SANTA CLARA, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (NASDAQ:ISSI) today reported its financial
results for the fourth fiscal quarter and year ended September 30,
2005. Revenue in the fourth quarter was $61.5 million, compared
with $31.1 million in the prior year period. The Company reported a
GAAP net loss for the fourth quarter of ($6.3) million or ($0.17)
per diluted share, compared with a net loss of ($15.6) million or
($0.43) per diluted share, in the prior year period. The fourth
quarter GAAP net loss includes a charge for impairment on
investments of ($4.9) million, charges related to the purchase
accounting for the acquisition of Integrated Circuit Solution, Inc.
(ICSI) of ($1.1) million, a charge to allowance for doubtful
accounts for amounts due primarily from Delphi Electronics in
regards to their bankruptcy filing totaling ($0.9) million and a
gain on the sale of investments of $1.6 million. The total impact
of these items was to increase the net loss by ($5.3M) or ($0.14)
per diluted share. For the fiscal year ended September 30, 2005,
revenue totaled $181.4 million compared to $181.0 million for
fiscal year 2004. The net loss for the year ended September 30,
2005 totaled ($38.1) million or ($1.04) per diluted share compared
to a net profit of $3.5 million or $0.10 per diluted share in
fiscal year 2004. "As a result of our acquisition of ICSI, we began
consolidating their financial results with ours as of May 1, 2005.
The net effect is that our first full quarter of consolidating ICSI
-- the September 2005 quarter -- has revenue increasing 97% over
the quarter ending September 2004," said Jimmy Lee, Chairman and
CEO. "We have strengthened our operating capabilities and we
believe we are now well positioned to compete in the low and medium
density DRAM market and the full range of the SRAM market. We have
also made good progress in non-memory product lines." The statement
of operations for the quarter ended September 30, 2005 currently
includes an estimated charge for impairment of investments of $4.9
million. The Company is still analyzing the impairment of its
investments and has engaged a qualified valuation analyst to assist
in this assessment. The investment impairment is the Company's best
estimate and may be subject to adjustment as the Company finalizes
its valuation assessment. The Company expects to complete its
assessment prior to filing its Form 10-K for the year ended
September 30, 2005. Conference Call ISSI will host a conference
call today, November 3, 2005, beginning at 1:30 p.m. Pacific time.
To access the call, dial 719-457-2619. The call will be simulcast
over the Internet at http://www.com/call. The webcast will be
available for replay until November 28, 2005. About the Company
ISSI is a fabless semiconductor company that designs and markets
high performance integrated circuits for the following key markets:
(i) digital consumer electronics, (ii) networking, (iii) mobile
communications and (iv) automotive electronics. The Company's
primary products are high speed and low power SRAM and low and
medium density DRAM. The Company also designs and markets EEPROM,
SmartCards and is developing selected non-memory products focused
on its key markets. ISSI is headquartered in Silicon Valley with
worldwide offices in China, Europe, Hong Kong, India, Korea and
Taiwan. Visit our web site at http://www.issi.com/. Safe Harbor
Statement Certain statements in this news release may be considered
forward-looking statements, including statements related to
strengthened operating capabilities, being well positioned to
compete in the DRAM and SRAM markets, the estimated charge for
impairment of investments, and our belief that we are making good
progress in non-memory product lines. Such statements are subject
to risks and uncertainties. Actual results may differ materially
from current expectations due to many factors, including completion
of the fiscal 2005 year-end audit, completion of the analysis of
impairments on investments, a reduction in average selling prices
for the Company's products and a resultant decrease in the
Company's gross profit margin, changes in demand for the Company's
products or the products in which the Company's products are used,
changes in market conditions, inability to expand revenue,
inability to effectively reduce expenses, inability to add new
products or diversify product lines, order cancellations, and order
rescheduling, product warranty claims, competition, the level and
value of inventory held by OEM customers or the Company, the
Company's ability to secure manufacturing capacity from its
foundries, 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 for the fiscal year ended September 30, 2004 and its
most recent Quarterly Report on Form 10Q for the quarter ended June
30, 2005. Integrated Silicon Solution, Inc. Condensed Consolidated
Statements of Operations (Unaudited) (In thousands, except per
share data) Three Months Ended Year Ended September 30, September
30, 2005 2004 2005 2004 Net sales $61,467 $31,124 $181,438 $181,012
Cost of sales 51,772 39,103 165,693 154,315 Gross profit (loss)
9,695 (7,979) 15,745 26,697 Operating expenses: Research and
development 4,551 5,302 19,340 20,838 Selling, general and
administrative 7,640 3,971 23,308 16,403 In-process technology 849
-- 2,764 -- Total operating expenses 13,040 9,273 45,412 37,241
Operating loss (3,345) (17,252) (29,667) (10,544) Other income
(expense), net (4,891) 108 (2,548) 1,238 Gain on sale of
investments 1,597 2,134 5,002 10,874 Income (loss) before income
taxes, minority interest and equity in net income (loss) of
affiliated companies (6,639) (15,010) (27,213) 1,568 Provision
(benefit) for income taxes (293) (9) (267) 488 Income (loss) before
minority interest and equity in net income (loss) of affiliated
companies (6,346) (15,001) (26,946) 1,080 Minority interest in net
loss of consolidated subsidiaries 136 -- 767 -- Equity in net
income (loss) of affiliated companies (137) (560) (11,913) 2,405
Net income (loss) $(6,347) $(15,561) $(38,092) $3,485 Basic net
income (loss) per share $(0.17) $(0.43) $(1.04) $0.10 Shares used
in basic per share calculation 37,038 36,061 36,663 33,444 Diluted
net income (loss) per share $(0.17) $(0.43) $(1.04) $0.10 Shares
used in diluted per share calculation 37,038 36,061 36,663 36,121
Integrated Silicon Solution, Inc. Condensed Consolidated Statements
of Operations (Unaudited) (In thousands, except per share data)
Three Months Ended September 30, 2005 Net sales $61,467 Cost of
sales 51,772 Includes charge of $273K for ICSI purchase accounting
Gross profit (loss) 9,695 Operating expenses: Research and
development 4,551 Selling, general and administrative 7,640
Includes charge of $882K to allowance for doubtful accounts for
amounts due primarily from Delphi Electronics In-process technology
849 Write-off of in-process technology from purchase accounting
Total operating expenses 13,040 Operating loss (3,345) Other income
(expense), net (4,891) Includes $4,856K charge for the impairment
of investments Gain on sale of investments 1,597 Gain on the sale
of investments Income (loss) before income taxes, minority interest
and equity in net income (loss) of affiliated companies (6,639)
Provision (benefit) for income taxes (293) Income (loss) before
minority interest and equity in net income (loss) of affiliated
companies (6,346) Minority interest in net loss of consolidated
subsidiaries 136 Equity in net income (loss) of affiliated
companies (137) Net income (loss) $(6,347) Basic and diluted net
loss per share $(0.17) Shares used in per share calculation 37,038
Integrated Silicon Solution, Inc. Condensed Consolidated Balance
Sheets (In thousands) September 30, September 30, 2005 2004
(unaudited) (1) ASSETS Current assets: Cash and cash equivalents
$27,484 $17,015 Restricted cash 301 1,500 Short-term investments
96,427 120,450 Accounts receivable, net 27,508 26,733 Inventories
60,468 44,718 Other current assets 3,594 1,541 Total current assets
215,782 211,957 Property, equipment, and leasehold improvements,
net 21,725 5,622 Other assets 45,409 83,285 Total assets $282,916
$300,864 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Short-term debt and notes $6,628 $-- Accounts payable 35,705 30,493
Accrued compensation and benefits 2,467 2,431 Accrued expenses
7,029 4,903 Total current liabilities 51,829 37,827 Other long-term
liabilities 1,793 -- Total liabilities 53,622 37,827 Minority
interest 6,566 -- Stockholders' equity: Common stock 4 4 Additional
paid-in capital 340,567 336,524 Accumulated deficit (131,935)
(93,843) Unearned compensation (17) (218) Accumulated comprehensive
income 14,109 20,570 Total stockholders' equity 222,728 263,037
Total liabilities and stockholders' equity $282,916 $300,864 (1)
Derived from audited financial statements. DATASOURCE: Integrated
Silicon Solution, Inc. CONTACT: Gary Fischer, President & CFO
of Integrated Silicon Solution, Inc., +1-408-969-4612, or Web site:
http://www.issi.com/
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