Trident Microsystems F3Q09 (Qtr End 3/31/09) Earnings Call Transcript

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2009-04-28 16:22:11.0

Tags: Trident Microsystems, Call Transcript, Needham & Co., Earnings, Integration, TVs, Tv & Home Theater, Personal Technology, Home Entertainment, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And the first question comes from the line of Rajiv Gill with Needham & Company. Please proceed.

Rajiv Gill - Needham & Co.

Yes, thank you. Can we first start-off, if you could describe the demand environment for digital television sets, in light of Samsung results, as well as the accounting in some of the positive order rates we're seeing in the channel?

Hungwen Li

This is Wen, what we had seen in 2009 is in terms of total volume compared with 2008 is above freight. And the shipment in the high-end seems to decrease and the shipment in the low end actually increased, so it sort of balanced off. And that phenomenon seems to be universal from most of the TV manufacturers we have seen.

Rajiv Gill - Needham & Co.

And do you see the order rates accelerating, going into the June quarter more, and then how have you seen the order rates, the order patterns exiting this quarter?

Hungwen Li

We don't really see the detailed ordering rate from our customers, but average out in terms of the over year that seems the summary and that's the projection from our research firms.

Rajiv Gill - Needham & Co.

Okay. And then kind of switching gears. With respect to Micronas, what are some of the potential roadblocks for integrating their discreet product line into your SLC? Do you see any potential challenges or you maybe could describe that from a technology perspective actually folding in those product line into your portfolio?

Hungwen Li

Good question. And we have to take a one-on-one, for example the audio and the demodulator integration, which has been practiced in our previous product integration. So therefore, this two integration in our opinion is going to be very straight forward. And obviously, because of the locations, we need to be actually doing some focus.

As far as primary controller, it's actually a very, also a very straight forward thing. If you recall in PRO-QX product quarter, we actually have a fully integrated primary controller MEMC book. So, in summary, we believe the three IP books we have acquired, its integration is going to easy and straight forward for us because we have prior experience on it.

Rajiv Gill - Needham & Co.

Okay. And looking at the financial impact of the acquisition, may be Pete can answer this, you guys talked about reducing the cash usage, I think it was 10 to 25 %. But even when I have model in the Micronas revenue as well as an improving gross margin, I still have you burning cash anywhere between 12 to $15 million a quarter. And I just wanted to get a better understanding are you going to be implementing additional actions to try to reduce that cash burn further?

 

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