Brillian Corp., a designer and developer of rear-projection, high-definition televisions based on its proprietary liquid crystal on silicon (LCoS(TM)) microdisplays, announced its financial results for the second quarter ended June 30, 2005.
For the quarter ended June 30, 2005, Brillian reported revenue of U.S. $1.0 million, down 11 percent from the year-ago quarter. Year-to-date revenue was $1.9 million, up 16 percent from the first half of 2004. Net loss for the quarter was $7.2 million, compared with a net loss of $4.8 million in the second quarter of 2004. Net loss for the first six months of 2005 was $12.5 million, compared with a net loss of $10.2 million for the first half of 2004. Net loss per share was $1.03 for the second quarter of 2005, compared with $0.78 for the second quarter of 2004. For the first 6 months of 2005, net loss per share was $1.78 compared with $1.77 for the first half of 2004.
Results for the second quarter of 2005 include inventory write-offs of approximately $1.3 million in order to reduce inventory carrying amounts to the lower of cost or market. Also, Brillian implemented the provisions of Statement of Financial Accounting Standards ("SFAS") No. 123(r) "Accounting for Stock Based Compensation" on April 1, 2005. The provisions of SFAS No. 123(r) require companies to measure the fair value of stock options and other equity-based compensation on the grant date and recognize this value as an expense over the requisite service period. The incremental expense recorded in the second quarter of 2005 as a result of implementing SFAS No. 123(r) was $288,000.
Brillian ended the quarter with cash, cash equivalents, and short-term investments of $1.2 million, working capital of $5.1 million, stockholders' equity of $9.7 million, and $2.0 million of debt. Subsequent to June 30, 2005, Brillian issued $5.0 million face value of convertible debentures and $2.1 million of senior secured debentures for total proceeds of $7.0 million. After considering placement agent commissions and offering expenses, net proceeds to Brillian totaled approximately $6.3 million. Had this transaction been completed on June 30, 2005, Brillian would have ended the quarter with cash, cash equivalents and short-term investments of $7.5 million, working capital of $11.4 million, stockholders' equity of $15.8 million, and $2.9 million of debt.
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