SANTA CLARA, Calif., April 25 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (NASDAQ:ISSI) today reported its financial
results for the second fiscal quarter ended March 31, 2006. Revenue
in the second fiscal quarter ending March 31, 2006 was $53.2
million, compared with $51.1 million in the December 2005 quarter
and $35.7 million in the March 2005 quarter. The reported net loss
for the March 2006 quarter of ($3.7) million or ($0.10) per diluted
share includes a $5.8 million inventory write-down, a $1.56 million
charge for FAS 123R stock option expense, a $0.3 million charge for
a write-down of in-process technology as a result of acquiring
additional shares of ICSI, and a $2.7 million gain related to the
sale of investments and assets. These results compare with a net
loss for the March 2005 quarter of $13.8 million or ($0.38) per
share on a diluted share basis which included an inventory
write-down of $1.3 million, a charge of $1.1 million against the
Company's facility lease, and a charge of $9.3 million for the
equity interest in ICSI in Taiwan prior to our acquisition.
"Revenue grew 4% in the March 2006 quarter from the previous
quarter and 49% over the same period last year," said Jimmy Lee,
ISSI's Chairman and CEO. "The year to year revenue growth shows the
benefit of our ICSI acquisition. Additionally, we exited the
Bluetooth and Flash Controller markets which will reduce our total
expenses, but resulted in an inventory write-down. We remain
optimistic about our ability to grow in niche market segments such
as automotive markets and DRAM die business which we expect will
help to enhance our gross margins." 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/. Conference Call
A conference call will be held today at 1:30 p.m. Pacific time to
discuss this release. To access ISSI's conference call via
telephone, dial 719-457-2617 by 1:20 p.m. Pacific time. The call
will be webcast from ISSI's website at http://www.issi.com/. Safe
Harbor Statement The statements in this press release regarding
exiting markets, reducing our total expenses, and being optimistic
about our ability to grow in niche markets and our expectations
regarding enhanced gross margins are forward- looking statements
that are subject to risks. Our actual results may differ materially
from current expectations due to many factors, including supply and
demand conditions in the market place, unexpected reductions in
average selling prices, our ability to sell our products for the
die business and automotive applications and the pricing and gross
margins achieved on such sales, our ability to retain the revenue
and customers of ICSI, our ability to control or reduce operating
expenses, changes in manufacturing yields, order cancellations,
order rescheduling, product warranty claims, competition, the level
and value of inventory held by OEM customers, or other factors.
Furthermore, the purchase accounting and valuation information in
this release regarding the acquisition of additional shares of ICSI
are preliminary and are subject to further review by the Company,
its advisors, and its auditors. The valuation numbers could be
changed as a result of further review. Stockholders of ISSI are
cautioned not to place undue reliance on our forward-looking
statements, which speak only as of the date such statements are
made. ISSI does not undertake any obligation to publicly update any
forward-looking statements to reflect events, circumstances, or new
information after this April 25, 2006 press release, or to reflect
the occurrence of unanticipated events. Further information that
could affect the Company's results is detailed in ISSI's periodic
filings with the Securities and Exchange Commission, including its
report on Form 10Q for the quarter ended December 31, 2005.
Consolidated Statement of Operations and Consolidated Balance Sheet
to follow. 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,
2006 2005 2006 2005 Net sales $53,245 $35,674 $104,338 $66,249 Cost
of sales 47,607 31,148 91,317 67,499 Gross profit (loss) 5,638
4,526 13,021 (1,250) Operating expenses: Research and development
5,547 4,636 11,173 9,726 Selling, general and administrative 7,239
5,388 13,717 9,609 In-process technology 324 435 499 435 Total
operating expenses 13,110 10,459 25,389 19,770 Operating loss
(7,472) (5,933) (12,368) (21,020) Interest and other income
(expense), net 1,696 820 2,745 1,426 Gain on sale of other
investments 2,187 535 2,187 2,905 Loss before income taxes,
minority interest and equity in net loss of affiliated companies
(3,589) (4,578) (7,436) (16,689) Provision for income taxes 51 16
113 17 Loss before minority interest and equity in net loss of
affiliated companies (3,640) (4,594) (7,549) (16,706) Minority
interest in net loss of consolidated subsidiary 226 91 650 186
Equity in net loss of affiliated companies (253) (9,328) (476)
(10,642) Net loss $(3,667) $(13,831) $(7,375) $(27,162) Basic and
diluted net loss per share $(0.10) $(0.38) $(0.20) $(0.75) Shares
used in per share calculation 37,371 36,460 37,306 36,346
Integrated Silicon Solution, Inc. Condensed Consolidated Balance
Sheets (In thousands) March 31, September 30, 2006 2005 (unaudited)
(1) ASSETS Current assets: Cash and cash equivalents $26,196
$27,484 Restricted cash -- 301 Short-term investments 84,145 96,427
Accounts receivable, net 30,020 28,508 Inventories 64,657 60,468
Other current assets 5,421 3,594 Total current assets 210,439
216,782 Investments -- 9,182 Property, equipment, and leasehold
improvements, net 21,837 21,725 Goodwill 25,054 20,232 Purchased
intangible assets, net 5,646 6,142 Other assets 9,404 10,053 Total
assets $272,380 $284,116 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Short-term debt and notes $9,704 $6,628
Accounts payable 35,798 35,705 Accrued compensation and benefits
2,676 2,467 Accrued expenses 8,211 8,029 Total current liabilities
56,389 52,829 Other long-term liabilities 1,725 1,793 Total
liabilities 58,114 54,622 Minority interest 919 6,566 Stockholders'
equity: Common stock 4 4 Additional paid-in capital 344,341 340,567
Accumulated deficit (139,110) (131,735) Unearned compensation --
(17) Accumulated comprehensive income 8,112 14,109 Total
stockholders' equity 213,347 222,928 Total liabilities and
stockholders' equity $272,380 $284,116 (1) Derived from audited
financial statements. DATASOURCE: Integrated Silicon Solution, Inc.
CONTACT: Scott Howarth, Vice-President & CFO, Investor
Relations, of Integrated Silicon Solution, Inc., +1-408-969-4686 or
Web site: http://www.issi.com/
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