SUNNYVALE, Calif., Sept. 1, 2010 – Trident Microsystems, Inc. (NASDAQ: TRID), the leader in frame rate converter (FRC) products, today announced that it will be unveiling the industry’s first-integrated 240Hz frame rate converter solution at this week’s IFA show in Berlin. The new Trident FRC-V is the only single-chip solution that can convert 50Hz and 60Hz material directly to new 200/240Hz systems, enabling substantial system cost savings and higher refresh rates needed for 3D display. In addition, Trident has made significant enhancements to the FRC-V’s motion estimation and motion compensation (MEMC) technology to eliminate movie judder, motion blur, and halos to provide the sharpest, clearest and most vivid picture quality on the market.

“We designed the Trident FRC-V to meet our customers’ requirements for lower system cost and industry-leading picture quality in 240Hz systems,” said Dirk Wieberneit, senior vice president and general manager of the Trident TV Business unit. ”With the only 240Hz single chip solution on the market and patents for MEMC, Halo free and FRC technology, Trident is well positioned to capture these next generation designs and deliver enhanced multimedia experiences to consumers.”

About the Trident FRC-V Solution

The new Trident FRC-V motion compensated frame rate converter is the new high-end discrete component of the Trident IC family. With the worldwide market growth in flat panels and the introduction of HD, the Trident FRC-V becomes the new flagship for high-quality TVs. It is optimized to meet the needs of upcoming HD broadcast content as well as new HD blu-ray players, and will also support the latest LCD technology with frame rates up to 240 Hz. The Trident FRC-V is the best IC in the market that, at the same time, can eliminate motion blur and sharpen film content, including large area flicker reduction for source material up to 240p. The Trident FRC S+ is a 120Hz version of the FRC-V frame rate converter product family.

The Trident FRC V/S+ is ideally suited to work in conjunction with the HiDTVPRO-SXL video processor to expand the digital TV applications into 240Hz and 120Hz segments. The device comprises LVDS interfaces, memory controller for external SDRAM, and high-performance algorithms for motion blur elimination by motion compensated frame rate conversion. 

Product Availability

The Trident FRC-V will be sampling to customers in Q4, 2010. For more information, customers should contact sales@tridentmicro.com

Forward-Looking Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include, but are not limited to, statements about the release of Trident’s FRC-V single-chip solution. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and there are important factors that could cause Trident’s actual results to differ materially from those in the forward looking statements. These risks include, without limitation, that Trident may not capture next generation designs as anticipated; that customers may not achieve substantial system cost reductions and higher refresh rates and that other manufacturers may release similar products that may achieve similar results. The forward-looking statements included in this press release are made only as of the date of this press release; Trident does not undertake any obligation to publicly revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Reports on Form 8-K, Form 10-K and Form 10-Q, which are available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident, the Trident logo, FRC, FRC-V, and HiDTV PRO-SXL are either trademarks or registered trademarks of Trident Microsystems in the United States and /or other countries. All other trademarks are properties of their respective owners.

SUNNYVALE, Calif., Sept. 1, 2010 – Trident Microsystems, Inc. (NASDAQ: TRID), a leading provider of set-top box and TV semiconductor solutions, today announced the HiDTV Pro-SXLä fully integrated digital TV SOC (system-on-a-chip) that features Connected-TV, worldwide digital television standards support, and spectacular picture quality through Trident’s second-generation enhanced Super Resolution (ESR) technology. With its low-cost and feature-rich design, the Trident HiDTV Pro-SXL SoC delivers capabilities normally found in higher-end TVs to a low-cost platform and provides consumers with access to leading web services such as video-on-demand, audio-on-demand, news, and sports.

“The HiDTV Pro-SXL chipset is a cost competitive solution that provides the highest level of picture quality with value-enhancing features such as Internet connectivity and acoustic calibration technology that improves audio quality with thin or low price speakers,” said Dirk Wieberneit, senior vice president and general manager of the Trident TV Business unit. ”Trident is the number one market share leader in semiconductor system solutions for digital and analog TV, and we are once again delivering products that TV manufacturers can implement to bring rich and immersive multimedia experiences to the mainstream market.”

About the Trident HiDTV Pro-SXL Chipset

The HiDTV Pro-SXL chipset features Trident’s 2nd generation ESR technology to provide best-in-class picture quality that offers superior noise reduction while maintaining detail. The chipset features Trident’s stylish user interface and connectivity functionalities with DLNA, widgets, and internet portals. The SoC focuses on reducing the total cost of ownership. Customers will be able to leverage one hardware and software development effort for digital TV standards around the world, which reduces the total cost of development, optimizes manufacturing and operational logistics, and improves time-to-market.

Product Availability

The Trident HiDTV Pro- SXL SoC is sampling now. For more information, please contact sales@tridentmicro.com.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include, but are not limited to, statements about Trident’s HiDTV Pro-SXL integrated digital TV SOC. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and there are important factors that could cause Trident’s actual results to differ materially from those in the forward looking statements. These risks include, without limitation, that not all consumers will not have access to leading web services; that not all TV manufacturers will achieve the desired results; that some customers may not realize reduces development costs; optimized manufacturing and operational logistics and improved time to market; and that other manufactures may release similar products that may offer similar attributes. The forward-looking statements included in this press release are made only as of the date of this press release; Trident does not undertake any obligation to publicly revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Reports on Form 8-K, Form 10-K and Form 10-Q, which are available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident, the Trident logo, HiDTV, Pro-SXL and ESR are either trademarks or registered trademarks of Trident Microsystems in the United States and /or other countries. All other trademarks are properties of their respective owners.

SUNNYVALE, Calif., Sept. 1, 2010 – At the IFA show this week in Berlin, Trident Microsystems, Inc. (NASDAQ: TRID), a leading provider of set-top box and TV semiconductor solutions, will be demonstrating the industry’s first integrated 2D-to-3D conversion chipset that provides best-in-class 3D capabilities while also enabling a 3D TV to display the high volume of 2D content that exists today. While most 3D TV manufacturers have been required to incorporate expensive ICs to handle the 2D-to-3D conversion, Trident has integrated this feature onto its PNX5130 chipset to reduce customers’ 3D TV system cost, provide full flexibility for handling frame sequential and line interleaved 3D panels, and deliver the best picture quality through its halo-free MEMC and accurate 3D motion technology.

“By integrating the 2D-to-3D conversion feature directly onto our PN5130 chipset, Trident enables customers to deliver lower-cost 3D TVs that are capable of displaying the large volumes of 2D content in impressive 3D,” said Dirk Wieberneit, senior vice president and general manager of the Trident TV Business unit. ”Given that the majority of today’s TV content is in 2D, this is a critical feature for the top TV OEMs and we are proud to be the first chip manufacturer to provide this capability in PNX5130 frame rate converter products.”

About the PNX5130 2D/3D Conversion Chipset

PNX5130 is a video post processor that applies Motion Accurate Picture Processing (MAPP) to TV signals. PNX5130 generates 120Hz and 240Hz display output with full MEMC. In addition, 3D TV support and local dimming are available as options. The chip’s 2D-to-3D conversion is a new feature that has been added to the PNX5130 to extend 3D TV support on line interleaved and frame sequential displays. The 2D to 3D conversion is content aware so that it will adapt to the specifics in the sequence to deliver optimal results.

Product Availability

The Trident PNX5130 chipset that incorporates the 2D-to-3D conversion feature is currently sampling to customers worldwide. This chip is based on the original PNX5130 chipset that was launched in January 2010 and is currently designed into the products of leading TV manufacturers worldwide.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include, but are not limited to, statements about the demonstration of Trident’s integrated 2D-to-3D conversion chipset. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and there are important factors that could cause Trident’s actual results to differ materially from those in the forward looking statements. These risks include, without limitation, that not all consumers may realize 3D TV system cost reductions and that other manufacturers may release a similar product that may offer similar attributes. The forward-looking statements included in this press release are made only as of the date of this press release; Trident does not undertake any obligation to publicly revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Reports on Form 8-K, Form 10-K and Form 10-Q, which are available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident, the Trident logo, PNX5130 and MAPP are either trademarks or registered trademarks of Trident Microsystems in the United States and /or other countries. All other trademarks are properties of their respective owners.

SUNNYVALE, Calif., Aug. 31, 2010—Trident Microsystems, Inc. (Nasdaq:TRID) today announced plans to pursue license agreements with TV OEMs and consumer electronics semiconductor providers for several of its Motion Estimation/Motion Compensation (MEMC) patents, which are essential to enhancing picture quality of LCD displays in televisions, computer monitors, tablet computers, mobile phones and other consumer electronics devices.

As a result of Trident’s recent acquisitions, including TV and audio product lines from Micronas, and the set-top box and TV product lines from NXP B.V., Trident now has a comprehensive portfolio of patents that are foundational to the consumer electronics industry’s ability to deliver high-quality video images. Trident plans to make a limited number of licenses available to customers and competitors to enable them to incorporate the MEMC technology originally pioneered and patented by Philips for use in their consumer video devices. This patented MEMC technology enables the judder-free and blur-free display of high definition and 3D images for high-quality televisions and other video enabled LCD display devices, and has become a de facto standard approach to picture quality.

“Trident is a technology leader in the TV and set-top box markets,” said Duane Northcutt, Trident’s chief technology officer. “Our patent portfolio includes MEMC technology originally developed by Philips that covers a method for enhancing picture quality used widely across much of the consumer electronics market today. Our goal is to establish license agreements with major players in the industry and enable those companies to incorporate these MEMC capabilities into their products in the future.”

The company has not disclosed financial details of its licensing program. For additional information or to request a license, interested companies can contact Trident at: IP_Legal@tridentmicro.com.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include, but are not limited to, statements about Trident’s plans to pursue license agreements with TV OEMs and consumer electronics semiconductor providers for several of its Motion Estimation/Motion Compensation (MEMC) patents, including the capabilities and functionality of the patented MEMC technology. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and there are important factors that could cause Trident’s actual results to differ materially from those in the forward looking statements. These risks include, without limitation, Trident’s success in pursuing license agreements of this patented technology, and its ability to realize benefits as a result of this licensing program. The forward-looking statements included in this press release are made only as of the date of this press release; Trident does not undertake any obligation to publicly revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Reports on Form 8-K, Form 10-K and Form 10-Q., which are available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Its acquisition of NXP Semiconductors’ set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the company’s web site: http://www.tridentmicro.com.

NOTE: Trident and the Trident logo are either registered trademarks or trademarks of Trident Microsystems, Inc in the United States and/or other countries. All other company and product names are trademarks and/or registered trademarks of their respective owners.

Sensio 3D is a proprietary, frame-compatible format for high-quality stereoscopic signal processing, easily integrated into TV products. Developed by Sensio more than ten years ago and deployed in the field for seven years, the technology has been used in commercial live 3D events produced around the world.

SUNNYVALE, Calif., August 10, 2010 – At the ABTA Conference this week in São Paulo, Brazil, Trident Microsystems, Inc. (NASDAQ: TRID), a leading provider of set-top box and TV semiconductor solutions, announced that the Trident HiDTV™ PRO-SX solution has been selected by AOC to power four new AOC digital TV models (the D26W931, D32W931, LC32W053 and LC42H053.) The new AOC TVs, which are being showcased in the Trident booth number C3, provide full support for the ISDB-Tb Brazilian H.264/AAC DTV broadcasting standard and deliver vivid and brilliant video images by taking advantage of Trident’s patented DCRe™ technology.

“Brazil’s large population provides enormous opportunities for digital TV providers and we are committed to working with both the Brazil-based TV OEMS such as AOC and the large global OEMs that also service this growing regional market,” said Dirk Wieberneit, senior vice president and general manager of the Trident TV Business unit. “We are pleased to provide AOC with superior picture quality and a flexible platform, including Trident ISDB-Tb broadcast software for quick time-to-market and product differentiation, and we hope to share in their success in the future.”

“We chose the HiDTV Pro-SX because it delivered the most flexible software architecture for adding new features and provided the best consumer viewing experience with vivid and crystal clear images,” said Aguinaldo Silva, R&D Director at AOC. “Furthermore, the Trident team was wonderful to work with as we tailored these TVs specifically for the Brazilian market and we anticipate much success as our country continues its rapid transition to digital TV services.”

About the HiDTV PRO-SX

The HiDTV™ Pro-SX is Trident’s 8th generation all-in-one system-on-chip digital TV engine and includes all the key functions needed for both high-quality digital and analog TV broadcasting with minimum external components. Key features of the HiDTV Pro-SX include H.264 multifunction video decoder, first generation of Enhanced Super Resolution, Native Image Detection, noise reduction while retaining image details, scaling for smoother arches and curves and crispier edges, SVG Lite user interface, and Trident’s first multi-standard video decoder supporting MPEG-2, MPEG-4, and H.264.

The HiDTV Pro-SX features Trident’s superior DCRe technology that brings high-performance video processing with vivid and brilliant video images. The SOC accomplishes the best cost-performance by integrating not only the major IP’s but also key interface functions based on a complete system design perspective.

Product Availability

The AOC D32W931 model TVs are available today and the D26W931 model will be available at the end of August and early September 2010. The AOC LC32W053 and LC42H053 model are scheduled to be available at the end of September and beginning of October 2010.

About AOC

AOC a worldwide leader of HD LCD display technology for TVs, Monitors, and Multimedia Displays backed by over 60 years of design and manufacturing experience. AOC has earned a reputation for selling user-friendly, technologically advanced displays with every aspect of AOC’s business focusing on the development of products that fit seamlessly into consumers’ digital lifestyle. AOC continuously meets energy efficiency standards such as the EPAs and EPEAT program and has garnered recognitions such as PC Magazine’s GreenTech Approved designation.

Forward-Looking Information

This press release contains forward-looking statements concerning the capabilities and functionality of our products and the benefits out products will provide to our customers, including the ability of our clients to save development time and speed time to market, as well as concerning our ability to succeed in other markets such as Brazil. These forward-looking statements are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident’s products, and competitive pressures, including pricing and competitors’ new product introductions, the impact of the uncertain global macroeconomic environment, and the increasingly competitive DTV market. Additional factors that may affect Trident’s business are described in detail in Trident’s filings with the Securities and Exchange Commission available at http://www.sec.gov. Such forward-looking statements should not be relied upon as representing Trident’s views or expectations as of any subsequent date and Trident does not undertake any obligation to revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident is a trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

SUNNYVALE, Calif, July 29, 2010 /PRNewswire via COMTEX News Network/ — Demonstrating continued success in the market, Trident Microsystems, Inc. (Nasdaq: TRID), a leading provider of set-top box and TV semiconductor solutions, today announced that its digital TV solutions are ramping production for the critical 2010 holiday selling season with 4 out of the top 5 panel manufacturers and 4 out of the top 6 TV manufacturers. These TVs and panels include high-definition 2D and 3D entertainment systems that are shipping in volume today to deliver superior picture quality through Trident’s patented ESR (enhanced super resolution), motion estimation/motion compensation (MEMC) and other proprietary technologies.

“With more than 2,000 patents and top-three industry positions in both TV and set-top box, Trident has become a major force in the digital entertainment market,” said Sylvia Summers, CEO of Trident Microsystems. “The new and stronger Trident leads the industry today with the most vivid and brilliant TV images, a strong feature set across a broad TV product range, and a future product roadmap that we believe positions us well to keep winning in the market.”

Trident estimates that for 2010 it currently has the number one market share position in semiconductor system solutions for digital and analog TV. The company estimates that it also has leading market share of greater than 50% in FRC (frame-rate-converter) co-processors that are used to create 240hz and higher frame-refresh rates in high-end digital TVs. These co-processors are essential in delivering 3D content in unsurpassed quality and Trident FRCs are at the heart of many 3D TVs in the market.

About Trident’s TV Solutions

Trident has continually driven the next wave of innovation through its family of system-on-chip solutions for LCD and PDP high-definition televisions. Some of the key products that were chosen for these 2010 design wins include the Trident PNX855x, PNX8543 and Pro-SA1 system-on chip solutions, as well as Trident’s FRC-S and PNX51xx products. These industry-leading products are in volume production today and feature Trident’s superior picture quality, ESR and motion estimation/motion compensation technologies.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident is a trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

For the quarter, the company reported net revenues of $171.6 million, which compares with $90.4 million in the prior sequential quarter and $14.9 million in the quarter ended June 30, 2009. On a generally accepted accounting principles (“GAAP”) basis, the company reported a net loss for the quarter of $49.0 million, or $0.28 per share. The net loss for the second quarter of 2010 compares with a net loss of $7.6 million, or $0.06 per share in the prior sequential quarter and a net loss of $21.1 million, or $0.32 per share, in the quarter ended June 30, 2009.

Non-GAAP Results

Non-GAAP net loss for the quarter was $14.8 million, or $0.09 per share, which compares with a non-GAAP net loss of $25.8 million, or $0.20 per share, in the prior sequential quarter and a non-GAAP net loss of $15.7 million, or $0.24 per share, in the quarter ended June 30, 2009. A detailed reconciliation between GAAP and non-GAAP net loss is provided in a table following the non-GAAP consolidated statements of operations.

Sylvia Summers, Trident’s chief executive officer, said, “For the second consecutive quarter, Trident exceeded expectations for revenues and gross margins, driving a substantially lower operating loss in the first full quarter since the acquisition of NXP’s Set-Top Box and TV product lines. Our integration activities are on track. Despite supply constraints that are limiting our ability to meet strong upside demand in TV, we remain committed to our goal of achieving non-GAAP operating breakeven by year-end. We expect in the second half of 2010 to begin production of our industry-leading Apollo 45nm Set-Top Box SOC, a product that we believe will be a platform for significant growth in 2011. In addition, we currently are demonstrating to customers our new fully integrated SOC for the value range of the DTV market and will know more about potential design wins in this segment over the next several months.”

Outlook

For the quarter ending Sept. 30, 2010, Trident is providing the following outlook. The company’s outlook for any period is based on current expectations and is subject to various factors, including those set forth in the Forward-Looking Information statement below. Actual results may differ materially.

• Quarter ending Sept. 30, 2010:
  • Net revenues are expected to be in the range of $170 million to $180 million.
  • Non-GAAP gross margins are expected to be in the range of 32% to 34%.
  • Non-GAAP operating expenses are expected to be in the range of $59 million to $62 million, with research and development expenses in the range of $42 million to $44 million and selling, general and administrative expenses of approximately $17 million to $18 million.
  • Non-GAAP operating loss is expected to be in the range of $2 million to $6 million.
  • Provision for income taxes is expected to be approximately $1 million.
  • Adjustments to GAAP net income are expected to be in the range of $25 million to $30 million, including restructuring charges in the range of $7 million to $9 million. These charges are not included in the guidance for non-GAAP operating loss.
  • Cash as of the end of the quarter is expected to be in the range of $85 million to $95 million.

    Investor Conference Call

    Date:   Thursday, July 29, 2010

    Time:   2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)

    Domestic Dial-In:   800-798-2884

    International Dial-In:  617-614-6207

    Passcode:  39471759

A replay of the conference call will be available for two weeks, beginning on July 29, 2010 and will be accessible by calling 888-286-8010 (domestic) or +1-617-801-6888 (international) using access code 59351339. This call is being webcast by Thomson/CCBN and can be accessed at Trident’s web site at: http://www.tridentmicro.com. The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

Use of Non-GAAP Financial Information

To supplement the consolidated financial results prepared under GAAP, Trident uses a non-GAAP conforming, or non-GAAP, measure of net loss that is GAAP net loss adjusted to exclude certain costs, expenses and gains. Non-GAAP net loss gives an indication of Trident’s baseline performance before gains, losses or other charges that are considered by management to be outside the company’s core operating results. In addition, non-GAAP net loss is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. Trident computes non-GAAP net loss by adjusting GAAP net loss for acquisition-related expenses, stock-based compensation expense, expenses related to the stock option investigation and related matters, legal settlements, restructuring charges, expenses related to software license fees adjustment, amortization and impairment of intangible assets from acquisitions, impairment loss, backlog amortization, capital gains and losses and dividend income. A detailed reconciliation between net loss on a GAAP basis and non-GAAP net loss is provided in a table following non-GAAP Consolidated Statements of Operations.

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding financial expectations for the third quarter of fiscal year 2010, expected restructuring activity, and our ability to breakeven by the end of 2010. The forward-looking statements made above are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, our ability to realize the benefits from our acquisition of product lines from NXP, our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident’s products, the availability of wafers from our suppliers, and competitive pressures, including pricing and competitors’ new product introductions, the impact of the uncertain global macroeconomic environment, the increasingly competitive DTV market and our ability to retain key employees. Additional factors that may affect Trident’s business are described in detail in Trident’s filings with the Securities and Exchange Commission available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home. As one of the top-three semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio of more than 2,000 patents has been driving key innovations in image quality, 3D TV, low power consumption, and 45nm designs. For further information about Trident and its products, please consult the Company’s web site: www.tridentmicro.com.

NOTE: Trident is a trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

TRID-IR

                                  TRIDENT MICROSYSTEMS, INC.
                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                          (Unaudited)

                                             Three Months Ended
                                             ------------------
                                  June 30,      March 31,      June 30,
    (In thousands, except per
     share data)                       2010          2010           2009
                                       ----          ----           ----
    Net revenues                    171,648        90,404         14,912
    Cost of revenues                138,722        76,618         10,290
                                      -----          ----           ----
    Gross profit                     32,926        13,786          4,622
    % of net revenues                  19.2%         15.2%          31.0%
    Research and development
     expenses                        49,866        37,215         15,802
    % of net revenues                  29.1%         41.2%         106.0%
    Selling, general and
     administrative expenses         22,311        20,136          7,421
    % of net revenues                  13.0%         22.3%          49.8%
    In-process research and
     development                          0             0            697
    % of net revenues                   0.0%          0.0%           4.7%
    Goodwill impairment               7,851             0              0
    % of net revenues                     0             0              0
    Restructuring charges             4,470         8,395              8
    % of net revenues                   2.6%          9.3%           0.1%
    Operating loss                  (51,572)      (51,960)       (19,306)
    % of net revenues                (30.0)%       (57.5)%       (129.5)%
    Gain (loss) on investment             0          (209)            12
    Gain on acquisition (a)               0        44,784              0
    Interest and other income
     (expense), net                     287           527           (818)
                                        ---           ---           ----
    Loss before income taxes        (51,285)       (6,858)       (20,112)
    % of net revenues                (29.9)%        (7.6)%       (134.9)%
    Provision for (benefit
     from) income taxes              (2,255)          726            963
    % of net revenues                 (1.3)%          0.8%           6.5%
    Net loss                        (49,030)       (7,584)       (21,075)
                                    =======        ======        =======
    % of net revenues                (28.6)%        (8.4)%       (141.3)%

    Basic and diluted net loss
     per share                        (0.28)        (0.06)         (0.32)
    Shares used in basic and
     diluted per share
     computation                    174,018       129,969         65,565

                                           Six Months Ended
                                           ----------------
                                      June 30,        June 30,
    (In thousands, except per
     share data)                           2010            2009
                                           ----            ----
    Net revenues                        262,052          21,764
    Cost of revenues                    215,340          16,681
                                          -----            ----
    Gross profit                         46,712           5,083
    % of net revenues                      17.8%           23.4%
    Research and development
     expenses                            87,081          27,236
    % of net revenues                      33.2%          125.1%
    Selling, general and
     administrative expenses             42,447          11,047
    % of net revenues                      16.2%           50.8%
    In-process research and
     development                              0             697
    % of net revenues                       0.0%            3.2%
    Goodwill impairment                   7,851           1,432
    % of net revenues                         0               0
    Restructuring charges                12,865              49
    % of net revenues                       4.9%            0.2%
    Operating loss                     (103,532)        (35,378)
    % of net revenues                    (39.5)%        (162.6)%
    Gain (loss) on investment              (209)             19
    Gain on acquisition (a)              44,784               0
    Interest and other income
     (expense), net                         814             462
                                            ---             ---
    Loss before income taxes            (58,143)        (34,897)
    % of net revenues                    (22.2)%        (160.3)%
    Provision for (benefit
     from) income taxes                  (1,529)          2,782
    % of net revenues                     (0.6)%           12.8%
    Net loss                            (56,614)        (37,679)
                                        =======         =======
    % of net revenues                    (21.6)%        (173.1)%

    Basic and diluted net loss
     per share                            (0.37)          (0.59)
    Shares used in basic and
     diluted per share
     computation                        152,059          63,708

    (a) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
    footnote 8.

                           TRIDENT MICROSYSTEMS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                                                December
                                         June 30,   March 31,      31,
    (In thousands)                            2010        2010       2009
                                              ----        ----       ----
    ASSETS
    Current assets
      Cash and cash equivalents            $96,915    $129,983   $147,995
      Accounts receivable, net              97,813      32,415      4,582
      Accounts receivable from related
       parties                               8,488      52,620          -
      Inventories                           32,475      26,631     14,536
      Note receivable from related party     7,476      10,126          -
      Prepaid expenses and other current
       assets                               27,159      33,463     13,962
                                            ------      ------     ------

        Total current assets               270,326     285,238    181,075

    Property and equipment, net             33,544      36,014     26,168
    Goodwill                                     0       7,851      7,851
    Intangible assets, net                 107,183     127,180      5,635
    Long-term note receivable from
     related party                          20,882      20,348          -
    Other assets                            19,180      15,722      7,764

        Total assets                      $451,115    $492,353   $228,493
                                          ========    ========   ========

    LIABILITIES AND STOCKHOLDERS'
     EQUITY
    Current liabilities
      Accounts payable                     $20,242     $20,278    $18,883
      Accounts payable to related
       parties                              38,362      34,887      2,401
      Accrued  expenses and other
       current liabilities                  71,235      66,852     27,068
      Income taxes payable                   2,532       4,372      1,696
                                             -----       -----      -----

        Total current liabilities          132,371     126,389     50,048
    Long-term income taxes payable          22,265      21,597     22,262
    Deferred income tax liabilities             94          94         94
    Other long-term liabilities              3,768       4,870

        Total liabilities                  158,498     152,950     72,404
                                           -------     -------     ------

    Stockholders' equity
      Preferred stock                            -           -          -
      Common stock                             176         175         71
      Additional paid-in capital           430,864     428,621    237,827
      Accumulated deficit                 (138,423)    (89,393)   (81,809)
                                          --------     -------    -------

        Total stockholders' equity         292,617     339,403    156,089

        Total liabilities and
         stockholders' equity             $451,115    $492,353   $228,493
                                          ========    ========   ========

                    TRIDENT MICROSYSTEMS, INC.
     NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (Unaudited)

                                               Three Months Ended
                                               ------------------
                                          June 30,   March 31,  June 30,
    (In thousands, except per share data)      2010       2010       2009
                                               ----       ----       ----
    Net revenues                           $171,648    $90,404    $14,912
    Cost of revenues                        120,801     65,068      9,354
                                            -------     ------      -----
    Gross profit                             50,847     25,336      5,558
    % of net revenues                          29.6%      28.0%      37.3%
    Research and development expenses        48,140     35,850     12,886
    % of net revenues                          28.0%      39.7%      86.4%
    Selling, general and administrative
     expenses                                18,411     15,117      5,865
    % of net revenues                          10.7%      16.7%      39.3%
                                               ----       ----       ----
    In-process research and development           -          -        697
    % of net revenues                             -          -        4.7%
                                                ---        ---        ---
    Operating loss                          (15,704)   (25,631)   (13,890)
    % of net revenues                         (9.1)%    (28.4)%    (93.1)%
    Interest and other income (expense),
     net                                     (1,387)       527       (818)
                                             ------        ---       ----
    Loss before income taxes                (17,091)   (25,104)   (14,708)
    % of net revenues                        (10.0)%    (27.8)%    (98.6)%
    Provision for income taxes               (2,255)       726        963
    % of net revenues                         (1.3)%       0.8%       6.5%
    Net loss                              ($14,836)  ($25,830)  ($15,671)
                                           ========   ========   ========
                                              (8.6)%    (28.6)%   (105.1)%

    Basic and diluted net loss per share     $(0.09)    $(0.20)    $(0.24)
    Shares used in basic and diluted per
     share computation                      174,018    129,969     65,565

                                                 Six Months Ended
                                                 ----------------
                                            June 30,      June 30,
    (In thousands, except per share data)        2010          2009
                                                 ----          ----
    Net revenues                             $262,052       $21,764
    Cost of revenues                          185,869        14,972
                                              -------        ------
    Gross profit                               76,183         6,792
    % of net revenues                            29.1%         31.2%
    Research and development expenses          83,990        23,268
    % of net revenues                            32.1%        106.9%
    Selling, general and administrative
     expenses                                  33,528        11,172
    % of net revenues                            12.8%         51.3%
                                                 ----          ----
    In-process research and development             -           697
    % of net revenues                               -           3.2%
                                                  ---           ---
    Operating loss                            (41,335)      (28,345)
    % of net revenues                          (15.8)%      (130.2)%
    Interest and other income (expense),
     net                                         (860)          462
                                                 ----           ---
    Loss before income taxes                  (42,195)      (27,883)
    % of net revenues                          (16.1)%      (128.1)%
    Provision for income taxes                 (1,529)        2,782
    % of net revenues                           (0.6)%         12.8%
    Net loss                                  (40,666)      (30,665)
                                              =======       =======
                                               (15.5)%      (140.9)%

    Basic and diluted net loss per share       $(0.27)       $(0.48)
    Shares used in basic and diluted per
     share computation                        152,059        63,708

                  TRIDENT MICROSYSTEMS, INC.
     RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                          (Unaudited)

                                                Three Months Ended
                                                ------------------
                                          June 30,    March 31,    June 30,
    (In thousands, except per share
     data)                                      2010         2010        2009
                                                ----         ----        ----

    GAAP gross profit                        $32,926      $13,786      $4,622
      Amortization of acquisition-
       related intangible assets (1)          16,972       10,216         787
      Stock-based compensation expense
       (2)                                        86          104         149
      Impairment of intangible assets
       other than goodwill (3)                   863        1,230           -
    Non-GAAP gross profit                    $50,847      $25,336      $5,558
                                             =======      =======      ======

    GAAP Research and development
     expenses                                $49,866      $37,215     $15,802
      Amortization of acquisition-
       related intangible assets (1)             824          485           -
      Stock-based compensation expense
       (2)                                       902          880       1,710
      Impairment of intangible assets
       other than goodwill (3)                     -            -       1,706
      Software license fees (4)                    -            -        (500)
    Non-GAAP Research and development
     expenses                                $48,140      $35,850     $12,886
                                             =======      =======     =======

    GAAP Selling, general and
     administrative expenses                 $22,311      $20,136      $7,421
      Amortization of acquisition-
       related intangible assets (1)           1,339          755          51
      Stock-based compensation expense
       (2)                                     1,246         (320)      1,401
      Stock options related professional
       fees (5)                                  525          226         104
      Acquisition-related expenses (6)           790        4,358           -
    Non-GAAP Selling, general and
     administrative expenses                 $18,411      $15,117      $5,865
                                             =======      =======      ======

    GAAP net loss                           $(49,030)     $(7,584)   $(21,075)
      Gross profit reconciliation             17,921       11,550         936
      Research and development expenses
       reconciliation                          1,726        1,365       2,916
      Selling, general and administrative
       expenses reconciliation                 3,900        5,019       1,556
      Restructuring Charges (7)                4,470        8,395           8
      Impairment of goodwill (3)               7,851            -           -
      Legal settlements (10)                  (1,674)
     (Gain) loss on investment (9)                 -          209         (12)
     (Gain) on acquisition (8)                     -      (44,784)          -
    Non-GAAP net loss                       $(14,836)    $(25,830)   $(15,671)
                                            ========     ========    ========

    GAAP basic and diluted net loss per
     share                                    $(0.28)      $(0.06)     $(0.32)
                                              ======       ======      ======
    Non-GAAP basic and diluted net
     loss per share                           $(0.09)      $(0.20)     $(0.24)
                                              ======       ======      ======
    Shares used in basic and diluted
     per share computation                   174,018      129,969      65,565
                                             =======      =======      ======

                                                    Six Months Ended
                                                    ----------------
                                              June 30,           June 30,
    (In thousands, except per share
     data)                                          2010               2009
                                                    ----               ----

    GAAP gross profit                            $46,712             $5,083
      Amortization of acquisition-
       related intangible assets (1)              27,188              1,415
      Stock-based compensation expense
       (2)                                           190                294
      Impairment of intangible assets
       other than goodwill (3)                     2,093                  -
    Non-GAAP gross profit                        $76,183             $6,792
                                                 =======             ======

    GAAP Research and development
     expenses                                    $87,081            $27,236
      Amortization of acquisition-
       related intangible assets (1)               1,309                  -
      Stock-based compensation expense
       (2)                                         1,782              3,050
      Impairment of intangible assets
       other than goodwill (3)                         -              1,706
      Software license fees (4)                        -               (788)
    Non-GAAP Research and development
     expenses                                    $83,990            $23,268
                                                 =======            =======

    GAAP Selling, general and
     administrative expenses                     $42,447            $11,047
      Amortization of acquisition-
       related intangible assets (1)               2,094                127
      Stock-based compensation expense
       (2)                                           926              2,719
      Stock options related professional
       fees (5)                                      751             (2,971)
      Acquisition-related expenses (6)             5,148                  -
    Non-GAAP Selling, general and
     administrative expenses                     $33,528            $11,172
                                                 =======            =======

    GAAP net loss                               $(56,614)          $(37,679)
      Gross profit reconciliation                 29,471              1,709
      Research and development expenses
       reconciliation                              3,091              3,968
      Selling, general and administrative
       expenses reconciliation                     8,919               (125)
      Restructuring Charges (7)                   12,865                 49
      Impairment of goodwill (3)                   7,851              1,432
      Legal settlements (10)                      (1,674)
     (Gain) loss on investment (9)                   209                (19)
     (Gain) on acquisition (8)                   (44,784)                 -
    Non-GAAP net loss                           $(40,666)          $(30,665)
                                                ========           ========

    GAAP basic and diluted net loss per
     share                                        $(0.37)            $(0.59)
                                                  ======             ======
    Non-GAAP basic and diluted net
     loss per share                               $(0.27)            $(0.48)
                                                  ======             ======
    Shares used in basic and diluted
     per share computation                       152,059             63,708
                                                 =======             ======

    (1) Amortization of acquisition-related intangible assets represents
    the amortization of identifiable intangible assets. Management
    deemed that
     these acquisition-related charges are not related to Trident's core
     operating performance and it is appropriate to exclude those charges
    from Trident's non-GAAP financial measures, as it enhances the
    ability of investors to compare Trident's period-over-period
    operating results.

    (2) Stock-based compensation expense relates primarily to the equity
    awards such as stock options and restricted stock. This is non-cash
    expense that
    varies in amount from period to period and is dependent on market
    forces that are often beyond Trident's control. Hence, management
    excludes this item
    from the non-GAAP financial measures.

    (3) Charges for impairment of goodwill and intangible assets incurred
    as a result of their carrying value exceeding the fair value.
    Management believes that these charges are not directly associated
    with the Company's core operating performance.

    (4) Software license fees represent an adjustment for prior years'
    software usage.

    (5) Stock options related professional fees are excluded from the
    non-GAAP net loss calculation.  Management believes that these
    professional fees are
    not related to the Company's ongoing business and operating
    performance of Trident.

    (6) Acquisition-related expenses represent external costs incurred
    in connection with our acquisition, which we generally would not
    have incurred in the
     normal course of business.

    (7) Management believes that restructuring charges are not directly
    associated with the Company's core operating performance.

    (8) The preliminary purchase price allocation assigned $48.5 million
    to gain on acquisition. Subsequently, in accordance with applicable
    accounting guidance, the preliminary estimate was reduced by $3.7
    million as a result of new information received by the Company
    subsequent to March 31, 2010.  Management believes that gain on
    acquisition is not related to the ongoing business and operating
    performance of Trident.

    (9)  Management believes that (Gain) loss on investments are not
    related to the ongoing business and operating performance of
    Trident.

    (10)  Management believes that legal settlements are not related to
    the ongoing business and operating performance of Trident.

The company has agreed to settle with the SEC without admitting or denying the allegations in the SEC’s complaint. The company has consented to entry of a permanent injunction against future violations of anti-fraud provisions, reporting provisions and the books and records requirements of the Securities Exchange Act of 1934 and the Securities Act of 1933.

Subject to court approval, this settlement will conclude the government’s investigations into the company’s historical stock option practices.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Trident has been making bold moves to expand its market, deepen and more fully leverage its Intellectual Property (IP) portfolio, and drive the evolution of the “connected home.” Its acquisition of NXP Semiconductors’ set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

TRID-IR

SOURCE Trident Microsystems, Inc.

Copyright (C) 2010 PR Newswire. All rights reserved

Investor Conference Call

Date: Thursday, July 29, 2010

Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)

Domestic Dial-In: 800-798-2884

International Dial-In: 617-614-6207

Passcode: 39471759

A replay of the conference call will be available for two weeks, beginning on July 29, 2010 and will be accessible by calling 888-286-8010 (domestic) or +1-617-801-6888 (international) using access code 59351339.

This call is being webcast by Thomson/CCBN and can be accessed at Trident’s web site at: http://www.tridentmicro.com. The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

About Trident Microsystems, Inc.

Trident Microsystems, Inc., is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Its acquisition of NXP Semiconductors’ set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

Investor Contact

John Swenson

408-764-8899

SOURCE Trident Microsystems, Inc.

Copyright (C) 2010 PR Newswire. All rights reserved