FREMONT, Calif. -- ESS Technology Inc. today increased its revenue forecast for the first quarter to more than $75 million, compared to last month's guidance of $68-to-$70 million. ESS has now increased its forecast for Q1 revenues twice since originally estimating sales in the $57-to-$60 million range.
The supplier of semiconductors for digital video and home networking said it expects to report a net income of more than $0.27 per share compared to a previous guidance of $0.22-to-$0.25 (see Feb. 28 story).
"We attribute this growth in revenue to a very strong market for DVD and VCD video CD players and to an increase in our market share in the DVD market," said Robert Blair, president and CEO of ESS in Fremont. "We believe the market for DVD players is larger and growing faster than previously estimated and that our market share is continuing to grow."
ESS new revenue guidance would still give the company a sequential decline from $83.3 million in sales during the fourth quarter of 2001, when it also posted a net income of $0.35 per share or $16.3 million.
But the business is looking stronger in the second quarter of 2002, Blair said. "We are especially pleased with the growth in shipments and new design wins from Japan and Korea," he said. The company plans to issue new estimates for Q2 when it reported results for the first quarter on April 24.