FREMONT, Calif.--Centillium Communications Inc. here said a strong pickup in demand for digital subscriber line (DSL) products in Japan has caused the company to re-evaluate its chip inventory, which had been previously written down in value because it was believed to be obsolete or excessive for market conditions.
Centillium said it has filed a 10-K report with the U.S. Securities and Exchange Commission (SEC) to show a $5.4 million increased in inventory carrying value compared to a financial statement released with the company's quarterly earnings on Jan. 30.
"The acceleration of DSL subscriber growth in Japan has recently increased demand for our DSL products," said Faraj Aalaei, chief executive officer and co-founder of Centillium. "During the period from May to August 2001, net new DSL subscribers in Japan averaged 100,000 subscribers per month. Since Oct. 1, 2001, net new monthly DSL subscribers in Japan averaged 285,000. As of Feb. 28, 2002 there were 2.1 million DSL subscribers in Japan, compared with 510,000 at the end of August 2001.
"This rapid increase of subscriber additions has recently allowed both our customers in Japan and the DSL service providers equipped by these customers to quickly deplete most of their previously existing inventory of DSL equipment and semiconductors," Aalaei said.
The Fremont-based supplier of broadband chip sets had revenues of $34.5 million and a pro-forma net income of $200,000 in the fourth quarter of 2001. Including charges, the company's net loss for Q4 was $4.2 million. For 2001, Centillium's revenues totaled $159.5 million and its net loss (including charges) was $19.7 million last year.