter of fiscal 2009.
Net income in the fourth quarter of fiscal 2010 was 0.9 billion Korean won (US$0.8 million), or a net income of 263 Korean won (US$0.23) per diluted ADS, compared to a net income of 1.6 billion Korean won (US$1.4 million), or a net income of 470 Korean won (US$0.4) per diluted ADS, in the third quarter of fiscal 2010, and a net income of 2.0 billion Korean won (US$1.8 million), or a net income of 584 Korean won (US$0.5) per diluted ADS, in the fourth quarter of fiscal 2009.
Gross margin for the fourth quarter of fiscal 2010 was 34.7%, compared to 40.5% in the third quarter of fiscal 2010. The Company's lower-than-expected gross margin was mainly due to decrease in the average selling price of its image sensor sold in the fourth quarter.
The Company's SG&A expenses in the fourth quarter of fiscal 2010 were about 1.0 billion Korean won (US$0.9 million), compared to roughly 0.9 billion Korean won (US$0.8 million) in the third quarter of fiscal 2010, and approximately 0.4 billion Korean won (US$0.4 million) in the fourth quarter of fiscal 2009. Moreover, the Company's operating expenses in the fourth quarter of fiscal 2010 were around 1.5 billion Korean won (US$1.3 million), compared to about 1.2 billion Korean won (US$1.0 million) in the third quarter of fiscal 2010, and approximately 0.5 billion Korean won (US$0.5 million) in the fourth quarter of fiscal 2009.
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 1130.6 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 December 31, 2010. 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.
"We remain fully committed to achieving our long-term growth targets and business strategies through developing new products, penetrating new markets, and securing new design wins," said Dr. S.K. Lee, CEO and Founder of Pixelplus. "We also are pleased to have more products in various stages of development and deployment than ever in our history. With these state-of-the-art products, we continue to develop our core strategic business and design and introduce cutting-edge technologies and approaches to image sensor manufacturing and release to the market other innovative technologies. In addition, we are encouraged that the Company continues to vigorously pursue cost-control measures and effectively manage our operating expenses. Separately and in parallel, we are working closely with our customers on a pro-active basis to provide them with higher resolution, better image quality, and smaller form factor products. While we aim to invest smartly in valued R&D programs and new market opportunities and do everything possible to ramp new sources of revenue, we positively believe that our strategic business will guide us to achieve our goals in the most cost-efficient and effective manner possible, and enable us to see continuing gains and improvements in 2011."
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. Investors are directed to Pixelplus' reports and documents filed from time to time with the U.S. Securities and Exchange Commission for a description of various factors that should be considered before investing in Pixelplus' securities. 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 fourth quarter of fiscal 2010 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
------------------
Dec. 31 Dec. 31
2010 2009
Revenues 7,469 5,970
Products 7,415 5,766
Services 54 204
Cost of revenues 4,878 3,315
Products 4,878 3,310
Services 0 5
Gross profit 2,592 2,656
----- -----
Operating expenses 1,511 522
Selling, general and
administrative 985 421
Research and
development, net of
government grants 526 101
Income(loss) from operations 1,080 2,134
----- -----
Other income(expense)
Interest
income(expense), net (46) (126)
Foreign exchange gain
(loss), net (47) (20)
Others, net (138) (130)
Income(loss) before income taxes 848 1,858
Income tax expenses - -
Income(loss) before gain(loss) from
equity method investments, net and
minority interest 848 1,858
Gain(loss) from equity method
investments, net 47 129
minority interest
Before cumulative effect of change in
accounting principle 896 1,987
Cumulative effect of change in
accounting principle 0 0
Net Income (loss) 896 1,987
=== =====
Accretion of preferred shares - -
--- ---
Net income(loss) attributable to
common shareholders 896 1,987
=== =====
Income(Loss) per ADS
- basic and diluted 263 584
ADSs used in computing Income(loss)
per ADS 3,403,433 3,403,433
- basic and diluted
YEAR ENDED
-----------
Dec. 31 Dec. 31
2010 2009
Revenues 25,346 17,469
Products 24,727 16,194
Services 619 1,275
Cost of revenues 15,986 11,798
Products 15,981 11,742
Services 5 57
Gross profit 9,360 5,671
----- -----
Operating expenses 5,332 4,413
Selling, general and
administrative 3,564 2,622
Research and
development, net of
government grants 1,768 1,790
Income(loss) from operations 4,028 1,258
----- -----
Other income(expense)
Interest
income(expense), net (251) (432)
Foreign exchange gain
(loss), net (154) 4
Others, net (86) 360
Income(loss) before income taxes 3,537 1,190
Income tax expenses - -
Income(loss) before gain(loss) from
equity method investments, net and
minority interest 3,537 1,190
Gain(loss) from equity method
investments, net 2 (93)
minority interest
Before cumulative effect of change in
accounting principle 3,539 1,098
Cumulative effect of change in
accounting principle - -
--- ---
Net Income (loss) 3,539 1,098
===== =====
Accretion of preferred shares - -
--- ---
Net income(loss) attributable to
common shareholders 3,539 1,098
===== =====
Income(Loss) per ADS
- basic and diluted 1,040 323
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)
Dec. 31, Dec. 31,
2010 2009
---- ----
Assets
Cash and cash equivalents 2,851 697
Restricted cash 5,000 5,000
Accounts receivable, net 133 428
Inventories, net 1,522 1,196
Other current assets 1,818 802
----- ---
Total current assets 11,324 8,123
Other non current assets 1,268 1,316
Total assets 12,592 9,439
====== =====
Liabilities, minority interest and
Shareholders' equity
Trade accounts payable 1,880 2,708
Other accounts payable 413 169
Short-term borrowings 7,690 7,690
Other current liabilities 276 574
--- ---
Total current liabilities 10,259 11,141
Long-term borrowings 0 0
Other non current
liabilities 971 428
--- ---
Total liabilities 11,229 11,569
Shareholders' equity
Common stock 3,403 3,403
Additional paid-in
capital 7,450 7,450
Accumulated other
comprehensive 0 2
loss
Accumulated deficit (9,491) (12,985)
------- ------
Total Shareholders'
equity 1,362 (2,130)
----- -----
Total liabilities, minority
interest and Shareholders' equity 12,592 9,439
====== =====
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.
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