Not bad at all!
Thursday April 20, 7:43 am Eastern Time
Company Press Release
Xicor Reports First Quarter Results
MILPITAS, Calif.--(BUSINESS WIRE)--April 20, 2000--Xicor, Inc. (NASDAQ - NMS: XICO) today reported results for the first quarter ended April 2, 2000.
Sales for the first quarter were $32,145,000, up 25% compared to $25,656,000 in the first quarter of 1999. The profit for the first quarter of 2000 was $3,023,000 or $0.13 per diluted share, compared to a loss of $4,397,000, or $0.22 per share, in the first quarter of 1999.
According to Bruce Gray, President, ``Xicor had a successful first quarter. We recorded increased sales and improved gross margins compared to the same quarter a year ago and also sequentially relative to the fourth quarter of 1999. Gross margin improved significantly compared to the prior year quarter due to higher prices, product mix, lower production costs and in part due to lower depreciation expense. Sequentially, gross margin improved due to reduced production costs, including lower depreciation expense. To achieve our goal of further increasing gross margins during the year, we plan to ship a higher percentage of lower cost foundry based products, drive a higher percentage of proprietary product sales, and ramp-up shipments of high-density serial EEPROMs to the cellular phone market.
``Xicor is focusing on some of today's fastest growing sectors of the economy. We are already participating in the communications market, including the Wireless and Fiber Optic/Photonic segments. Strong increases in Internet usage have fueled demand for high bandwidth photonic backbone infrastructure where our proprietary digitally controlled potentiometers (XDCP's(TM)) are involved in the control of the lasers. In the wireless market the ever-increasing shipments of cellular phones continue to drive the demand for high-density serial EEPROMs.
``The proliferation of microcontrollers into very diverse applications in the communications, consumer and transportation markets is providing fertile ground for our emerging system management product line. Since a small amount of embedded EEPROM is a desired feature in these applications, we are utilizing this opportunity to migrate our low-density serial EEPROM products from a 'standalone`` commodity to a proprietary integrated system solution containing embedded EEPROM.
``We are starting to see interest in our first battery management Li-Ion safety chip for laptop PC's that was launched in the fourth quarter of 1999 and augmented recently by a development kit. Our second battery management product, that features an improved 'Gas gauge`` function, is targeted at the large cellular phone market. The chip design has now been completed and the first R & D silicon is being processed at a foundry.
``Xicor's transition to a fabless business model is well underway. Major progress was achieved during the quarter as we started pilot production of wafers at Sanyo and ZMD, our two new foundries. We expect that our three foundries, including Yamaha which is already in volume production, will account for about half of Xicor's wafer start requirements during the second quarter. The benefits of this production shift are expected to be realized as the related products are shipped and revenues are recognized later in the 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 plans to improve gross margins in 2000 by shipping a higher percentage of less expensive foundry based products, driving a higher percentage of proprietary product sales, and ramping-up shipments of high-density serial EEPROMs to the cellular phone market, as well as the expectation that foundries will account for about half of Xicor's wafer start requirements during the second quarter and our belief that the benefits of this production shift will be realized as the related products are shipped and revenues are recognized later in 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 design, 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, 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 (XDCP'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
April 2, 2000 April 4,1999
Net sales $32,145,000 $25,656,000
Cost of sales 18,546,000 21,001,000
Gross profit 13,599,000 4,655,000
Operating expenses:
Research and development 4,074,000 3,559,000
Selling, general and administrative 6,395,000 5,262,000
10,469,000 8,821,000
Income (loss) from operations 3,130,000 (4,166,000)
Interest expense (265,000) (392,000)
Interest income 317,000 161,000
Income (loss) before income taxes 3,182,000 (4,397,000)
Provision for income taxes 159,000 -
Net income (loss) $3,023,000 $(4,397,000)
Net income (loss) per common share:
Basic $ 0.14 $ (0.22)
Diluted $ 0.13 $ (0.22)
Shares used in per share
calculations:
Basic 20,894,000 20,173,000
Diluted 23,306,000 20,173,000
XICOR, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
April 2, December 31,
2000 1999
Current assets:
Cash and cash equivalents $ 25,779,000 $ 22,233,000
Accounts receivable 12,008,000 8,508,000
Inventories 11,058,000 13,003,000
Prepaid expenses and other current 445,000 380,000
assets
Total current assets 49,290,000 44,124,000
Property, plant and equipment,
at cost less accumulated
depreciation 8,726,000 8,835,000
Other assets 1,835,000 1,835,000
$59,851,000 $54,794,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,569,000 $8,018,000
Accrued expenses 14,086,000 14,343,000
Deferred income on shipments to
distributors 13,426,000 12,828,000
Current portion of long-term
obligations 5,277,000 5,362,000
Total current liabilities 42,358,000 40,551,000
Long-term obligations 8,509,000 9,794,000
Shareholders' equity:
Preferred stock; 5,000,000 shares
authorized - -
Common stock; 75,000,000 shares
authorized; 21,110,735 and
20,595,261 shares outstanding 130,517,000 129,005,000
Accumulated deficit (121,533,000) (124,556,000)
8,984,000 4,449,000
$59,851,000 $54,794,000
Contact:
Morgen Walke Associates
Investor Contact:
Victor Shalom, 212/850-5600 |
