Reports Financial Results for the Fiscal First Quarter Ended June 30,
2001
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 19, 2001--Alliance
Semiconductor Corporation (NASDAQ:ALSC) today reported revenues for
the first fiscal quarter ended June 30, 2001 of $12.1 million, a
decrease of 74% from the same quarter last year and, a decrease of
$20.9 million or 63% from the prior quarter's revenues of $33.0
million. SRAM and DRAM sales for the quarter accounted for
approximately 55% and 45% of revenues, respectively.
On June 8, 2001, the Company had announced that it expected that
first quarter revenues would be approximately 50% to 55% below the
$33.0 million revenue reported during the fourth fiscal quarter ended
March 31, 2001.
The net loss for the first fiscal quarter was $11.0 million, which
resulted in a net loss of $0.26 per share compared to net income of
$33.3 million, or $0.78 per share, on revenues of $47.4 million during
the same quarter last year, and a net loss of $333.0 million, or $8.05
per share on revenues of $33.0 million reported during the fourth
fiscal quarter ended March 31, 2001.
The results for the fiscal first quarter include a pre-tax charge
of approximately $6.0 million write-down of inventory resulting from
lower demand of the Company's products and a write-down of other
investments of approximately $4.5 million. The Company also took a
pre-tax gain on a forward sale contract. Excluding the write-down of
inventory and other investments, net loss for the period would have
been approximately $423,000, or $0.01 per share.
Alliance Chairman, President and CEO, N.D. Reddy said, "Revenue
growth has continued to substantially decelerate during the past two
quarters due to significantly reduced demand in all segments, as our
customers continue to draw on their own existing inventories of memory
products."
Mr. Reddy continued, "In the current market environment, it's
difficult to predict future demand. Based on our recent orders, we
believe the September quarter revenues will be affected unless 'turns
business' (orders that are received and shipped the same quarter)
significantly improve. We are hopeful that revenue growth may
accelerate during the second half of our fiscal year 2002."
Addition to the Board of Directors
On June 30, 2001, Alliance's Board of Directors elected Juan A.
Benitez to the Board, to serve until the annual Stockholder's Meeting
on September 7, 2001, where he will be nominated for election by the
Stockholders. Mr. Benitez is the President and CEO of Enterprise
Development International, a non-profit economic development
organization supporting microenterprise development programs with
business training, technical support and capital procurement. Mr.
Benitez has served in many previous roles including the United States
Department of Commerce -- Deputy Assistant Commerce Secretary and
Deputy Commerce Undersecretary, and the President and COO of Micron
Technology, Inc.
N. D. Reddy explained "Juan Benitez brings a wealth of experience
to Alliance's Board, and is a welcome addition." Mr. Benitez will also
serve on the Board's Audit Committee along with Alliance's other two
outside Directors, Sanford Kane and Jon Minnis.
Alliance Ventures LP Investments
The Company, through its venture arm, Alliance Venture Management,
LLC, invested approximately $9.3 million during the fiscal first
quarter in Alliance ventures funds (Alliance Ventures IV, LP and
Alliance Ventures V, LP). The Company is currently evaluating a number
of existing and start-up investment opportunities, which could result
in additional investments of $5 million to $10 million during the
fiscal second quarter of fiscal year 2002.
Alliance Ventures LP Communication Startup Investment
Alliance also announced that it will spin off its communications
products group into a newly formed startup company, to be initially
funded by Alliance Ventures V, LP. Alliance will contribute equipment,
personnel, and its network co-processor family products that will
enable hardware accelerated wire speed routing of IP packets. These
co-processor products along with the products in development will be
deployed to build the next generation networking and telecom
infrastructure. The Company expects that the details of the new
company will be announced in the near future.
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