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FREMONT, Calif.-
May 6, 2003 - Vialta, Inc. (OTC:VLTA) today reported
net income of $28,000, or $0.00 per share, for the first
quarter ended March 31, 2003. This compares to a net
loss of $6.5 million, or $0.08 per share, for the comparable
prior-year quarter, and a net loss of $13.4 million,
or $0.16 per share for the fourth quarter of 2002.
The
Company's first quarter results reflect recognition
for the first time of revenues generated from sales
of its BeamerTM Videophone Station. The Company recorded
Beamer sales of $3.8 million, which included approximately
$2.8 million from shipments that occurred in the fourth
quarter of 2002 and had been previously deferred. Gross
margin for the quarter was $3.0 million. Gross margin
was high in relation to revenue, largely because products
costs associated with revenues recognized in the first
quarter were expensed in prior periods.
During
2002 the Company commenced a number of initiatives that
has enabled it to streamline operations and reduce operating
expense. These initiatives focused on increasing operating
efficiencies and discontinuing non-core businesses,
which led to a reduction in personnel. As a result of
these ongoing initiatives, the Company's total operating
expense was $3.1 million for the first quarter of 2003,
a reduction of $3.8 million from the comparable prior-year
quarter.
"Vialta's
efforts to develop and market unique, benefit-oriented
consumer electronics goods, enabled Vialta to achieve
the first quarter 2003 results," said Didier Pietri,
Vialta's president and chief executive officer. "In
addition, the acceptance of the Beamer Videophone Station
in a growing number of retail and non-retail sales channels
has helped to raise consumer awareness of Beamer and
Vialta."
Pietri
concluded, "Vialta will continue to leverage the advantages
of its internal design and engineering teams to develop
new products that offer convenience, quality and simplicity
of use, that it believes have an opportunity to capture
major market share."
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.
For
Q1 financial statements, click here
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