Thomson multimedia Records Good Activity Level for First Quarter 2001, With 14% Revenue Growth

At comparable perimeter, the Group has capitalized on the repositioning

of its activities and on its worldwide geographical presence.



Apr 12, 2001, 01:00 ET from Thomson multimedia

    PARIS, April 12 /PRNewswire/ -- For the first quarter 2001, Thomson
 multimedia's (NYSE:   TMS) consolidated revenues reached 2,197 billion euros
 ($1,984 billion U.S.), an increase of 14.1% over the first quarter 2000.  At
 comparable perimeter (excluding the Group's integration of Technicolor as of
 March 16, the professional broadcast activities of Philips, and Nextream),
 revenue growth is 7.4% higher compared with the same period last year, when
 the Group registered very strong growth.
     This good performance, in line with Thomson's full-year, double-digit
 growth objective, reflects solid worldwide sales in digital products, a
 significant sales increase in Europe and the impact of the programs
 implemented as early as November 2000 to anticipate market evolution,
 particularly in the United States.
 
                             First quarter revenues
                    1st quarter 2001            1st quarter 2000
               (in millions (in millions   (in millions (in millions
                 of euros)    of dollars)    of euros)    of dollars) Variation
 
      Revenues      2,197        1,984          1,926         1,739      +14.1%
      At comparable
        perimeter   2,197        1,984          2,045(*)      1,847       +7.4%
 
      (*) 2000 Revenues restated, including the contributions of Technicolor,
         Philips Broadcast and Nextream
 
                       First quarter revenues by activity
                    1st quarter 2001          1st quarter 2000
                (in millions (in millions  (in millions  (in millions
                 of euros)   of dollars)    of euros)     of dollars) Variation
 
      Digital
        Media
        Solutions    166           150             35            32        Ns
      Displays
        and
        Components   368           332            343           310      +7.4%
      Consumer
        Products   1,560         1,409          1,479         1,336      +5.5%
      New Media
        Services       6             5              0             0        Ns
      Patents and
        Licensing     95            86             67            61     +41.4%
 
     Consolidated revenues of the Displays & Components activity reached 368
 million euros ($332 million), an increase of 7.4%.  This growth reflects the
 very good performance of the tube activity in Europe, where large- and very
 large-size color TV picture tubes gained 4 points in market share. It also
 reflects a strong increase of sales in optical components, in particular
 optical modules for DVD-video and DVD-ROM.  Moreover, the Group strengthened
 its business in plasma displays by extending its partnership with NEC in March
 2001.
     Revenues in the Consumer Products activity reached 1,560 million euros
 ($1,409 million), a growth of 5.5% over the first quarter 2000.
 
     * This performance is largely the result of the Group's strong positions
 in digital products categories such as digital televisions which experienced
 very strong growth, DVD sales which continue to grow rapidly in the United
 States and Europe, decoder and cable modem sales which reached 1.6 million
 units, a growth of 12% over the first quarter 2000 (excluding non-recurring
 2000 items). The latter is largely due to the very strong increase of cable
 modem sales and the strong development of decoder sales in Europe (+125%) and
 in Latin America (+48%), which offset the slowdown of decoder sales in the
 United States.
 
     * In the other product categories:
 
         * Europe enjoyed a very good performance in television and video
           products, driven in particular by high-end THOMSON SCENIUM range
           sales, which increased by 38%.
         * Audio product sales continued to grow very strongly (+35%).
         * In the United States, the slowdown experienced in the first two
           months of 2001 did not prevent the Group from achieving an overall
           flat quarter. Thomson maintained this comparable level of activity
           over the first quarter 2000 while keeping a "hold price" policy.
 
     * In addition, at the end of March, the inventory levels are extremely
       satisfactory for all product categories.
 
     Revenues of the Patents and Licensing activity reached 95 million euros
 ($86 million) in the first quarter 2001. This growth of 41.4% mainly reflects
 the increase in volume for ongoing patent programs, the development of new
 digital programs, and the acceleration of licensing programs for third
 parties.
     The New Media Services activity registered revenues of 6 million euros ($5
 million) in the first quarter 2001, compared with 9 million euros of revenue
 ($8.2 million) for the full year 2000. At the end of March 2001, the Group had
 built a 4.7 million installed base of EPG-equipped televisions in the United
 States and successfully launched the TAK interactive television in France.
     The new Digital Media Solutions activity recorded revenues of 166 million
 euros ($150 million) for the first quarter 2001. This amount mainly reflects
 the integration of the following assets:
 
     * Technicolor, the world leader in services to the media and content
       industries. This acquisition was completed on March 16, 2001, and it has
       been consolidated since that date;
     * Broadcast Solutions, including the professional broadcast activities of
       Philips, which has been consolidated since January 1;
     * Nextream, dedicated to the market of interactive video network
       equipments, which is owned 25% by Alcatel. The agreement was completed
       on February 16, 2001, and Alcatel's contribution has been consolidated
       since that date.
 
     Outlook
     Thomson observes that the slowdown in growth for certain product
 categories in the United States is offset by the overall good performance of
 most of the Group's activities in Europe and the rest of the world, driven by
 digital products and the implementation of new contracts.  The Group confirms
 its objective of double-digit revenue growth in 2001, sustained globally by
 its repositioning on the growth market of the digital transition and new
 product launches.  The Group also confirms that it anticipates double-digit
 operating result growth in 2001, benefiting from cost reductions initiatives,
 sourcing optimization, restructuring programs and new opportunities created by
 lower component prices.
     In this framework and following the successful integration of Technicolor,
 the Group anticipates, for the first half of 2001, an activity level in line
 with its year objective and an operating result growth of more than 40%.
     Thierry Breton, Chairman and CEO of Thomson multimedia said, "These first
 quarter 2001 results, in line with our progress objectives for the year, show
 that Thomson is able to capitalize on the repositioning of its activities and
 its worldwide geographical presence.  Moreover, ongoing programs to strengthen
 our operational performance, and the successful integration of Technicolor and
 Philips Broadcast, should enable us to significantly improve our operating
 margin, starting in the first half 2001."
     For your convenience, translation of amounts from euros into U.S. dollars
 has been made at the rate of 1 euro to 0.9030789 U.S. dollar.
 
     This press release contains forward-looking statements that involve a
 number of risks and uncertainties.  Among the factors that could cause actual
 results to differ materially from those expected are the following:  business
 conditions and general economic conditions; competitive factors such as
 pricing and marketing efforts of rival companies; timing of product
 introductions; ability of contract manufacturers to meet product price
 objectives and delivery schedules; legislative, regulatory, and industry
 initiatives that may affect planned or actual product features and marketing
 methods; and the pace and success of product research and development. For
 more information on the potential factors that could affect the company's
 financial results, please review the SEC filings of the company.
 
     About Thomson multimedia
     With sales of 9.1 billion euros (U.S. $ 8.3 billion) in 2000 and 73,000
 employees in more than 30 countries, Thomson multimedia (Paris Sicovam: 18453)
 (NYSE:   TMS), provides a wide range of technologies, systems, finished products
 and services to consumers and professionals of the entertainment and media
 industries. To advance and enable the digital media transition, Thomson
 multimedia has five principal activities: Digital Media Solutions, Displays
 and Components, Consumer Products, New Media Services, and Patents and
 Licensing. The company distributes its products under the popular THOMSON, RCA
 and TECHNICOLOR brand names. For more information:
 www.thomson-multimedia.com .
 
 

SOURCE Thomson multimedia
    PARIS, April 12 /PRNewswire/ -- For the first quarter 2001, Thomson
 multimedia's (NYSE:   TMS) consolidated revenues reached 2,197 billion euros
 ($1,984 billion U.S.), an increase of 14.1% over the first quarter 2000.  At
 comparable perimeter (excluding the Group's integration of Technicolor as of
 March 16, the professional broadcast activities of Philips, and Nextream),
 revenue growth is 7.4% higher compared with the same period last year, when
 the Group registered very strong growth.
     This good performance, in line with Thomson's full-year, double-digit
 growth objective, reflects solid worldwide sales in digital products, a
 significant sales increase in Europe and the impact of the programs
 implemented as early as November 2000 to anticipate market evolution,
 particularly in the United States.
 
                             First quarter revenues
                    1st quarter 2001            1st quarter 2000
               (in millions (in millions   (in millions (in millions
                 of euros)    of dollars)    of euros)    of dollars) Variation
 
      Revenues      2,197        1,984          1,926         1,739      +14.1%
      At comparable
        perimeter   2,197        1,984          2,045(*)      1,847       +7.4%
 
      (*) 2000 Revenues restated, including the contributions of Technicolor,
         Philips Broadcast and Nextream
 
                       First quarter revenues by activity
                    1st quarter 2001          1st quarter 2000
                (in millions (in millions  (in millions  (in millions
                 of euros)   of dollars)    of euros)     of dollars) Variation
 
      Digital
        Media
        Solutions    166           150             35            32        Ns
      Displays
        and
        Components   368           332            343           310      +7.4%
      Consumer
        Products   1,560         1,409          1,479         1,336      +5.5%
      New Media
        Services       6             5              0             0        Ns
      Patents and
        Licensing     95            86             67            61     +41.4%
 
     Consolidated revenues of the Displays & Components activity reached 368
 million euros ($332 million), an increase of 7.4%.  This growth reflects the
 very good performance of the tube activity in Europe, where large- and very
 large-size color TV picture tubes gained 4 points in market share. It also
 reflects a strong increase of sales in optical components, in particular
 optical modules for DVD-video and DVD-ROM.  Moreover, the Group strengthened
 its business in plasma displays by extending its partnership with NEC in March
 2001.
     Revenues in the Consumer Products activity reached 1,560 million euros
 ($1,409 million), a growth of 5.5% over the first quarter 2000.
 
     * This performance is largely the result of the Group's strong positions
 in digital products categories such as digital televisions which experienced
 very strong growth, DVD sales which continue to grow rapidly in the United
 States and Europe, decoder and cable modem sales which reached 1.6 million
 units, a growth of 12% over the first quarter 2000 (excluding non-recurring
 2000 items). The latter is largely due to the very strong increase of cable
 modem sales and the strong development of decoder sales in Europe (+125%) and
 in Latin America (+48%), which offset the slowdown of decoder sales in the
 United States.
 
     * In the other product categories:
 
         * Europe enjoyed a very good performance in television and video
           products, driven in particular by high-end THOMSON SCENIUM range
           sales, which increased by 38%.
         * Audio product sales continued to grow very strongly (+35%).
         * In the United States, the slowdown experienced in the first two
           months of 2001 did not prevent the Group from achieving an overall
           flat quarter. Thomson maintained this comparable level of activity
           over the first quarter 2000 while keeping a "hold price" policy.
 
     * In addition, at the end of March, the inventory levels are extremely
       satisfactory for all product categories.
 
     Revenues of the Patents and Licensing activity reached 95 million euros
 ($86 million) in the first quarter 2001. This growth of 41.4% mainly reflects
 the increase in volume for ongoing patent programs, the development of new
 digital programs, and the acceleration of licensing programs for third
 parties.
     The New Media Services activity registered revenues of 6 million euros ($5
 million) in the first quarter 2001, compared with 9 million euros of revenue
 ($8.2 million) for the full year 2000. At the end of March 2001, the Group had
 built a 4.7 million installed base of EPG-equipped televisions in the United
 States and successfully launched the TAK interactive television in France.
     The new Digital Media Solutions activity recorded revenues of 166 million
 euros ($150 million) for the first quarter 2001. This amount mainly reflects
 the integration of the following assets:
 
     * Technicolor, the world leader in services to the media and content
       industries. This acquisition was completed on March 16, 2001, and it has
       been consolidated since that date;
     * Broadcast Solutions, including the professional broadcast activities of
       Philips, which has been consolidated since January 1;
     * Nextream, dedicated to the market of interactive video network
       equipments, which is owned 25% by Alcatel. The agreement was completed
       on February 16, 2001, and Alcatel's contribution has been consolidated
       since that date.
 
     Outlook
     Thomson observes that the slowdown in growth for certain product
 categories in the United States is offset by the overall good performance of
 most of the Group's activities in Europe and the rest of the world, driven by
 digital products and the implementation of new contracts.  The Group confirms
 its objective of double-digit revenue growth in 2001, sustained globally by
 its repositioning on the growth market of the digital transition and new
 product launches.  The Group also confirms that it anticipates double-digit
 operating result growth in 2001, benefiting from cost reductions initiatives,
 sourcing optimization, restructuring programs and new opportunities created by
 lower component prices.
     In this framework and following the successful integration of Technicolor,
 the Group anticipates, for the first half of 2001, an activity level in line
 with its year objective and an operating result growth of more than 40%.
     Thierry Breton, Chairman and CEO of Thomson multimedia said, "These first
 quarter 2001 results, in line with our progress objectives for the year, show
 that Thomson is able to capitalize on the repositioning of its activities and
 its worldwide geographical presence.  Moreover, ongoing programs to strengthen
 our operational performance, and the successful integration of Technicolor and
 Philips Broadcast, should enable us to significantly improve our operating
 margin, starting in the first half 2001."
     For your convenience, translation of amounts from euros into U.S. dollars
 has been made at the rate of 1 euro to 0.9030789 U.S. dollar.
 
     This press release contains forward-looking statements that involve a
 number of risks and uncertainties.  Among the factors that could cause actual
 results to differ materially from those expected are the following:  business
 conditions and general economic conditions; competitive factors such as
 pricing and marketing efforts of rival companies; timing of product
 introductions; ability of contract manufacturers to meet product price
 objectives and delivery schedules; legislative, regulatory, and industry
 initiatives that may affect planned or actual product features and marketing
 methods; and the pace and success of product research and development. For
 more information on the potential factors that could affect the company's
 financial results, please review the SEC filings of the company.
 
     About Thomson multimedia
     With sales of 9.1 billion euros (U.S. $ 8.3 billion) in 2000 and 73,000
 employees in more than 30 countries, Thomson multimedia (Paris Sicovam: 18453)
 (NYSE:   TMS), provides a wide range of technologies, systems, finished products
 and services to consumers and professionals of the entertainment and media
 industries. To advance and enable the digital media transition, Thomson
 multimedia has five principal activities: Digital Media Solutions, Displays
 and Components, Consumer Products, New Media Services, and Patents and
 Licensing. The company distributes its products under the popular THOMSON, RCA
 and TECHNICOLOR brand names. For more information:
 www.thomson-multimedia.com .
 
 SOURCE  Thomson multimedia