Monday May 8, 10:17 PM Eastern time
Company Press Release
Xicor Announces Second Quarter Results Will Be Lower Than Analyst Estimates and the Resignation of Its President
MILPITAS, Calif.--(BUSINESS WIRE)--May 8, 2000--Xicor, Inc. (NASDAQ - NMS: XICO) today announced that after a review of the revenues for the first month of the second quarter ending July 2, 2000 combined with an analysis of recent bookings, revenues for the second quarter of 2000 will most likely be flat or lower than during the first quarter of 2000 and although we expect the quarter to be profitable, the profitability will be below analyst expectations.
According to Raphael Klein, chairman and CEO, "Although total bookings have increased during the year, so far this quarter the percentage of bookings for same quarter shipments has been lower than projected. In addition, two key customers recently requested us to delay our shipments to them.
"While we are ramping up the production of the new C7 256k high density serial EEPROMs, we have also booked significant quantities of low density serial EEPROMs. The large quantity of these parts presents a manufacturing challenge for the third quarter shipments.
"In light of not meeting analyst expectations, Bruce Gray, Xicor's president, resigned and I have assumed his responsibilities. Although this temporary setback is disappointing, I am confident in Xicor's future prospects. We have made good progress with our outsourcing programs and new product development. We are placing significant emphasis on our new C7 products, including a substantial increase in the related production capacity," concluded Mr. Klein.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties. 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, including statements regarding the expectation that revenues for the second quarter of 2000 will most likely be flat or lower than during the first quarter of 2000 that the second quarter will be profitable, but that the profitability will be below analyst expectations the expected manufacturing challenge in the third quarter of 2000 and the plans to substantially increase C7 production capacity.
Factors that could cause actual results to differ materially include the following: general economic conditions and conditions specific to the semiconductor industry fluctuations in customer demand, including loss of key customers, order cancellations or reduced bookings product mix competitive factors such as pricing pressures on existing products and the timing and market acceptance of new product introductions (both by Xicor and its competitors) Xicor's ability to have available an appropriate amount of low cost foundry production capacity in a timely manner our foundry partners' timely ability to successfully manufacture products for Xicor using Xicor's proprietary technology any disruptions of our foundry relationships manufacturing efficiencies the ability to continue effective cost reductions currency fluctuations the timely development and introduction of new products and submicron processes, and the risk factors listed from time to time in Xicor's SEC reports, including but not limited to the Annual Report on Form 10-K for the year ended December 31,1999 (Management's Discussion and Analysis of Financial Condition and Results of Operations, Factors Affecting Future Results section). Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as the date hereof. Xicor undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Xicor Corporate Information
Xicor designs, develops, manufactures and sells nonvolatile in-the-system programmable products which retain information even when the system is turned off or power is inadvertently lost. Xicor's product line includes digitally controlled potentiometers (DCP's), system management IC's, and secure and standard nonvolatile memory IC's.
Xicor product, corporate and financial information is readily accessible on the World Wide Web at xicor.com
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Contact:
Investor Contact:
Xicor, Inc.
Geraldine N. Hench
Vice President, Finance
408 432-8888
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