SST Reports Results for the First Quarter of 2002
Company Achieves $0.02 EPS
Revenue Up 5 Percent From 4Q01
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 24, 2002--SST (Silicon Storage Technology, Inc.) (Nasdaq:SSTI - news) today announced results for the first quarter ended March 31, 2002.
Net revenues for the first quarter were $74.6 million, compared with $70.8 million in the fourth quarter of 2001 and with $86.3 million in the first quarter a year ago.
Net income for the first quarter was $1.6 million, or $0.02 per share, based on approximately 97.0 million diluted shares outstanding. This compares with a net loss of $9.1 million, or a loss of $0.10 per share based on approximately 91.5 million shares outstanding in the fourth quarter of 2001, and with a net profit of $5.4 million, or $0.06 per share based on approximately 96.4 million diluted shares outstanding for the first quarter of 2001.
SST finished the first quarter with $178.7 million in cash, cash equivalents and marketable securities, up by $12.1 million from $166.6 million in the prior quarter. Days sales outstanding were 66 days compared with 55 days in the fourth quarter of 2001 and net inventories stood at $91.3 million, down approximately $16.9 million from $108.2 million the previous quarter.
``We are pleased to report our continued steady recovery during a seasonally weak first quarter,'' said Bing Yeh, president and CEO. ``Booking activities were very strong across all four of the market segments that our products address. In fact, net bookings increased 52 percent from the fourth quarter of 2001.
``Also, for the first time since the fourth quarter of 2000, our book-to-bill ratio is greater than one. Gross unit shipments grew 12 percent compared with the previous quarter, our third consecutive quarter of growth since unit shipments bottomed in the second quarter of 2001. Unit growth during the first quarter was driven by a very broad range of applications, which include DVD-ROM drives, CD-RW drives, DVD players, VCD players, digital still cameras, digital TVs, video games, PC BIOS devices, printers, cordless phones and wireless LANs.
``We believe the bottom of the market downturn is behind us and the industry is on its way to a recovery, therefore, we are encouraged by our prospects for the balance of the year. Based on early indications we expect that we will see sequential quarterly revenue growth this year, particularly in the second half.
``SST has undergone dramatic changes over the last several years in terms of product line expansion, market share gains and technology advances and we are very proud of our accomplishments. As we enter the second quarter, we are financially strong, competitively positioned and ready to take advantage of the growth opportunities that will drive our business expansion over the remainder of the year and beyond.''
Second Quarter 2002 Outlook
For the second quarter of 2002, the company expects revenues to be flat to an increase of five percent from the first quarter. The tax rate is expected to remain at 32 percent. Earnings per share are expected to be approximately break-even to a $0.01 profit.
Conference Call
SST's quarterly conference call will be held today, April 24th at 1:30 p.m. PDT. Those wishing to participate in the conference should dial (800) 230-1059 using the passcode 635270 at approximately 1:20 p.m. PDT. A replay of the call will be available for two weeks by dialing (800) 475-6701 using the access code 635270. A webcast of the conference call will be available on www.sst.com and on www.streetevents.com. Both webcasts will be available until the next earnings conference call.
About SuperFlash Technology
SST's SuperFlash technology is a NOR type, split-gate cell architecture which uses a reliable thick-oxide process with fewer manufacturing steps resulting in a low-cost, nonvolatile memory solution with excellent data retention and higher reliability. The split-gate NOR SuperFlash architecture facilitates a simple and flexible design suitable for high performance, high reliability, small or medium sector size, in- or off-system programming and a variety of densities, all in a single CMOS-compatible technology.
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, flash 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, NEC Corporation, Oki Electric Industry Co. Ltd., Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp., Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and Winbond Electronics Corp. TSMC offers SuperFlash under its trademark Emb-FLASH. Further information on SST can be found on the company's Web site at sst.com.
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, 2001.
The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. ComboMemory and SoftPartition are trademarks of Silicon Storage Technology, Inc. Emb-FLASH is a trademark of TSMC. All other trademarks or registered trademarks are the property of their respective holders.
-FINANCIAL TABLES TO FOLLOW-
Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Three months ended
March 31,
-----------------------
2001 2002
-------- --------
(unaudited)
Net revenues:
Product revenues $ 79,929 $ 66,295
Technology licensing 6,369 8,287
-------- --------
Total net revenues 86,298 74,582
Cost of revenues 57,358 50,502
-------- --------
Gross profit 28,940 24,080
-------- --------
Operating expenses:
Research and development 12,286 11,872
Sales and marketing 6,344 7,504
General and administrative 4,808 3,317
-------- --------
Total operating expenses 23,438 22,693
-------- --------
Income from operations 5,502 1,387
Interest and other income 3,377 968
Interest expense (99) (64)
-------- --------
Income before provision for income taxes 8,780 2,291
Provision for income taxes 3,336 733
-------- --------
Net income $ 5,444 $ 1,558
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Net income per share - basic $ 0.06 $ 0.02
======== ========
Shares used in per share calculation 90,671 92,033
======== ========
Net income per share - diluted $ 0.06 $ 0.02
======== ========
Shares used in per share calculation 96,424 97,000
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Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, March 31,
2001 2002
-------- --------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $165,264 $166,520
Trade accounts receivable, net 40,670 52,330
Inventories 108,224 91,321
Other current assets 35,954 36,866
-------- --------
Total current assets 350,112 347,037
Equipment, furniture and fixtures, net 22,006 21,062
Long-term marketable securities 1,299 12,138
Other assets 73,343 73,075
-------- --------
Total assets $446,760 $453,312
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LIABILITIES
Current liabilities:
Notes payable, current portion $ 316 $ 325
Trade accounts payable 31,351 33,491
Accrued expenses and other
current liabilities 16,390 17,064
Deferred revenue 5,499 5,074
-------- --------
Total current liabilities 53,556 55,954
Other liabilities 1,793 1,613
-------- --------
Total liabilities 55,349 57,567
-------- --------
SHAREHOLDERS' EQUITY
Common stock 333,989 335,944
Accumulated other comprehensive income 225 1,046
Retained earnings 57,197 58,755
-------- --------
Total shareholders' equity 391,411 395,745
-------- --------
Total liabilities and shareholders'
equity $446,760 $453,312
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Contact:
Silicon Storage Technology, Inc.
Jeffrey L. Garon, 408/735-9110
jgaron@sst.com
or
Stapleton Communications Inc.
Leslie Green, 650/470-0200 |
