Wednesday February 19 4:30 PM EDT
SST Announces Stock Repurchase Program
SUNNYVALE, Calif., Feb. 19 /PRNewswire/ -- SST ( Silicon Storage Technology Inc announced today that its Board of
Directors has approved a stock repurchase program whereby up to an aggregate of 1,000,000 shares of its common stock
may be repurchased on the open market from time to time at prevailing market prices. The repurchase program is expected to
continue until June 17, 1997, unless extended or shortened by the Board of Directors. The company plans to use existing cash
balances to finance the repurchases. The timing of the purchase and the exact number of shares to be repurchased will depend
upon market conditions.
"This stock repurchase plan reflects the Board's confidence in our company's strategy for diversification and future growth,"
said Bing Yeh, president and chief executive officer. "Industry overcapacity during the past several quarters has resulted in
higher than normal price declines in our markets. As a result, this price erosion has unfavorably impacted our revenues, gross
margins and profitability during recent quarters.
We expect this situation may continue for some time before it gets better. Supply and demand imbalance and the resulting
cyclical behavior is a well-known phenomenon of the semiconductor memory business. The near term situation does not affect
our confidence in our future. We believe the stock repurchase is a good long term investment of our cash on hand," he said.
"Given this market environment, we are focusing on three key areas to improve our profitability and strengthen our long-term
prospects:
"First, we are accelerating our cost reduction efforts by working with our manufacturing partners in an effort to reduce die size,
improve yields and negotiate more favorable pricing.
"Secondly, we are continuing the development of new products and product families that are expected to be introduced over
the next 18 months in order to expand SST's application and geographic diversification, and reduce our dependence on the
personal computer market.
"And thirdly, we are pursuing growth opportunities through expanded technology licensing with additional wafer foundry and
other logic IC manufacturers for non-competing applications," Mr. Yeh said.
About Silicon Storage Technology, Inc.
SST designs, manufactures and markets low cost, high quality, single power supply (5V-only, 3.OV-only or 2.7V-only) and
small erase-block flash memory components for the computer, communications, and consumer markets. All SST products are
based on patented, proprietary SuperFlash(R) technology. The Company is located in Sunnyvale, California. SST's stock is
traded on Nasdaq under the symbol SSTI.
This press release contains forward-looking statements regarding among other things, SST's expectations of continuing
declining selling prices and its plans to improve profitability and strengthen its long-term prospects. There are certain factors
that could cause SST's actual results to differ materially from those anticipated by the statements made above. Among such
factors are the availability and cost of wafers from SST's suppliers, competitive pricing pressures, manufacturing yields, SST's
product development and the timing of new product introductions by others, SST's dependence on foreign foundries and the
growth rate of the flash memory market. For a discussion of such risks, and other risks that could affect SST's future
performance, see "Management's Discussion and Analysis of Financial Conditions and Results of Operations," and "Risk
Factors" in SST's most recent SEC forms 10K and 10Q. SOURCE Silicon Storage Technology Inc.
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