5c folks and zooming into 2000!
Thursday October 21, 9:14 am Eastern Time
Company Press Release
Xicor Returns to Profitability
MILPITAS, Calif.--(BUSINESS WIRE)--Oct. 21, 1999--Xicor, Inc. (NASDAQ - NMS: XICO) today reported results for the third quarter and nine months ended October 3, 1999.
Sales for the third quarter of 1999 were $29,542,000 compared to $24,695,000 for the third quarter of 1998. The profit for the third quarter of 1999 was $1,074,000, or $0.05 per share compared to a loss of $8,038,000 or $0.42 per share for the third quarter of 1998. The 1998 quarter included a restructuring charge of $1,267,000. For the first three quarters of 1999 Xicor had sales of $83,949,000 and a loss of $5,316,000 or $0.26 per share, compared to sales of $79,228,000 and a loss of $19,576,000 or $1.02 per share for the comparable 1998 period.
Bruce Gray, President, commented, ''We are pleased to report Xicor's return to profitability. Increased sales, product mix, more stable average selling prices and cost reductions, coupled with an increased percentage of sales generated by outsourced products, helped to turn our financial performance around. In recent quarters, about a third of sales were booked as ''turns'' business to be shipped within the same quarter. Provided this trend continues, we anticipate modest sequential improvement in sales in the fourth quarter.
''During the third quarter we introduced additional digitally controlled potentiometer (DCP) products, and significantly increased shipments of products encapsulated in miniature wafer- level chip-scale packages. The strong demand for these products in cellular telephone applications was met during the quarter by bringing on line a second subcontractor for this advanced technology.
''Our outsourcing program picked up further momentum during the quarter as wafer production at Yamaha in Japan increased to more than a third of our total requirements. The activities to qualify two additional wafer foundries (Sanyo in Japan and ZMD in Germany) are on track for the start of production early next year,'' concluded Mr. Gray.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the expectation of modest sequential improvement in sales in the fourth quarter and the expectation of qualifying Sanyo Electric Co. Ltd. and ZMD GmbH to manufacture wafers for Xicor in early 2000.
Factors that could cause actual results to differ materially include the following: general economic conditions and conditions specific to the semiconductor industry; fluctuations in customer demand, including loss of key customers, order cancellations or reduced bookings; competitive factors such as pricing pressures on existing products and the timing and market acceptance of new product introductions (both by Xicor and its competitors); Xicor's ability to have available an appropriate amount of low cost foundry production capacity in a timely manner; our foundry partners' timely ability to successfully manufacture products for Xicor using Xicor's proprietary technology; any disruptions of our foundry relationships; manufacturing efficiencies; the ability to continue effective cost reductions; currency fluctuations; the timely development and introduction of new products and submicron processes, and the risk factors listed from time to time in Xicor's SEC reports, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 1998 and the Quarterly Reports on Form 10-Q for the quarters ended April 4, 1999 and July 4, 1999 (Management's Discussion and Analysis of Financial Condition and Results of Operations, Factors Affecting Future Results section). Xicor assumes no obligation to update the information included in this press release.
Xicor Corporate Information
Xicor designs, develops, manufactures and sells nonvolatile in-the-system programmable products which retain information even when the system is turned off or power is inadvertently lost. Xicor's product line includes digitally controlled potentiometers (DCP's), system management IC's, and secure and standard nonvolatile memory IC's.
Xicor product, corporate and financial information is readily accessible on the World Wide Web at xicor.com.
XICOR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
October 3, September 27, October 3, September 27,
1999 1998 1999 1998
Net sales $ 29,542,000 $ 24,695,000 $ 83,949,000 $ 79,228,000
Cost of sales 18,840,000 21,479,000 61,146,000 66,892,000
Gross profit 10,702,000 3,216,000 22,803,000 12,336,000
Operating expenses:
Research and
development 3,581,000 4,304,000 10,823,000 13,498,000
Selling, general
and
administrative 5,864,000 5,448,000 16,679,000 16,566,000
Restructuring charge - 1,267,000 - 1,267,000
9,445,000 11,019,000 27,502,000 31,331,000
Income (loss)
from operations 1,257,000 (7,803,000) (4,699,000) (18,995,000)
Interest expense (354,000) (463,000) (1,105,000) (1,444,000)
Interest income 171,000 228,000 488,000 863,000
Income (loss) before
income taxes 1,074,000 (8,038,000) (5,316,000) (19,576,000)
Provision for
income taxes - - - -
Net income
(loss) $ 1,074,000 $ (8,038,000) $(5,316,000) $(19,576,000)
Net income
(loss) per
common share:
Basic $ 0.05 $ (0.42) $ (0.26) $ (1.02)
Diluted $ 0.05 $ (0.42) $ (0.26) $ (1.02)
Shares used in
per share
calculations:
Basic 20,364,000 19,123,000 20,265,000 19,108,000
Dilute 22,141,000 19,123,000 20,265,000 19,108,000
XICOR, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
October 3, December 31,
1999 1998
(Unaudited)
Current assets:
Cash and cash equivalents $ 14,467,000 $ 17,881,000
Accounts receivable 11,861,000 8,835,000
Inventories 12,152,000 12,770,000
Prepaid expenses and
other current assets 677,000 1,016,000
Total current assets 39,157,000 40,502,000
Property, plant and equipment,
at cost less accumulated depreciation 29,055,000 38,074,000
Other assets 302,000 286,000
$ 68,514,000 $ 78,862,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,471,000 $ 9,279,000
Accrued expenses 8,820,000 9,504,000
Deferred income on
shipments to distributors 11,805,000 9,121,000
Current portion of long-term
obligations 5,067,000 7,216,000
Total current liabilities 33,163,000 35,120,000
Long-term obligations 9,637,000 13,137,000
Shareholders' equity:
Preferred stock; 5,000,000
shares authorized - -
Common stock; 75,000,000 shares authorized;
20,403,643 and 20,134,427 shares
outstanding 128,657,000 128,232,000
Accumulated deficit (102,943,000) (97,627,000)
25,714,000 30,605,000
$ 68,514,000 $ 78,862,000
Contact:
Investor Contact:
Morgen Walke Associates
Rich Schineller or Victor Shalom
212/850-5600
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