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

About Sunplus

Sunplus Technology Co., Ltd. (TWSE: 2401, LSE: SUPD), established in 1990, is a leading chip provider for multimedia and automotive applications such as DVD player, portable DVD player, home entertainment audio products, car infotainment and advanced driving assistance system(ADAS). Meanwhile Sunplus is offering high-speed I/O IP, high performance data conversion IP, and analog IP for a broad range of applications on consumer, portable, and connected devices for Sunplus has been accumulating strong IP technologies on consumer and multimedia segments. Sunplus is headquartered in Taiwan and has service offices in Shanghai, Shenzhen and Chengdu. For more information, please visit Sunplus website at www.sunplus.com.

Sunplus Contact

Spokesperson

Wayne Shen
Vice President
+886-3-5786005#2350
wayne@sunplus.com

Deputy Spokesperson

Joseph Chuang
Administration Div. Director
+886-3-5786005#3120
pr@sunplus.com