Pixelplus Reports Financial Results for Fiscal Third Quarter 2007

SEOUL , South Korea , Oct. 30 /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 , Oct. 30 /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 third quarter of fiscal 2007, which ended on September 30, 2007 .

Revenue for the third quarter of fiscal 2007 was US$5.2 million, compared to US$6.1 million in the second quarter of fiscal 2007, and US$8.1 million in the third quarter of fiscal 2006. The Company's third quarter revenues were mainly due to lower than expected revenues arising from the Company's supply of services to a leading Japanese module maker. However, the Company expects this decrease in third quarter revenues acquired from this Japanese module maker to be short-term and temporary, as Pixelplus and the Japanese module maker are in the process of co-developing and transitioning to the Company's new line of third generation image sensors based on PlusPixel2(TM) technology.

Net loss in the third quarter of fiscal 2007 was US$1.6 million, or a net loss of US$0.12 per diluted ADS, compared to a net loss of US$1.8 million, or a net loss of US$0.14 per diluted ADS, in the second quarter of fiscal 2007, and a net loss of US$5.2 million, or a net loss of US$0.41 per diluted ADS, in the third quarter of fiscal 2006.

Revenue for the first nine months of fiscal 2007 was US$15.8 million, compared to US$27.3 million for the same period in fiscal 2006. Net loss for the first nine months of fiscal 2007 was US$4.6 million, or a net loss of US$0.35 per diluted share, compared to a net loss of US$13.1 million, or a net loss of US$1.06 per diluted share, for the same period in fiscal 2006.

The Company sold approximately 4.2 million image sensors in the third quarter of fiscal 2007, which represented an increase of about 1.2 million units from its sale of around 3.0 million units in the second quarter of fiscal 2007. Separately, the Company provided approximately 2.2 million image sensors arising from its supply of services to a leading Japanese module maker noted above in the third quarter of fiscal 2007. So, in terms of combined figures, the Company sold and supplied a total of about 6.4 million image sensors in the third quarter of fiscal 2007.

The Company is fully focused and committed to obtaining a major design win to supply its PO4010 CIF 'System-on-a-Chip' ("SoC") image sensors ("PO4010") for use in upcoming, high volume mobile camera phones of one of the world's largest mobile phone manufacturers based in Korea. The PO4010 is based on the Company's PlusPixel2(TM) technology and is one of the industry's smallest and most compact with an optical size of 1/11 inch. The PO4010 also uses 0.13 micron process technology, reduces optical form factor, incorporates an on- chip ISP to enhance overall image quality and sensitivity, supports full- motion video capture of 30 frames per second with power consumption of 41 mili-watts, and features a 3.6 micron pixel design which produces a dynamic range of over 100 dB. Pixelplus expects that its PO4010 will be featured in the Korean mobile phone manufacturer's 3G mobile phones with dual camera functionality which utilize two image sensors, a CIF image sensor for videoconferencing and a higher megapixel image sensor for taking digital photos. Although the Company has encountered some very minor and unexpected delays, its PO4010 is currently in the final stages of testing and inspection by the Korean mobile phone manufacturer, and the Company is confident that it will be in a position to secure a design win in the fourth quarter of 2007 and ship its PO4010 to that Korean manufacturer starting in the first quarter of 2008.

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