SEOUL, South Korea, Sept. 1 /PRNewswire-FirstCall/ -- Pixelplus Co., Ltd. (PinkSheets: PXPLY), a fabless semiconductor company in 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 2009, which ended on June 30, 2009.
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 2009 was 4.4 billion Korean won (US$3.5 million), compared to 3.5 billion Korean won (US$2.7 million) in the first quarter of fiscal 2009, and 3.8 billion Korean won (US$3.0 million) in the second quarter of fiscal 2008.
Net income in the second quarter of fiscal 2009 was 0.03 billion Korean won (US$0.02 million), or a net income of nine Korean won (US$0.01) per diluted ADS, compared to a net loss of 1.1 billion Korean won (US$0.9 million), or a net loss of 321 Korean won (US$0.3) per diluted ADS, in the first quarter of fiscal 2009, and a net loss of 2.6 billion Korean won (US$2.1 million), or a net loss of 776 Korean won (US$0.6) per diluted ADS, in the second quarter of fiscal 2008.
The Company sold roughly 4.7 million image sensors in the second quarter of 2009, which represented a decrease of about 0.2 million from its sale of around 4.9 million units in the first quarter of 2009. Separately, the Company furnished approximately 0.5 million image sensors arising from its supply of services to a leading Japanese module maker in the second quarter of 2009, which represented an increase of about 0.3 million units from its supply of around 0.2 million units in the first quarter of 2009. So, in terms of combined figures, the Company sold and supplied a total of about 5.2 million image sensors in the second quarter of 2009, which represented an increase of roughly 0.1 million units from its sale and supply of around 5.1 million units in the first quarter of 2009.
Gross margin for the second quarter of fiscal 2009 was 21.0%, compared to 26.5% in the first quarter of fiscal 2009.
The Company's SG&A expenses in the second quarter of fiscal 2009 were about 0.6 billion Korean won (US$0.5 million), compared to roughly 1.0 billion Korean won (US$0.8 million) in the first quarter of fiscal 2009, and approximately 1.5 billion Korean won (US$1.2 million) in the second quarter of fiscal 2008. Moreover, the Company's operating expenses in the second quarter of fiscal 2009 were around 1.2 billion Korean won (US$0.9 million), compared to about 1.7 billion Korean won (US$1.4 million) in the first quarter of fiscal 2009, and approximately 2.8 billion Korean won (US$2.2 million) in the second quarter of fiscal 2008.
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 1273.5 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, 2009. 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.
Pixelplus will separately issue an announcement to discuss the Company's third quarter 2009 results on or before November 30, 2009.
"The key to our consistent growth and success will be our ability to transform our organization to achieve long-term profitability. For this aim, I believe our strategic cost-control measures should help us decrease our cash requirements, concentrate on our core business, maintain our continuity, and improve the efficiency of our operations," said Dr. S.K. Lee, CEO and Founder of Pixelplus. "While we continue to vigorously pursue these cost-control measures, we also are pleased to have more products in various stages of development and deployment than ever in our history. With our PO8030 VGA 'System-on-a-Chip' or "SoC", POA030 VGA SoC, and PC1030 NTSC/PAL image sensors, as well as our PM1002, which is our SoC processor for various image recognition applications, we continue to develop our core strategic business with first and second-tier mobile camera phone, automobile applications, and medical endoscope manufacturers in 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 new products, technologies, and approaches to image sensor manufacturing and release to the market other innovative technologies currently in research and development later this year, including our PO1150 1.5 megapixel image sensors which are designed for automotive black-box and security applications. In addition, we are encouraged that we continue to effectively manage our operating expenses, and believe this demonstrates that we have significantly lowered our breakeven point over the course of the last few quarters."
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 2009 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 2900 New York - Jessica McCormick at +1 212 889 4350 E-mail email@example.com Pixelplus Co., Ltd. Non-Consolidated Statements of Operations (In millions of Korean won, except per ADS data) (Unaudited) THREE MONTHS SIX MONTHS ENDED ENDED June 30, June 30, June 30, June 30, 2009 2008 2009 2008 Revenues 4,415 3,797 7,948 7,186 Products 4,101 3,592 7,411 6,788 Services 314 205 537 398 Cost of revenues 3,478 3,612 6,075 6,611 Products 3,459 3,573 6,046 6,538 Services 19 39 28 73 Gross profit 938 185 1,874 575 Operating expenses 1,171 2,820 2,900 5,520 Selling, general and administrative 624 1,547 1,587 3,167 Research and development, net of government grants 547 1,273 1,313 2,353 Income (loss) from operations -233 -2,634 -1,027 -4,945 Other income (expense) Interest income (expense), net (104) (34) (224) (22) Foreign exchange gain (loss), net 229 (99) 36 (2) Others, net 164 46 300 81 Income (loss) before income taxes 57 -2,721 -915 -4,889 Income tax expenses - - - - Income (loss) before gain (loss) from equity method investments, net and minority interest 57 -2,721 -915 -4,889 Gain (loss) from equity method investments, net (25) 84 (146) 84 Minority interest Before cumulative effect of change in accounting principle 32 -2,637 -1,061 -4,804 Cumulative effect of change in accounting principle 0 0 - - Net Income (loss) 32 -2,637 -1,061 -4,804 Accretion of preferred shares - - - - Net income (loss) attributable to common shareholders 32 -2,637 -1,061 -4,804 Income (Loss) per ADS - basic and diluted 9 -776 -312 -1,425 ADSs used in computing Income (loss) per ADS 3,403,433 3,400,112 3,403,433 3,371,387 - basic and diluted Pixelplus Co., Ltd. Non-Consolidated Balance Sheets (In millions of Korean won, except per ADS data) (Unaudited) June 30, 2009 Dec. 31, 2008 Assets Cash and cash equivalents 296 93 Restricted cash 5,000 5,000 Accounts receivable, net 1,497 2,080 Inventories, net 900 2,225 Other current assets 1,097 905 Total current assets 8,789 10,303 Other non current assets 1,156 6,126 Total assets 9,945 16,429 Liabilities, minority interest and Shareholders' equity Trade accounts payable 2,629 3,574 Other accounts payable 2,090 2,029 Short-term borrowings 7,780 8,460 Other current liabilities 1,081 2,380 Total current liabilities 13,580 16,443 Long-term borrowings 0 2,272 Other non current liabilities 511 811 Total liabilities 14,091 19,525 Shareholders' equity Common stock 3,403 3,403 Additional paid-in capital 7,435 7,507 Accumulated other comprehensive 2 -81 loss Accumulated deficit -14,987 -13,925 Total Shareholders' equity -4,146 -3,096 Total liabilities, minority interest and Shareholders' equity 9,945 16,429