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Technology Stocks : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: Jaime Leiderman who wrote (422)	8/25/1999 9:29:00 AM
From: Richard Wang	Read Replies (1) \| Respond to of 1881

ebnews.com SST expects Y2K bonanza By Bolaji Ojo (08/24/99, 10:09:49 AM EDT) Silicon Storage Technology Inc., a maker of flash memory products, said yesterday there are signs that some of its customers will increase their orders in the fourth quarter in preparation for potential Y2K problems. The increased business will result in Silicon Storage posting a major jump in fourth-quarter revenue, according to Jeffrey Garon, vice president and chief financial officer. Increased demand for the company's products, which is already at a record high because of the ongoing shortage of flash memory, will help boost fiscal 1999 revenue substantially while resulting in flat sequential growth in the first quarter of 2000, he said. “Many customers, particularly in the PC business, are talking of buying a boatload of flash memory in the fourth quarter and taking delivery in the first quarter of 2000 because of Y2K concerns,” said Garon at yesterday's New York Society of Security Analysts' annual Semiconductor and Semiconductor Equipment Manufacturers Conference. Silicon Storage said it expects to break even in the current quarter and record a profit of about 20 cents per share in the fourth quarter. Fiscal 2000 revenue will be between 70 cents and $1.60 per share, depending on how the flash market develops in the next year, according to Garon. The company said about 50% of its revenue in the current quarter will be from new products introduced in the last year. That portion is expected to grow to about 75% by the end of the year. Silicon Storage also announced it is preparing to raise about $100 million in a secondary offering in the second half of 2000. A major portion of that money will be used to ramp production, while the remainder will be set aside to meet future expansion needs. Richard