Quality Semiconductor Reports First Quarter 1999 Results
Business Editors & High Tech Writers
SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 4, 1999--Quality Semiconductor, Inc. (Nasdaq:QUAL) today announced results for the fiscal first quarter ended Dec. 31,
1998.
Revenue for the first quarter was $10,646,000 versus $18,534,000 for the first quarter a year ago, and $12,173,000 for the prior quarter. Net loss for the first quarter was
$7,218,000, or a $0.96 loss per share, which included charges for inventory reserves, merger related expenses, and additional depreciation and amortization as a result of a reduction
in the useful lives of certain assets.
This compares to a net loss of $989,000, or a $0.13 loss per share, in the same quarter a year ago. The decrease in revenue was due primarily to the decrease in networking
revenue and lower average selling prices across all product lines. Average weighted common shares outstanding for the first quarter of fiscal 1999 were 7,508,000 (diluted) versus
7,383,000 (diluted) for the first quarter of fiscal 1998.
On Nov. 2, 1998, IDT (Nasdaq:IDTI) and Quality Semiconductor announced the signing of a definitive agreement for IDT to acquire Quality Semiconductor.
Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that
could cause the actual results to differ materially from those projected, including, among others, risks associated with the proposed merger including, but not limited to, disruption in
distribution channels, competition, product demand, employee relations, ability to obtain required consents to the merger and to the assignment of certain contracts, patent and other
intellectual property rights of third parties, timely development and supply of new products and manufacturing processes, availability of capital, cash flow, the challenges involved with
integrating the two companies, and other operational risks of the Company, including, but not limited to the impact of competitive products and pricing, general economic conditions
and conditions specific to the semiconductor industry, fluctuations in customer demand, the timing and market acceptance of new product introductions, the timely development and
qualification of new products and other risk factors listed in the Company's filings with the Securities and Exchange Commission. Quality Semiconductor assumes no obligation to
update the information included in this press release.
Quality Semiconductor, Inc. (QSI) designs, develops and markets high-performance logic and networking semiconductor products. The Company targets systems manufacturers
principally in the networking, personal computer and workstation markets.
The company's logic products include the 3.3-volt and 5-volt QSFCT families of high-speed, low-noise interface logic devices, the QuickSwitch family of high-speed,
low-resistance bus switches, a family of low-skew clock management products, a family of analog switch devices, and new JTAG products designed to allow board-level testing of
complex products. QSI's networking products include two Fast Ethernet CMOS transceivers that provide high integration solutions for the adapter, repeater, switch and card bus
markets.
Quality Semiconductor Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
1998 1997
Net revenues $ 10,646 $ 18,534
Cost of sales 11,058 13,420
Gross Margin (412) 5,114
Operating expenses:
Research and development 3,370 2,720
Sales and marketing 1,859 2,392
General and administrative 1,460 1,371
Total operating expenses 6,689 6,483
Operating income (loss) (7,101) (1,369)
Interest, net (117) (153)
Income (loss) before taxes (7,218) (1,522)
Provision (benefit) for taxes -- (533)
Net income (loss) $ (7,218) $ (989)
Net income (loss) per share - Basic $ (0.96) $ (0.13)
Net income (loss) per share - Diluted $ (0.96) $ (0.13)
Weighted shares outstanding - Basic 7,508 7,383
Weighted shares outstanding - Diluted 7,508 7,383
Quality Semiconductor Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
Dec. 31, Sept. 30,
1998 1998
Assets
Current assets:
Cash, cash equivalents, and
short-term investments $ 6,274 $ 7,838
Accounts receivable, net 4,815 5,852
Inventories 6,765 8,210
Other current assets 1,174 1,356
Total current assets 19,028 23,256
Property and equipment, net 19,111 21,787
Other assets 478 1,270
Total assets $38,617 $46,313
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable, accrued liabilities,
and deferred income $11,713 $11,179
Current portion of long-term
obligations 3,772 2,866
Total current liabilities 15,485 14,045
Long-term liabilities 3,548 5,146
Deferred tax liabilities 171 832
Shareholders equity 19,413 26,290
Total liabilities and
shareholders equity $38,617 $46,313
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CONTACT: Quality Semiconductor, Inc.
R. Paul Gupta, 408/450-8000
or
Morgen-Walke Associates, Inc.
Jim Byers, Carolyn Bass, Paul Sloan, 415/296-7383
Patricia Walsh, Mark Owen, 212/850-5698
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED EARNINGS |
