Syntax-Brillian Dims Outlook

Olevia LCD TV maker takes down top line targets on new China royalty plan.
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Updated since 8:28am

Syntax-Brillian

(BRLC)

slashed sales targets as its China business changes to a royalty-based model.

The distributor of Olevia LCD TVs says it now expects sales in the current quarter ending next month to be in the $155 million to $175 million range. That compares to revenue of $242.4 million in the year-ago quarter. Analysts had been looking for sales of $303.1 million, according to Yahoo! Finance.

For the fiscal year ending in June, Syntax-Brillian now expects sales excluding China to be in the range of $650 million to $685 million. The company says China sales represent about half of its revenue and if those numbers were included in the total sales for the year, LCD TV revenue would be in the $1.2 billion range.

Updated since 8:28am

Analysts had expected fiscal 2008 sales -- including China -- to be $877.3 million.

"Under the new business model, we will earn royalties based upon the net sales of Olevia branded LCD TVs in China by our exclusive distributor, which will be responsible for sourcing components for and manufacturing, marketing, and selling of Olevia LCD TVs in accordance with our specifications and standards," CEO James Li said in a press release.

Total revenue in fiscal 2008, including Vivitar global sales and excluding sales made through the licensed China-based distributor, are expected to range from $650 million to $685 million. That compares to sales of $697.6 million in the prior year, including $364.8 million in sales to China.

The news comes just a day after LCD glass giant

Corning

(GLW) - Get Report

reaffirmed its outlook on flat panel glass sales.

Syntax-Brillian shares fell 27 cents, or 8%, to $3 Wednesday.