Pixelplus Reports Financial Results for Fiscal Fourth Quarter 2010

Mar 25, 2011, 08:00 ET from Pixelplus Co., Ltd.

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SEOUL, South Korea, March 25, 2011 /PRNewswire/ -- Pixelplus Co., Ltd. (Pink Sheets: PXPLY), a fabless semiconductor company in South 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 2010, which ended on December 31, 2010.

Based on these unaudited results of operations which were prepared in accordance with Korean GAAP on a non-consolidated basis, revenue for the fourth quarter of fiscal 2010 was 7.5 billion Korean won (US$6.6 million), compared to 7.0 billion Korean won (US$6.1 million) in the third quarter of fiscal 2010, and 6.0 billion Korean won (US$5.3 million) in the fourth quarter of fiscal 2009.

Net income in the fourth quarter of fiscal 2010 was 0.9 billion Korean won (US$0.8 million), or a net income of 263 Korean won (US$0.23) per diluted ADS, compared to a net income of 1.6 billion Korean won (US$1.4 million), or a net income of 470 Korean won (US$0.4) per diluted ADS, in the third quarter of fiscal 2010, and a net income of 2.0 billion Korean won (US$1.8 million), or a net income of 584 Korean won (US$0.5) per diluted ADS, in the fourth quarter of fiscal 2009.

Gross margin for the fourth quarter of fiscal 2010 was 34.7%, compared to 40.5% in the third quarter of fiscal 2010.  The Company's lower-than-expected gross margin was mainly due to decrease in the average selling price of its image sensor sold in the fourth quarter.

The Company's SG&A expenses in the fourth quarter of fiscal 2010 were about 1.0 billion Korean won (US$0.9 million), compared to roughly 0.9 billion Korean won (US$0.8 million) in the third quarter of fiscal 2010, and approximately 0.4 billion Korean won (US$0.4 million) in the fourth quarter of fiscal 2009.  Moreover, the Company's operating expenses in the fourth quarter of fiscal 2010 were around 1.5 billion Korean won (US$1.3 million), compared to about 1.2 billion Korean won (US$1.0 million) in the third quarter of fiscal 2010, and approximately 0.5 billion Korean won (US$0.5 million) in the fourth quarter of fiscal 2009.

The U.S. dollar amounts disclosed in this earnings release are presented solely for the convenience of the reader, and have been converted at the rate of 1130.6 Korean won to one U.S. dollar, which is the noon buying rate of the U.S. Federal Reserve Bank of New York in effect on December 31, 2010. Such conversions should not be construed as representations that the Korean won amounts represent, have been, or could be, converted into, U.S. dollars at that or any other rate.

"We remain fully committed to achieving our long-term growth targets and business strategies through developing new products, penetrating new markets, and securing new design wins," said Dr. S.K. Lee, CEO and Founder of Pixelplus.  "We also are pleased to have more products in various stages of development and deployment than ever in our history.  With these state-of-the-art products, we continue to develop our core strategic business and design and introduce cutting-edge technologies and approaches to image sensor manufacturing and release to the market other innovative technologies.  In addition, we are encouraged that the Company continues to vigorously pursue cost-control measures and effectively manage our operating expenses.  Separately and in parallel, we are working closely with our customers on a pro-active basis to provide them with higher resolution, better image quality, and smaller form factor products.  While we aim to invest smartly in valued R&D programs and new market opportunities and do everything possible to ramp new sources of revenue, we positively believe that our strategic business will guide us to achieve our goals in the most cost-efficient and effective manner possible, and enable us to see continuing gains and improvements in 2011."

Korean GAAP

The financial results mentioned in this earnings release were prepared and presented in accordance with Korean GAAP on a non-consolidated basis.  Significant differences exist between Korean GAAP and U.S. GAAP, including accounting principles with respect to the consolidation of financial results of any subsidiary, which might be material to the non-consolidated financial information provided in this release.

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 and SoC solutions for use in webcams and notebook embedded cameras, toys and games, and security and surveillance system applications.

As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop CMOS image sensors with sharp, colorful and enhanced image quality, size efficiency, and low power consumption.

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' reports and documents filed from time to time with the U.S. 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 earnings 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 fiscal 2010 contained in this document have not been audited by Pixelplus' independent registered public accountants.

Contact:

Hae-Su Hwang

Pixelplus Co., Ltd.

6th Floor, Gyeonggi R&DB Center

906-5 Iui-dong, Yeongtong-gu

Suwon-si, Gyeonggi-do, 443-766

Republic of Korea

+82-31-888-5307

OR

Taylor Rafferty:

London –

Emilia Whitbread at +44 (0) 20 7614 2909

Rob Newman at +44 (0) 20 7614 2900

E-mail pixelplus@taylor-rafferty.com

Pixelplus Co., Ltd.

Non-Consolidated Statements of Operations

(In millions of Korean won, except per ADS data)

(unaudited)

THREE MONTHS ENDED

YEAR  ENDED

Dec. 31 2010

Dec. 31 2009

Dec. 31 2010

Dec. 31 2009

Revenues

7,469

5,970

25,346

17,469

Products

7,415

5,766

24,727

16,194

Services

54

204

619

1,275

Cost of revenues

4,878

3,315

15,986

11,798

Products

4,878

3,310

15,981

11,742

Services

0

5

5

57

 

 

 

 

Gross profit

2,592

2,656

9,360

5,671

Operating expenses

1,511

522

5,332

4,413

Selling, general and administrative

985

421

3,564

2,622

Research and development, net of government grants

526

101

1,768

1,790

 

 

 

 

Income(loss) from operations

1,080

2,134

4,028

1,258

Other income(expense)

Interest income(expense), net

(46)

(126)

(251)

(432)

Foreign exchange gain (loss), net

(47)

(20)

(154)

4

Others, net

(138)

(130)

(86)

360

Income(loss) before income taxes

848

1,858

3,537

1,190

Income tax expenses

-

-

-

-

Income(loss) before gain(loss) from equity method investments, net and minority interest

848

1,858

3,537

1,190

Gain(loss) from equity method investments, net

47

129

2

(93)

minority interest

Before cumulative effect of change in accounting principle

896

1,987

3,539

1,098

Cumulative effect of change in accounting principle

0

0

-

-

Net Income (loss)

896

1,987

3,539

1,098

Accretion of preferred shares

-

-

-

-

Net income(loss) attributable to common shareholders

896

1,987

3,539

1,098

Income(Loss) per ADS

- basic and diluted

263

584

1,040

323

ADSs used in computing Income(loss) per ADS

3,403,433

3,403,433

3,403,433

3,403,433

- basic and diluted

Pixelplus Co., Ltd.

Non-Consolidated Balance Sheets

(In millions of Korean won, except per ADS data)

(Unaudited)

Dec. 31, 2010

Dec. 31, 2009

Assets

Cash and cash equivalents

2,851

697

Restricted cash

5,000

5,000

Accounts receivable, net

133

428

Inventories, net

1,522

1,196

Other current assets

1,818

802

Total current assets

11,324

8,123

Other non current assets

1,268

1,316

 

 

Total assets

12,592

9,439

Liabilities, minority interest and Shareholders' equity

Trade accounts payable

1,880

2,708

Other accounts payable

413

169

Short-term borrowings

7,690

7,690

Other current liabilities

276

574

Total current liabilities

10,259

11,141

Long-term borrowings

0

0

Other non current liabilities

971

428

Total liabilities

11,229

11,569

Shareholders' equity

Common stock

3,403

3,403

Additional paid-in capital

7,450

7,450

Accumulated other comprehensive

0

2

loss

Accumulated deficit

(9,491)

(12,985)

Total Shareholders' equity

1,362

(2,130)

Total liabilities, minority interest  and Shareholders' equity

12,592

9,439

The Company's functional currency on its financial statements is the Korean won.  Please note that the above non-consolidated financial statements were prepared in accordance with Korean GAAP.

SOURCE Pixelplus Co., Ltd.