SST Announces Fourth Quarter and 1998 Financial Results
PR Newswire - January 12, 1999 16:15
SUNNYVALE, Calif., Jan. 12 /PRNewswire/ -- SST (Silicon Storage Technology, Inc.) (Nasdaq: SSTI) today announced results for the fourth quarter and fiscal year ended Dec. 31, 1998.
Net revenues for the fourth quarter of 1998 were $18.1 million, compared with $20.2 million in the fourth quarter of 1997, and to $18.1 million in the third quarter of 1998. There was an operating loss of $6.9 million in the fourth quarter of 1998, compared with an operating loss of $6.3 million in the same period of the prior year and an operating loss of $5.4 million in the third quarter of 1998. However, unit shipments were again a record this quarter. The company posted a 7 percent increase over the third quarter of 1998, a 48 percent increase over the fourth quarter of 1997 and a 38 percent increase for the year over 1998.
The company had a net loss for the fourth quarter of 1998 of $6.7 million or a $0.29 loss per share on 23 million weighted average shares outstanding. Net loss was $3.8 million, or $0.16 per share on 23.2 million weighted average shares outstanding for the fourth quarter of 1997 and the net loss was $7.3 million, or $0.32 per share on approximately 23 million weighted average shares outstanding in the third quarter of 1998.
Net revenues for fiscal 1998 were $69.4 million compared to $75.3 million for fiscal 1997. Total operating loss for 1998 was $19.7 million compared with an operating loss of $12.2 million for 1997. The net loss for 1998 was $17.6 million or a $0.77 loss per share compared with a net loss of $6.9 million or $0.30 per share for fiscal 1997.
"While 1998 was a difficult year for SST as well as the entire semiconductor industry, SST has continued to focus considerable effort and resources on executing a plan that accelerates potential future earnings growth and returns the company to profitability," said Bing Yeh, president and chief executive officer. "We are very proud of our new world-class product releases during the past two quarters, including new Many-Time Programmable (MTP), Multi-Purpose Flash (MPF) and CompactFlash card products. In addition, our announcement of the relationship with ACER Semiconductor is the most recent affirmation of the viability and scalability of our SuperFlash technology. With our robust product introduction activities this past year, our upcoming product introductions and production ramping by our licensees, SST is well-positioned for the future," he said.
About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of non-volatile memory solutions, based on proprietary, patented SuperFlash technology, for the computer, communications and consumer markets. SST's product families include low-cost, high-functionality flash memory components and CompactFlash card mass storage products. SST also offers its SuperFlash technology for embedded applications through its world-class manufacturing partners and technology licensees: Acer Semiconductor Manufacturing, Inc. (ACER), 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.
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, non-volatile 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.
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 selling prices 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 and reports on Form 10-Q for the quarters ended March 31, 1998, June 30, 1998 and September 30, 1998.
NOTE: The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. MTP and MPF are trademarks 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 Year ended
December 31, December 31,
1997 1998 1997 1998
(unaudited) (unaudited)
Revenues:
Product $19,546 $17,366 $73,796 $66,875
License 613 717 1,526 2,536
Net revenues 20,159 18,083 75,322 69,411
Costs and expenses:
Cost of revenues 15,910 18,670 62,747 62,703
Research and development 2,509 3,722 8,744 14,527
Sales and marketing 1,868 2,086 6,587 7,290
General and administrative 6,180 554 9,479 4,592
26,467 25,032 87,557 89,112
Income (loss) from
operations (6,308) (6,949) (12,235) (19,701)
Interest and other income
(expense), net 710 244 2,146 1,542
Income (loss) before
provision for (benefit
from) income taxes (5,598) (6,705) (10,089) (18,159)
Provision for (benefit from)
income taxes (1,817) 42 (3,165) (571)
Net income (loss) ($3,781) ($6,747) ($6,924) ($17,588)
Net income (loss) per share
- basic and diluted ($0.16) ($0.29) ($0.30) ($0.77)
Shares used in per
share calculation 23,176 23,039 23,166 22,958
Silicon Storage Technology, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(in thousands)
ASSETS
December 31, December 31,
1997 1998
(unaudited)
Current assets:
Cash, cash equivalents and
short-term investments $47,219 $23,858
Accounts receivable, net 8,318 9,249
Accounts receivable from related parties 2,124 2,838
Inventories 11,909 8,297
Current deferred tax asset 3,716 --
Other current assets 1,011 2,615
Total current assets 74,297 46,857
Furniture, fixtures, and equipment, net 7,224 6,847
Other assets 1,018 2,434
Total assets $82,539 $56,138
LIABILITIES
Current liabilities:
Trade accounts payable 18,957 10,309
Accrued expenses and other liabilities 6,327 5,309
Deferred revenue 1,300 1,827
Total current liabilities 26,584 17,445
Other liabilities 66 663
Total liabilities 26,650 18,108
SHAREHOLDERS' EQUITY
Common stock and deferred stock compensation 53,290 53,569
Retained earnings (accumulated deficit) 2,599 (15,539)
Total shareholders' equity 55,889 38,030
Total liabilities and shareholders' equity $82,539 $56,138
SOURCE Silicon Storage Technology, Inc.
/CONTACT: Leslie Green of Stapleton Communications Inc., 650-470-0200,
for Silicon Storage Technology; or Jeffrey L. Garon, Vice President & Chief
Financial Officer of Silicon Storage Technology, Inc., 408-735-9110, or
jgaron@ssti.com/
/Web site: ssti.com
(SSTI)
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