Fourth Quarter 2005
Pixelplus reported total revenues of $14.1 million for the fourth quarter of 2005, the highest total revenues for a fiscal quarter in its corporate history and 36% increase over the fourth quarter of 2004 and a 6% increase from the third quarter of 2005. This was the third consecutive quarter of revenue growth for the Company. Net income for the quarter was $0.6 million, or $0.06 per diluted ADS, based on 9,823,507 weighted average ADSs outstanding. This is compared to net income (loss) in the fourth quarter of 2004 of $0.3 million, or ($0.02) per diluted ADS, based on 5,208,000 weighted average ADSs outstanding. Net income in the third quarter of 2005 was $2.1 million, or $0.20 per diluted ADS, based on 7,267,926 weighted average ADSs outstanding. This included a significant one-time gain due to sales of reserved inventory.
On a Non-GAAP basis, which excludes stock-based compensation charges, net income for the fourth quarter of 2005 was $1.2 million, or $0.12 per diluted ADS, based on 9,823,507 weighted average ADSs outstanding, compared to net income of $0.4 million, or $0.005 per diluted ADS, based on 5,208,000 weighted average ADSs outstanding for the fourth quarter of 2004. In the third quarter of 2005, Non-GAAP net income was $2.4 million, or $0.17 per diluted ADS, based on 9,670,592 weighted average ADSs outstanding. This included a significant one-time gain due to sales of reserved inventory.
Fiscal Year Ended December 31, 2005
For the fiscal year ended December 31, 2005, Pixelplus reported total revenues of $44.2 million, up 25% from $35.4 million in fiscal year ended December 31, 2004. Net Income for the fiscal year was $1.8 million, or $0.19 per diluted ADS, based on 9,698,676 weighted average ADSs outstanding. This is a significant increase from fiscal year 2004 net loss of ($4.0) million, or ($1.16) per diluted ADS, based on 5,208,000 weighted average ADSs outstanding.
On a Non-GAAP basis, which excludes one time inventory and stock-based compensation charges, net income for the full year 2005 was $2.9 million, or $0.30 per diluted ADS, based on 9,698,676 weighted average ADSs outstanding, compared to a net loss of $0.3 million, or ($0.33) per diluted ADS, based on 5,208,000 weighted average ADSs outstanding.
Commenting on the results, Dr. SK Lee, the CEO of Pixelplus said, "We are delighted to report record revenues for the fourth quarter. These strong financial results are further evidence that our focused strategy to become a worldwide leader in camera SoC technology and a total solution provider for imaging applications is taking hold. We continue to generate value from our broad range of high-quality image sensor products and from our strong base of existing customer relationships. Our flexible fabless operations are ideally suited to address the shifting needs of our customers. And our expert in-house R&D capabilities allow us to stay ahead of the global technology curve."
"Looking forward to 2006 and beyond, we will continue our strategic shift to focus on selling image sensor chips rather than camera modules. At the same time, we will leverage our leading-edge technological expertise to introduce next generation image sensor products for biometric and medical applications this year."
Fourth Quarter Highlights -- Pixelplus recognizes record revenues of $14.1 million in the fourth quarter of 2005. This revenue increase also represents the third consecutive quarter of revenue growth. -- Gross Profit was $3.9 million in the fourth quarter of 2005, up 61.3% from $2.4 million in the fourth quarter of 2004. This is a decrease of 19.7% from the previous quarter, mainly due to sales of reserved inventories during the third quarter of 2005. -- Net Income of $0.6 million compared to $0.3 million in the fourth quarter of 2004. -- Total units of chips sold during the fourth quarter of 2005 were approximately 4.8 million, a 10% increase from the previous quarter. Sales of modules were recorded at 0.4 million units, down approximately 50% from the previous quarter, as the company continues to shift its strategic focus from modules to chip business. -- New customer acquisition: Logitech, a leading global manufacturer of PC peripherals, joins Pixelplus' expanding global customer list. Teleconference
Pixelplus will host a conference call to review results for the fourth quarter and full year 2005 today, February 2, at 8:00AM New York/10:00PM Seoul. To ensure a line is reserved for you, please register for the call online at: http://invite.taylor-rafferty.com/_pixelplus/conferencecall
Alternatively, dial-in and replay numbers are below: Dial-in Numbers Replay Numbers Passcode: 4631543 Passcode: 4631543 US: +1 913 981 5509 +1 719 457 0820 UK: +44 (0) 20 7365 1847 +44 (0) 20 7784 1024 Asia: +81 (0) 3 3570 8232 +81 (0) 3 3570 8212 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 for use in personal computer cameras and security and surveillance system applications.
As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop image sensors with sharp, colorful and enhanced image quality, size efficiency and low power consumption. For more information, please visit the Company's Web site at http://www.pixelplus.com .
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's reports and documents filed from time to time with the US 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 press 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 2005 contained in this document have not been audited by Pixelplus' independent registered public accountants.
Contact Details: Moon Sung (Ryan) Kim Pixelplus Co., Ltd. 5th Floor, Intellige I, KINS Tower 25-1 Jeongja-dong, Bundang-gu, Seongnam-si Gyeonggi-do 463-811, The Republic of Korea +82-31-600-5300 OR Taylor Rafferty: London - Mark Walter at +44 (0)20 7614 2900 New York - Luis Severiano at +1 212 889 4350 Seoul - Min Kim at +82 (0)2 2000 5753 Tokyo - Yuhau Lin at +81 (0)3 5733 2620 Email Email Contact Pixelplus Co., Ltd. Consolidated Income Statements (in thousands, except per ADS data) (unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED Dec. 31, Dec. 31, Sep. 30, Dec. 31, Dec. 31, 2005 2004 2005 2005 2004 Revenues $14,053 $10,306 $13,235 $44,170 $35,442 Products 13,427 9,061 12,516 41,272 31,046 Services 626 1,245 719 2,897 4,397 Cost of revenues 10,203 7,920 8,438 32,947 31,969 Products 10,045 7,668 8,345 32,406 31,146 Services 158 252 93 540 823 Gross profit 3,850 2,386 4,797 11,223 3,473 Operating expenses 2,751 2,034 2,402 8,738 7,105 Selling, general and administrative 1,834 899 1,337 5,348 3,926 Research and development, net of government grants 917 1,136 1,065 3,390 3,179 Gain (loss) from operations 1,099 352 2,395 2,485 (3,632) Net interest income(expense) and other 10 16 (214) (323) 109 Gain (loss) before income taxes and gain (loss) from equity method investments 1,109 368 2,181 2,162 (3,523) Income tax expenses 0 (24) 0 0 232 Gain (loss) before gain (loss) from equity method investments 1,109 392 2,181 2,162 (3,755) Loss from equity method investments, net (514) (82) (90) (730) (269) Dilution gain from equity method investments 0 0 0 407 0 Net income (loss) $595 $310 $2,091 $1,839 ($4,024) Net income (loss) per ADS Basic $0.08 ($0.02) $0.27 $0.24 ($1.16) Diluted $0.06 ($0.02) $0.20 $0.19 ($1.16) ADSs used in computing net income per ADS : Basic 7,855,231 5,208,000 5,208,000 7,672,310 5,208,000 Diluted 9,823,507 5,208,000 7,267,926 9,698,676 5,208,000 Non-GAAP net income $1,163 $443 $2,355 $2,927 $336 Non-GAAP net income (loss) per ADS Basic $0.15 $0.005 $0.32 $0.38 ($0.33) Diluted $0.12 $0.005 $0.17 $0.30 ($0.33) ADSs used in computing non-GAAP net income per ADS : Basic 7,855,231 5,208,000 5,208,000 7,672,310 5,208,000 Diluted 9,823,507 5,208,000 9,670,592 9,698,676 5,208,000 Reconciliation of GAAP Net income to Non-GAAP Net Income THREE MONTHS ENDED TWELVE MONTHS ENDED Dec. 31, Dec. 31, Sep. 30, Dec. 31, Dec. 31, 2005 2004 2005 2005 2004 GAAP net income(loss) $595 $310 $2,091 $1,839 ($4,024) One time inventory 0 0 0 0 3,876 Stock compensation expenses 569 133 264 1,088 483 Non-GAAP net income $1,163 $443 $2,355 $2,927 $336 Pixelplus Co., Ltd. Consolidated Balance sheets (in thousands, except per ADS data) (unaudited) Dec. 31, Sep 30, Dec 31, 2005 2005 2004 Assets Cash and cash equivalents 30,518 708 1,182 Restricted cash 1,116 1,180 1,414 Accounts receivable, net 15,153 13,931 5,392 Inventories, net 4,248 3,805 6,750 Other current assets 1,029 2,400 680 Total current assets 52,064 22,024 15,418 Other non current assets 3,594 3,922 2,073 Total assets $55,658 $25,946 $17,491 Liabilities and Shareholders' equity (deficit) Trade accounts payable 9,898 9,772 6,316 Short-term borrowings 9,446 10,502 8,005 Other current liabilities 2,113 2,324 1,159 Total current liabilities 21,457 22,598 15,480 Long-term borrowings 640 722 1,247 Other non current liabilities 283 375 259 Total liabilities 22,380 23,695 16,986 Series A convertible redeemable preferred stock 0 8,152 6,708 Shareholders' equity(deficit) Common stock 2,998 1,289 1,289 Additional paid-in capital 36,841 0 0 Accumulated other comprehensive loss (55) (17) (39) Accumulated deficit (6,506) (7,173) (7,453) Total Shareholders' equity(deficit) 33,278 (5,901) (6,203) Total liabilities and Shareholders' equity(deficit) $55,658 $25,946 $17,491
CONTACT: Moon Sung -Ryan- Kim of Pixelplus Co., Ltd., +82-31-600-5300; or
Taylor Rafferty: London - Mark Walter, +44-0-20-7614-2900, New York - Luis
Severiano, +1-212-889-4350, Seoul - Min Kim at +82-0-2-2000-5753, or Tokyo
- Yuhau Lin, +81-0-3-5733-2620, Email
Email Contact
Web site:
http://www.pixelplus.com/
http://invite.taylor-rafferty.com/_pixelplus/conferencecall/