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FREMONT, Calif.- March 5, 2004 - Vialta, Inc.
(OTC:VLTA) today reported a net loss of $1.8 million,
or $0.02 per share, for the fourth quarter ended December
31, 2003. This compares to a net loss of $13.4 million,
or $0.16 per share, for the quarter ended December 31,
2002. In addition, the Company reported a net loss of
$4.0 million, or $0.05 per share, for the twelve months
ended December 31, 2003 compared to a net loss of $42.6
million, or $0.51 per share, for the twelve months ended
December 31, 2002.
During
the fourth quarter the Company recorded $2.7 million
in revenue from sales of its BeamerTM videophone products
and its digital picture frame product, VistaFrameä.
Revenue for the twelve months ended December 31, 2003
was $10.3 million. Revenues for this period included
recognition of approximately $3.2 million from shipments
that occurred in the fourth quarter of 2002 and had
been previously deferred. The Company recorded approximately
$4.0 million of deferred profit related to sales of
its products as of December 31, 2003, the majority of
which is expected to be recognized during the first
quarter of 2004. There were no revenues for the comparable
periods in 2002. Gross profit was $1.7 million for the
fourth quarter, and $7.4 million for the year ended
December 31, 2003. Gross profit was high in relation
to revenue, largely because products costs associated
with revenues were expensed in the prior year.
The
Company's total operating expense was $4.2 million for
the fourth quarter of 2003, and $13.5 million for the
fourth quarter of 2002, a reduction of $9.3 million.
In addition the Company's total operating expense was
$12.7 million for the twelve months ended December 31,
2003 compared with $43.8 million for the prior year,
a reduction of $31.1 million. Included in operating
expenses for the year ended December 31, 2002 were product
costs of $10.4 million related to Beamer. There was
no comparable charge during 2003.
"The
Company saw many positive trends continue in the fourth
quarter," stated Didier Pietri, Vialta's president
and chief executive officer. "Two new products
- Beamer TV and VistaFrame - were shipped in time for
the holiday buying season, helping to further establish
the videophone category with retailers; while the broader
product line and target-specific advertising helped
to increase brand recognition." Mr. Pietri concluded,
"With an award-winning videophone product line,
growing acceptance of videophones by consumers, the
advent of distribution via international telcos, and
solid distribution domestically with well-respected
retailers and catalogers such as Best Buy, Sharper Image,
Neiman Marcus, Good Guys and Fry's, Vialta has improved
in many arenas over the past 12 months."
About Vialta
Vialta develops, designs and markets unique and innovative
home entertainment and communications products for the
mainstream consumer. The company was formed in April 1999
and is publicly traded on the OTC Bulletin Board under
the symbol VLTA. The company is headquartered in Fremont,
California with offices in Los Angeles and Hong Kong.
Forward-Looking
Statements
The matters discussed in this news release include
certain forward-looking statements that involve risks
and uncertainties, including, but not limited to, the
possible reduction of consumer spending, the timely
availability and acceptance of the Company's new and
existing products, the impact of competitive products
and pricing, the dependence on continued growth in demand
for consumer products, the risk that products shipped
by the Company will be returned, and the other risks
detailed from time to time in the SEC reports of Vialta,
including the reports on Form 10-K and Form 10-Q. Actual
results could differ materially from those projected
in the forward-looking statements.
Q4
Financial Statements
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