Olympics Create Inventory Hurdles for TV Maker

Delayed construction for the 2008 games has also help up a high-def TV company's quarterly report.
Stephen TaubFebruary 11, 2008

A high-definition TV maker will file its second-quarter results late, while it evaluates its accounting treatment following the delayed build-out of the 2008 Beijing Olympic facilities.

Syntax-Brillian Corp. had sold a large number of LCD TVs through its distributors in China. But these TVs have not been deployed. As a result, the company has been negotiating to repurchase the TVs so that it can distribute them primarily to North American retailers.

The inventory repurchase reduces accounts receivable from its Chinese customers by $99 million, bringing the remaining balance to approximately $63 million, the company explained. This amount includes $48 million due from South China House of Technology and $15 million that is due from Olevia Far East.

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Syntax-Brillian, which is based Tempe, Ariz., has bought back about 26,800 units.

Previously expected to release its quarterly earnings on Monday, the company said only that it had shipped 252,000 units in North America during its second fiscal quarter. It had also collected $3.2 million on unit volume in royalty revenue from China sales through Olevia Far East.