ESS Technology Announces First Quarter Conference Call and Revises Guidance

Apr 18, 2001, 01:00 ET from ESS Technology, Inc.

    FREMONT, Calif., April 18 /PRNewswire/ -- ESS Technology, Inc.
 (Nasdaq: ESST), a leading provider of silicon solutions for communications,
 digital video, and home networking, today announced its first quarter
 conference call and revised expectations for the first quarter.
     ESS will release its first quarter results on Wednesday April 25, 2001,
 after the close of trading.  The company also will hold a conference call to
 discuss the results on April 25, 2001, at 2:00 p.m. Pacific Time.
     ESS expects first quarter revenue to be between $49 million and
 $51 million, compared to $54.2 million in the fourth quarter of 2000.  Due to
 inventory in the channel, DVD sales in the first quarter were below forecasted
 levels, causing margins to be lower than expected.  In addition, expenses
 associated with ESS's Vialta subsidiary were higher than expected in the first
 quarter, due to costs associated with its product rollout.  The company
 expects to report a consolidated loss of between $0.14 and $0.17 per share in
 the first quarter, with Vialta representing approximately $0.10 per share of
 the consolidated loss, compared to $0.04 per share consolidated loss in the
 fourth quarter of 2000.
     Robert Blair, president and CEO of ESS Technology said, "DVD inventory in
 the distribution channel going into the first quarter was much larger than had
 been anticipated by our customers, and it has taken most of the first quarter
 for that inventory to be absorbed.  However, it appears that this excess
 inventory has been reduced and our DVD chipset demand in the first few weeks
 of the second quarter appears to be back to normal levels.
     "Despite the overall slowdown in the economy, DVD retail sales in the U.S.
 continued to grow during the first quarter.  Our major customers are placing
 new orders and we believe we will increase our share of the DVD market during
 the remainder of this year," Mr. Blair concluded.
     To access the Company's conference call on April 25, 2001, dial
 888-489-9495 (U.S./Canada) or 212-676-5095 (International), Reservation #
 18581208 approximately 10 minutes before the start of the call.  Please RSVP
 to ESS Investor Relations at 510-492-1066 or via fax at 510-492-1511 if you
 plan to listen to the live conference call.  To access the Internet simulcast,
 go to www.esstech.com or www.streetfusion.com.  No password is necessary.  A
 replay of the conference call will be available until Wednesday, May 2, 2001,
 4:00 p.m. Pacific Time.  To access the replay via phone, dial 800-633-8284
 (U.S./Canada) or 858-812-6440 (International), Reservation # 18581208.  To
 access the replay via the Internet, go to www.esstech.com or
 www.streetfusion.com.
 
     About ESS Technology
     ESS Technology, Inc., a leader in Internet, communications, digital video,
 and home networking, provides advanced products enabling the convergence of
 communications, computer, consumer, and Internet markets. ESS's subsidiary,
 Vialta, provides advanced, easy-to-use products and applications for the
 Internet.  Products include multimedia appliances, applications, and content
 for the Internet, all of which enable the user to experience new levels of
 entertainment.
     ESS Technology, headquartered in Fremont, California, has R&D, sales, and
 technical support offices worldwide. ESS Technology's common stock is traded
 on the Nasdaq under the symbol ESST.  ESS Technology's web site address is:
 http://www.esstech.com.
     The matters discussed in this news release include certain forward-looking
 statements that involve risks and uncertainties, including, but limited to,
 our dependence on robust consumer demand to reduce DVD product inventory in
 the channel, the impact of higher than expected expense costs associated with
 our Vialta subsidiary, which is a development stage company, the timely
 availability and acceptance of the Company's new products, the impact of
 competitive products and pricing, our dependence on renewed growth in demand
 for DVD, PC and consumer multimedia products, as well as the other risks
 detailed from time to time in the SEC reports of ESS, including the reports on
 Form 10-K and Form 10Q.  Actual results could differ materially from those
 projected in the forward-looking statements.
 
 

SOURCE ESS Technology, Inc.
    FREMONT, Calif., April 18 /PRNewswire/ -- ESS Technology, Inc.
 (Nasdaq: ESST), a leading provider of silicon solutions for communications,
 digital video, and home networking, today announced its first quarter
 conference call and revised expectations for the first quarter.
     ESS will release its first quarter results on Wednesday April 25, 2001,
 after the close of trading.  The company also will hold a conference call to
 discuss the results on April 25, 2001, at 2:00 p.m. Pacific Time.
     ESS expects first quarter revenue to be between $49 million and
 $51 million, compared to $54.2 million in the fourth quarter of 2000.  Due to
 inventory in the channel, DVD sales in the first quarter were below forecasted
 levels, causing margins to be lower than expected.  In addition, expenses
 associated with ESS's Vialta subsidiary were higher than expected in the first
 quarter, due to costs associated with its product rollout.  The company
 expects to report a consolidated loss of between $0.14 and $0.17 per share in
 the first quarter, with Vialta representing approximately $0.10 per share of
 the consolidated loss, compared to $0.04 per share consolidated loss in the
 fourth quarter of 2000.
     Robert Blair, president and CEO of ESS Technology said, "DVD inventory in
 the distribution channel going into the first quarter was much larger than had
 been anticipated by our customers, and it has taken most of the first quarter
 for that inventory to be absorbed.  However, it appears that this excess
 inventory has been reduced and our DVD chipset demand in the first few weeks
 of the second quarter appears to be back to normal levels.
     "Despite the overall slowdown in the economy, DVD retail sales in the U.S.
 continued to grow during the first quarter.  Our major customers are placing
 new orders and we believe we will increase our share of the DVD market during
 the remainder of this year," Mr. Blair concluded.
     To access the Company's conference call on April 25, 2001, dial
 888-489-9495 (U.S./Canada) or 212-676-5095 (International), Reservation #
 18581208 approximately 10 minutes before the start of the call.  Please RSVP
 to ESS Investor Relations at 510-492-1066 or via fax at 510-492-1511 if you
 plan to listen to the live conference call.  To access the Internet simulcast,
 go to www.esstech.com or www.streetfusion.com.  No password is necessary.  A
 replay of the conference call will be available until Wednesday, May 2, 2001,
 4:00 p.m. Pacific Time.  To access the replay via phone, dial 800-633-8284
 (U.S./Canada) or 858-812-6440 (International), Reservation # 18581208.  To
 access the replay via the Internet, go to www.esstech.com or
 www.streetfusion.com.
 
     About ESS Technology
     ESS Technology, Inc., a leader in Internet, communications, digital video,
 and home networking, provides advanced products enabling the convergence of
 communications, computer, consumer, and Internet markets. ESS's subsidiary,
 Vialta, provides advanced, easy-to-use products and applications for the
 Internet.  Products include multimedia appliances, applications, and content
 for the Internet, all of which enable the user to experience new levels of
 entertainment.
     ESS Technology, headquartered in Fremont, California, has R&D, sales, and
 technical support offices worldwide. ESS Technology's common stock is traded
 on the Nasdaq under the symbol ESST.  ESS Technology's web site address is:
 http://www.esstech.com.
     The matters discussed in this news release include certain forward-looking
 statements that involve risks and uncertainties, including, but limited to,
 our dependence on robust consumer demand to reduce DVD product inventory in
 the channel, the impact of higher than expected expense costs associated with
 our Vialta subsidiary, which is a development stage company, the timely
 availability and acceptance of the Company's new products, the impact of
 competitive products and pricing, our dependence on renewed growth in demand
 for DVD, PC and consumer multimedia products, as well as the other risks
 detailed from time to time in the SEC reports of ESS, including the reports on
 Form 10-K and Form 10Q.  Actual results could differ materially from those
 projected in the forward-looking statements.
 
 SOURCE  ESS Technology, Inc.