Pixelplus Reports Financial Results for Fiscal Fourth Quarter 2007 and Fiscal First Quarter 2008

SEOUL, South Korea , June 16 /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 , June 16 /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 fourth quarter of fiscal 2007, which ended on December 31, 2007 , and also for the first quarter of fiscal 2008, which ended on March 31, 2008 .

Fourth Quarter of 2007 and Fiscal 2007

Revenue for the fourth quarter of fiscal 2007 was US$3.2 million, compared to US$4.8 million in the third quarter of fiscal 2007, and US$7.2 million in the fourth quarter of fiscal 2006. The Company's revenue in the fourth quarter of 2007 is consistent with the guidance the Company provided during its third quarter 2007 earnings call held on October 31, 2007 .

Net loss in the fourth quarter of fiscal 2007 was US$3.7 million, or a net loss of US$0.28 per diluted ADS, compared to a net loss of US$1.5 million, or a net loss of US$0.11 per diluted ADS, in the third quarter of fiscal 2007, and a net loss of US$5.1 million, or a net loss of US$0.40 per diluted ADS, in the fourth quarter of fiscal 2006.

Revenue for fiscal 2007 was US$17.8 million, compared to US$32.4 million for fiscal 2006. Net loss for fiscal 2007 was US$7.9 million, or a net loss of US$0.61 per diluted ADS, compared to a net loss of US$17.6 million, or a net loss of US$1.40 per diluted ADS, for fiscal 2006.

The Company sold roughly 3.0 million image sensors in the fourth quarter of 2007, which represented a decrease of about 1.2 million from its sale of around 4.2 million units in the third quarter of 2007. Further, the Company sold about 11.6 million image sensors in fiscal 2007, which represented a decrease of about 2.4 million units from its sale of roughly 14.0 million image sensors in fiscal 2006. Separately, the Company furnished approximately 1.2 million image sensors arising from its supply of services to a leading Japanese module maker in the fourth quarter of 2007, and provided over 19.0 million image sensors arising from its supply of services to this Japanese module maker in fiscal 2007. So, in terms of combined figures, the Company sold and supplied a total of about 4.2 million image sensors in the fourth quarter of 2007 and a total of roughly 30.6 million image sensors in fiscal 2007.

Gross margin for the fourth quarter of fiscal 2007 was negative 7.9%, compared to 26.1% in the third quarter of fiscal 2007. The negative gross margin was mainly attributed to the Company's lower-than-expected sales of its 1.3 megapixel products which caused the Company to incur excess inventory of those products and sustain a valuation loss of US$0.9 million arising from that excess inventory. Had the Company not recorded the inventory valuation loss, it would have reported a positive gross margin of 18.9% in the fourth quarter of 2007.

First Quarter of 2008

Revenue for the first quarter of fiscal 2008 was US$3.4 million, compared to US$3.2 million in the fourth quarter of fiscal 2007, and US$4.2 million in the first quarter of fiscal 2007. The Company's lower-than-expected revenue was primarily due to the seasonality of sluggish sales in Asia typically exhibited annually in the first quarter, especially with respect to the seasonally slow first quarter in China which caused the Company to sustain weaker-than-anticipated sales to Chinese distributors and module makers.

Net loss in the first quarter of fiscal 2008 was US$2.5 million, or a net loss of US$0.19 per diluted ADS, compared to a net loss of US$3.7 million, or a net loss of US$0.28 per diluted ADS, in the fourth quarter of fiscal 2007, and a net loss of US$1.1 million, or a net loss of US$0.08 per diluted ADS, in the first quarter of fiscal 2007.

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