The revenues for the quarter representing an increase of 15 percent over the previous quarter and 66 percent over the year-ago quarter exceeded previously stated expectations. As a result, the company achieved earnings of 8 cents per share, which also exceeded previously stated targets.
Genesis Microchip’s performance for the quarter underscores the strength of our management, people, products, patents and vision for meeting our customers’ evolving needs, said Genesis Microchip’s Chief Executive Officer Amnon Fisher. Our continued momentum reinforces Genesis Microchip’s ability to bridge the gap between today’s content and a growing flat-panel display market. We are extremely pleased with our performance, and we are excited about our prospects for continued growth.
The company expects that revenues in the 2002 fiscal year will continue to be dominated by shipments of its products into the flat-panel monitor market. As a result of the timing of the introduction of new products, the expected growth of the flat-panel monitor market and seasonal factors in that market’s growth, the company is raising its revenue targets. For the September quarter, the company is now targeting revenue growth of 16 percent to 20 percent over its June quarter’s revenues. The company is also raising its revenue target for the December quarter, but not to the same extent as for the September quarter as a result of seasonal factors. For the December quarter, the company expects revenues in the range of $25.0 to $25.5 million. For the March 2002 quarter the company expects that seasonal factors will result in single-digit sequential revenue growth.
The company continues to expect gross margins for the balance of the fiscal year to be in the range of 46 to 47 percent of revenues.
With its revenue growth now stronger than previously expected, the company now plans to increase spending in selling and customer support activities. Consequently, the company now plans operating expenses to average between $8.8 and $9.0 million per quarter for the balance of the fiscal year.
