Alliance Semiconductor Reports Financial Results for the Fiscal Second Quarter Ended Sept. 30, 2002
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 24, 2002--Alliance Semiconductor Corporation (Nasdaq:ALSC) today reported financial results for the second fiscal quarter of 2003 ended Sept. 30, 2002. The Company reported revenues of $4.1 million, compared with $4.3 million in the first quarter of fiscal 2003 and $5.1 million in the second quarter of fiscal 2002. Approximately 18% of the quarter's revenues were attributed to the non-memory product business units, versus 10% in the first quarter fiscal 2003.
The net loss for the second quarter was $21.7 million, or $0.56 per share, compared to a net loss of $200 million, or $4.85 per share from the same period in the prior year. Loss from operations for the fiscal second quarter was $22.1 million.
Operating expenses for the quarter ended Sept. 30, 2002, were $11.1 million, including $2.8 million resulting from the consolidation of two investee companies, compared to $6.5 million in the same period last year. Research and development spending devoted to technology advancements and product line expansion across all business units -- Memory, Mixed Signal and System Logic Solutions -- increased 56% or $1.2 million compared to the same period last year. Included in selling, general and administrative costs are restructuring charges of $528,000 related primarily to personnel reductions in the quarter, the effect of which should result in an annual savings of approximately $1.7 million.
"We are pleased to see that approximately 18% of the quarter's revenue was attributed to our System Logic Solutions and Mixed Signal business units," said N.D. Reddy, Alliance Chairman, President and CEO. "We have been devoting a large portion of our resources to research and development with these business units, resulting in 16 new product introductions in this quarter, specifically in the Mixed Signal business unit."
Second Quarter Highlights
Alliance's Memory business unit achieved significant milestones in the quarter which included yielding and fully functional first silicon of 18M synchronous SRAM using 0.13um copper interconnect technology, as well as an ultra low-power 8M pseudo-SRAM for cell phone applications. In addition, Alliance taped out a 16M pseudo-SRAM, and fully qualified a low power 8M synchronous SRAM on 0.18um technology, which began production this quarter. Alliance also successfully demonstrated high yielding silicon on a 0.18um high speed 4M asynchronous SRAM at Tower Semiconductor, a foundry in which Alliance has made equity investments.
The Mixed Signal business unit of Alliance reported a 33% quarter-over-quarter growth in revenue to close the quarter at approximately $448,000, and achieved a 49% sequential increase in unit volumes for the quarter. Additionally, 16 new general purpose EMI reduction ICs were introduced to the market. There was a significant ramp in mass production volumes of the P278x line of analog controlled EMI reduction devices as shipments surpassed 275,000 units for the quarter.
"Our System Logic Solutions business unit successfully ramped into production the world's first HyperTransport to PCI bridge, the SP1011," said N.D. Reddy, Alliance Chairman, President and CEO. "The SP1011 is being designed into IP Switches & Routers, SAN & NAS switches and Cable Head-end equipment. The business unit is experiencing quarter over quarter revenue growth and an expansion in its customer and applications base globally."
Commenting on the quarter, Mr. Reddy stated, "The continued growth in our non-memory business units is reflective of the Company's diversification efforts to minimize exposure to any one market segment. The Mixed Signal business unit continues to gain market share in the LCD market and secured new design wins in DSL routers, switches and wireless devices. We initiated qualification efforts for the stringent automotive industry, which we believe offers a significant market opportunity for the Company. In addition to our new product offerings, we also expanded our customer base in the non-memory business units by adding more than 15 new customers. In the Memory business unit, Alliance continued its efforts to reposition itself with technologically diverse, cost effective products, increasing the number of its direct customers by 30%, to 69. This increase demonstrates the commitment of our product development teams in Santa Clara, Calif., and Bangalore, India, to deliver quality products with first time success."
Second Quarter 2003 Financial Results Webcast/Conference Call
The Alliance management team will host a live webcast and conference call to discuss Q2 2003 financial results beginning at 2:00 p.m. (PT) on Thursday, Oct. 24, 2002. Investors and other interested parties may participate in the call by dialing 888/658-8648 at least fifteen minutes prior to the call and enter pass code 8731290 or listen to the live webcast by visiting the investor relations section of the Alliance Web site at www.alsc.com. |
