Trident Microsystems Inc. (TRID, Financial) filed Quarterly Report for the period ended 2011-09-30.
Trident Microsystems Inc. has a market cap of $42.5 million; its shares were traded at around $0.2351 with and P/S ratio of 0.1.
In the quarters ended September 30, 2011 and 2010, as shown in the table above, inventory write-downs and reserves and sales of previously reserved product represents 7.9% and 0.0% of total net revenues respectively. No cost of revenues was recorded with respect to sales of previously reserved product, for the quarters ended September 30, 2011 and 2010.
Selling, general and administrative expenses consist primarily of personnel related expenses including salary and benefits, stock-based compensation, commissions paid to sales representatives and distributors and professional fees. During the three and nine months ended, On August 21, 2011, we signed an agreement to purchase a new enterprise resource planning system and, therefore, recorded a $4.0 million write-off of our previous enterprise resource planning system to Selling, general and administrative expenses.
In July 2011, one of our customers decided to apply for controlled management under the laws of Luxembourg to secure continuation of its current operations. We recognized $0.7 million of bad debt expense to this customer as we are uncertain of the collectability of the account receivable as of the date of this Form 10-Q. We recognized $0.7 million in revenue for the nine months ended September 30, 2011 to this customer and had an accounts receivable balance at September 30, 2011 of $0.7 million. On October 6, 2011 this customer filed for bankruptcy under the laws of Luxembourg and on October 7, 2011 a bankruptcy administrator was appointed by the Luxembourg court. The company is evaluating the economics of filing claims with the Luxembourg court for the unpaid receivable.
Cash used in operating activities includes net loss adjusted for certain non-cash items and changes in current assets and current liabilities. For the nine months ended September 30, 2011, cash used in operating activities was $38.2 million compared to $78.4 million used in operating activities for the nine months ended September 30, 2010. The significant decrease in cash usage was primarily due to reduced working capital resulting from the significant revenue decreases and corresponding decreases in receivables, inventory and payables. Net changes in accounts receivable, inventory, payables and accruals provided cash of $4.5 million in the nine months ended September 30, 2011 as compared with net cash usage of $66.9 million in the nine months ended September 30, 2010. The reduced working capital are the result of a significant decrease in revenues of the television systems and set-top box business lines acquired from NXP in February 2010 and a reduction in revenues in the business lines acquired from Micronas in May 2009 which resulted in an increased net loss of $106.2 million for the nine months ended September 30, 2011, compared with $75.1 million for the nine months ended September 30, 2010. The net loss combined with non-cash income and expense items increased to $43.7 million in the nine months ended September 30, 2011, as compared to $37.4 million in the nine months ended September 30, 2010. Net losses and working capital demands are expected to continue using cash in the fourth quarter of 2011.
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Trident Microsystems Inc. has a market cap of $42.5 million; its shares were traded at around $0.2351 with and P/S ratio of 0.1.
Highlight of Business Operations:
The following table shows the percentage of our revenues during the three and nine months ended September 30, 2011 and 2010 that were derived from customers who individually, or through their Electronic Manufacturing Service providers accounted for more than 10% of revenues for those quarters:In the quarters ended September 30, 2011 and 2010, as shown in the table above, inventory write-downs and reserves and sales of previously reserved product represents 7.9% and 0.0% of total net revenues respectively. No cost of revenues was recorded with respect to sales of previously reserved product, for the quarters ended September 30, 2011 and 2010.
Selling, general and administrative expenses consist primarily of personnel related expenses including salary and benefits, stock-based compensation, commissions paid to sales representatives and distributors and professional fees. During the three and nine months ended, On August 21, 2011, we signed an agreement to purchase a new enterprise resource planning system and, therefore, recorded a $4.0 million write-off of our previous enterprise resource planning system to Selling, general and administrative expenses.
In July 2011, one of our customers decided to apply for controlled management under the laws of Luxembourg to secure continuation of its current operations. We recognized $0.7 million of bad debt expense to this customer as we are uncertain of the collectability of the account receivable as of the date of this Form 10-Q. We recognized $0.7 million in revenue for the nine months ended September 30, 2011 to this customer and had an accounts receivable balance at September 30, 2011 of $0.7 million. On October 6, 2011 this customer filed for bankruptcy under the laws of Luxembourg and on October 7, 2011 a bankruptcy administrator was appointed by the Luxembourg court. The company is evaluating the economics of filing claims with the Luxembourg court for the unpaid receivable.
Cash used in operating activities includes net loss adjusted for certain non-cash items and changes in current assets and current liabilities. For the nine months ended September 30, 2011, cash used in operating activities was $38.2 million compared to $78.4 million used in operating activities for the nine months ended September 30, 2010. The significant decrease in cash usage was primarily due to reduced working capital resulting from the significant revenue decreases and corresponding decreases in receivables, inventory and payables. Net changes in accounts receivable, inventory, payables and accruals provided cash of $4.5 million in the nine months ended September 30, 2011 as compared with net cash usage of $66.9 million in the nine months ended September 30, 2010. The reduced working capital are the result of a significant decrease in revenues of the television systems and set-top box business lines acquired from NXP in February 2010 and a reduction in revenues in the business lines acquired from Micronas in May 2009 which resulted in an increased net loss of $106.2 million for the nine months ended September 30, 2011, compared with $75.1 million for the nine months ended September 30, 2010. The net loss combined with non-cash income and expense items increased to $43.7 million in the nine months ended September 30, 2011, as compared to $37.4 million in the nine months ended September 30, 2010. Net losses and working capital demands are expected to continue using cash in the fourth quarter of 2011.
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