Gennum Reports 2009 Second Quarter Results

Burlington, Ontario (June 24, 2009) – Gennum Corporation (TSX: GND) today reported unaudited financial results for the second quarter of fiscal 2009.

(in millions of U.S. dollars except per share amounts)

Consolidated revenue in the second quarter of 2009 was $19.4 million, lower by $13.6 million or 41% compared to the second quarter of 2008 due to the continued global economic downturn and its resultant effects upon the markets for our products; on a year-to-date basis, consolidated revenue was $38.8 million, down by $24.3 million compared to the same period last year. Despite these severe economic conditions, we were able to produce positive EBITDA*, and we continue to implement actions to further reduce and control expenses. Net loss from continuing operations for the quarter and for the first half of 2009 was $1.1 million, or $0.03 loss per share, and $2.0 million, or $0.06 loss per share, respectively, compared to 2008 net earnings of $5.9 million, or earnings per share of $0.17, and net earnings of $10.5 million, or earnings per share of $0.30.

"Our second quarter results were mainly impacted by significant currency fluctuations and aggressive customer inventory reductions within the video broadcast market," said Dr. Franz Fink, President and CEO of Gennum Corporation. "We are seeing modest improvement in orders and end market demand in all of our product groups. However, we continue to take aggressive steps to control our expenses to improve profitability and cash flow. We remain confident in our strategy and are executing to our plan in delivering more new products to our customers."

New product introductions and business developments

In the second quarter of 2009, Gennum launched several new SDI products to further expand its video broadcast portfolio and introduced new PCIe 3.0 and USB 3.0 IP cores.

New Video Optical Modules with Unprecedented Performance for 3 gigabits per second (Gb/s) SDI Video - In April, Gennum unveiled the industry's first 3Gb/s SDI video optical receiver modules that can enable "zero penalty" pathological performance. Both the dual-channel and single-channel receivers will enable video broadcast equipment manufacturers to offer superior link robustness on their video broadcast products, such as cameras, routers and monitors, capable of transporting 3 Gb/s SDI video across optical links.

Gennum's Snowbush IP Enables Rapid Deployment of SATA and SAS 6 Gb/s Products - The newly available SATA/SAS 6 Gb/s PHY IP enables customers to reduce the time and resources associated with in-house development, while at the same time helping them meet their goal of achieving first-pass silicon success with a very power- and area-efficient solution.

Next-Generation 3 Gb/s Broadcast Solutions with Best-in-Class Power and Performance - Gennum expanded its portfolio by introducing seven new products that include new equalizers, reclockers and cable drivers. Featuring substantial improvements in jitter performance over previous-generation and competitive solutions, the new products also feature up to a 55% improvement in power consumption.

Industry's Longest 3 Gb/s SDI over Coax Cable Solution up to 150 Meters - Gennum introduced the industry's longest reach 3 Gb/s SDI receive solutions for broadcast video applications. This new product achieves a reach of up to 150 meters over coaxial cable for 3 Gb/s SDI, resulting in low power consumption and board space savings for next-generation video broadcast equipment such as switchers, multiviewers and monitors.

Marshall Electronics Teams With Gennum to Deliver Industry's First Lineup of 3 Gb/s Monitors - Marshall Electronics, a leading manufacturer of LCD monitors for broadcast, studio, television, and production has turned to Gennum to integrate 3 Gb/s capability in their new 6.5" and 7" monitors. These new camera-top monitors incorporate Gennum's GS2970 3 Gb/s multi-rate SDI receiver.

Leading Broadcast Equipment Companies Showcase Gennum 3 Gb/s Solutions - At NAB 2009, leading equipment vendors showcased products and technology leveraging Gennum's solutions, including Sony Electronics, Gefen, Nevion (formerly Network Electronics / VPG) and Marshall Electronics.

According to Mr. Hugo Gaggioni, Chief Technology Officer for the Broadcast and Production Systems Division of Sony Electronics, "Gennum continues to drive the development of 3 Gb/s SDI technology and we believe these products will help accelerate Sony's 3G ready offerings in support of Level B of the SMPTE 425M standard. This year's NAB is a pivotal time for the industry, as studios need end-to-end solutions with advanced broadcast quality-1080p and beyond. We believe Sony is delivering the most advanced equipment available to achieve the ultimate HD experience."

Dividend
Gennum's Board of Directors has declared a regular cash dividend of 3.5 cents per share Canadian to be paid on July 22, 2009 to shareholders of record on July 8, 2009.

Download the complete financial results (PDF)

About Gennum
Gennum Corporation (TSX: GND) designs innovative semiconductor solutions and intellectual property (IP) cores for the world’s most advanced consumer connectivity, enterprise, video broadcast and data communications products. Leveraging the company’s proven optical, analog and mixed-signal products and IP, Gennum enables multimedia and data communications products to send and receive information without compromising the signal integrity. An award winner for advances in high definition (HD) broadcasting, Gennum is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Korea, Germany, United States, Taiwan, India and the United Kingdom. www.Gennum.com.

Gennum Media Contact:
Keri Fraser
<!-- Director of Corporate Communications
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613-270-0458 x 2909
keri.fraser@gennum.com

Gennum Investor Relations Contact:
Gord Currie
Senior Vice-President, Finance & Administration and CFO
Gennum Corporation
(905) 632-2999 x3060
gord.currie@gennum.com

Caution Regarding Forward-Looking Information
This news release contains statements which constitute forward-looking statements. These forward-looking statements are not descriptive of historical matters and refer to management’s expectations or plans. These statements include but are not limited to statements concerning: Gennum’s plans and expectations relating to improvements in profitability and cash flow and the achievement of business model targets and levels, the reduction of corporate and operations costs and capital expenditures and marketing, sales and administration expenses; expected operational expense savings and estimated severance and related costs, and the estimated charges relating thereto and to impairments; and Gennum’s business objectives and future financial performance and prospects. Inherent in forward-looking statements are risks and uncertainties beyond Gennum’s ability to predict or control including but not limited to risks associated with: Gennum’s ability to complete the actions referred to in this news release within anticipated timeframes and to successfully realize the expected improvements therefrom; compliance with local employment legislation and requirements and the possible initiation and outcome of legal proceedings; and other risks facing Gennum’s business including competitive and pricing pressures and economic cycles in the semiconductor industry, fluctuations in foreign exchange rates and their potential adverse impact upon Gennum’s financial results, and Gennum’s ability to attract and retain key personnel necessary for its business. Please also refer to the sections entitled “Risks and Uncertainties” in Gennum’s 2008 annual report and “Risk Factors” in Gennum’s annual information form dated February 23, 2009. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect including but not limited to the following assumptions: Gennum is able to successfully complete the actions referred to herein within the timeframe and with associated expense savings generally as anticipated and without unforeseen significant costs or delays; assumptions relating to severance and related costs and to charges; customer demand for Gennum’s products remains generally as anticipated; Gennum’s is able to execute its product roadmap without delays or disruptions having a material impact on Gennum; Gennum’s expectations relating to competitive pressures, including pricing pressures, are not materially incorrect; significant fluctuations in foreign exchange rates which significantly adversely affect Gennum’s financial results do not arise; and Gennum is able to continue to retain and attract technical and other key employees. Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause Gennum’s actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Consequently, readers should not place any undue reliance on these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. Gennum disclaims any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.