Brillian Corp. Reports Third Quarter Results
TEMPE, Ariz.--(BUSINESS WIRE)--Nov. 14, 2005--Brillian Corp. (Nasdaq: BRLC), a designer and developer of rear-projection, high-definition televisions based on its proprietary liquid crystal on silicon (LCoS(TM)) microdisplays, today announced its financial results for the third quarter ended Sept. 30, 2005.
For the quarter ended Sept. 30, 2005, Brillian reported revenue of $659,000, down 10% from the year-ago quarter. Year-to-date revenue was $2.5 million, up 8% from the nine months ended Sept. 30, 2004. Net loss for the quarter was $9.6 million compared with a net loss of $6.3 million in the third quarter of 2004. Net loss for the nine months ended Sept. 30, 2005 was $22.0 million compared with a net loss of $16.6 million for the comparable period of 2004. Net loss per share was $1.30 for the third quarter of 2005 compared with $0.91 for the third quarter of 2004. Year-to-date net loss per share was $3.10 compared with $2.69 for the comparable period of 2004.
Results for the third quarter of 2005 include inventory write-offs of approximately $870,000 in order to reduce inventory carrying amounts to the lower of cost or market, stock-based compensation charges of approximately $353,000 pursuant to SFAS No. 123(R), non-cash interest expense, consisting of amortization of debt discount and offering costs, of approximately $1.3 million, and a loss on investment in startup company of $1.1 million.
Brillian ended the quarter with cash, cash equivalents, and short-term investments of $2.4 million, working capital of $4.9 million, stockholders' equity of $7.5 million, and $4.4 million of debt. At Sept. 30, 2005, Brillian also had $2.0 million of remaining availability under its loan agreement with Syntax Groups Corp.
"This is an exciting time for Brillian, our employees, and our stockholders. As we look forward to the stockholder meeting on Nov. 29, and completion of the merger with Syntax, we remain focused on production of our new light engine as well as our 1080p HDTVs," said Vincent F. Sollitto Jr., president and CEO of Brillian.
Separately, Syntax Groups Corp., one of the fastest growing manufacturers of TFT-LCD TVs in North America, today announced financial results for its first fiscal quarter ended Sept. 30, 2005.
For the first quarter of fiscal 2006 ended Sept. 30, 2005, Syntax announced revenue of $27.4 million compared with revenue of $9.7 million in the first quarter of fiscal 2005, an increase of 183%. Gross profit for the first quarter of fiscal 2006 was $5.6 million, or 20% of revenue, compared with $1.2 million, or 12% of revenue, for the first quarter of fiscal 2005. Net loss totaled $658,000 for the first quarter of fiscal 2006 compared with a net loss of $192,000 for the first quarter of fiscal 2005. Included in the net loss for the first fiscal quarter of 2006 was non-cash compensation expense of $2.2 million related to stock options granted and vested during the quarter.
Brillian's efforts in the fourth quarter are centered around closing the planned merger with Syntax Groups Corp. Both Syntax and Brillian have shareholder meetings scheduled for Nov. 29, 2005, to vote on the proposed merger. Assuming both shareholder groups approve the merger, Brillian anticipates that closing can occur shortly thereafter. Upon closing of the merger, Brillian will change its name to Syntax-Brillian Corp. and will adopt Syntax's June 30 fiscal year-end. For accounting purposes, the merger will be considered a reverse acquisition application of the purchase method of accounting under which Syntax is considered to be acquiring Brillian. Accordingly, the historical financial statements of Syntax will become the historical financial statements of the combined company.
Assuming the proposed merger is approved and closes on or about Nov. 30, 2005, only one month of Brillian operations will be included in the combined financial results of Syntax-Brillian Corp. Based on this assumption, Brillian's current outlook for Syntax-Brillian for the three months ending Dec. 31, 2005, is for a range of revenue from $55 to $65 million and operating income ranging from a negative $700,000 to a positive $1.7 million.