Centillium Sees Rise in Q3 Revenue, Notes Slowing of DSL Growth in Japan

Centillium Communications reported Q3 revenues of $37.5 million, a 10.5% increase from the $33.9 million of revenues for Q2 2003, and an increase of 61.2% from revenues of $23.3 million for the third quarter of 2002. Net profit for the quarter was $382,000, or $0.01 per share, compared with a net loss of $511,000, or $0.01 per share in Q2.


Centillium noted that DSL revenue from regions other than Japan grew 37% from the previous quarter to $6.0 million. However, over the last four months, the number of net new DSL subscribers in Japan has slowed to a monthly average of 330,000 compared to a monthly average of 461,000 new subscribers during the preceding eight months. Since net new DSL subscribers are a significant driver of consumption for Centillium's DSL products, the recent lower number of new subscribers in Japan will likely contribute to a decline in near-term quarterly revenue. Nevertheless, Centillium said Japan's DSL market remains promising as service providers in Japan have begun providing 24 Mbps ADSL service based on its chips.
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