Great earnings out on CATS. Flash memory chip is hot!
Thursday August 17, 4:01 pm Eastern Time
Press Release
Catalyst Semiconductor Q1'00 Net Profits Rise
Sharply as Revenues Increase 176% vs. Q1'99
Earnings Per Share $0.40
SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 17, 2000--Catalyst Semiconductor, Inc. (OTCBB:CATS -
news) today announced its financial results for the first fiscal quarter ended July 31, 2000.
Revenues for the first quarter were $25.4 million, up 176% from revenues of $9.2 million in the first quarter a year
ago. Net income for the first quarter was $8.2 million or $0.40 per diluted share, as compared to a net income of
$0.9 million, or $0.05 per diluted share in the first quarter a year ago. Compared to the previous quarter, revenue
was up 49% and income was up 67%. During the quarter, cash increased by $9.5 million. Debt remained at $2.0
million, the minimum amount allowed by the Company's bank agreement.
``First quarter results reflect progress in ramping up additional foundry capacity at Oki and Xfab'', said Radu
Vanco, President and Chief Executive Officer. ``We continue to regard expanding foundry capacity as our primary
objective, since demand has been stronger than our production capacity. In addition, as we complete the process of
transferring our products to the more advanced technology currently operational at both Oki and Xfab, we'll be able
to generate incremental revenue from each wafer.''
``The growth of Internet related infrastructures and applications, of telecommunications in general and the
emergence of a larger variety of consumer products, including hand-held devices, provides numerous opportunities
for Company's products'', continued Vanco. ``We are also present in industrial, automotive and home electronics
market segments. This represents an opportunity for the Company to diversify its application base and become less
dependent on the performance of any single market segment, such as personal computers or cellular telephones.''
``Since we still have a relatively small market share in our core business, investing in expanding our sales
organization is a high priority. During the first quarter we have opened two new sales offices - one in Seoul, South
Korea and another in Singapore, both areas in which we see substantial opportunities'', concluded Vanco.
The Company has also announced that it has formally applied for NASDAQ re-listing on June 16th, 2000. The
Company understands this process typically takes 60 to 90 days.
Founded in 1985, Catalyst Semiconductor, Inc., is head-quartered in Sunnyvale, California. The Company designs
and markets a broad range of programmable products including Flash Memories, Serial and Parallel EEPROMs,
NVRAM, Digital Potentiometers, Micro-controller Supervisory circuits and other programmable Mixed Signal
products. Catalyst products are used in telecommunications, networking systems, computation, industrial and
consumer markets, driven by the Internet revolution. Typical applications include modems, network cards, PC
BIOS, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and Internet routers.
Catalyst's Quality Management System is ISO 9001 certified. Additional information may be obtained visiting
Company's web-site at www.catsemi.com.
Except for those statements that report the Company's historical results, the statements being made are forward
looking statements. Actual results could differ materially from those projected in the forward-looking statements.
Factors which could cause actual results to differ from expectations include the following: volatility in supply and
demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test subcontract
capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with
bringing up new production capabilities or with deliveries from subcontractors, timing and market acceptance of new
products, increased expenses associated with new product introductions or process changes, delays in developing
or achieving volume production of new products, which can result in delays or failure to contribute to revenues and
profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising
additional capital. Additional information concerning factors that could cause actual results to differ materially from
those in the forward looking statements is contained under the heading ``Certain Factors That May Affect the
Company's Future Results of Operations'' listed from time to time in Catalyst's SEC reports, including but not limited
to the report on Form 10-K/A for the year ended April 30, 2000.
CATALYST SEMICONDUCTOR, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, April 30,
2000 2000
------- -------
ASSETS
Current assets:
Cash and cash equivalents $15,729 $ 6,205
Accounts receivable, net 13,541 10,727
Inventories 4,359 3,531
Other Assets 584 624
------- -------
Total current assets 34,213 21,087
Property and equipment, net 2,520 1,856
------- -------
$36,733 $22,943
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 2,025 $ 2,028
Accounts payable 10,108 6,745
Accrued expenses 3,292 2,522
Deferred gross profit on
shipments to distributors 2,002 880
Current portion of long-term
debt and capital leases 215 203
------- -------
Total current liabilities 17,642 12,378
Long-term debt and capital
lease obligations 4 64
------- -------
Total liabilities 17,646 12,442
Total stockholders' equity 19,087 10,501
------- -------
$36,733 $22,943
======= =======
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
July 31, July 31,
2000 1999
-------- --------
Net revenue $ 25,441 $ 9,196
Cost of revenues 12,386 5,376
-------- --------
Gross profit 13,055 3,820
Research & development 1,154 607
Selling, general and
administration 3,288 2,212
-------- --------
Operating income 8,613 1,001
Net interest income (expense) 30 (148)
-------- --------
Income before taxes 8,643 853
Income tax provision 450 --
-------- --------
Net income $ 8,193 $ 853
======== ========
Net income (loss) per share:
Basic $ 0.51 $ 0.06
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Diluted $ 0.40 $ 0.05
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Weighted average common shares
outstanding:
Basic 16,166 13,966
======== ========
Diluted 20,537 17,856
======== ========
Contact:
Catalyst Semiconductor
Joan Vargas, 408/542-1051
joan.vargas@catsemi.com |
