Alliance Semiconductor Reports Financial Results for the Fiscal Third Quarter Ended December 31, 2000
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 16, 2001--
Q3 Revenues $63.8 Million and Net Income of $10.9 Million Operating
Income of $13.4 Million/$0.22 Per Share
Alliance Semiconductor Corporation (Nasdaq: ALSC) today reported revenues for the fiscal third quarter ended December 31, 2000 of $63.8 million, an increase of 171% from the same quarter last year, and a decrease of 1% from the prior quarter's revenue of $64.5 million. SRAM and DRAM sales for the quarter accounted for approximately 43% and 57% of revenues, respectively.
On December 21, 2000, the Company had announced that it expected to report flat, or slightly higher (2%) sequential, growth in fiscal third quarter sales.
Net income for the fiscal third quarter was approximately $10.9 million, resulting in net earnings of $0.26 per share (diluted), compared to net income of $9.2 million, or $0.21 per share (diluted), on revenues of $23.5 million during the same quarter last year.
Net income for the fiscal third quarter includes gains on the sale of marketable securities of $5.3 million, or $0.09 per share (diluted, net of tax), compared to investment gains of $5.1 million, or $0.12 per share (diluted) during the same quarter last year.
Operating profit for the fiscal third quarter ended December 31, 2000 was $13.4 million, or $0.22 per share (diluted, net of tax) compared to an operating loss of $2.0 million, or $0.03 loss per share, for the same period last year, and an operating profit of $15.8 million or $0.22 per share (diluted, net of tax) in the fiscal second quarter.
Alliance Chairman, President and CEO, N.D. Reddy said, "Our revenues, during the December quarter, were impacted by lower DRAM sales due to cancellations and push-outs of scheduled orders, as well as yield related problems with some SRAM products. As we indicated in our December 21st press release, we believe that the SRAM yield problems have been fixed."
Mr. Reddy continued, "While demand for lower density DRAM products remains sluggish, we believe that demand for SRAM products looks good. We have taken steps, starting last quarter, to reduce our wafer starts in order to bring our inventory levels down to meet current and expected future demand."
Mr. Reddy also added, "During the December quarter, the Company successfully transferred to production an 8M Flash, a 16M SDRAM, and a 4M synchronous SRAM based on 0.25 um technology. This quarter, we expect to start volume production on both our 4M and 8M Flash, as well as an 8M synchronous SRAM and a 16M SDRAM, both of which are based on 0.18 um technology and a new generation 1M SRAM (0.25 um)."
Alliance Ventures LP Investments
The Company, through its venture arm, Alliance Venture Management, LLC, invested approximately $7.3 million during the fiscal third quarter in Alliance ventures funds (Alliance Ventures I, LP and Alliance Ventures III, LP). At the end of December, Alliance Venture Management, LLC had invested approximately $68.0 million in networking, communication and Internet infrastructure start-up companies.
The Company is currently evaluating a number of existing and start-up investment opportunities, which could result in additional investments of $10 million to $15 million during the fiscal fourth quarter of fiscal year 2001. |
