Pixelplus Reports Financial Results for Fiscal Second Quarter 2010

Jul 28, 2010, 08:00 ET from Pixelplus Co., Ltd.

SEOUL, South Korea, July 28 /PRNewswire-FirstCall/ -- 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 second quarter of fiscal 2010, which ended on June 30, 2010.

Based on these unaudited results of operations which were prepared in accordance with Korean GAAP on a non-consolidated basis, revenue for the second quarter of fiscal 2010 was 6.8 billion Korean won (US$5.6 million), compared to 4.1 billion Korean won (US$3.3 million) in the first quarter of fiscal 2010, and 4.4 billion Korean won (US$3.6 million) in the second quarter of fiscal 2009.

Net income in the second quarter of fiscal 2010 was 0.7 billion Korean won (US$0.6 million), or a net income of 213 Korean won (US$0.17) per diluted ADS, compared to a net income of 0.3 billion Korean won (US$0.3 million), or a net income of 94 Korean won (US$0.08) per diluted ADS, in the first quarter of fiscal 2010, and a net income of 0.03 billion Korean won (US$0.03 million), or a net income of 9 Korean won (US$0.01) per diluted ADS, in the second quarter of fiscal 2009.

Gross margin for the second quarter of fiscal 2010 was 33.6%, compared to 40.5% in the first quarter of fiscal 2010.

The Company's SG&A expenses in the second quarter of fiscal 2010 were about 0.8 billion Korean won (US$0.7 million), compared to roughly 0.8 billion Korean won (US$0.7 million) in the first quarter of fiscal 2010, and approximately 0.6 billion Korean won (US$0.5 million) in the second quarter of fiscal 2009.  Moreover, the Company's operating expenses in the second quarter of fiscal 2010 were around 1.4 billion Korean won (US$1.2 million), compared to about 1.3 billion Korean won (US$1.0 million) in the first quarter of fiscal 2010, and approximately 1.2 billion Korean won (US$1.0 million) in the second 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 1220.85 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 June 30, 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, and we are confident that our 'System-on-a-Chip' ("SoC") image sensors based on PlusPixel2™ technology will enable us to achieve our goals in the second half of 2010 and also in 2011," said Dr. S.K. Lee, CEO and Founder of Pixelplus.  "We are pleased with the steady increase in our revenues in the second quarter and firmly believe that the Company will be able to improve our revenues in the second half of 2010 based on new design wins and business, especially in the security and automotive industries.  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 with multiple mobile camera phone, automobile applications, and medical endoscope manufacturers in South Korea, with key distributors as well as manufacturers of security and surveillance applications in China, Hong Kong, and Taiwan, and with a leading module marker in Japan through our co-development of image sensors.  Moreover, we continue to design and introduce cutting-edge products, 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 adjustments will guide us to achieve our goals in the most cost-efficient and effective manner possible, and enable us to see gradual gains and improvements in 2010 and beyond."

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 second 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

SIX MONTHS ENDED



June.30
2010

June.30
2009

June.30
2010

June.30
2009







Revenues

6,833

4,415

10,896

7,948


Products

6,677

4,101

10,433

7,411


Services

156

314

462

537







Cost of revenues

4,539

3,478

6,955

6,075


Products

4,539

3,459

6,953

6,046


Services

0

19

2

28



 

 

 

 

Gross profit

2,294

938

3,940

1,874







Operating expenses

1,410

1,171

2,664

2,900


Selling, general and administrative

831

624

1,660

1,587


Research and development, net of
government grants

579

547

1,004

1,313



 

 

 

 

Income(loss) from operations

883

(233)

1,276

(1,027)







Other income(expense)






Interest income(expense), net

(55)

(104)

(155)

(224)


Foreign exchange gain (loss), net

(42)

229

(44)

36


Others, net

(63)

164

11

300

Income(loss) before income taxes

723

57

1,090

(915)

Income tax expenses

-

-

-

-

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

723

57

1,090

(915)

Gain(loss) from equity method investments, net

0

(25)

(45)

(146)

Minority interest





Before cumulative effect of change in accounting principle

723

32

1,045

(1,061)

Cumulative effect of change in accounting principle

0

0

-

-

Net Income (loss)

723

32

1,045

(1,061)






Accretion of preferred shares

-

-

-

-

Net income(loss) attributable to common shareholders

723

32

1,045

(1,061)

Income(Loss) per ADS






- basic and diluted

213

9

307

(312)

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)




June. 30, 2010

Dec. 31, 2009





Assets




Cash and cash equivalents

1,102

697


Restricted cash

5,020

5,000


Accounts receivable, net

598

428


Inventories, net

1,249

1,196


Other current assets

1,537

802


Total current assets

9,506

8,123






Other non current assets

1,319

1,316



 

 


Total assets

10,825

9,439





Liabilities, minority interest and Shareholders' equity




Trade accounts payable

3,123

2,708


Other accounts payable

210

169


Short-term borrowings

7,690

7,690


Other current liabilities

224

574


Total current liabilities

11,247

11,141






Long-term borrowings

0

0


Other non current liabilities

663

428


Total liabilities

11,910

11,569




Shareholders' equity




Common stock

3,403

3,403


Additional paid-in capital

7,450

7,450


Accumulated other comprehensive

2

2


loss




Accumulated deficit

(11,941)

(12,985)


Total Shareholders' equity

(1,085)

(2,130)

Total liabilities, minority interest  and Shareholders' equity

10,825

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.