Hsinchu Science Park, Taiwan, July 27th, 2004 - Sunplus Technology Co., Ltd. (TSE: 2401, LSE: SUPD) today announces its financial results of 1st half in 2004. The net sales added up to NT$8,473 million, which grew 100.02% comparing with the same period in 2003. Overall gross margin in 1H'04 were 31.7%, R&D expenses were 11.1% of the net sales of 1H'04. The net income in 1H'04 were NT$1,361 million, which earnings per share were NT$1.75 based on current 777,504 thousand shares.

The sales of 2nd quarter in 2004 summed up NT$4,838 million, which grew 33.1% comparing with 1st quarter this year. The gross margin in 2Q'04 were 31.2% while there was no licensing fee income in 2Q'04 comparing with 1Q'04. The R&D expenses in 2Q'04 were 9.9%. Since the inventories reached NT$3.6billion at the end of 2nd quarter in 2004, Sunplus raised the allowance for inventory losses. So the losses on inventory increased to NT$62 million in 2Q'04 and totaled NT$68 million in 1H'04. The net income in 2Q'04 was NT$793 million, which grew 39.7% comparing with 1st Quarter in 2004. The earnings per share in 2Q'04 were NT$1.02 based on current 777,504 thousand shares.

(in NT$ thousand) 1H2004 1H2003 YoY Net Sales 8,472,976 100.0% 4,236,063 100.0% 100.0% Gross Margin 2,684,308 31.7% 1,440,303 34.0% 86.4% Operating Income 1,451,353 17.1% 584,254 13.8% 148.4% Net Income 1,361,147 16.0% 633,471 15.0% 114.9% EPS(NT$) * Based on 777.504 million shares 1.75 0.81

 

(in NT$ thousand) 2Q2004 1Q 2004 QoQ Net Sales 4,937,986 100.0% 3,634,990 100.0% 33.1% Gross Margin 1,507,593 31.2% 1,176,715 32.4% 28.1% Operating Income 864,355 17.9% 586,998 16.2% 47.3% Net Income 793,284 16.4% 567,863 15.6% 39.7% EPS(NT$) * Based on 777.504 Million Shares 1.02 0.73