Oak Technology, Inc. (Nasdaq:OAKT), a leading provider of embedded software and semiconductor solutions for the optical storage and digital imaging markets, today announced results for the first quarter of fiscal 2003, ended September 30, 2002, and unveiled the company's strategy to increase its focus on the emerging digital home entertainment market. The first step in the implementation of that strategy will be Oak's acquisition of TeraLogic, Inc., a leading developer of video/audio processing hardware and software for digital home entertainment platforms, which was announced separately today.
For the first quarter of fiscal 2003, Oak reported revenues of $30.2 million and a net loss of $5.7 million, or $(0.10) per share on a GAAP basis. On a pro forma basis, excluding the amortization of intangibles, the company reported a net loss for the first quarter of the current fiscal year of $3.9 million, or $(0.07) per share. For the first quarter of fiscal 2002, the company reported net revenues of $33.3 million and a net loss of $6.2 million, or $(0.11) per share on a GAAP basis, and a pro forma net loss of $2.8 million, or $(0.05) per share.
"The first quarter was an important quarter for us from a strategic point of view," said Young Sohn, Oak chairman and chief executive officer. "In view of ongoing tough market conditions in the PC-oriented business, we have begun to implement a strategic plan to expand our core business and position Oak for leadership in the emerging consumer digital entertainment market. The first step in this plan is the acquisition of TeraLogic, also announced today. As we move forward with our core business, we will be entering into new partnerships with leading optical storage companies to leverage our technical leadership while improving our cost efficiency in that business."
FIRST QUARTER BUSINESS REVIEW
- Oak's Quatro SOC solution is currently sampling production-level silicon. Oak expects to ramp production on the OTI-4110 in the March quarter.
- Oak announced the availability of the PM 1100, a highly integrated pulse width modulator (PWM) and frequency synthesizer for laser printing devices. The patented technology solution to enhance resolution offers superior image quality for the monochrome and growing color laser printing markets.
- Oak demonstrated continued evidence of strong and productive strategic partnerships with the release of Yamaha Corporation's latest high-performance optical CD-RW recorder which features Oak's OTI-9797T optical storage controller. The two companies continue to leverage each other's technical strengths by driving the development of advanced optical storage writing capabilities for CD-RW and recordable DVD.
- At the recent Intel Developers Forum held in San Jose in September, Oak demonstrated Maestro™, an exciting new technology that allows audio, digital photos, and video content residing on home PCs to be displayed in the living room. Maestro™ leverages existing home networking and consumer electronics technologies and can deliver personalized content on a TV using a networked DVD player or set-top box.
Oak's Board of Directors authorized a program to repurchase up to four million shares, or approximately seven percent, of the company's currently outstanding common stock. The program is primarily intended to offset the potential dilution of the company's ongoing stock-based employee compensation plans over the next two years. Approximately 415,000 shares were repurchased by the company during the first fiscal quarter for approximately $1.6 million.