FREMONT, Calif. -- ESS Technology Inc. today increased its revenue estimate for the fourth quarter to a range of $74-to-$76 million, compared to a previous forecast of $68-to-$74 million, because of strong demand for chips used in DVD video players. ESS Technology's revenues were $72.4 million in the third quarter.
"We believe our fourth quarter DVD shipments will set another record," said Robert Blair, president and CEO of the Fremont company, which supplies ICs for digital video, home networks, and other consumer systems.
ESS said it also expects profit margins and earnings to exceed previous estimates in the fourth quarter. Gross margins are expected to top the company's previous guidance of 37-to-38% as higher margin DVD business continues to increase. The company said it also expects to report net income per diluted share of between $0.22 and $0.24 in Q4, compared to our previous guidance of $0.17-to-$0.22. ESS posted a net income of $0.28 per share, or $9.2 million, for the third quarter.