X hits on this document





5 / 24


Apr. 14. 2008 / 4:00AM, PHG - Q1 2008 Royal Philips Electronics Earnings Conference Call

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Yes, I think -- Nicolas, good morning. On Television, there was actually pricing pressure all across; I think it was a tough quarter all across. In the particular case of North America -- no, we lost money in North America in Q1, and if you look at the kind of margin, as you know we don't disclose margin, but in percentage margin, America, US, I would say, remains, certainly in terms of percentage, the black spot. But we looked at the quarter which was tough all across.

And as far as looking forward, I think that as far as America is concerned, we had pretty much given you the tone for the year to come, which is really focus on the channels where we have better position in terms of pricing, and that will be our attitude between now and the time we transfer the business to Funai. And I think as far as Europe is concerned, where the situation is difficult as well, there we will absolutely pull the triggers that we've had normally in that particular business, which is to continue to focus on our costs, and bring as much efficiency in the value chain, into the supply chain as we've done in the past.

Nicolas Gaudois - UBS - Analyst

So just to wrap up on that one, excluding North America the TV business, was it breakeven or slightly better or still loss-making as well?

Pierre-Jean Sivignon - Royal Philips Electronics - CFO No, no, excluding North America the TV business was loss-making.

Nicolas Gaudois - UBS - Analyst

Loss-making, okay, great. And just staying on Consumer [Lifestyle], if I look at licensing, you mentioned past-use went down EUR30 million year-over-year; obviously a very volatile number in itself. Does this imply that licensing overall for Consumer Electronics went down by a factor of half or more? And if we look forward are there any reasons to see this number increasing with recent [hybrid regeneration] whereas obviously the royalties to come from Funai?

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Yes. I think in the -- you're asking two points there. On the IP so-called optical license IP of Q1, when you compare to the Q1 of last year, the Q1 of last year did include one of these. As you know, Nicolas, at the end of '06 we decided not to disclose IP any more because the business of Philips now is not IP centered any more. It was at some point and we made a very conscious decision to stop talking IP starting at '06. The reason why we basically disclose it this particular quarter is twofold. First of all because even the one-off nature of one deal in Q1 last year, it makes the comparables almost needing to make that disclosure.

And the second reason why we did it is, since you have in the release the drop of license income combined with the drop in Connected Display result you are capable of calculating backward the rest of the portfolio of Consumer Lifestyle and you can see that that rate is actually making progress. So those were the two reasons why we decided to disclose optical license for this first quarter.

Now looking forward, we expect the optical license, which is part of Consumer Lifestyle, to be somewhat south of what it was in '07. But I will be prudent on that because that income stream is made of regular income stream as well as one-off deals. We had one-off deals last year; we are counting on a few one-off deals this year. So I would say a general trend down, but included in our guidance, but certainly with a bit of a lumpy profile given the nature of those one-offs. I think that's as much as I can tell you, Nicolas.


Contact Us


© 2008 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

Document info
Document views82
Page views82
Page last viewedSat Jan 21 04:47:54 UTC 2017