Syntax-Brillian Reports 303% Growth

Syntax-Brillian Corp. reported record revenue of $242.5 million, up 303% from the year-ago quarter.

The maker of LCD and LCoS HDTVs announced its financial results Thursday for its fiscal 2007 second quarter ended Dec. 31, 2006. Year-to-date revenue was $329.5 million, up 277 percent from revenue of $87.5 million in the six months ended Dec. 31, 2005.

Vincent F. Sollitto Jr., chairman and CEO, said, "Revenue and earnings hit new records as sell-through of the Olevia brand at the retail level continues to exceed our expectations and we expand distribution into new national channels."

Sollitto said the company's newest Olevia and Vivitar products, introduced at CES, were well-received, and "We continue to enjoy excellent reviews of Olevia products."

The companies said it increased its Olevia brand awareness 164 percent among adults and 174 percent among males ages 18 and up through an ESPN advertising campaign and has begun shipments of Olevia LCD TVs to Circuit City stores and of its Olevia 565 LCoS TVs.

Syntax-Brillian acquired Vivitar Corp. on Nov. 21. Revenue, gross margin and net loss for Vivitar for the 40 days ended Dec. 31, 2006 was $13.4 million, 9.8 percent and $71,000, respectively.

Syntax and Brillian merged in November 2005. The three- and six-month results ended Dec. 31, 2005 include only the operations of Brillian prior to the merger.

Syntax-Brillian said its net income for the quarter was $14.8 million, compared with a net loss of $1.3 million for the second fiscal quarter of 2006. Net income for the six months ended Dec. 31, 2006 was $18.6 million compared with a net loss of $2.0 million for the previous year.

The company reported record shipments of approximately 352,000 units, a 272 percent increase over last year and increased gross margins by 421 basis points, to 15.57% over the prior year period. It also reported an increased credit line to $102 million from $33 million and that it has completed a $10 million strategic financing round.

It said it anticipates revenue this quarter in the $160 million to $170 million range, predominately from sales of LCD TVs on shipments of 210,000 to 240,000 units. For the fiscal year ending June 30, it anticipates revenue in the $650 to $700 million range, predominately from the sales of LCD TVs on shipments of approximately 975,000 to 1,025,000 units. Gross margins for the full fiscal year are anticipated to be 16 to 18 percent.

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