ISSI (DOG!) announces earnings!
Monday April 26, 4:09 pm Eastern Time
Note: there is a subsequent correction for this
article.
Company Press Release
SOURCE: Integrated Silicon Solutions
ISSI Announces Second Fiscal
Quarter Results
SANTA CLARA, Calif., April 26 /PRNewswire/ -- Integrated Silicon Solution, Inc. (Nasdaq:
ISSI - news) today reported financial results for the second fiscal quarter ended Mar. 31, 1999.
Revenues for the second quarter were $17.4 million, compared with $28.7 million for the same
period last year and $17.0 million for the December 1998 quarter. For comparison purposes, the
results for the March 1998 and December 1998 quarters are stated on a proforma basis to exclude
the revenue of ISSI's 43% owned subsidiary, ISSI-Taiwan. ''March revenue shows quarterly
sequential revenue growth over December,'' said Jimmy Lee, president and CEO. ''In late
December 1998, we completed the second sale of a portion of our shares in ISSI-Taiwan and our
total ownership of ISSI-Taiwan dropped below fifty percent. As a result, we will no longer
consolidate their revenue or income statement with ours. Our goal is to position ISSI-Taiwan to
eventually go public in Taiwan. One step required to accomplish this is that our ownership drop
below fifty percent. Including revenue from ISSI-Taiwan and NexFlash Technologies, our Flash
spin-off, our revenue in March 1999 would have been $29.0 million versus December 1998
combined revenue of $26.8 million.''
Net loss for the second fiscal quarter was ($3.9) million or ($0.20) per share on 19.5 million
weighted shares outstanding. Net loss for the second fiscal quarter of 1998, excluding the results of
ISSI-Taiwan, was ($2.1) million or ($0.11) per share.
''Although the first half of the March quarter was slow, the second half of the quarter saw
increasing sales activity and revenue growth,'' said Jimmy Lee. ''We currently expect this to
continue in the June 1999 quarter. With the completion last year of the spin-off of ISSI-Taiwan and
our Flash product line, our focus this quarter has been on developing new products in our core
business of SRAM and low to medium density DRAM. We believe improving market conditions in
these market segments, coupled with our renewed focus and strengths, can lead ISSI to positive
results.''
ISSI designs, develops and markets high performance SRAM, DRAM, EEPROM memory
devices, embedded memories, as well as voice products and microcontrollers. ISSI's products are
used in telecommunications, data communications, networking systems, personal computers,
instrumentation and consumer products.
Certain statements in this news release, including those related to the increased focus as a result of
the spin-off of ISSI-Taiwan and the Flash product line, improving market conditions for SRAM
and DRAM and the goal of a public offering for ISSI-Taiwan, are subject to risks and uncertainties
that could cause volatility in the company's business, operating results or financial condition. Actual
future results may differ from current expectations due to changes in industry conditions, the inability
to develop new products, changes in average selling prices for the company's products, imbalances
between supply and demand, the level of market acceptance of the company's products,
competition, the cancellation, modification or delay of orders from customers, the level of inventory
held by OEM customers, fluctuations in the rates of foreign currency exchange, the timing of
industry cycles, the company's ability to successfully grow revenue, the performance of
ISSI-Taiwan, stock market conditions in Taiwan, or other factors. Further information that could
affect the company's results is detailed in ISSI's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10K/A for the fiscal year ended Sept. 30, 1998
and its Quarterly Report on Form 10Q for the quarter ended December 31, 1998.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1998 1999 1998 1998
Proforma (A) Proforma (A)
Net sales $17,366 $28,665 $40,652 $44,167 $68,079 $80,066
Cost of sales 13,694 21,592 28,219 36,743 51,810 58,437
Gross Profit 3,672 7,073 12,433 7,424 16,269 21,629
Operating Expenses:
Research and
development 4,170 6,075 8,370 9,943 13,476 15,771
Selling, general
and administrative 2,704 3,545 4,577 6,326 8,195 9,227
In-process
technology
charge -- -- -- -- 7,078 7,078
Total operating
expenses 6,874 9,620 12,947 16,269 28,749 32,076
Operating loss (3,202) (2,547) (514) (8,845) (12,480) (10,447)
Other income
(loss), net (236) 572 822 1,433 827 1,077
Income (loss)
before income
taxes, minority
interest and
equity in net
income (loss)
of affiliated
companies (3,438) (1,975) 308 (7,412) (11,653) (9,370)
Provision for
income taxes 225 145 297 858 203 355
Net income
(loss) before minority interest and equity in net income (loss) of affiliated companies (3,663)
(2,120) 11 (8,270) (11,856) (9,725)
Minority interest
in net loss of
consolidated
subsidiary -- -- -- (472) -- -
Equity in net
income (loss)
of affiliated
companies (282) 2,131 -- (112) 2,131 --
Net income
(loss) $(3,945) $11 $11 $(7,910) $(9,725) $(9,725)
Basic income
(loss) per share $(0.20) $0.00 $0.00 $(0.41) $(0.52) $(0.52)
Shares used in
basic per
share
calculation 19,521 18,996 18,996 19,469 18,598 18,598
Diluted income
(loss) per share $(0.20) $0.00 $0.00 $(0.41) $(0.52) $(0.52)
Shares used in
diluted per
share
calculation 19,521 19,626 19,626 19,469 18,598 18,598
(A) Proforma statements of operations presents the financial results for fiscal 1998 in a manner
consistent with fiscal 1999. The results of ISSI- Taiwan are included in equity in net income (loss)
in affiliated companies.
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, September 30,
1999 1998
(unaudited) (1)
ASSETS
Current assets:
Cash and cash
equivalents $16,707 $27,776
Restricted cash -- 333
Short-term investments 8,000 7,800
Accounts receivable 11,777 19,069
Inventories 28,950 46,484
Other current assets 4,453 4,938
Total current assets 69,887 106,400
Property, equipment,
and leasehold
improvements, net 4,980 44,316
Other assets 52,287 51,452
Total assets $127,154 $202,168
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $100 $18,325
Accounts payable 23,028 40,642
Accrued compensation
and benefits 1,716 2,945
Accrued expenses 9,655 8,036
Income tax payable 476 524
Current portion of
long-term obligations -- 3,339
Total current liabilities 34,975 73,811
Income tax payable
- non-current 4,996 4,996
Long-term obligations -- 12,127
Minority interest in
consolidated subsidiary -- 20,314
Stockholders' equity:
Preferred stock -- --
Common stock 2 2
Additional paid-in capital 118,559 116,199
Accumulated deficit (26,251) (18,341)
Cumulative translation
adjustment (5,050) (6,787)
Unearned compensation (77) (153)
Total stockholders' equity 87,183 90,920
Total liabilities and
stockholders' equity $127,154 $202,168
(A) Derived from audited financial statements.
SOURCE: Integrated Silicon Solutions |
