8x8 1999 Annual Report Download - page 32

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Total revenues were $31.7 million, $49.8 million and $19.1 million for the fiscal years ended March 31, 1999, 1998 and 1997, respectively.
Total revenues for fiscal 1999 were divided among multimedia communication semiconductors ($10.3 million), ViaTV systems ($12.9
million), video monitoring systems ($3.0 million) and nonrecurring license and other revenues ($5.5 million). In fiscal 1998, total revenues
and nonrecurring license and other revenues ($3.9 million).
Product revenues were $26.2 million in fiscal 1999, a decrease of $9.1 million from the $35.3 million reported in fiscal 1998. The decrease in
product revenues in fiscal 1999 compared to fiscal 1998 is primarily due to a decrease in sales of the Company's multimedia communication
revenues increased by $20.1 million above the $15.2 million reported in fiscal 1997. The increase in product revenues is primarily due to sales
generated from the Company's ViaTV products, combined with an increase in sales of the Company's multimedia communication
semiconductors, offset by a decrease in both MPEG semiconductor and math co-processor sales due to the discontinuation of such product
lines in fiscal 1997.
License and other revenues consist of technology licenses, including royalties required under such licenses, and nonrecurring engineering fees
for services performed by the Company for its customers. License and other revenues were $5.5 million in fiscal 1999, a decrease of $9.0
million from the $14.5 million reported in fiscal 1998, due in part to the approximately $5.3 million paid by 3Com in fiscal 1998 for a license
to substantially all of the Company's technology underlying its ViaTVs. Compared to fiscal 1997, in fiscal 1998 license and other revenues
increased by $10.6 million from $3.9 million to $14.5 million, due in part to the $5.3 million paid by 3Com in fiscal 1998.
Revenues from the Company's ten largest customers in the fiscal years ended March 31, 1999, 1998 and 1997 accounted for approximately
revenues. 3Com accounted for 20% during the year ended March 31, 1998, and ASCII, the Company's former distributor in Japan, accounted
for 13% during the year ended March 31, 1997.
Sales to customers outside the United States represented 43%, 47% and 54% of total revenues in the fiscal years ended March 31, 1999, 1998
and 1997, respectively. Specifically, the Company's sales to the Asia Pacific region represented 26%, 25% and 33% of total revenues for the
fiscal years ended March 31, 1999, 1998, and 1997, respectively. The Company's sales to Europe represented 17%, 22% and 21% of total
revenues for the fiscal years ended March 31, 1999, 1998, and 1997, respectively.
Cost of Revenues
The cost of product revenues consists of costs associated with components, semiconductor wafer fabrication, system and semiconductor
assembly and testing performed by third-party vendors and direct and indirect costs associated with purchasing, scheduling and quality
assurance. Costs of product revenues were $24.2 million, $17.8 million and $12.0 million for the fiscal years ended March 31, 1999, 1998, and
the Company's decision to cease production and distribution of its ViaTV product line. In addition, increased costs associated with increased
ViaTV videophone revenues were partially offset by decreased cost of shipments of the Company's multimedia communication semiconductor
products. The cost
28
YEAR ENDED MARCH 31,
---------------------------
1999 1998 1997
----- ----- -----
(IN MILLIONS)
Cost of product revenues................................ $24.2 $17.8 $12.0
As a percentage of product revenues..................... 92% 50% 79%
Cost of license and other revenues...................... $ 0.1 $ 1.1 $ 0
As a percentage of license and other revenues........... 2% 7% 0%