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Syntax Reports Q3 Growth

5/11/2007 10:21:00 AM Eastern

Tempe, Ariz. — Advanced TV manufacturer Syntax-Brillian said third-quarter revenue jumped 257 percent to $162.9 million, while net income rose to $5.5 million compared with an $11.4 million loss in the year-ago period.

Year-to-date revenue was $492.4 million, up 270 percent from revenue of $133.2 million for the nine months, ended March 31, 2006.

Net income for the nine months ended March 31, was $21.4 million compared with a net loss of $13.4 million for the comparable period of the previous year.

“Given the challenge of achieving year-to-date revenue growth of 270 percent, integrating the Vivitar acquisition, and expanding our LCoS program in China, I am extremely pleased with the results this quarter,” stated Vincent Sollitto, Syntax-Brillian chairman. “The success of our advertising campaigns has resulted in increased demand for our Olevia HDTVs and, therefore, our revenue outlook for the full calendar year has now been increased to a range of $975 million to $1.1 billion.”

Syntax-Brillian reported consolidated gross margins of 18.1 percent for the period, which represented a sequential improvement of 250 basis points from the December 2006 quarter and a 900 basis point improvement from the third quarter of fiscal 2006.

The gross margin improvement from the fiscal 2006 third quarter was a result of improvements in LCD gross margins, from 16.2 percent in the March 2006 quarter, to 21.2 percent in the March 2007 quarter, as well as an overall increase in the amount of LCD revenue, the company said.

In the quarter, Syntax-Brillian completed its acquisition of Vivitar on Nov. 21, 2006. Revenue for Vivitar for the quarter was $13.5 million.

Also in the quarter, Syntax-Brillian announced brand impact results of an ongoing ESPN marketing and advertising campaign: Olevia brand awareness in key demographic of males age 18 to 49 increased by 347 percent, up 33.9 percent, and consideration of purchasing an Olevia HDTV increased by 161 percent, up 18 percent.

The company renewed and expanded the ongoing ESPN marketing and integrated advertising campaign through August 2008.

Also, Syntax-Brillian started shipping Olevia LCD TVs to Target, Kmart and Sears.