Alliance Semiconductor Reports Financial Results for the Fiscal Second Quarter Ended September 30, 2000
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 17, 2000--
Q2 Revenues $64.5 Million and Net Income of $16 Million
Operating Income of $16 Million / $0.22 Per Share
Alliance Semiconductor Corporation (Nasdaq:ALSC) today reported revenues for the fiscal second quarter ended September 30, 2000 of $64.5 million, an increase of 237% from the same quarter last year, and up 36% from the prior quarter's revenue of $47.4 million. SRAM and DRAM sales for the quarter accounted for approximately 41% and 59% of revenues, respectively.
On September 26, 2000 the Company had announced that it expected to report second quarter sales of $60 to $62 million and earnings per share of $0.19 to $0.21 per share based on the besults of operations, and excluding investment gains and other non-operating items.
Net income for the fiscal second quarter was approximately $16.5 million, resulting in net earnings of $0.39 per share (diluted), compared to a net income of $4.5 million, or $0.10 per share (diluted), on revenues of $19.1 million during the same quarter last year.
Net income for the fiscal second quarter includes gains on the sale of marketable securities of $13.5 million, or $0.19 per shareM (diluted), compared to investment gains of $3.7 million, or $0.05 per share (diluted) during the same quarter last year.
The operating profit for the fiscal second quarter ended September 30, 2000 was $15.8 million, or $0.22 per share (diluted, net of tax) compared to an operating loss of $0.5 million, or $0.01 loss per share, for the same period last year, and an operating profit of $9.4 million or $0.13 per share (diluted, net of tax) in the fiscal first quarter.
Alliance Chairman, President and CEO, N.D. Reddy said, "We again had another excellent quarter as demand in the non-PC market segments remained robust. The overall blended average selling prices for SRAM and DRAM products increased during the quarter. Bookings remain strong, with scheduled backlog continuing to exceed $100 million." Mr. Reddy continued, "Our major sales focus over the past year has been in the non-PC market segments, including networking, communications, wireless and consumer, which now exceed 80% of our revenues. These markets have remained strong despite the recent slowdown in the PC market. Sales for the year could exceed $200 million, which would be more than double our sales in fiscal year 2000."
With a strong backlog, top tier customer base, the Company is hoping for a possible sequential revenue growth of over 20% during the December 2000 quarter.
Management Changes
C.N, Reddy, who has been the Company's Executive Vice President, Chief Operating Officer, Director and Secretary, has become the Company's Executive Vice President for Investments. In this role, Mr. Reddy oversees the Company's venture investments, including the Alliance Venture LP investments, and Alliance's investment in Solar Venture Partners, LP (for which Mr. Reddy also acts as a general partner). Mr. Reddy will continue to serve as a Director on the Company's board of directors, but shall no longer hold the positions of Chief Operating Officer and Secretary. Mr. Reddy is the brother of Alliance Chairman, President and CEO, N.D. Reddy.
Philip Thomas, who recently joined Alliance as Vice President and General Manager of the Communications Products Division, has left the Company to pursue other interests.
Alliance Ventures LP Investments
The Company, through its venture arm, Alliance Venture Management, LLC, invested approximately $18 million during the fiscal second quarter in two Alliance ventures funds (Alliance Ventures I, LP and Alliance Ventures III, LP). At the end of September, Alliance Venture Management, LLC had invested through such venture funds approximately $60 million in networking, communication and Internet infrastructure start-up companies.
The Company is currently evaluating a number of existing and start-up investment opportunities, which could result in additional investments of $15 million to $25 million during the fiscal third quarter of FY 2001. |
