7/28/2003 - Oak Technology, Inc., (Nasdaq: OAKT) a leading provider of embedded solutions for the HDTV and Digital Imaging markets, announced that in fiscal 2003, the company achieved total revenues of $106.5 million. This compares with total revenues for the 2002 fiscal year of $146.6 million. For the fourth quarter of fiscal 2003, ended June 30, 2003, the company reported total net revenues of $22.0 million compared with $34.9 million in the same quarter of the previous year. During fiscal 2003, Oak acquired TeraLogic Inc. and divested the company's optical storage business such that year-ago results are not comparable with the current period.
On May 5, 2003, Oak entered into a merger agreement with Zoran Corporation. The closing of the merger is subject to approval of stockholders of both companies and the satisfaction of certain other closing conditions. A special meeting of Oak's stockholders has been scheduled for August 8, 2003 to vote on the proposal.
On a GAAP basis, the company reported a net loss of $32.7 million, or ($0.58) per share for the 2003 fiscal year. For the fourth quarter of fiscal 2003, the company reported net income of $13.9 million, or $0.23 per share on a diluted basis. This compares to a net loss of $27.0 million, or ($0.49) per share, reported for all of fiscal 2002, and a loss of $12.7 million, or ($0.23) per share for the same quarter one year ago.
On a pro forma basis, excluding the amortization of intangibles, acquisition-related expenses, deferred stock compensation and restructuring expenses, the company reported a net loss for fiscal 2003 of $26.0 million, or ($0.46) per share. For the fourth quarter of fiscal 2003 the company reported a pro forma net loss of $2.4 million, or ($0.04) per share. In the comparable year ago periods, the company reported a pro forma net loss of $9.1 million, or ($0.16) per share, and $6.8 million, or ($0.12) per share for the year and quarter, respectively.
"Fiscal 2003 was an important year for Oak, as we successfully repositioned the company in high-growth consumer electronics markets," said Young Sohn, Oak's chairman and chief executive officer. "While our proposed merger with Zoran is pending, we are pleased that our HDTV and Imaging businesses continued to build momentum and we further reduced our cost structure. We are encouraged by the positive response the merger proposal has generated from customers and we believe we are bringing a well-positioned, financially strong, growing company to the combined entity."
Based on Oak's expectations as of July 22, 2003, with the next Generation9TM HDTV controller currently ramping into production, the company expects revenue from the HDTV business will grow sequentially in the September quarter. In addition, Imaging revenues are expected to grow slightly into the September quarter. Given the company's pending merger with Zoran Corporation, the company does not expect to operate as an independent company for the entire quarter and will therefore refrain from providing further guidance at this time.
These statements, and the use of such phrases as "expects", "anticipates" and "intends" are forward-looking, and actual results may differ materially.
About Pro Forma Adjustments
To supplement the consolidated financial results prepared under generally accepted accounting principles ("GAAP"), Oak uses a non-GAAP conforming, or pro forma measure of net income that is GAAP net income adjusted to exclude certain costs, expenses and gains. Pro forma net income gives an indication of Oak's baseline performance before gains, losses or other charges that are considered by management to be outside of the company's core operating results. In addition, pro forma net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with, or an alternative for, GAAP and may be materially different from pro forma measures used by other companies. Oak computes pro forma net income by adjusting GAAP net income with the impact of amortization of acquisition-related charges, and other non-recurring charges and gains.
RECENT BUSINESS DEVELOPMENTS
Oak's Generation9 HDTV system entered production in the fourth quarter. More than 50 Generation9 platforms have been sold and the company expects six customers in production in the second half of 2003.
Funai selected Oak's TL851 Universal Digital TV Decoder and TL811 PVR/STB controller for its latest suite of over-the-air set-top-boxes. Oak has worked with Funai in Japan, and Funai will shortly introduce set-top-boxes incorporating Oak products in the United States market.
Oak's OTI-4110 and PM-1100 and raster-based high performance printer drivers have been designed into Hewlett-Packard's new Color LaserJet 1500 printer series. HP's Color LaserJet 1500, priced from $799, is a lower priced follow-on to the groundbreaking low-cost Color LaserJet 2500. The Color LaserJet 1500 is positioned to assure that color laser printing is affordable for the desktop and follows a broad industry trend toward building more affordable personal color laser printers.
Oak's IPS/PS3 PostScript® 3TM-compatible software was deployed in Oki Data's new OKI® C5300n color printer and OKI B4300 monochrome printer. The OKI C5300n's deployment is significant for Oak because the printer features color single pass, or tandem, engine support.
Oak launched the OTI-4100, a programmable second-generation system-on-a-chip solution for imaging and printing appliances, based on the company's Quatro architecture. The OTI-4100 improves price performance and is optimized to meet the needs of entry-level market segments in the personal imaging and printing appliance markets.
Oak also launched IPSTM 6.0 software, the next generation Page Description Language technology which includes a common display list, advanced color functionality and enhanced security in printers and multi-functional peripherals.
About Oak Technology
Oak Technology, Inc., a leading provider of solutions for the storage, manipulation and distribution of digital content, is committed to driving the emerging world of connected consumer appliances. The company's fully integrated products and technologies target two key markets: digital imaging (advanced copiers, printers, faxes, scanners and MFPs) and digital home entertainment (digital TV, HDTV and PVRs). Founded in 1987, Oak is headquartered in Sunnyvale, California, and has sales offices, design centers and research facilities around the world. The company trades on the Nasdaq National Market under the symbol OAKT. Additional information about Oak and its digital solutions can be found at www.oaktech.com.
Oak Technology is a registered trademark of Oak Technology, Inc. The Oak logo, is a common law trademark of Oak Technology, Inc.
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