EXHIBIT 99.1
TRIDENT MICROSYSTEMS REPORTS FINANCIAL RESULTS FOR
SECOND QUARTER OF FISCAL YEAR 2004
Sunnyvale, Calif, --- January 22, 2004: Trident Microsystems, Inc. (NASDAQ:
TRID) reported today its financial results for the second quarter of fiscal year
2004 ended December 31, 2003. The Company announced that its net sales for the
second quarter, primarily contributed by TTI, an 83% owned subsidiary, were
$16,227,000, an increase of 65% from $9,832,000 for the prior quarter and an
increase of 22% from $13,283,000 for the same quarter of the prior fiscal year.
The year ago period included sales of graphics products, which have been
discontinued. $15,889,000 of net sales for the quarter ended December 31, 2003
were primarily from digital media sales, this compares to digital media sales
for the prior quarter of $9,209,000, an increase of 73%, and digital media sales
for the same quarter of the prior fiscal year of $7,157,000, an increase of
122%. Trident's revenue includes 100% of the revenue of TTI, and an adjustment
is made for the minority interest in TTI before calculation of earnings and
earnings per TMI share.
Net income in the second quarter of fiscal year 2004 after taking into account
minority ownership of TTI was $1,432,000, or $0.06 per diluted share after a
three-for-two stock split on December 12, 2003. This compares to a net income
$4,679,000, or $0.19 per diluted share in the prior quarter, which includes a
pre-tax gain of $7.6 million related to the restructuring of the Graphics
Division and to the sales of 6.8% of the equity of our subsidiary, TTI, and of
one-third of our interest of XGI stock, and a net loss $6,802,000 or $0.33 for
the same quarter of the prior fiscal year. Per share amounts have been adjusted
to reflect the recent three-for-two stock split.
"Although I am pleased with the December quarter results, the results were a
mixed blessing. We exceeded our expectations for the December quarter, which was
forecasted to grow 25-35% over the prior quarter. The additional growth was
stronger due in part to China's TV makers requiring early delivery to meet
demand for a Chinese New Year that falls earlier this year than normal. We
believe this will skew our quarter over quarter results. We have always expected
seasonality in our March quarter but with the strength of the December quarter,
we are certain the March quarter will be a down quarter. However, we believe
that revenue will meet or exceed market expectations," said Frank Lin, Trident's
President and CEO.
"Second quarter revenue for TTI was $15.9M million. This represents an increase
of 73% over the prior quarter. During the second quarter, revenues from our
LCDTV and PDP products more than doubled, exceeding our projections, and the
progressive CRT TV business in China also experienced stronger demand than our
original expectation. In the second quarter, progressive CRT TV revenue grew
55%, and LCDTV and PDP revenue grew 137%. The CRT TV revenue now accounts for
61% of the total revenue as compared with 68% in the first quarter, and the
LCDTV and PDP revenue accounts for
37% of the total revenue as compared with 27% in the first quarter," said JH
Chang, President of TTI. "Due to an earlier Chinese New Year which is January 22
in 2004 versus early February as in typical years, China TV manufacturers have
pulled in some of their orders from January to December. During the December
quarter, we announced our new HiDTV product line for the emerging HDTV market.
We believe this is the industry's first SoC chip to fully integrate HDTV
audio/video decoding, analog video processing and TV features/ requirements all
into a single chip. We showcased a fully functional HiDTV prototype in the
Consumer Electronics Show (CES) in Las Vegas two weeks ago. The full-featured
HiDTV product demonstration was very successful and had received very
enthusiastic responses from many TV OEM customers worldwide. We believe our
HiDTV chip, with the highest integration level and the best quality, will be a
very competitive and winning product for the HDTV market. The HiDTV chip is
expected to start bringing in revenue in the second half of the calendar year
2004. During the December quarter, we announced additional DPTV design wins at
Sampo and Daewoo Electronics. Recently, we also announced DPTV design-wins at
Konka and Samsung Electronics. It demonstrates that our DPTV design win momentum
continues strong especially for the new DPTV-SVP product. We hope we can
announce more top-tier OEM design wins in the near future."
The Company also announced that it will hold a conference call to discuss the
earnings, which will occur on Thursday, January 22, 2004 at 2:30 p.m. Pacific
Time (5:30 p.m. Eastern Time). Shareholders may participate in the call by
calling 800-599-9795 (U.S.), or 617-786-2905 (International) passcode 17796809.
The conference call will also be webcast by CCBN and can be accessed at
Trident's web site at: http://www.tridentmicro.com. A replay of the conference
call will be available from 7:30 p.m. January 22, 2004 until midnight January
29, 2004, and can be accessed by calling 888-286-8010 (U.S.), or 617-801-6888
(International) using passcode 98825987.
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 financial expectations and our
expectations regarding design-wins. 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, changes in trends in
the DPTV industries, changes in targeted consumer electronics markets such as
Digital Television, whether the Company is able to achieve timely product
introductions, the failure to obtain design wins among major OEMs for the
Company products, and competitive pressures, including pricing and competitors'
new product introductions. 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 integrated
circuits (ICs) for CRT TV, LCD TV, PDP TV, HDTV, and digital set-top box.
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:
Trident Microsystems, Inc.
Investor Relations
Tel: (408) 991-8090
Email: Investor@tridentmicro.com
Web site: http://www.tridentmicro.com
Trident Microsystems, Inc.
Consolidated Statement of Operations
Three Months Ended Six Months Ended
-------------------------------------------- ---------------------------
December 31, September 30, December 31, December 31, December 31,
(in thousands, except per share data, unaudited) 2003 2003 2002 2003 2002
------------ ------------- ------------ ------------ ------------
Net sales $ 16,227 $ 9,832 $ 13,283 $ 26,059 $ 26,518
Cost of sales 7,303 4,859 9,202 12,162 18,559
-------- -------- -------- -------- --------
Gross profit 8,924 4,973 4,081 13,897 7,959
% to net sales 55.0% 50.6% 30.7% 53.3% 30.0%
Research and development expenses 2,666 2,081 5,800 4,747 11,573
% to net sales 16.4% 21.2% 43.7% 18.2% 43.6%
Selling, general and administrative expenses 3,780 3,024 3,199 6,804 6,114
% to net sales 23.3% 30.8% 24.1% 26.1% 23.1%
-------- -------- -------- -------- --------
Income (loss) from operations 2,478 (132) (4,918) 2,346 (9,728)
% to net sales 15.3% (1.3)% (37.0)% 9.0% (36.7)%
Gain(loss) on investments, net (85) 7,205 (1,966) 7,120 (1,966)
Interest and other income(expense), net (167) (128) 82 (295) 108
Minority interests in subsidiaries (689) (96) -- (785) --
-------- -------- -------- -------- --------
Income(loss) before income taxes 1,537 6,849 (6,802) 8,386 (11,586)
% to net sales 9.5% 69.7% (51.2)% 32.2% (43.7)%
Provision for income taxes 105 2,170 -- 2,275 1,046
% to net sales 0.6% 22.1% 8.7% 3.9%
-------- -------- -------- -------- --------
Net income(loss) $ 1,432 $ 4,679 $ (6,802) $ 6,111 $(12,632)
% to net sales 8.8% 47.6% (51.2)% 23.5% (47.6)%
-------- -------- -------- -------- --------
Basic net income (loss) per share $ 0.06 $ 0.22 $ (0.33) $ 0.28 $ (0.62)
-------- -------- -------- -------- --------
Common shares used in computing basic
per share amounts 22,374 21,468 20,483 21,919 20,442
-------- -------- -------- -------- --------
Diluted net income (loss) per share $ 0.06 $ 0.19 $ (0.33) $ 0.25 $ (0.62)
-------- -------- -------- -------- --------
Common and common equivalent shares
used in computing diluted per share amounts 25,098 24,074 20,483 24,710 20,442
-------- -------- -------- -------- --------
Trident Microsystems, Inc.
Consolidated Balance Sheet
December 31, September 30, December 31,
(in thousands, unaudited) 2003 2003 2002
-------- -------- --------
ASSETS
Current assets
Cash and cash equivalents $ 26,225 $ 22,230 $ 13,688
Short-term investment - UMC 62,981 61,140 39,126
Short-term investments - other 23 926 954
Accounts receivable, net 1,177 754 946
Inventories 3,126 1,857 2,879
Prepaid expenses and other current assets 1,431 1,307 1,441
-------- -------- --------
Total current assets 94,963 88,214 59,034
Property and equipment, net 2,411 2,647 4,380
Long-term investment - UMC 2,103 2,103 6,563
Long-term investments - other 2,950 3,039 6,654
Other assets 341 342 345
-------- -------- --------
Total assets $102,768 $ 96,345 $ 76,976
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,914 $ 8,372 $ 3,556
Accrued liabilities 8,616 7,798 11,030
Deferred tax liabilities 6,095 5,133 --
Income taxes payable 3,856 3,750 1,385
-------- -------- --------
Total current liabilities 25,481 25,053 15,971
Minority interests in subsidiaries 2,976 2,287 222
-------- -------- --------
Total liabilities 28,457 27,340 16,193
Stockholders' equity
Capital stock 44,641 41,859 38,639
Retained earnings 20,682 19,260 26,713
Accumulated other comprehensive income (loss) 8,988 7,886 (4,569)
-------- -------- --------
Total stockholders' equity 74,311 69,005 60,783
-------- -------- --------
Total liabilities and stockholders' equity $102,768 $ 96,345 $ 76,976
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