Earnings Call Excerpt
PortalPlayer Inc. (PLAY)
Q1 2006 Earnings Conference Call
May 1, 2006, 5:30 p.m. EST
Executives
Gary Johnson, President and CEO
Olav Carlsen, Chief Financial Officer
Kristine Mozes, Investor Relations
Analysts
Randy Abrams - Credit Suisse
Glen Yeung - Citigroup
Jason Pflaum - Thomas Weisel Partners
Daniel Ernst - Hudson Square Research
Krishna Shankar - JMP Securities
Adam Benjamin - Jefferies & Company
Quinn Bolton - Needham & Company
Chris Caso - Friedman, Billings, Ramsey & Co.
Craig Berger - Wedbush Morgan
Tayyib Shah - Longbow Research
Presentation
Operator
Welcome to the PortalPlayer Incorporated First Quarter Fiscal 2006 Earnings Conference Call. Today’s call is being recorded and will be available for playback beginning one hour after the completion of the call. To access the replay, please dial 719-457-0820 with the pass code 7348100.
At this time, for opening remarks and introductions, I would like to turn the call over to Kristine Mozes, Investor Relations for PortalPlayer. Please go ahead.
Kristine Mozes
Thank you for joining us today. In addition to this call being available by phone replay, it is being broadcast live via the investor relations page of PortalPlayer’s website at www.portalplayer.com.
Earlier today, we issued our earnings press release and filed it with the SEC. the press release is also available on PortalPlayer’s website. That press release contains certain non-GAAP financial measures which we will discuss during today’s call, together with the most directly comparable financial measures calculated in accordance with GAAP and reconciliations of the differences between these measures.
With me today is Gary Johnson, President and CEO of PortalPlayer, and Olav Carlsen, PortalPlayer’s Chief Financial Officer.
I will begin this call by reading our safe harbor statement.
The statements on today’s call, which are not historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements include, but are not limited to, statements as to our future plans and growth, our customers inventories, development efforts, features, benefits, and introductions of products and technology, sales of the PP5021, entrance into new markets, our plans to hire additional resources, our ability to execute our product roadmap, our revenue growth, including revenue from the Flash market and timing thereof, market trends and demand for high-capacity players and anticipated growth of this market, market trends and demand for differentiated notebooks and anticipated growth of this market, availability of Microsoft Vista Slideshow technology, market trends and demand for products with wireless connectivity and anticipated growth of this market, demand for our products and future financial results, GAAP and non-GAAP, including revenue, net income, expenses, gross margins, ASP’s, stock-based compensation charges, tax rates, cash flow, weighted average shares outstanding and operating expenses, including but not limited to future R&D spending and selling general and administrative expenses.
- We certainly haven’t given up on winning back the business we have lost from our largest customer, and plan to aggressively pursue future product models with them. We will also continue to support them and plan to ship the 5021 device to them for some iPod models;
- We plan to leverage our existing products, including the follow-on product to our 5021 device, and updated firmware development kit features much more actively with other customers;
- We will now take our super integrate, single-chip product roadmap, which will now include analog, advanced video, and wireless capabilities, to a broader customer base; and
- Finally, as Olav mentioned, we will continue to leverage our flexible spending model to ensure that we invest in prudently only in those critical areas that allow us to innovate in the portable multimedia market.
- Create innovative technology in-house;
- Work with great technology partners to bring memory-related technologies in-house; and
- Purchase patents and exclusive licenses to IP in the area of memory technology and more general semi-conductor applications.
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