SiRF Announces Multimedia Platform; FY 2007 Results Drive Share Prices Down

SiRF Technology has launched its SiRFprima platform, which combines a GPS/Galileo location engine, application processor, audio and video recording and playback capabilites, high-resolution 3D graphics, and a host of peripheral interfaces – all tuned to operate concurrently.  The platform supports both WinCE and Linux operating system environments, according to the company.

SiRF Technology has launched its SiRFprima platform, which combines a GPS/Galileo location engine, application processor, audio and video recording and playback capabilites, high-resolution 3D graphics, and a host of peripheral interfaces – all tuned to operate concurrently.  The platform supports both WinCE and Linux operating system environments, according to the company.

The SiRFprima platform includes an high-speed, multifunction processor comprised of an advanced ARM11 core, and a location engine that supports both GPS and Galileo systems and an on-chip DSP. The product also includes hardware-accelerated 3D graphics and multimedia encoding and decoding engines based on the gaming-grade PowerVR MBX 3D graphics accelerator core, vertex geometry processor, and PowerVR MVED1 video encode/decode accelerator from Imagination Technologies.

The hardware scalable location engine features 64 channels with -161 dBm sensitivity and more than one million correlators capable of working with both GPS and Galileo signals simultaneously, according to SiRF. Additionally, the SiRFprima processor supports SiRF’s proprietary GPS technologies, providing, for example, a dedicated accelerator for the SiRFInstantFixII technology.

SiRF is demonstrating the SiRFprima multifunction location platform in the SiRF Technology booth at the upcoming GSMA Mobile World Congress 2008 being held in Barcelona, Spain, February 11–14. The product will begin sampling to lead customers in the second quarter of this year. Form factor reference designs and full evaluation boards will also be available.

The new product launch was the good news.

The bad news for SiRF came earlier this week (February 4) with the release of the company’s Fiscal 2007 yearly and fourth quarter results, which showed a $10.4-million loss for the year.

Net revenue in the fourth quarter of 2007 was $100.4 million, an increase of 35.3 percent from $74.2 million reported in the fourth quarter of 2006. Net revenue in fiscal 2007 was $329.4 million, an increase of 33.0 percent from $247.7 million from fiscal 2006. Net income for the fourth quarter of 2007 was $0.7 million compared with net income of $9.1 million in the fourth quarter of 2006.  

The FY2007 loss compares with net income of $2.4 million in fiscal 2006.

By Thursday, February 7, the company’s stock value had fallen more than half, from $16.27 to $7.24 per share.

"This was a good Quarter for SiRF fueled by strong seasonal demand for GPS location-enabled consumer products, and we reported record growth in revenue and units. However, our gross margin performance was negatively impacted by a combination of competitive market pricing and a shift of product mix," said Michael Canning, president and CEO. 

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