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» Trident Microsystems CEO Discusses Q3 2010 - Earnings Call Transcript
» Trident Microsystems, Inc. Q2 2010 Earnings Call Transcript
» Trident Microsystems, Inc. Q1 2010 Earnings Call Transcript
» Trident Microsystems, Inc. F2Q10 (Qtr Ending 12/31/09) Earnings Call Transcript
These and other factors are discussed in our press releases and in the company’s filing with the SEC. We encourage you to read these documents that to come to your own conclusions about the risks and uncertainties inherent in Trident’s business.Also please note that we will present non-GAAP financial information in this call. But reconciliation of our non-GAAP information to the most comparable information under GAAP, please refer to our earnings press release. On today’s call are Philippe Geyres, Trident’s recently appointed Interim CEO, speaking to you from Europe; and Pete Mangan, Trident’s Executive VP and CFO. He will review the financial results for the quarter and Philippe will follow with further discussion of Trident’s business. Finally, Pete will provide guidance for the first quarter of 2011, and will then open the call for questions. Now, I’ll turn the call over to Pete Mangan. Pete Mangan Thank you, John. Welcome, everyone, and thank you for joining the call today. Although the fourth quarter non-GAAP results were generally in line with the revised guidance we issued on January 4 th, we are disappointed to again report an operating loss after achieving non-GAAP breakeven in Q3. The company is committed to returning to EBITDA positive levels quickly. In our prepared comments today, Philippe and I will share some additional thoughts on achieving this objective. That said for the fourth quarter 2010, net revenues came in at $118.6 million, down 33% from the seasonally strong Q3 of a $176.6 million. TV products declined 41% sequentially to $76 million compared to $129.5 million in Q3. The declines were evenly spread across both SoCs and discrete products, particularly our SoCs and FRCs serving mid-range to high end TVs. As we have said, a normal seasonal decline in TV would be in the range of 15% to 20%. The Q4 decline was more significant as a result of two factors. First, we believe the supply constraints for Trident in the industry generally lead to an over ordering in Q2 and Q3 as our customers had high expectations for 3D and mid-range TVs. When this demand did not materialize, our FRC and SoC business turned down dramatically in Q4. Second, as we have said before, we have lost share with our largest customer as a result of supply constraints earlier in 2010. Please note these factors will also impact our Q1 revenue outlook.
Set-top Box revenues in the quarter were $42.6 million, down 10% from Q3. As expected, revenues were up in our satellite segment, a result of strength in the quarter for DIRECTV H24 program. This is more than offset by continuing weakness in our retail segment, which is working through a transition from legacy standard definition products to our newer high definition products as well as an slower than expected customer ramp of new cable programs.In summary by category, TV discrete products represented 38% of sales followed by Set-top Box at 36%, and TV SoCs at 26%. Sales by customer for the quarter reflected the relative weakness in TV, which was also drove lower customer concentration. Samsung still number one with 12% of total revenues was down from 19% in Q3. Fermax moved in the number two spot with 11% of revenues and Philips moved into number three at 9%, down from 14% in Q3. Read the rest of this transcript for free on seekingalpha.com