SSTI Reports Record Results for First Quarter 2000
1Q00 Revenue Up 29%, Profit Up 68% Over 4Q99
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 25, 2000--SST (Silicon Storage Technology, Inc.) (Nasdaq:SSTI - news) today announced record results for the first quarter ended March 31, 2000.
Net revenues for the first quarter were $62.3 million, compared with $48.3 million in the fourth quarter of 1999, and with $18.3 million in the first quarter a year ago. Gross unit shipments this quarter were the highest in the company's history, growing approximately 34% from the record shipments of the fourth quarter of 1999, and approximately 207% from the first quarter a year ago.
Net income for the first quarter of 2000 was $9.6 million, or $0.34 per share, based on approximately 28.3 million weighted average shares outstanding. This compares with a net income of $5.7 million in the fourth quarter of 1999, or $0.21 per share, based on approximately 27.7 million weighted average shares outstanding, and with a net loss in the first quarter of 1999 of $6.6 million, or a loss of $0.28 per share, based on approximately 23.2 million weighted average shares outstanding. All per share amounts are calculated on a diluted basis.
``We have continued to experience very robust growth in our business, driven by the production ramp of the new products that were introduced during the past several quarters. These new products allow us to address a very broad range of applications in the digital consumer, networking, wireless communications and Internet computing markets. During the first quarter, we saw strong growth in many applications including digital TVs, DVD players, MP3 players, PDAs, network switches, routers, DSL modems and cordless telephones,'' said Bing Yeh, president and CEO. ``The market demand for our products, old and new, is so strong that nearly every density of product is on allocation despite the substantial increase of our production capacity. Our continuous challenge is to bring up new capacity quickly enough to catch the strong demand. Recently, we announced the addition of National Semiconductor as a licensee and wafer foundry. We continue to talk with other potential manufacturing partners in order to substantially increase capacity for the year 2001 and beyond. We expect the current industry shortage situation will get worse before it gets better.
``Riding on the new product introduction momentum of last year, we continue to execute on our product diversification and proliferation strategy. We expect to introduce more than thirty new products this year. During the first quarter, we announced eleven new products in the product families of MPF (Multi-Purpose Flash), ComboMemory, FlashFlex51 microcontroller and the Firmware Hub.
``The digital evolution, driven by the Internet, will continue to fuel the demand for flash memory. We believe the flash market will become very fragmented, characterized by the coexistence and continued growth of all memory densities and various configurations to meet the specific requirements in each of the emerging broad applications. As a result, we believe our strategy of diversified product offerings and technology licensing for embedded applications will work very well. Now with more than 50 products in ramping, and more new products to be introduced this year, we believe that SST is well positioned to take full advantage of the current industry upturn,'' he said.
Conference Call
SST's quarterly conference call will be held today, April 25th at 1:30 p.m. PST. To participate in the call please dial (712) 271-3646 using pass code Silicon Storage Technology. A one week replay will be available by calling (402) 530-7725. A webcast of the conference call will be available on www.streetfusion.com.
About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of nonvolatile memory solutions, based on proprietary, patented SuperFlash technology, for high volume applications in the digital consumer, networking, wireless communication and Internet computing markets. SST's product families include high-functionality flash memory components, CompactFlash card mass storage products and 8-bit microcontrollers with on-chip flash memory. SST also offers its SuperFlash technology for embedded applications through its world-class manufacturing partners and technology licensees IBM, Motorola, National Semiconductor, Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp., TSMC-Acer Semiconductor Manufacturing Co. (TASMC) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC). Further information on SST can be found on the company's website at ssti.com.
The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. MPF, ComboMemory and FlashFlex are trademarks of Silicon Storage Technology, Inc.
Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking statements regarding flash memory market conditions, the company's future financial performance, the performance of new products, the company's ability to bring new products to market and the company's ability to secure additional capacity that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, obtaining wafer foundry capacity and allocation, the terms and conditions associated with licensees' royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect the company's customers, as well as other risks detailed from time to time in the company's SEC reports, including the company's annual report on Form 10-K for the year ended December 31, 1999.
FINANCIAL TABLES TO FOLLOW-
Silicon Storage Technology, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(in thousands except per share data) |
