Wednesday February 14, 4:12 pm Eastern Time
Press Release
Catalyst Semiconductor Announces Third Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 14, 2001--Catalyst Semiconductor, Inc. (NASDAQ:CATS - news) today announced revenues for the third quarter ended January 31 totaled $23.6 million, up 89% from revenues of $12.5 million in the third quarter a year ago. Net income for the quarter was $7.0 million, or $0.35 per diluted share, up 204% from $2.3 million, or $0.12 per diluted share, in the third quarter last year. On a sequential quarterly basis, revenue was down 26% and net income was down 30%.
The Company's balance sheet shows cash and cash equivalents of $32.6 million, an increase of $9.2 million versus the previous quarter. Stockholders' equity increased by $7.2 million during the quarter, to a total of $36.8 million as of January 31, 2001.
``Results are up significantly from the year-ago period but down from the two preceding quarters of fiscal 2001, and are reflective of the same general business slowdown that virtually all technology companies have been facing. Fortunately, we believe that our restructuring over the past two years, competitive positioning, cost structure and improved cash position put us in excellent position to weather this economic slowdown,'' said Radu Vanco, President and Chief Executive Officer.
Nine-Month Results
Nine month results showed net income of $25.6 million, or $1.25 per share diluted, on revenues of $80.9 million. This compares with net income of $5.1 million, or 27 cents per share, on revenues of $32.4 million in the first three quarters of fiscal 2000.
Outlook
``Although the length of either the semiconductor slowdown or the general economic slowdown are subject to considerable uncertainty, we believe that our cost structure is competitive. Our competitive cost structure, improved product lineup, and highly improved cash position put us in a better position than we have ever been before to operate in this environment of uncertainty. Nevertheless, for the fourth quarter of fiscal 2001, we expect continuing pressure on ASPs, revenues and gross margins. At this point, we believe that gross profits for the fourth quarter will remain above our break-even point. We have backlog in place, which if shipped by the end of the fourth quarter as expected, by itself will put the Company above the break-even position and we expect to book and ship additional orders in the ordinary course of business during the fourth quarter as well,'' Vanco said.
Tax Rate
Income taxes during the third quarter reflected a 5 percent rate. Please be aware that our earnings are affected slightly differently each quarter as a result of our expected utilization of the net operating loss carryforwards, which we expect to be fully utilized by the end of the fourth fiscal quarter.
Investor Conference Call
The Company will conduct a conference call on fiscal third quarter results beginning at 2:00 p.m. (PST) today. The call will be available to all investors and media via the company's Web site www.catsemi.com, at www.streetfusion.com, or by dialing 888-740-4844. A replay of the call will be aired from approximately 4:00 p.m. today until 4:00 p.m. on February 28 at the company's Web site or by dialing (800) 633-8284, entering reservation number 17931791 and following operator instructions.
About Catalyst Semiconductor
Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in Sunnyvale, California. The Company designs and markets a broad range of programmable products, including Flash Memories, Serial and Parallel EEPROMs, NVRAM, Digital Potentiometers, Microcontroller Supervisory circuits and other programmable Mixed Signal products. Catalyst products are used in telecommunications, networking systems, computation, industrial and consumer markets, driven by the Internet revolution. Typical applications include modems, network cards, PC BIOS, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and Internet routers. Catalyst's Quality Management System is ISO 9001 certified. Additional information may be obtained by visiting the Company's Web site at www.catsemi.com.
Except for those statements that report the Company's historical results, the statements being made are forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Factors which could cause actual results to differ from expectations include the following: economic conditions in the market generally and in the semiconductor industry specifically, volatility in supply and demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test subcontract capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with bringing up new production capabilities or with deliveries from subcontractors, timing and market acceptance of new products, increased expenses associated with new product introductions or process changes, delays in developing or achieving volume production of new products, which can result in delays or failure to contribute to revenues and profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising additional capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading ``Certain Factors That May Affect the Company's Future Results of Operations'' listed from time to time in Catalysts' SEC reports, including but not limited to the report on Form 10-K for the year ended April 30, 2000 and Forms 10-Q for the quarters ended July 31, 2000 and October 31, 2000. |
