Exhibit 99.1

Press Release

For Immediate Release

TRIDENT MICROSYSTEMS REPORTS RESULTS FOR
FOURTH QUARTER ENDED DEC. 31, 2010

SUNNYVALE, Calif., Feb. 3, 2011 — Trident Microsystems, Inc. (Nasdaq: TRID), a leader in high-performance semiconductor system solutions for the connected home, today announced results for its fourth quarter ended Dec. 31, 2010.

For the quarter, the company reported net revenues of $118.6 million, which compares with $176.6 million in the prior sequential quarter and $31.9 million in the quarter ended Dec. 31, 2009. On a generally accepted accounting principles (“GAAP”) basis, the company reported a net loss for the quarter of $53.8 million, or $0.31per share. This compares with a net loss of $17.5 million, or $0.10 per share in the prior sequential quarter and a net loss of $23.4 million, or $0.34 per share, in the quarter ended Dec. 31, 2009.

Non-GAAP Results

Non-GAAP net loss for the quarter was $25.4 million, or $0.15 per share, which compares with a non-GAAP net loss of $0.0 million, or $0.00 per share, in the prior sequential quarter and a non-GAAP net loss of $15.6 million, or $0.22 per share, in the quarter ended Dec. 31, 2009. A detailed reconciliation between GAAP and non-GAAP net income (loss) is provided as a supplement to the attached financial statements.

Philippe Geyres, Trident’s interim chief executive officer and board member, said, “The disappointing results for the quarter reflected the industry-wide inventory correction in LCD TV, which particularly impacted the mid-range and high-end of our product line, as well as softness in our legacy standard definition retail set-top box products and delayed customer ramps of certain new set-top box programs. These same factors are expected to negatively impact our revenues in the first quarter of 2011, which is seasonally our weakest period.”

Mr. Geyres continued, “In the near term, we are focused on serving customers, securing designs for 2012 revenues, and continuing our integration activities to lower the breakeven point. At the same time, we are assessing how best to leverage Trident’s technology assets and market presence for profitable growth. The first half of 2011 will be very challenging. We expect to ramp new products and customer programs in the second half and continue ongoing cost reductions, with the goal of positioning the company for cash flow positive operations in the second half of the year and greater success in 2012.”

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. For the quarter ending Mar. 31, 2011, the company offered the following guidance:

•		Net revenues are expected to be in the range of $75 million to $85 million.
•		Non-GAAP gross margins are expected to be in the range of 27% to 28%.
•		Non-GAAP operating expenses are expected to be in the range of $50 million to $54 million, with research and development expenses in the range of $34 million to $37 million and selling, general and administrative expenses in the range of $16 million to $17 million.
•		Non-GAAP operating loss is expected to be in the range of $27 million to $32 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 $20 million to $23 million, including cash restructuring charges in the range of $6 million to $8 million. These charges are not included in the guidance for non-GAAP operating loss.
•		Cash balance as of the end of the quarter is expected to be in the range of $55 million to $65 million.

Investor Conference Call
Date: Thursday, Feb. 3, 2011
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Domestic Dial-In: 866-788-0547
International Dial-In: 857-350-1685
Passcode: 70497357

A replay of the conference call will be available for two weeks following the call and will be accessible by calling 888-286-8010 (domestic) or +1-617-801-6888 (international) using access code 98007998. 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 income (loss) that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Non-GAAP net loss, non-GAAP gross margin and non-GAAP expenses give 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, these non-GAAP measures as a percentage of net revenues are used to identify key trends in performance and measure key results against objectives. These non-GAAP measures are 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 income (loss) by adjusting GAAP net income (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, 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 income (loss) is provided in an attached table.

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding financial expectations for the fourth quarter of fiscal year 2010, expected restructuring activity, and our outlook for 2011. 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 and IP from NXP, our ability to reduce expenses, the timing of new 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 TV and Set Top Box semiconductor markets and our ability to retain key employees globally. 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

For More Information
John Swenson
Director, Corporate Finance & Investor Relations
Tel: 408-962-8252
Email: john.swenson@tridentmicro.com
Web site: http://www.tridentmicro.com

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

		Three Months Ended												Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(In thousands, except per share data)		2010				2010				2009				2010				2009
Net revenues		$	118,578			$	176,568			$	31,918			$	557,198			$	84,775
Cost of revenues			95,872				128,398				26,673				439,635				63,946
Gross profit			22,706				48,170				5,245				117,563				20,829
% of net revenues			19.2	%			27.3	%			16.4	%			21.1	%			24.6	%
Research and development expenses			43,575				44,709				16,162				175,001				59,748
% of net revenues			36.7	%			25.3	%			50.6	%			31.4	%			70.5	%
Selling, general and administrative expenses			17,278				19,459				11,143				79,161				31,027
% of net revenues			14.6	%			11.0	%			34.9	%			14.2	%			36.6	%
In-process research and development			—				—				—				—				697
% of net revenues			0.0	%			0.0	%			0.0	%			0.0	%			0.8	%
Goodwill impairment			—				—				—				7,851				1,432
% of net revenues			0.0	%			0.0	%			0.0	%			1.4	%			1.7	%
Restructuring charges			13,095				2,301				50				28,261				1,607
% of net revenues			11.0	%			1.3	%			0.2	%			5.1	%			1.9	%
Operating loss			(51,242	)			(18,299	)			(22,110	)			(172,711	)			(73,682	)
% of net revenues			(43.2	)%			(10.4	)%			(69.3	)%			(31.0	)%			(86.9	)%
Loss on investment			0				(94	)			—				(303	)			—
Gain on acquisition			—				—				—				43,402				—
Interest and other income (expense), net			(1,660	)			2,628				(561	)			1,819				(613	)
Loss before income taxes			(52,902	)			(15,765	)			(22,671	)			(127,793	)			(74,295	)
% of net revenues			(44.6	)%			(8.9	)%			(71.0	)%			(22.9	)%			(87.6	)%
Provision for (benefit from) income taxes			877				1,749				700				1,096				3,911
% of net revenues			0.7	%			1.0	%			2.2	%			0.2	%			4.6	%
Net loss		$	(53,779	)		$	(17,514	)		$	(23,371	)		$	(128,889	)		$	(78,206	)
% of net revenues			(45.4	)%			(9.9	)%			(73.2	)%			(23.1	)%			(92.3	)%
Basic and diluted net loss per share		$	(0.31	)		$	(0.10	)		$	(0.34	)		$	(0.79	)		$	(1.18	)
Shares used in basic and diluted per share computation			174,772				174,553				69,506				163,438				66,482

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

		December 31,				September 30,				December 31,
(In thousands)		2010				2010				2009
ASSETS
Current assets
Cash and cash equivalents		$	93,224			$	102,711			$	147,995
Accounts receivable, net			62,328				96,106				4,582
Accounts receivable from related parties			7,337				9,085				—
Inventories			23,025				26,998				14,536
Note receivable from related party			20,884				20,884				—
Prepaid expenses and other current assets			18,330				15,419				7,357
Total current assets			225,128				271,203				174,470
Property and equipment, net			31,566				30,776				26,168
Goodwill			—				—				7,851
Intangible assets, net			83,921				94,330				5,635
Long-term note receivable from related party			—				2,500				—
Other assets			31,326				25,064				14,369
Total assets		$	370,941			$	423,873			$	228,493
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	7,828			$	12,494			$	18,883
Accounts payable to related parties			26,818				28,364				2,401
Accrued expenses and other current liabilities			79,305				74,907				27,068
Income taxes payable			2,077				2,651				1,696
Total current liabilities			116,028				118,416				50,048
Long-term income taxes payable			25,476				23,495				22,262
Deferred income tax liabilities			200				94				94
Other long-term liabilities			4,933				6,024				—
Total liabilities			146,637				148,029				72,404
Stockholders’ equity
Preferred stock			—				—				—
Common stock			177				177				71
Additional paid-in capital			434,825				432,586				237,827
Accumulated deficit			(210,698	)			(156,919	)			(81,809	)
Total stockholders’ equity			224,304				275,844				156,089
Total liabilities and stockholders’ equity		$	370,941			$	423,873			$	228,493

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

		Three Months Ended												Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(In thousands, except per share data)		2010				2010				2009				2010				2009
GAAP Gross profit		$	22,706			$	48,170			$	5,245			$	117,563			$	20,829
Amortization of acquisition-related intangible assets (1)			9,407				11,612				974				48,207				3,359
Stock-based compensation expense (2)			100				82				120				372				417
Impairment of intangible assets other than goodwill (3)			761				(337	)			—				2,517				—
Non-GAAP Gross profit		$	32,974			$	59,527			$	6,339			$	168,659			$	24,605
% of Net revenues			27.8	%			33.7	%			19.9	%			30.3	%			29.0	%
GAAP Research and development expenses (R&D)		$	43,575			$	44,709			$	16,162			$	175,001			$	59,748
Amortization of acquisition-related intangible assets (1)			(734	)			(775	)			—				(2,818	)			(719	)
Stock-based compensation expense (2)			(927	)			(841	)			(945	)			(3,550	)			(3,995	)
Impairment of intangible assets other than goodwill (3)			—				—				—				—				(1,706	)
Software license fees (4)			—				—				—				—				788
Non-GAAP Research and development expenses		$	41,914			$	43,093			$	15,217			$	168,633			$	54,116
% of Net revenues			35.3	%			24.4	%			47.7	%			30.3	%			63.8	%
GAAP Selling, general and administrative expenses (SG&A)		$	17,278			$	19,459			$	11,143			$	79,161			$	31,027
Amortization of acquisition-related intangible assets (1)			(1,268	)			(1,329	)			(51	)			(4,690	)			(229	)
Stock-based compensation expense (2)			(1,124	)			(938	)			(1,146	)			(2,987	)			(4,386	)
Stock options related professional fees (5)			(989	)			(471	)			66				(2,211	)			4,016
Acquisition-related expenses (6)			44				(188	)			(4,575	)			(5,293	)			(7,375	)
Non-GAAP Selling, general and administrative expenses		$	13,941			$	16,533			$	5,437			$	63,980			$	23,053
% of Net revenues			11.8	%			9.4	%			17.0	%			11.5	%			27.2	%
GAAP Operating Loss		$	(51,242	)		$	(18,299	)		$	(22,110	)		$	(172,711	)		$	(73,682	)
Total of above adjustments to Gross profit, R&D and SG&A			15,266				15,899				7,745				72,645				17,382
In-process research and development			—				—				—				—				697
Restructuring Charges (7)			13,095				2,301				50				28,261				1,607
Impairment of goodwill (3)			—				—				—				7,851				1,432
Non-GAAP Operating Loss		$	(22,881	)		$	(99	)		$	(14,315	)		$	(63,954	)		$	(52,564	)
% of Net revenues			-19.3	%			-0.1	%			-44.8	%			-11.5	%			-62.0	%
GAAP Net loss		$	(53,779	)		$	(17,514	)		$	(23,371	)		$	(128,889	)		$	(78,206	)
Total operating loss adjustments			28,361				18,200				7,795				108,757				20,421
Legal settlements (10)			—				(817	)			—				(2,491	)			—
(Gain) loss on investment (9)			—				94				—				303				(19	)
(Gain) on acquisition (8)			—				—				—				(43,402	)			—
Non-GAAP Net loss		$	(25,418	)		$	(37	)		$	(15,576	)		$	(65,722	)		$	(57,804	)
% of Net revenues			-21.4	%			0.0	%			-48.8	%			-11.8	%			-68.2	%
GAAP basic and diluted net loss per share		$	(0.31	)		$	(0.10	)		$	(0.34	)		$	(0.79	)		$	(1.18	)
GAAP shares — basic and dilutive			174,772				174,553				69,506				163,438				66,482