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FREMONT, Calif.- October 30, 2003 - Vialta,
Inc. (OTC:VLTA) today reported a net loss of $1.2
million, or $0.01 per share, for the third quarter
ended September 30, 2003. This compares to a net
loss of $14.8 million, or $0.18 per share, for
the quarter ended September 30, 2002. In addition,
the Company reported a net loss of $2.3 million,
or $0.03 per share, for the nine months ended
September 30, 2003 compared to a net loss of $29.2
million, or $0.35 per share, for the nine months
ended September 30, 2002.
During
the third quarter the Company recorded $1.3 million
in revenue from sales of its Beamer™ videophone.
Revenue for the nine months ended September 30,
2003 was $7.6 million. Revenues for this period
included recognition during the first quarter
of 2003 of approximately $2.8 million from shipments
that occurred in the fourth quarter of 2002 and
had been previously deferred. There were no revenues
for the comparable periods in 2002. Gross margin
was $767,000 for the third quarter, and $5.7 million
for the nine months ended September 30, 2003.
Gross margin was high in relation to revenue,
largely because products costs associated with
revenues were expensed in the prior year.
Vialta's
emphasis on improving operating efficiencies has
had a positive impact on decreasing operating
expenses. The Company's total operating expense
was $2.1 million for the third quarter of 2003,
and $8.5 million for the nine months ended September
30, 2003, a reduction of $13.1 million and $21.8
million respectively, from the comparable periods
in the prior year. Included in operating expenses
for the third quarter of 2002 were product costs
of $9.3 million related to Beamer. There was no
comparable charge during the third quarter of
2003.
"This
past quarter, Vialta launched two new products
- Beamer TV™ Videophone and VistaFame™
Digital Picture Frame. The introduction of Beamer
TV helps to further develop the videophone product
category while offering consumers a wider range
of videophone options to choose from," said
Didier Pietri, Vialta's president and chief executive
officer. "VistaFrame was created entirely
in-house, adhering to the Company's emphasis on
ease of set up and use, while integrating form
with function - the same set of product development
goals and values that enabled Vialta to make Beamer
Videophones appealing and affordable to the mass
consumer market." Mr. Pietri concluded, "VistaFrame
offers ease-of-use features and a modern, sleek
design that should help to make digital picture
frames as accepted and commonplace as digital
cameras."
About
Vialta
Vialta,
Inc. develops, designs and markets unique and innovative
home entertainment and communications products for
the mainstream consumer. Vialta 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. More information about Vialta can
be found at www.vialta.com.
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, 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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