SAN JOSE, Calif., July 28 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (NASDAQ:ISSI) today reported its financial
results for the third fiscal quarter ended June 30, 2009. Revenue
in the third fiscal quarter ended June 30, 2009 was $38.9 million,
a 24.5% increase from revenue of $31.3 million in the March 2009
quarter and a 33.5% decrease from revenue of $58.5 million in the
June 2008 quarter. Gross margin for the third quarter was 25.1%,
compared with 20.7% in the March 2009 quarter and 22.8% in the June
2008 quarter. In accordance with FASB Statement No. 141, "Business
Combinations," the Company recorded a charge of $1.5 million in the
third quarter of fiscal 2009 to recognize the fair value of
in-process R&D from its acquisition of Enable Semiconductor.
Reflecting the in-process R&D charge, the Company reported a
net loss for the third quarter of $2.7 million or ($0.10) per
diluted share. On a non-GAAP basis, without the effect of the
in-process R&D charge, the net loss in the third quarter was
$1.2 million, or ($0.05) per diluted share. These results compare
with a GAAP net loss for the March 2009 quarter of $3.8 million, or
($0.15) per diluted share. The company reported GAAP net income for
the June 2008 quarter of $2.0 million, or $0.07 per diluted share.
A reconciliation of the Company's GAAP and Non-GAAP results is
included as part of this release. The Company's cash, cash
equivalents and short-term investments totaled $71.6 million at
June 30, 2009, compared to $44.0 million at March 31, 2009.
Additionally, long-term investments totaled $1.5 million at June
30, 2009, compared to $21.1 million at March 31, 2009. This change
was the result of the reclassification of $20.0 million in auction
rate securities from long-term investments to short-term
investments in the third quarter of fiscal 2009. The Company's
inventory at June 30, 2009 totaled $16.6 million, a reduction of
$11.0 million from March 31, 2009. The Company generated $10.3
million in cash flow from operations in the third quarter of fiscal
2009. "End market demand strengthened during the June quarter and
we experienced a more moderate pricing environment. As a result, we
significantly grew our revenue over the March 2009 quarter and
increased our gross margin to its highest level in several years,"
said Scott Howarth, ISSI's President and CEO. "During the June
quarter, we took further actions to strengthen our business during
this economic downturn. We successfully completed our acquisition
of Enable Semiconductor, significantly reduced our inventory, and
continued to improve our overall cost structure. Our balance sheet
remains very strong as we had $73.1 million in cash and investments
at June 30," added Mr. Howarth. Non-GAAP Financial Information In
addition to disclosing results determined in accordance with GAAP,
ISSI has disclosed in this press release its non-GAAP net loss for
the June 2009 quarter that excludes the in-process R&D charge.
When presenting non-GAAP results, the Company includes a
reconciliation of the non-GAAP results to the results under GAAP.
Management believes that including the non-GAAP results assists
investors in assessing the Company's operational performance and
its performance relative to its competitors. The Company has
presented these non-GAAP results as a complement to its results
provided in accordance with GAAP, and these results should not be
regarded as a substitute for GAAP. Management uses these non-GAAP
measures to manage and assess the profitability and performance of
its business and does not consider the in-process R&D charge in
managing its operations. Specifically, management uses non-GAAP
measures to plan and forecast future periods, to establish
operational goals, to compare with its business plan and individual
operating budgets, to measure management performance for purposes
of executive compensation including payments to be made under bonus
plans, to assist the public in measuring the Company's performance,
to allocate resources and, relative to the Company's historical
financial performance, to enable comparability between periods.
Management also considers such non-GAAP results to be an important
supplemental measure of its performance. The economic substance
behind management's decision to use such non-GAAP measures relates
to the non-GAAP measures being a useful measure of the potential
future performance of the Company's business. In line with common
industry practice and to help enable comparability with other
technology companies, the Company's non-GAAP presentation excludes
the impact of the in-process R&D. Other companies may calculate
non-GAAP results differently than the Company, limiting its
usefulness as a comparative measure. In addition, such non-GAAP
measures may exclude financial information that some may consider
important in evaluating the Company's performance. Management
compensates for the foregoing limitations of non-GAAP measures by
presenting certain information on both a GAAP and non-GAAP basis
and providing reconciliations of these certain GAAP and non-GAAP
measures. 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 1-719-325-2322 by 1:20 p.m.
Pacific time. The call will also be webcast from ISSI's website at
http://www.issi.com/. 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,
(iv) automotive electronics, and (v) industrial. 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 Taiwan, Japan, Singapore, China, Europe, Hong
Kong, India, and Korea. Visit our web site at http://www.issi.com/.
Forward Looking Statements This news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements concerning our
balance sheet remaining strong are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those anticipated. Such risks and
uncertainties include supply and demand conditions in the market
place, unexpected reductions in average selling prices for our
products, our ability to sell our products for key applications and
the pricing and gross margins achieved on such sales, our ability
to control or reduce operating expenses, our ability to obtain a
sufficient supply of wafers, our ability to maintain sufficient
inventory of products to satisfy customer orders, changes in
manufacturing yields, order cancellations, order rescheduling,
product warranty claims, competition, the level and value of
inventory held by OEM customers, or other risks listed from time to
time in the Company's filings with the Securities and Exchange
Commission, including the Company's Form 10-K for the period ended
September 30, 2008 and our Quarterly Report on Form 10-Q for the
period ended March 31, 2009. In addition, the financial information
in this press release is unaudited and subject to any adjustments
that may be made in connection with the year end audit. The Company
assumes no obligation to update or revise the forward-looking
statements in this release because of new information, future
events, or otherwise. Integrated Silicon Solution, Inc. Condensed
Consolidated Statements of Income (Unaudited) (In thousands, except
per share data) Three Months Nine Months Ended Ended June 30, June
30, -------- -------- 2009 2008 2009 2008 ---- ---- ---- ---- Net
sales $38,901 $58,494 $107,819 $179,888 Cost of sales 29,152 45,183
83,870 140,080 ------ ------ ------ ------- Gross profit 9,749
13,311 23,949 39,808 ----- ------ ------ ------ Operating expenses:
Research and development 4,980 5,541 14,374 15,250 Selling, general
and administrative 5,958 8,102 19,667 23,227 Acquired in-process
technology charge 1,450 - 1,450 - ----- --- ----- --- Total
operating expenses 12,388 13,643 35,491 38,477 ------ ------ ------
------ Operating income (loss) (2,639) (332) (11,542) 1,331
Interest and other income (expense), net (68) 763 796 3,942 Gain on
sale of investments - 1,625 - 1,814 --- ----- --- ----- Income
(loss) before income taxes and minority interest (2,707) 2,056
(10,746) 7,087 Provision (benefit) for income taxes 50 41 (52) 141
--- --- --- --- Income (loss) before minority interest (2,757)
2,015 (10,694) 6,946 Minority interest in net (income) loss of
consolidated subsidiary 91 (17) 132 2 --- --- --- --- Net income
(loss) $(2,666) $1,998 $(10,562) $6,948 ======= ====== ========
====== Basic net income (loss) per share $(0.10) $0.07 $(0.41)
$0.23 ====== ===== ====== ===== Shares used in basic per share
calculation 25,410 26,658 25,507 30,469 ====== ====== ====== ======
Diluted net income (loss) per share $(0.10) $0.07 $(0.41) $0.23
====== ===== ====== ===== Shares used in diluted per share
calculation 25,410 26,940 25,507 30,759 ====== ====== ====== ======
Reconciliation of GAAP to Non-GAAP Financial Measures Net income
(loss): On a GAAP basis $(2,666) $1,998 $(10,562) $6,948 Acquired
in-process technology charge 1,450 - 1,450 - ----- --- ----- --- On
a non-GAAP basis $(1,216) $1,998 $(9,112) $6,948 ======= ======
======= ====== Diluted net income (loss) per share: On a GAAP basis
$(0.10) $0.07 $(0.41) $0.23 Acquired in-process technology charge
0.06 - 0.06 - ---- --- ---- --- On a non-GAAP basis $(0.05) $0.07
$(0.36) $0.23 ====== ===== ====== ===== Integrated Silicon
Solution, Inc. Condensed Consolidated Balance Sheets (In thousands)
June 30, September 30, 2009 2008 ---- ---- (unaudited) (1) ASSETS
Current assets: Cash and cash equivalents $40,912 $42,175
Short-term investments 30,674 7,840 Accounts receivable, net 24,617
34,741 Inventories 16,620 39,222 Other current assets 2,316 4,717
----- ----- Total current assets 115,139 128,695 Property,
equipment and leasehold improvements, net 23,443 24,555 Long-term
investments 1,504 19,304 Purchased intangible assets, net 3,349
2,000 Goodwill 511 - Other assets 1,429 1,397 ----- ----- Total
assets $145,375 $175,951 ======== ======== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $16,513
$35,171 Accrued compensation and benefits 3,671 3,729 Accrued
expenses 5,494 8,157 ----- ----- Total current liabilities 25,678
47,057 Other long-term liabilities 656 715 --- --- Total
liabilities 26,334 47,772 Commitments and contingencies Minority
interest 2,305 789 Stockholders' equity: Common stock 3 3
Additional paid-in capital 309,961 310,712 Accumulated deficit
(190,993) (180,431) Accumulated other comprehensive loss (2,235)
(2,894) ------ ------ Total stockholders' equity 116,736 127,390
------- ------- Total liabilities and stockholders' equity $145,375
$175,951 ======== ======== (1) Derived from audited financial
statements. DATASOURCE: Integrated Silicon Solution, Inc. CONTACT:
Investor Relations, John M. Cobb, Chief Financial Officer of
Integrated Silicon Solution, Inc., +1-408-969-6600, Web Site:
http://www.issi.com/
Copyright
(MM) (NASDAQ:ISSI)
Historical Stock Chart
From Jun 2024 to Jul 2024
(MM) (NASDAQ:ISSI)
Historical Stock Chart
From Jul 2023 to Jul 2024