Exhibit 99.1

May 5, 2010

Trident Microsystems Reports Results for First Quarter Ended Mar. 31, 2010

SUNNYVALE, Calif., May 5, 2010 /PRNewswire via COMTEX News Network/ — Trident Microsystems, Inc. (Nasdaq: TRID), a leader in high-performance semiconductor system solutions for the connected home, today announced results for its quarter ended Mar. 31, 2010. Results for the quarter include approximately eight weeks of contribution from product lines acquired from NXP B.V., a transaction that closed on Feb. 8, 2010.

For the quarter, the company reported net revenues of $90.4 million, which compares with $31.9 million in the prior sequential quarter and $6.9 million in the quarter ended Mar. 31, 2009. The company reported a net loss for the quarter of $3.9 million, or $0.03 per share, on a generally accepted accounting principles (“GAAP”) basis. Net loss for the quarter includes a net benefit of $33.5 million related to the NXP transaction, consisting of negative goodwill of $48.5 million offset by $15.0 million of intangibles amortization and acquisition-related expenses. Net loss for the quarter also includes $8.4 million of restructuring charges related to previously announced integration plans. The net loss for the first quarter of 2010 compares with a net loss of $23.4 million, or $0.34 per share in the prior sequential quarter and a net loss of $16.6 million, or $0.27 per share, in the quarter ended Mar. 31, 2009.

Non-GAAP Results

Non-GAAP net loss for the quarter was $25.8 million, or $0.20 per share, which compares with a non-GAAP net loss of $15.6 million, or $0.22 per share, in the prior sequential quarter and a non-GAAP net loss of $14.4 million, or $0.23 per share, in the quarter ended Mar. 31, 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, “We accomplished the first phase of a significant integration in the first quarter, successfully closing the NXP transaction and completing approximately eight weeks of combined operations. We are on track to deliver a June quarter in line with earlier guidance and to achieve non-GAAP operating breakeven as early as the end of the year.”

Outlook

For the quarter ending June 30, 2010 (the first full quarter reflecting the contribution of the acquired NXP product lines) 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 June 30, 2010:

	•		Net revenues are expected to be in the range of $150 million to $165 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 $67 million to $70 million, with research and development expenses in the range of $47 million to $49 million and selling, general and administrative expenses of approximately $20 million to $21 million.
	•		Non-GAAP operating loss is expected to be in the range of $23 million to $26 million.
	•		Provision for income taxes is expected to be approximately $1 million.
	•		Restructuring charges are expected to be in the range of $3 million to $6 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 $95 million to $105 million.

     Investor Conference Call

     Date: Wednesday, May 5, 2010

     Time: 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)

     Domestic Dial-In: 866-761-0748

     International Dial-In: 617-614-2706

     Passcode: 74564440

A replay of the conference call will be available for two weeks, beginning on May 5, 2010 and will be accessible by calling 888-286-8010 (domestic) or +1-617-801-6888 (international) using access code 27096394. 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, 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 second 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 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 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 BALANCE SHEETS
(Unaudited)

		March 31,				December 31,
(In thousands)		2010				2009
ASSETS
Current assets
Cash and cash equivalents		$	129,983			$	147,995
Accounts receivable, net			84,553				4,582
Inventories			26,631				14,536
Note receivable from related party			10,126				—
Prepaid expenses and other current assets			33,945				13,962
Total current assets			285,238				181,075
Property and equipment, net			36,014				26,168
Intangible assets, net			127,180				5,635
Goodwill			7,851				7,851
Long-term note receivable from related party			20,348				—
Other assets			19,428				7,764
Total assets		$	496,059			$	228,493
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	20,278			$	18,883
Accounts payable to related party			34,887				2,401
Accrued expenses and other current liabilities			66,852				27,068
Income taxes payable			4,372				1,696
Total current liabilities			126,389				50,048
Long-term income taxes payable			21,597				22,262
Deferred income tax liabilities			94				94
Other long-term liabilities			4,870				—
Total liabilities			152,950				72,404
Stockholders’ equity
Preferred stock			—				—
Common stock			175				71
Additional paid-in capital			428,621				237,827
Accumulated deficit			(85,687	)			(81,809	)
Total stockholders’ equity			343,109				156,089
Total liabilities and stockholders’ equity		$	496,059			$	228,493

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

		Three Months Ended
		March 31,				December 31,				March 31,
(In thousands, except per share data)		2010				2009				2009
Net revenues		$	90,404			$	31,918			$	6,852
Cost of revenues			76,618				26,673				6,391
Gross profit			13,786				5,245				461
% of net revenues			15.2	%			16.4	%			6.7	%
Research and development expenses			37,215				16,162				11,434
% of net revenues			41.2	%			50.6	%			166.9	%
Selling, general and administrative expenses			20,136				11,143				3,626
% of net revenues			22.3	%			34.9	%			52.9	%
Goodwill impairment			—				—				1,432
% of net revenues			—				—				20.9	%
Restructuring charges			8,395				50				41
% of net revenues			9.3	%			0.2	%			0.6	%
Operating loss			(51,960	)			(22,110	)			(16,072	)
% of net revenues			(57.5	)%			(69.3	)%			(234.6	)%
Loss on investment			(209	)			—				—
Gain on acquisition			48,490				—				—
Interest and other income (expense), net			526				(561	)			1,287
Loss before income taxes			(3,152	)			(22,671	)			(14,785	)
% of net revenues			(3.5	)%			(71.0	)%			(215.8	)%
Provision for (benefit from) income taxes			726				700				1,819
% of net revenues			0.8	%			2.2	%			26.5	%
Net loss		$	(3,878	)		$	(23,371	)		$	(16,604	)
% of net revenues			(4.3	)%			(73.2	)%			(242.3	)%
Basic and diluted net loss per share		$	(0.03	)		$	(0.34	)		$	(0.27	)
Shares used in basic and diluted per share computation			129,969				69,506				61,829

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

		Three Months Ended
		March 31,				December 31,				March 31,
(In thousands, except per share data)		2010				2009				2009
Net revenues		$	90,404			$	31,918			$	6,852
Cost of revenues			65,068				25,579				5,321
Gross profit			25,336				6,339				1,531
% of net revenues			28.0	%			19.9	%			22.3	%
Research and development expenses			35,850				15,217				10,382
% of net revenues			39.7	%			47.7	%			151.5	%
Selling, general and administrative expenses			15,117				5,437				5,004
% of net revenues			16.7	%			17.0	%			73.0	%
Operating loss			(25,630	)			(14,315	)			(13,855	)
% of net revenues			(28.4	)%			(44.8	)%			(202.2	)%
Interest and other income (expense), net			508				(561	)			1,280
Loss before income taxes			(25,122	)			(14,876	)			(12,575	)
% of net revenues			(27.8	)%			(46.6	)%			(183.5	)%
Provision for income taxes			726				700				1,819
% of net revenues			0.8	%			2.2	%			26.5	%
Net loss		$	(25,848	)		$	(15,576	)		$	(14,394	)
			(28.6	)%			(48.8	)%			(210.1	)%
Basic and diluted net loss per share		$	(0.20	)		$	(0.22	)		$	(0.23	)
Shares used in basic and diluted per share computation			129,969				69,506				61,829

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

		Three Months Ended
		March 31,				December 31,				March 31,
(In thousands, except per share data)		2010				2009				2009
GAAP gross profit		$	13,786			$	5,245			$	461
Amortization of acquisition-related intangible assets (1)			10,216				974				628
Stock-based compensation expense (2)			104				120				145
Impairment of goodwill and intangible assets (3)			1,230				—				294
Restructuring Charges (7)			—				—				3
Non-GAAP gross profit		$	25,336			$	6,339			$	1,531
GAAP Research and development expenses		$	37,215			$	16,162			$	11,434
Amortization of acquisition-related intangible assets (1)			485				—				—
Stock-based compensation expense (2)			880				945				1,340
Software license fees (4)			—				—				(288	)
Non-GAAP Research and development expenses		$	35,850			$	15,217			$	10,382
GAAP Selling, general and administrative expenses		$	20,136			$	11,143			$	5,058
Amortization of acquisition-related intangible assets (1)			755				51				76
Stock-based compensation expense (2)			(320	)			1,146				1,318
Impairment of goodwill and intangible assets (3)			—				—				1,735
Stock options related professional fees (5)			226				(66	)			(3,075	)
Acquisition-related expenses (6)			4,358				4,575				—
Non-GAAP Selling, general and administrative expenses		$	15,117			$	5,437			$	5,004
GAAP net loss		$	(3,878	)		$	(23,371	)		$	(16,604	)
Gross profit reconciliation			11,550				1,094				1,070
Research and development expenses reconciliation			1,365				945				1,052
Selling, general and administrative expenses reconciliation			5,019				5,706				54
Restructuring Charges (7)			8,395				50				41
(Gain) loss on investment			209				—				(7	)
(Gain) on acquisition (8)			(48,508	)			—				—
Non-GAAP net loss		$	(25,848	)		$	(15,576	)		$	(14,394	)
GAAP basic and diluted net loss per share		$	(0.03	)		$	(0.34	)		$	(0.27	)
Non-GAAP basic and diluted net loss per share		$	(0.20	)		$	(0.22	)		$	(0.23	)
Shares used in basic and diluted per share computation			129,969				69,506				61,829