SAN JOSE, Calif.--(BUSINESS WIRE)--July 25, 2002--Genesis Microchip Inc. (Nasdaq:GNSS), a world leader in the development of display technologies, today announced its financial results for the first quarter of its 2003 fiscal year, which ended June 30, 2002.
Revenues for the quarter were $41.6 million, up 95% from revenues of $21.3 million in the year-ago June quarter;
Loss in accordance with generally accepted accounting principles was ($4.0 million), or ($0.13) per share, compared to net income of $1.6 million, or $0.08 per share, in the June 2001 quarter;
Pro forma net income* of $1.7 million, or $0.05 per diluted share.
The company discontinued its development of products initiated by VM Labs for the DVD player market, resulting in the elimination of approximately 40 positions.
Pro forma net income differs from loss according to generally accepted accounting principles. A schedule reconciling these amounts is included in this news release. Differences include the exclusions of operating costs of VM Labs operations, severance costs, the amortization of acquired intangible assets and of deferred stock compensation expense, imputed interest on lease obligations and related income tax adjustments
The company announced today that it has discontinued its development of products initiated by VM Labs for the DVD player market. Approximately 40 positions have been eliminated as a result of this decision.
The company acquired audio and MPEG decoding technologies from VM Labs through a bankruptcy proceeding in March 2002. At that time, it hired a number of former VM Labs employees to continue development work on certain VM Labs products.
"We continue to view these technologies as an extremely valuable part of our overall technology portfolio, well-suited for use in emerging video and consumer display markets. However, we made a strategic decision to discontinue the development work on the specific products initiated by VM Labs," said Mr. Donegan.
The company expects to incur operating expenses for VM Labs operations of $0.7 to $0.8 million in the second quarter of fiscal 2003, as well as restructuring costs of approximately $0.6 million to $0.8 million. .
The company expects non-cash charges to operating expenses for the amortization of deferred stock compensation and acquired intangibles to be approximately $4.5 million in the second quarter of fiscal 2003.
The company expects the pro forma tax rate for fiscal 2003 to be approximately 25 percent of pro forma pretax income.