ISD Announces Second-Quarter Results
SAN JOSE, Calif.--(BUSINESS WIRE)--July 11, 1996--Information Storage Devices Inc.
(ISD) (NASDAQ:ISDI) Thursday announced that revenue for the second quarter ended June 30,
1996 was $11.2 million.
This compares with revenue of $14.2 million for the second quarter of 1995. Net income for the
period was $191,000, or $0.02 per share, compared with net income of $1.3 million, or $0.15
per share, for last year's second quarter.
For the six months ended June 30, 1996, ISD reported a net loss of $1.8 million, or $0.18 per
share, on revenue of $23.5 million. This compares with net income of $2.4 million, or $0.29 per
share, on revenue of $27.2 million for the first half of 1995.
"We are pleased by ISD's return to profitability in the second quarter. Consumer accounts were a
little softer than in the first quarter, and our communications business remained flat particularly for
applications in cell phone handsets," said David L. Angel, president and chief executive officer.
He said that ISD posted a small loss from operations for the period before interest income. Gross
margin for the quarter rose to 36 percent from 24 percent for the first quarter.
"ISD's mission is to provide essential products to the communications marketplace using our
proprietary multi-level storage and related technologies. We're aiming for nothing less than an ISD
communications product in everyone's pocket," continued Angel.
"We expect to begin transferring all ChipCorder production to 0.8 micron wafers in the third and
fourth quarters. Our foundry is scheduled to stop shipping 1.2 micron wafers late in the third
quarter or early in the fourth quarter, so we should be 100 percent 0.8 micron production by the
end of the year," said Angel.
Angel added that ISD expects to formally announce its new ISD33000 series on July 24, 1996.
"The ISD33000 family is a true 3.0 volt ChipCorder featuring recording times of up to four
minutes. It opens the door to the market for long duration recording times, which we think is the
key to unlocking a large number of exciting new ChipCorder applications. The interest in these
chips among current and potential customers is very encouraging," he said.
Angel added that the company is continuing to devote resources to the expansion of its sales and
marketing effort. ISD opened a sales office in Singapore and appointed a director of Japanese
sales in the second quarter. In addition, during the period ISD rolled out its first nationwide
advertising and promotional program for ChipCorder products.
At June 30, 1996, ISD reported cash and investments of $60.6 million, inventory of $14.5 million,
no debt, and shareholders' equity of $77.8 million, or $8.01 per share.
This news release contains forward-looking statements regarding a variety of matters, including but
not limited to business trends, production geometries, and product features.
In addition to the factors discussed above, other factors that could cause actual results to differ
materially include the following: cyclical nature of the markets for the company's products;
availability of foundry capacity and raw materials; fluctuations in manufacturing yields; competitive
pricing pressures; the timing of significant orders; changes in the mix of products sold; changes in
the mix of customers; availability and cost of products from the company's suppliers; the timing of
new product announcements; the cyclical nature of the semiconductor industry; the gain or loss of
significant customers; increased research and development expenses; economic conditions
generally or in various geographic areas; and the risk factors listed from time to time in the
company's SEC reports, including but not limited to its report on Form 10-K for the year ended
Dec. 31, 1995 and the company's 1995 Annual Report.
ISD designs, develops and markets integrated circuit solutions for voice applications in the
consumer, communications and industrial markets. The company is located at 2045 Hamilton
Avenue, San Jose, Calif. 95125. Telephone: 408/369-2520. Fax: 408/369-2422. World Wide
Web home page: isd.com.
INFORMATION STORAGE DEVICES INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except for per-share amounts)
Three Months Ended
June 30,
1996 1995
Net revenue $11,183 $14,234
Cost of goods sold 7,154 8,873
Gross margin 4,029 5,361
Operating expenses:
Research and development 1,868 1,476
Selling, general and administrative 2,419 2,239
Total operating expenses 4,287 3,715
Income (loss) from operations (258) 1,646
Interest and other income, net 552 390
Income (loss) before income taxes 294 2,036
Provision (benefits) for income taxes 103 712
Net Income (loss) $ 191 $ 1,324
Earnings (loss) per share $ 0.02 $ 0.15
Shares used in computing
earnings per share 9,886 8,688
Six Months Ended
June 30,
1996 1995
Net revenue $23,518 $27,239
Cost of goods sold 16,581 17,161
Gross margin 6,937 10,078
Operating expenses:
Research and development 5,988 2,883
Selling, general and administrative 5,029 4,007
Total operating expenses 11,017 6,890
Income (loss) from operations (4,080) 3,188
Interest and other income, net 1,334 523
Income (loss) before income taxes (2,746) 3,711
Provision (benefits) for income taxes (961) 1,298
Net Income (loss) $(1,785) $ 2,413
Earnings (loss) per share $ (0.18) $ 0.29
Shares used in computing
earnings per share 9,955 8,181
CONDENSED BALANCE SHEETS
(in thousands)
June 30, Dec. 31,
1996 1995
(unaudited) (audited)
Assets
Current Assets:
Cash and short-term investments $ 52,998 $ 75,094
Accounts receivable, net 4,138 7,554
Inventories 14,498 9,809
Other current assets 2,919 1,841
Total Current Assets 74,552 94,298
Property and equipment, net 5,661 5,244
Other assets 1,762 1,355
Long-term investments 7,639 4,533
Total Assets $ 89,614 $ 105,430
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ 1,170 $ 1,089
Accounts payable
and accrued liabilities 5,895 12,096
Deferred revenue 2,103 1,834
Total Current Liabilities 9,168 15,019
Long-term liabilities 2,675 2,958
Shareholders' Equity 77,771 87,453
Total Liabilities
and Shareholders' Equity $ 89,614 $ 105,430
CONTACT: Information Storage Devices Inc., San Jose
Felix Rosengarten, 408/369-2520
or
Neil G. Berkman Associates, Los Angeles
310/277-5162
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