Pixelplus Reports Q2, Q3 Results, Withdraws Pink Sheets

PR Newswire: Based on unaudited results of operations in accordance with Korean GAAP on a non-consolidated basis, Pixelplus revenues for Q2 and Q3 2011 were US$10.5M and US$10.4M respectively, compared to US$5.8M and US$5.9M in the Q2 and Q3 a year ago. Net incomes in Q2 and Q3 2011 were US$2.8M and US$2.4M compared to a net income of US$0.6M and US$1.4M a year ago. Gross margins for Q2 and Q3 2011 were 40.1% and 39.4%, compared to 36.8% in Q1 2011.

"We continue to design and introduce cutting-edge products and technologies and release to the market other innovative technologies," said S.K. Lee, CEO and Founder of Pixelplus. "For this purpose, we continue to develop our core strategic business for automobile, security and surveillance applications, and positively collaborate with medical endoscope manufacturers in South Korea as well as key distributors and manufacturers in China, Hong Kong, Taiwan, and Japan. In parallel, we continue to vigorously pursue cost-control measures and are encouraged that we continue to effectively manage our operating expenses on a reliable and consistent basis."

PR Newswire: Pixelplus announces that it will terminate its American Depositary Receipts (ADR) Program. The company's ADRs will continue to trade over the counter (OTC) in the US until the date of termination of the Deposit Agreement on February 29, 2012.

"We are inclined to terminate the Deposit Agreement and ADR Program as we do not envision the ADR Program as positively enabling, effectuating, or contributing to our short-term and long-term business goals and strategies now and into the foreseeable future," said S.K. Lee. "In addition, the Company's financial costs and expenses incurred in connection with sustaining the ADR Program poses an undue and unnecessary economic burden which we would like to eliminate in moving forward. For these reasons, we have no choice but to terminate the Deposit Agreement and ADR Program in a timely and effective manner."

Pixelplus expects to become a part of the "Free Board" in South Korea in due course, which is South Korea's equivalent of the OTC in the US.