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...


The Company sold approximately 4.3 million image sensors in the first quarter of 2008, which represented an increase of about 1.3 million units from its sale of around 3.0 million units in the fourth quarter of 2007. Separately, the Company provided approximately 1.1 million image sensors arising from its supply of services to a leading Japanese module maker in the first quarter of 2008, which represented a decrease of about 0.1 million units from its supply of around 1.2 million units in the fourth quarter of 2007. So, in terms of combined figures, the Company sold and supplied a total of about 5.4 million image sensors in the first quarter of 2008, which represented an increase of roughly 1.2 million units from its sale and supply of around 4.2 million units in the fourth quarter of 2007.

Gross margin for the first quarter of fiscal 2008 was 11.5%, compared to negative 7.9% in the fourth quarter of fiscal 2007. The Company's lower-than-expected gross margin was mainly due to its weaker-than-expected revenues arising from its supply of services to a leading Japanese module maker. However, as Pixelplus is currently working very closely with this Japanese module maker to co-develop and transition to the Company's new line of third generation image sensors featuring its PlusPixel2(TM) technology and incorporating the Japanese module maker's pixel design and architecture based on its CCD technology, the Company believes its gross margin will improve in subsequent quarters.

The Company expects its revenue in the second quarter of fiscal 2008 to sustain a percentage increase of at least 10% over the first quarter of fiscal 2008. The Company also expects to engage in its second quarter 2008 earnings announcement and earnings call on or before July 31, 2008 .

"We are confident that the Company's complete and successful transition to our new SoC image sensors based on PlusPixel2(TM) technology will enable us to achieve our goals, and we will continue to dedicate all of our efforts and energies on achieving our long-term growth targets and business strategies through developing new products, entering new markets, and securing new design wins," said Dr. S.K. Lee , CEO and Founder of Pixelplus. "Strong and steadily growing demand for our third generation image sensors based on PlusPixel2(TM) technology is expected to positively affect the Company's results of operations, with revenues projected to increase considerably starting in the third quarter of 2008, based on the assumption that current order flows continue. Our new products, including our PO4010 CIF 'System-on-a-Chip' or "SoC", PO6030 VGA SoC, and PC1030 NTSC/PAL image sensors, as well as our PM1002, which is the Company's new SoC processor for various image recognition applications, continue to perform in line with our expectations, and we have more products in various stages of development and deployment than ever in our history. In addition, we are very encouraged that we continue to effectively manage our operating expenses, and believe this demonstrates that we have significantly lowered our breakeven point over the course of the last few quarters. We also continue to develop our core strategic business with first and second-tier mobile camera phone manufacturers in Korea, with key distributors as well as manufacturers of security and surveillance applications and notebook embedded cameras in China , Hong Kong , and Taiwan , and with a leading module marker in Japan through our co-development of image sensors, and we will do everything possible to ramp new sources of revenue in moving forward. We are highly encouraged by our prospects and expect to significantly improve our growth and return to profitability in the second half of 2008 fueled by the strength of our new product line, as well as growth within the mobile, security and surveillance, and automotive applications markets which is expected to continue and ramp sharply upward later this year."

Pixelplus will hold an investor conference call at 5:00 PM Monday, June 16 ( New York ) / 10:00 PM Monday, June 16 ( London ) / 5:00 AM Tuesday, June 17 ( Hong Kong / Singapore ) / 6:00 AM Tuesday, June 17 ( Seoul / Tokyo ). To access the Pixelplus investor call, please dial one of the following numbers: +1 480 629 1990 ( North America ) / +1 480 629 1990 ( 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.