Techwell Reports Second Quarter 2008 Financial Results

Forward-Looking Statements

This press release and related conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terminology such as may, will, could, should, anticipate and expect and the negative of these terms or other similar expressions. These are statements that relate to future events and include, but are not limited to Techwell’s leadership position and growth prospects in the security surveillance and LCD display markets, increased demand for its products and statements related to anticipated revenue for the third quarter of 2008. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements. These risks and uncertainties include but are not limited to: a determination, upon completion of further quarterly closing and review procedures, that the financial results for the second quarter of 2008 are different than the results set forth in this press release, Techwell’s dependence on increased demand for digital video applications for the security surveillance, automotive and consumer markets, the potential decline in average selling prices for Techwell’s products, competition, dependence on key and highly skilled personnel, the ability to develop new products, as well as other risks detailed from time to time in its SEC filings, including those described in Techwell’s Quarterly Report on Form 10-Q filed on May 8, 2008 with the Securities and Exchange Commission. Statements included in this release are based upon information known to Techwell as of the date of this release, and Techwell assumes no obligation to update information contained in this press release.

About Techwell

Techwell is a fabless semiconductor company that designs, markets and sells mixed signal integrated circuits for multiple video applications in the security surveillance, automotive and consumer electronics markets. Techwell designs application specific products that enable the conversion of analog video signals to digital form and perform advanced digital video processing to facilitate the display, storage and transport of video content. Headquartered in San Jose, CA, Techwell currently has over 150 employees in the U.S., China, Japan, South Korea and Taiwan. Please visit www.techwellinc.com for more information.

Techwell, Inc. and the Techwell, Inc. logo are trademarks of Techwell, Inc. All other trademarks are the property of their respective owners.


TECHWELL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007

Revenues	$	17,006		$	14,743		$	32,613		$	28,260

Cost of Revenues		6,503			5,989			12,564			11,780

Gross Profit		10,503			8,754			20,049			16,480

Operating Expenses
Research and development		4,208			2,870			7,757			5,085
Selling, general and administrative		3,765			2,874			7,457			5,632
Total operating expenses		7,973			5,744			15,214			10,717

Income from operations		2,530			3,010			4,835			5,763
Interest income		540			737			1,295			1,416

Income before income taxes		3,070			3,747			6,130			7,179
Provision for income taxes		(1,228	)		(1,106	)		(2,417	)		(2,074	)

Net income	$	1,842		$	2,641		$	3,713		$	5,105

Net income per share
Basic	$	0.09		$	0.13		$	0.18		$	0.25
Diluted	$	0.08		$	0.12		$	0.17		$	0.23


Weighted average shares used in computing net income per share:
Basic		21,065			20,765			20,995			20,701
Diluted		22,099			21,826			21,956			21,810

Stock-based compensation expense:
Cost of revenues		131			71			244			116
Research and development		859			517			1,552			835
Selling, general and administrative		918			591			1,789			977
		1,908			1,179			3,585			1,928

« Previous Page 1 | 2 | 3 | 4 Next Page »