Thursday July 16, 4:30 pm Eastern Time
Company Press Release
SOURCE: Silicon Storage Technology, Inc.
SST Announces Second Quarter Financial Results
SUNNYVALE, Calif., July 16 /PRNewswire/ -- SST (Silicon Storage Technology, Inc.) (Nasdaq: SSTI - news) today announced results for the second quarter ended June 30, 1998.
Net revenues for the second quarter were $16.8 million, compared with $16.4 million in the first quarter and with $18.1 million in the second quarter a year ago. Shipments this quarter were the highest in the company's history, growing nine percent from the first quarter and 21 percent from the second quarter a year ago.
The company had a net loss for the second quarter of $1.2 million, or a loss of $0.05 per share on a diluted basis, on approximately 23 million weighted average shares outstanding. This loss per share includes the recognition of a $500,000 one-time charge for the termination of a land purchase and the net of a change to our tax benefit accrual resulting in a one-time net benefit of approximately $1 million.
By comparison, in the first quarter, there was a net loss of $2.3 million, or $0.10 per share on a diluted basis, based on approximately 23 million weighted average shares outstanding. In the second quarter of 1997, the company posted a net loss of $1.0 million, or $0.04 per share on a diluted basis, based on approximately 23 million weighted average shares outstanding.
There was an operating loss of $3.5 million in the second quarter, compared with an operating loss of $3.9 million in the first quarter, and an operating loss of $1.8 million in the same period of the prior year.
''Under the current semiconductor business environment, we are pleased with our second quarter results and believe we are positioning the company to take advantage of an industry upturn when it occurs,'' said Bing Yeh, president and chief executive officer.
''We recently announced a new licensing agreement with IBM which allows SST to gain access to the advanced 0.18 micron-and-below process technology with copper interconnect. SST will use these technologies to develop and manufacture higher-density, high-performance flash memory products,'' said Mr. Yeh. ''With the IBM agreement in place we have completed our first round of alliances for positioning our SuperFlash(R) to be the main stream flash technology for system-on-a-chip applications,'' he said.
About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets low-cost, high-quality flash memory components for the computer, communications and consumer markets. Current product families include single-power supply (5.0V-only, 3.0V-only or 2.7V-only), small erase-block flash memory components, as well as two-power supply MTP (Many-Time Programmable) flash products. SST is also developing products for the mass storage and flash embedded controller markets.
All SST memory components products are based on patented, proprietary SuperFlash technology. SST offers this technology for embedded applications through its world-class manufacturing partners and technology licensees IBM, Samsung Electronics Co. Ltd., Sanyo Electric Co. Ltd., Seiko Epson Corp. and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).
Further information on SST can be found on the company's website at ssti.com.
Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking statements 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 Dec. 31, 1997.
NOTE: The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. MTP is a trademark of Silicon Storage Technology, Inc.
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
1997 1998 1997 1998
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Product $17,727 $16,422 $34,581 $32,176
License 329 402 567 1,013
Net revenues 18,056 16,824 35,148 33,189
Costs and expenses:
Cost of revenues 14,874 13,406 31,407 27,796
Research and
development 2,228 3,447 4,206 6,502
Sales and marketing 1,589 1,716 2,854 3,335
General and
administrative 1,199 1,768 2,443 2,935
19,890 20,337 40,910 40,568
Income (loss) from
operations (1,834) (3,513) (5,762) (7,379)
Interest and other
income (expense), net 476 468 841 1,009
Income (loss) before
provision for
(benefit from) income
taxes (1,358) (3,045) (4,921) (6,370)
Provision for (benefit
from) income taxes (339) (1,803) (1,383) (2,803)
Net income (loss) ($1,019) ($1,242) ($3,538) ($3,567)
Net income (loss) per
share - basic
and diluted ($0.04) ($0.05) ($0.15) ($0.16)
Shares used in per
share calculation 23,112 22,863 23,191 22,912
Silicon Storage Technology, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(in thousands)
ASSETS
December 31, June 30,
1997 1998
(unaudited)
Current assets:
Cash, cash equivalents and short-term
investments $47,219 $23,973
Accounts receivable, net 8,318 11,994
Accounts receivable from related parties 2,124 4,137
Inventories 11,909 20,356
Current deferred tax asset 3,716 4,437
Other current assets 1,011 1,061
Total current assets 74,297 65,958
Furniture, fixtures, and equipment, net 7,224 7,377
Other assets 1,018 1,302
Total assets $82,539 $74,637
LIABILITIES
Trade accounts payable 18,957 14,098
Accrued expenses and other liabilities 6,393 6,736
Deferred revenue (accumulated deficit) 1,300 2,026
Total liabilities 26,650 22,860
SHAREHOLDERS' EQUITY
Common stock and deferred stock
compensation 53,290 53,295
Retained earnings 2,599 (1,518)
Total shareholders' equity 55,889 51,777
Total liabilities and shareholders'
equity $82,539 $74,637
SOURCE: Silicon Storage Technology, Inc. |
