Alliance Semiconductor Reports Financial Results for the Fiscal Third Quarter Ended December 31, 2001
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 22, 2002--Alliance Semiconductor Corporation (Nasdaq:ALSC) today reported revenues for the third fiscal quarter ended December 31, 2001 of $6.3 million, a decrease of $57.5 million or 90% from the same quarter last year and an increase of $1.2 million or 24% from the prior quarter's revenues of $5.1 million.
SRAM and DRAM sales for the quarter accounted for approximately 54% and 46% of revenues, respectively.
The net loss for the third fiscal quarter was $11.0 million, or $0.27 per share compared to net income of $10.9 million, or $0.26 per diluted share for the same quarter, one year ago.
The results for the fiscal third quarter include a pre-tax charge of approximately $1.8 million related to the write-down of three of its investments and approximately $1 million write-down in inventory due to scrapping of certain wafers.
The market value of securities the Company held as of December 31, 2001 was $474.5 million, compared to $278.4 million on September 30, 2001.
Alliance Chairman, President and CEO, N.D. Reddy said, "After three quarters of sequential declines in revenues, we are encouraged that this quarter resulted in a 24% increase in revenues from the prior quarter. While we clearly have a long way to recovery, we have begun to see an increase in demand for our product line and expect to realize sequential growth again in the March 2002 quarter. We have completed our corporate restructuring to achieve greater cost efficiency, while maintaining our extensive research and development efforts." Mr. Reddy continued, "We believe our actions have resulted in improved efficiencies with the necessary infrastructure in place to meet increased demand during the anticipated recovery."
Mr. Reddy continued, "Our primary goals for this quarter are to realize continued sequential growth in revenues, release new SRAM and mixed signal products into production, implement further cost controls, and move closer to profitability."
On January 17, 2002, the Company completed the acquisition of the assets of PulseCore, Inc., as previously announced in October 2001. The acquisition cost was approximately $5 million payable in cash, with $115,000 paid at closing, and the remainder payable in March 2003. All of the employees of PulseCore have accepted positions with the Company, and will operate as the core of Alliance's new mixed signal division, specializing in high speed and low power mixed signal design, and provide electromagnetic interference (EMI) suppression integrated circuits to manufacturers of computer peripherals, communication and digital consumer products.
The Company previously announced a number of cost cutting measures to reduce expenses, including salary reductions of 10% for all employees earning over $100,000 per year and salary reductions of 15% for all vice presidents, and above, starting October 1, 2001. Mr. Reddy commented, "Being optimistic about a potential recovery in the future, we have decided to end the salary reductions for employees earning over $100,000 per year, effective February 1, 2002. However, the salary reductions for vice presidents, and above, will remain in place."
Alliance Ventures LP Investments
The Company, through its venture arm, Alliance Venture Management, LLC, invested approximately $7.2 million during the fiscal third quarter in Alliance ventures funds (Alliance Ventures IV, LP and Alliance Ventures V, LP).
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 fourth quarter of fiscal year 2002 and first quarter of fiscal year 2003.
On November 20, 2001, one of Alliance Venture Management's investments, Magma Design Automation, Inc. ("Magma" - Nasdaq:LAVA) successfully completed an initial public offering, resulting in the Company receiving 360,244 shares of Magma on the date of the offering for its $5 million investment. Based on the closing share price of Magma on December 30, 2001, the market value was approximately $10.7 million. |
