TEMPE, Ariz., March 3 /PRNewswire-FirstCall/ -- Brillian Corporation
(Nasdaq: BRLC), a designer and developer of rear-projection, high-definition
televisions based on its proprietary liquid crystal on silicon (LCoS(TM))
microdisplays, today announced its financial results for the fourth quarter
and full year ended December 31, 2004.
For the quarter ended December 31, 2004, Brillian reported revenue of
$343,000, down 5% from the year-ago quarter. Full year revenue was
$2.7 million, up 23% from 2003. Net loss for the quarter was $16.3 million
compared with a net loss of $4.9 million in the fourth quarter of 2003. Net
loss for the full year was $32.9 million compared with a net loss of
$18.7 million for 2003. Net loss per share was $2.35 for the fourth quarter
of 2004 compared with $0.92 for the fourth quarter of 2003. For the full
year, net loss per share was $5.17 compared with $3.51 for 2003. Bookings for
the fourth quarter of 2004 totaled $315,000.
Results for the fourth quarter of 2004 include an increase in the reserve
for excess and obsolete inventory of $1.1 million and an impairment charge of
$10.2 million. The impairment charge consists of $8.3 million related to the
impairment of long-lived assets, a write-off of $1.4 million relating to the
discontinuance of an expansion card and HDTV tuner project, and $500,000
relating to the write-off of costs incurred to file and process patent
filings, which we have determined not to pursue further.
Brillian ended the quarter with cash, cash equivalents, and short-term
investments of $8.2 million, working capital of $11.4 million, stockholders'
equity of $18.6 million, and no debt.
"The fourth quarter was highlighted by the signing of an agreement with
JDS Uniphase in December, which allows us to bring pilot production of the
Ultrex III light engine in house," said Vincent F. Sollitto, Jr., Brillian's
President and Chief Executive Officer. "In that regard, we built 200 light
engine kernel subassemblies in the fourth quarter, and we began building full
light engines in early January. This has allowed us to re-start our HDTV
production, and in February, we shipped our first TV since the re-start. In
addition to re-starting our TV production, we successfully demonstrated our
720p and our new six mega-pixel 1080p HDTVs in January at the Consumer
Electronics Show in Las Vegas. We had a great turnout in our suite and many
positive comments on the quality of the TVs."
We recently received authorization from JDS Uniphase to have the Ultrex 3
light engine manufactured on our behalf by a contract manufacturer and have
been granted a perpetual license to the light engine design. We are
evaluating potential contract manufacturers for the purpose of making light
engines and plan to exercise the option to manage the light engine volume
manufacturing ourselves. We are endeavoring to have light engines supplied in
volume, by a third party manufacturer in the second half of 2005. In the
interim, we are currently manufacturing a limited quantity of light engines
in-house and are taking steps to increase that capacity until we can have
light engines manufactured in volume.
Business Outlook
Brillian's efforts in the first quarter are focused on producing a limited
quantity of HDTVs and securing customers in the high-end OEM and Pro AV
distribution channels. We anticipate that our revenues for the first quarter
of 2005 will be in the range of $600,000 to $800,000 with a net loss in the
range of $5.5 million to $6.5 million. Operating results beyond the
first quarter depend significantly upon our ability to procure or produce
completed light engines in significant volumes. Until the timing of this
event is known with more certainty, we will not be able to provide guidance
beyond the current quarter.
Brillian will host a conference call today, March 3, to discuss its
fourth quarter and full year financial results and future outlook. The
conference call may include forward-looking statements. The call will be Web
cast and is scheduled to begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific).
The live audio broadcast and replay of the conference call can be accessed on
Brillian's Web site at http://www.brilliancorp.com under the Investor Relations
section. Brillian will maintain an audio replay of this conference call on
its Web site through the first quarter of 2005. No other audio replay will be
available.
About Brillian Corporation
Brillian Corporation designs and develops rear-projection HDTVs targeted
at high-end video/audio OEMs, high-end video/audio retailers, Pro-AV/CEDIA
distributors, and their base of dealers and custom installers looking for
breakthrough performance and image quality. The company is the first and only
provider of Gen II LCoS(TM) technology used in these products. In addition to
its high-definition televisions, Brillian also offers a broad line of LCoS(TM)
microdisplay products and subsystems that OEMs integrate into proprietary HDTV
products, multimedia projectors, and near-to-eye products such as monocular
and binocular headsets. Brillian's LCoS(TM) microdisplay technologies address
the market demand for a high-performance display solution with high image
fidelity, high-resolution scalability, and high contrast ratios. The
company's website is http://www.brilliancorp.com.
Brillian, UltraContrast, and LCoS are trademarks or registered trademarks
of Brillian Corporation. All other trademarks are the property of their
respective owners.
Certain statements contained in this press release may be deemed to be
forward-looking statements under federal securities laws, and Brillian intends
that such forward-looking statements be subject to the safe-harbor created
thereby. Such forward-looking statements include expectations regarding (i)
the company's manufacturing plans, and (ii) revenue and net loss expectations
for the first quarter of 2005. Brillian cautions that these statements are
qualified by important factors that could cause actual results to differ
materially from those reflected by the forward-looking statements contained
herein. Such factors include (a) the ability of Brillian's suppliers to
fulfill production requirements and delivery schedules, (b) changes in markets
for the company's products; (c) changes in the market for customer's products;
(d) the failure of Brillian products to deliver commercially acceptable
performance; (e) the ability of Brillian's management, individually or
collectively, to guide the company in a successful manner; and (f) other risks
as detailed in Brillian's Annual Report on Form 10-K.
BRILLIAN CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Year
Ended Ended
December 31, December 31,
2004 2003 2004 2003
Total net sales 343 360 2,688 2,194
Costs and Expenses:
Cost of sales 3,641 2,635 13,047 9,829
Selling, general, and
administrative 970 1,456 3,671 4,890
Research and development 1,888 2,156 8,671 7,367
Impairment charge 10,233 -- 10,233 --
16,732 6,247 35,632 22,086
Operating loss (16,389) (5,887) (32,935) (19,892)
Other income (expense):
Gain (loss) on investment
in start-up company 19 -- (112) --
Interest, net 35 43 149 57
Loss before income taxes (16,335) (5,884) (32,897) (19,835)
Benefit from income taxes -- 931 -- 1,091
Net loss (16,335) (4,913) (32,897) (18,744)
Loss per Common Share:
Basic and diluted (2.35) (0.92) (5.17) (3.51)
Weighted Average Number of
Common Shares:
Basic and diluted 6,491 5,337 6,363 5,337
BRILLIAN CORPORATION
CONDENSED BALANCE SHEETS
(unaudited)
(in thousands)
December 31, December 31,
2004 2003
ASSETS
Current Assets:
Cash, cash equivalents and short-term
investments 8,208 14,417
Accounts receivable, net 339 447
Inventories 5,400 2,735
Other current assets 368 828
Total current assets 14,315 18,427
Long-lived assets, net 6,082 15,035
Other investments 1,119 6,331
21,516 39,793
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 1,230 457
Accrued compensation 216 84
Accrued liabilities 1,462 676
Deferred revenue -- 21
Total current liabilities 2,908 1,238
Commitments and Contingencies
Stockholders' Equity:
Common stock 7 5
Additional paid-in capital 58,007 45,708
Deferred stock compensation (616) (1,265)
Accumulated deficit (38,790) (5,893)
Total stockholders' equity 18,608 38,555
21,516 39,793
SOURCE Brillian Corporation
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Related links:
http://www.brilliancorp.com
CONTACT:
Wayne Pratt, Vice President, Chief Financial
Officer of Brillian Corporation, +1-602-389-8797,
wayne.pratt@brilliancorp.com
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