Cowgirl....excellent report, congratulations to us...
SST Reports Record Results for Second Quarter 2000; 2Q00 Revenue Up 66%, Net Income
Up 134% Over 1Q00
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 18, 2000--SST (Silicon Storage Technology, Inc.)(Nasdaq:
SSTI) today announced record results for the second quarter ended June 30, 2000.
Net revenues for the second quarter were $103.2 million, grew 66% from $62.3 million in the first quarter of
2000, and 349% from $23.0 million in the second quarter a year ago.
Net income for the second quarter of 2000 was $22.5 million, or $0.71 per share, based on approximately 31.9
million diluted weighted average shares outstanding. This compares with a net income of $9.6 million in the first
quarter of 2000, or $0.34 per share, based on approximately 28.3 million diluted weighted average shares
outstanding, and with a net loss in the second quarter of 1999 of $3.6 million, or a loss of $0.15 per share, based
on approximately 23.7 million weighted average shares outstanding.
"We are pleased to report record results for the third consecutive quarter. Our business continued to be driven by
the strong demand for our products and by the production ramp of over 50 new products, most of which were
introduced over the past several quarters," said Bing Yeh, president and CEO. "Demand for our products
continues to outstrip our capability to supply. We expect to continue increasing our capacity to meet the growing
demand.
"During the second quarter, we continued to execute our diversification strategy by expanding our market
presence in a very broad range of applications in the digital consumer, networking, wireless communications and
Internet computing markets. We saw strong growth of product shipments in many applications including set-top
boxes, digital TVs, CD-RW drives, DVD-ROM drives, DVD players, MP3 players, network switches and
routers, DSL modems, pagers, cellular phones and cordless telephones. We have also shipped over 500,000
units of Intel 800 series chipset compatible 4Mbit Firmware Hub product for PC BIOS applications during the
June month.
"During the second quarter, we also continued to execute on our product proliferation strategy by developing
more differentiated products to serve targeted applications including future generation cellular phone, wireless
modem, Global Positioning System, Bluetooth, Internet Appliance, small disk drive, electronic organizer, smart
card and video games.
"We believe the flash market will become more and more 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 not only will maximize our growth potential, but also can
minimize our business fluctuations due to the seasonal weakness of any particular application segment.
"With more than 50 new products introduced since mid-1998 that serve a wide variety of applications, the
additional wafer capacity that we expect to bring on line in 2001 and more than 40 new volume purchase and
supply agreements that we expect to sign with our customers, we believe SST is well positioned to take
advantage of the current industry upturn. Looking forward, we expect to see robust growth in our business
through the balance of 2000 and well into 2001," he said.
Conference Call
SST's quarterly conference call will be held today, July 18th at 1:30 p.m. PST. To participate in the call please
dial 712/257-2275 using pass-code "SST." A two week replay will be available by calling 402/280-1626. A
webcast of the conference call will be available on www.streetevents.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 communications 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, National
Semiconductor, Motorola, Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp.,
TSMC-Acer Semiconductor Manufacturing Co. (TASMC) and Taiwan Semiconductor Manufacturing Co. Ltd.
(TSMC). TSMC offers SuperFlash under its trademark Emb-FLASH. Further information on SST can be found
on the company's Web site at ssti.com.
Note to Editors: The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc.
MPF, ComboMemory and FlashFlex are trademarks of Silicon Storage Technology, Inc. Emb-FLASH is a
trademark of TSMC.
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 and the company's ability to bring new products to market that involve risks and uncertainties. These
risks may include timely development, acceptance and pricing of new products, 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 report on Form 10-K for the year ended December 31, 1999 and
reports on Form 10-Q for the quarter ended March 31, 2000.
Silicon Storage Technology, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Three months ended Six months ended
June 30, June 30,
1999 2000 1999 2000
------------------ -----------------
(unaudited) (unaudited)
Net revenues:
Product revenues $ 20,433 $ 102,076 $ 38,226 $ 163,889
Technology licensing 2,558 1,110 3,093 1,611
--------- --------- --------- ---------
Total net revenues 22,991 103,186 41,319 165,500
Cost of revenues 18,025 57,084 35,004 93,559
--------- --------- --------- ---------
Gross profit 4,966 46,102 6,315 71,941
--------- --------- --------- ---------
Operating expenses:
Research and
development 4,479 9,181 9,213 17,257
Sales and marketing 2,268 5,876 4,465 10,503
General and
administrative 39 3,680 1,245 6,319
Other non-recurring
charges 2,011 -- 2,011 --
--------- --------- --------- ---------
Total operating
expenses 8,797 18,737 16,934 34,079
--------- --------- --------- ---------
Income (loss)
from operations (3,831) 27,365 (10,619) 37,862
Interest and
other income 226 3,082 477 3,100
Interest expense -- (101) -- (545)
--------- --------- --------- ---------
Income (loss)
before provision for
(benefit from) income
taxes (3,605) 30,346 (10,142) 40,417
Provision for
(benefit from)
income taxes 25 7,810 65 10,137
--------- --------- --------- ---------
Net income (loss) ($ 3,630) $ 22,536 ($ 10,207) $ 30,280
========= ========= ========= =========
Net income
(loss) per share
- basic ($ 0.15) $ 0.76 ($ 0.44) $ 1.10
========= ========= ========= =========
Shares used in per
share calculation 23,656 29,584 23,425 27,510
========= ========= ========= =========
Net income
(loss) per share
- diluted ($ 0.15) $ 0.71 ($ 0.44) $ 1.00
========= ========= ========= =========
Shares used
in per share
calculation 23,656 31,947 23,425 30,148
========= ========= ========= =========
Silicon Storage Technology, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30,
1999 2000
-------------------------
(unaudited)
Current assets:
Cash, cash equivalents and
short-term investments $ 1,223 $191,807
Accounts receivable, net 33,285 75,161
Accounts receivable from
related parties 5,573 9,442
Inventories, net 29,766 54,525
Other current assets 3,341 9,361
-------- --------
Total current assets 73,188 340,296
Equipment, furniture and
fixtures, net 11,131 13,446
Long-term marketable securities -- 24,838
Other assets 4,487 20,989
-------- --------
Total assets $ 88,806 $399,569
======== ========
LIABILITIES
Current liabilities:
Borrowings under line of
credit facility 19,287 --
Trade accounts payable 19,207 35,804
Accrued expenses and
other liabilities 4,707 15,195
Deferred revenue 4,144 10,557
-------- --------
Total current liabilities 47,345 61,556
Other liabilities 446 364
-------- --------
Total liabilities 47,791 61,920
-------- --------
SHAREHOLDERS' EQUITY
Common stock 60,570 324,968
Accumulated other
comprehensive income -- 56
-------- --------
Retained earnings
(accumulated deficit) (19,555) 12,625
-------- --------
Total shareholders' equity 41,015 337,649
-------- --------
Total liabilities and
shareholders' equity $ 88,806 $399,569
======== ========
CONTACT: Silicon Storage Technology, Inc.
Jeffrey L. Garon, 408/735-9110
jgaron@ssti.com
or
Stapleton Communications Inc.
Leslie Green, 650/470-0200 |
