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» Trident Microsystems, Inc. Q1 2010 Earnings Call Transcript
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» Trident Microsystems F1Q10 (Qtr End 9/30/09) Earnings Call Transcript
Actual results may differ materially from the forward-looking statements made today, and have in fact done so in the past. These projections or forward-looking statements are subject to certain risks and uncertainties. These risks include in particular our ability to realize the benefits from our acquisition of product lines from NXP, our ability to build upon our core strengths, including our technology, and engineering team, competitive cost structure, and strong balance sheet, the timing of product introductions, the ability to obtain design lens among major OEMs for our products, the availability of wafers from our suppliers, and competitive pressures including pricing and competitors new product introductions, the impact of the uncertain global macroeconomic environment, the increasingly competitive DTV market, and our ability to retain key employees.These and other factors are discussed in our press releases and in the company’s filings with the SEC. We encourage you to read these documents and to come to your own conclusions about the risks and uncertainties inherent in Trident’s business. Also please note, we will present non-GAAP financial information in this call. For reconciliation of our non-GAAP information to the comparable information under GAAP, please refer to our earning’s press release. Okay, on today’s call are Sylvia Summers, Trident’s CEO; and Pete Mangan, Trident’s Executive VP and CFO. Pete will review the financial results for the quarter, and Sylvia will follow with further discussion of Trident’s business. Finally, Pete will provide guidance for the third quarter, and we will then open the calls for questions. Now I’ll turn the call over to Pete Mangan. Pete. Pete Mangan Thanks, John. Welcome, everyone, and thank you for joining the call today. I am very pleased to present the results for the second quarter of calendar year 2010, which is also the first full quarter with our new TV and Set-Top Box products acquired from NXP.
For the second quarter, net revenues came in at $171.6 million, which exceeded the high end of our guidance by 4%. TV products delivered $128.4 million, or 75% of total revenues, which was fairly evenly split between SoCs and discreet products.Set-Top Box revenue came in as expected at $43.2 million. Sales concentration for the quarter included Samsung as our number one customer with 23% of total revenues followed by Phillips with 14%. Geographically, Korea represented 35% of revenues, EMA 26%, and Asia Pacific at 22%. The distribution channel represented 27% of revenues in the quarter. Overall blended average selling price for the quarter was $3.36. Non-GAAP gross margins for the quarter doubled from the prior quarter to $50.8 million or 29.6% of sales. The gross margin percent was approximately 1.5 points better than the prior quarter, primarily the result of economies as a scale. And better than guidance as a result of favorable product yields in the quarter. GAAP gross margins for the quarter included the impact of amortization related to the NXP acquisitions. And as a result, totaled $32.9 million or 19.2%. Non-GAAP operating expenses of $66.6 million came in at the low end of our guidance with R&D in line with our expectations at $48.1 million, and SG&A of 18.4, which was better than our guidance by approximately 10%. Please note that for the quarter total OpEx included $8.5 million, or 5% of sales from transitional support services from NXP. The non-GAAP operating loss of $15.7 million for the second quarter improved $10 million from Q1, and was significantly better than guidance as all areas of the P&L outperformed with higher revenues in gross margins on lower operating expenses. Net loss for the quarter on a non-GAAP base was $14.8 million, or $0.09 per share. This compares with a non-GAAP net loss of $25.8 million, or $0.20 per share in the prior quarter. Read the rest of this transcript for free on seekingalpha.com