Mountain View, Calif.--June 20, 1997--Trident Microsystems Inc. (Mountain View, Calif.) announced that the weaker than anticipated 2-D graphics business is expected to cause revenue and net income levels to fall below its expectations for the fourth fiscal quarter of 1997.
The company expects revenue for the fourth quarter of fiscal 1997 to be down approximately 25 percent compared to the third quarter's revenue of $46.5 million. Although competition in 2-D products is fierce, shipments of our 3-D and notebook products will result in gross margin percentage in the fourth quarter of fiscal 1997 to increase by one percentage point to 38.5 percent.
Expenses (R&D plus SG&A) in the fourth quarter of 1997 are expected to be approximately three percent higher than the expenses of the last quarter. The tax rate is expected to remain at 32 percent. The company expects interest and other income for the fourth quarter of fiscal 1997 to be approximately $675,000.
Mountain View, CA
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