Exhibit 99.1
TRIDENT MICROSYSTEMS REPORTS FINANCIAL RESULTS FOR
THIRD QUARTER OF FISCAL YEAR 2003
Sunnyvale, Calif. --- April 22, 2003: Trident Microsystems, Inc. (NASDAQ:
TRID-news) reported today its financial results for the third quarter of fiscal
year 2003 which ended March 31, 2003. The Company announced that its net sales
for the third quarter were $11,614,000, a decrease of 13% from the $13,283,000
for the prior quarter and a decrease of 60% from $28,839,000 for the same
quarter of the prior fiscal year. The net loss for the third quarter of fiscal
year 2003 was $7,543,000 or $0.55 per share compared to a net loss of
$6,802,000, or $0.50 per share for the prior quarter and a net loss of
$2,076,000, or $0.15 per share for the same quarter of the prior fiscal year.
Included in the net loss for the third quarter of fiscal year 2003 was
$2,821,000 in loss on investments. The operating loss for the third quarter,
which excludes this loss on investments, was $4,264,000.
"Our graphics revenue for the March quarter remained disappointing as we had
expected. During the past year our graphics business has declined as a result of
execution delays in new product introduction, missed design win cycles as well
as rapid PC platform transition from Intel Pentium-3 to Pentium-4 processors,"
said Mr. Frank Lin, Trident's President and CEO. "Going forward, we remain
cautious and do not expect our graphics revenue to improve over the next few
quarters. The Board and management are also actively reviewing alternatives for
improving operations as well as other strategic alternatives for the Company."
"For our Digital Media Business Unit, we are glad to report strong revenue of
$7.0 million for the DPTV product line for the March quarter, an increase of 3%
from $6.8 million for the prior quarter. In this quarter we saw more significant
growth in the Taiwan (69% growth) and Korea (41% growth) markets, but
experienced some seasonal slowdown in the China market. The Taiwan and Korea
markets now account for about 39% of total DPTV revenue. Overall, we continue
our strong efforts in building up our worldwide market positions in
CRT-progressive TVs, Projection TVs, LCD TVs, Plasma TVs, and TV Boxes. The
DPTV-powered TV products from industry leaders such as Projection TV from
Changhong, LCD TVs from Samsung, Plasma TVs from Sampo, TV Boxes from ViewSonic,
etc. continue to be strong in their individual market segments. More
significantly the new generation of DPTV-family, DPTV(TM)3DPRO, which delivers
cinema-realistic motion and still images for high-performance LCD, Projection,
and Plasma TVs is now in mass production. This product further solidifies our
leadership position in the digital video processing market. For the June
quarter, we expect to see a similar flat quarter for the Digital Media Business
Unit due to a seasonal slowdown in China. However, we anticipate our DPTV
revenue will resume its strong growth in the second half of calendar year 2003."
FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including statements
which use the words "expect", "hope", "anticipate", "believe", "potential" and
similar words, including our statements regarding new products, revenue
expectations and new markets. The forward-looking statements above are subject
to certain risks, and actual results could vary materially depending on a number
of factors. These risks include, in particular, the success or lack thereof in
the timely introduction of the XP4, changes in trends in the PC and the DPTV
industries, changes in targeted consumer electronics markets such as Digital
Television, Trident's success in implementing planned initiatives, the failure
to obtain design wins among major OEMs for Trident products, competitive
pressures, including pricing and competitors' new product introductions, and the
outcome of pending litigation. Additional factors that may affect the Company's
business are described in detail in the Company's filings with the Securities
and Exchange Commission.
ABOUT TRIDENT MICROSYSTEMS, INC.
Trident Microsystems, Inc., with headquarters in Sunnyvale, California, designs,
develops and markets digital media for the masses in the form of graphics
controllers and multimedia integrated circuits (ICs) for both notebook and
desktop PCs and digital processing ICs for TVs and TV monitors. Trident's
products are sold to a network of OEMs, original design manufacturers and system
integrators worldwide. For further information about Trident and its products,
please consult the company's web site: http://www.tridentmicro.com.
Trident is a registered trademark of Trident Microsystems, Inc. All other
company and product names are trademarks and/or registered trademarks of their
respective owners. Features, pricing, availability and specifications are
subject to change without notice.
FOR PRESS RELEASES:
Gale Nix
Tel: (408) 991-8090
Email: gnix@tridentmicro.com
WEB SITE: HTTP://WWW.TRIDENTMICRO.COM
FOR INVESTOR RELATIONS:
Email: investor@tridentmicro.com
Trident Microsystems, Inc.
Consolidated Balance Sheet
March 31, December 31, March 31,
(in thousands) 2003 2002 2002
--------- --------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 8,801 $ 13,688 $ 22,857
Short-term investment - UMC 37,423 39,126 77,180
Short-term investments - other 931 954 627
Accounts receivable, net 1,817 946 7,976
Inventories 4,753 2,879 4,272
Prepaid expenses and other assets 1,619 1,441 3,777
--------- --------- ---------
Total current assets 55,344 59,034 116,689
Property and equipment, net 3,015 4,380 3,872
Long-term investment - UMC 4,375 6,563 10,063
Long-term investments - other 3,944 6,654 10,456
Other assets 344 345 392
--------- --------- ---------
Total assets $ 67,022 $ 76,976 $ 141,472
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,366 $ 3,556 $ 10,435
Accrued expenses and other liabilities 9,944 11,030 11,935
Deferred income taxes -- -- 6,834
Income taxes payable 1,385 1,385 122
--------- --------- ---------
Total current liabilities 17,695 15,971 29,326
Long-term deferred income taxes -- -- 9,576
Minority interest in subsidiary -- 222 765
--------- --------- ---------
Total liabilities 17,695 16,193 39,667
Stockholders' equity
Capital stock 56,591 56,591 55,956
Treasury stock, at cost (17,952) (17,952) (17,952)
Retained earnings 19,170 26,713 41,377
Accumulated other comprehensive gain (loss) (8,482) (4,569) 22,424
--------- --------- ---------
Total stockholders' equity 49,327 60,783 101,805
--------- --------- ---------
Total liabilities and stockholders' equity $ 67,022 $ 76,976 $ 141,472
========= ========= =========
Trident Microsystems, Inc.
Consolidated Statement of Operations
Three Months Ended Nine Months Ended
------------------------------------ -----------------------
March 31, December 31, March 31, March 31, March 31,
(in thousands, except per share data, unaudited) 2003 2002 2002 2003 2002
-------- -------- -------- -------- --------
Net sales $ 11,614 $ 13,283 $ 28,839 $ 38,132 $ 84,757
Cost of sales 7,431 9,202 22,600 25,990 66,925
-------- -------- -------- -------- --------
Gross profit 4,183 4,081 6,239 12,142 17,832
% to net sales 36.0% 30.7% 21.6% 31.8% 21.0%
Research and development expenses 5,461 5,800 5,190 17,034 16,482
% to net sales 47.0% 43.7% 18.0% 44.7% 19.4%
Selling, general and administrative expenses 2,986 3,199 3,671 9,100 10,619
% to net sales 25.7% 24.1% 12.7% 23.9% 12.5%
-------- -------- -------- -------- --------
Loss from operations (4,264) (4,918) (2,622) (13,992) (9,269)
% to net sales (36.7)% (37.0)% (9.1)% (36.7)% (10.9)%
Gain (loss) on investments (2,821) (1,966) -- (4,787) (41,915)
Interest and other income (expense), net (458) 82 106 (350) 294
-------- -------- -------- -------- --------
Loss before provision for income taxes (7,543) (6,802) (2,516) (19,129) (50,890)
% to net sales (64.9)% (51.2)% (8.7)% (50.2)% (60.0)%
Provision (benefit) for income taxes -- -- (440) 1,046 (17,271)
% to net sales 0.0% 0.0% (1.5)% 2.7% (20.4)%
-------- -------- -------- -------- --------
Net loss $ (7,543) $ (6,802) $ (2,076) $(20,175) $(33,619)
% to net sales (64.9)% (51.2)% (7.2)% (52.9)% (39.7)%
-------- -------- -------- -------- --------
Basic and diluted loss per share $ (0.55) $ (0.50) $ (0.15) $ (1.48) $ (2.51)
-------- -------- -------- -------- --------
Common shares used in computing basic and diluted
per share amounts 13,696 13,655 13,431 13,651 13,369
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