Tempe, Ariz. — Syntax-Brillian reported record revenue of $45.7 million, up 115 percent from a year ago, for its fiscal third quarter, which ended March 31.
The company said revenue for the period — the first full quarter since the formerly separate Syntax and Brillian companies merged — did not include approximately $4.1 million of products shipped prior to March 31, which had not been received by customers.
On a unit basis for the period, Syntax-Brillian said it shipped a record 67,500 units, representing an increase of 137 percent year-over-year. An additional 5,300 units were shipped in March but had not been received by customers.
Year-to-date revenue was $133.2 million, up 123 percent from the nine months, ended March 31, 2005.
The company showed an $11.4 million net loss for the quarter, compared with net income of $143,000, registered in the third fiscal quarter of 2005. The net loss for the nine months, ended March 31, was $13.4 million, compared with net income of $365,000 for the comparable period of the previous fiscal year.
The company said gross margins in the LCD segment improved to 16.19 percent from 12.63 percent in the prior quarter.
The average selling price of an LCD TV was $659 per unit from $632 per unit in the prior quarter, while cost of goods sold per unit remained unchanged, the company said.
The company also reported the addition of two new retailers and five distributor/installers to its sales channel in the period.
Syntax-Brillian said revenue exceeding $1 million from its LCoS rear-projection TV unit in the period.
In other developments, the company said it raised $15 million through sale of common stock to Taiwan Kolin, entered into a joint venture agreement with China South to manufacture LCoS light engines in China. The joint venture has already received purchase orders from five Chinese TV manufacturers.
It also entered into a joint venture agreement for the assembly of LCD TVs in China, and reached a strategic supply agreement for the purchase of LCD panels from LG Phillips LCD.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was negative $2.9 million, compared with positive $337,000 for the third quarter of fiscal 2005. Adjusted EBITDA for the nine months, ended March 31, was $403,000, compared with $1 million for the comparable period of the prior year.
Since the merger of Syntax and Brillian was completed on Nov. 30, 2005, results of operations for the nine months, ended March 31, included four months of the operations conducted by Brillian.
Vincent F. Sollitto, Jr., Syntax-Brillian chairman and CEO, said, “On the LCD side of the business, we have been successful in stabilizing prices and increasing margins. We have negotiated an outstanding volume purchase agreement with LG Phillips LCD for tier-one panel supply this year, and we have received tremendous response to our new product strategy and added channel partners as well.
“On the LCoS side of the business, with Sino-Brillian, our new joint venture, on track to build light engines this summer, the Olevia 565 LCoS TV starting the certification process for summer release.”