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Fremont, Calif.- November 11, 2004 - Vialta,
Inc. (OTC:VLTA) today reported a net loss of $3.6 million,
or $0.04 per share, for the third quarter ended September
30, 2004. The net loss was directly impacted by the
Company recording $3.4 million in additional reserves
on raw material and finished goods inventory included
in its cost of goods sold.
This compares to a net loss of $1.2 million, or $0.01
per share, for the quarter ended September 30, 2003.
The Company also reported a net loss of $2.3 million,
or $0.03 per share, for the nine months ended September
30, 2004, compared to a net loss of $2.3 million, or
$0.03 per share, for the same period the prior year.
During
the third quarter of 2004 the Company's revenue was
$1.4 million compared to $1.3 million for the third
quarter of 2003. Revenue for the nine months ended September
30, 2004, grew 19% to $9.1 million, an increase of $1.5
million for the comparable period in 2003. Greater domestic
retail coverage, expanded international distribution,
and a broader product line contributed to the revenue
growth. The Company recorded a gross loss of $2.4 million
for the third quarter of 2004, and a gross profit of
$3.0 million for the nine months ended September 30,
2004.
Vialta's
continued emphasis on improving operating efficiencies
has had a positive impact, decreasing operating expenses
by 32% for the quarter and 31% year to date, when compared
to the same time periods last year. The Company's total
operating expense was $1.5 million for the third quarter
of 2004, and $5.9 million for the nine months ended
September 30, 2004, a reduction of $700,000 and $2.6
million respectively, from the third quarter of 2003
and the nine months ended September 30, 2003.
Didier
Pietri, CEO of Vialta, stated, "Our ongoing efforts
to strengthen existing sales channels, add new ones
and offer more products played a strong role in the
19% revenue growth through the first nine months of
this year." Mr. Pietri concluded, "With 1500
retail locations, more than thirty international distributors,
three Beamer videophone models and a plan to introduce
broadband-based Beamers later in 2004, Vialta continues
to make positive strides for its future."
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.
Q3
Financial Statements
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