Pixelplus Reports Financial Results for Fiscal Second Quarter 2007

SEOUL , South Korea , July 31 /PRNewswire-FirstCall/ -- Pixelplus Co., Ltd. (Nasdaq: PXPL), a fabless semiconductor company in Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today...


SEOUL , South Korea , July 31 /PRNewswire-FirstCall/ -- Pixelplus Co., Ltd. (Nasdaq: PXPL), a fabless semiconductor company in Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today announced unaudited financial results for the second quarter of fiscal 2007, which ended on June 30, 2007 .

Revenue for the second quarter of fiscal 2007 was US$6.1 million, compared to US$4.4 million in the first quarter of fiscal 2007, and US$8.3 million in the second quarter of fiscal 2006.

Net loss in the second quarter of fiscal 2007 was US$1.8 million, or a net loss of US$0.14 per diluted ADS, compared to a net loss of US$1.1 million, or a net loss of US$0.09 per diluted ADS, in the first quarter of fiscal 2007, and a net loss of US$5.5 million, or a net loss of US$0.45 per diluted ADS, in the second quarter of fiscal 2006.

Revenue for the first six months of fiscal 2007 was US$10.5 million, compared to US$19.0 million for the same period in fiscal 2006. Net loss for the first six months of fiscal 2007 was US$3.0 million, or a net loss of US$0.23 per diluted share, compared to a net loss of $7.9 million, or a net loss of US$0.64 per diluted share, for the same period in fiscal 2006.

The Company sold approximately 3.0 million image sensors in the second quarter of fiscal 2007, which represented an increase of about 1.8 million units from its sale of around 1.2 million units in the first quarter of fiscal 2007. Separately, the Company provided approximately 7.4 million image sensors arising from its supply of services to a leading Japanese module maker in the second quarter of fiscal 2007, which represented a decrease of about 0.8 million units from its supply of around 8.2 million units in the first quarter of fiscal 2007. So, in terms of combined figures, the Company sold and supplied a total of about 10.4 million image sensors in the second quarter of fiscal 2007, which represented an increase of roughly 1.0 million units from its sale and supply of around 9.4 million units in the first quarter of fiscal 2007.

Gross margin for the second quarter of fiscal 2007 was roughly 36%, compared to approximately 26% in the first quarter of fiscal 2007.

The Company's SG&A expenses in the second quarter of fiscal 2007 were about US$2.9 million, compared to roughly US$1.4 million in the first quarter of fiscal 2007, and approximately US$3.8 million in the second quarter of fiscal 2006. Moreover, the Company's operating expenses in the second quarter of fiscal 2007 were around US$4.1 million, compared to about US$2.9 million in the first quarter of fiscal 2007, and approximately US$5.3 million in the second quarter of fiscal 2006. Compared to the first quarter of fiscal 2007, the increase in the Company's SG&A and operating expenses in the second quarter of fiscal 2007 is mainly attributable to the Company's accounting and legal fees paid to its independent outside accountants and legal counsel arising from their work on Pixelplus' Form 20-F which was filed on June 29, 2007 .

The Company expects its revenues in the third quarter of fiscal 2007 to be greater than its revenues sustained in the second quarter of fiscal 2007.

Pixelplus will hold an investor conference call at 5:00 PM Monday, July 30 (New York) / 10:00 PM Monday, July 30 ( London ) / 5:00 AM Tuesday, July 31 (Hong Kong/Singapore) / 6:00 AM Tuesday, July 31 (Seoul/Tokyo). To access the Pixelplus investor call, please dial one of the following numbers: +1 480 629 9562 ( North America ) / +44 20 7190 1596 ( Europe ) / +81 3 3570 8179 (Asia).

To obtain replay details for the call, available for a limited time, please contact Taylor Rafferty at the numbers provided below.

About Pixelplus Co., Ltd.

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