SAN JOSE, Calif., April 27 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (Nasdaq: ISSI) today reported its financial
results for the second fiscal quarter ended March 31, 2010.
Revenue in the second fiscal quarter ended March 31, 2010 was $57.0
million, a 12.8% increase from revenue of $50.6 million in the December 2009 quarter and an 82.5% increase from
revenue of $31.3 million in the
March 2009 quarter. Gross
margin for the second quarter was 37.2%, which included a 1.1
percentage point net benefit from sales of previously reserved
inventory. This compares with gross margin of 39.8% in the
December 2009 quarter, which included
a 7.7 percentage point net benefit from sales of previously
reserved inventory, and 20.7% in the March
2009 quarter.
The Company's net income in the second quarter of fiscal 2010
was $7.2 million, or $0.27 per diluted share. This compares with net
income for the December 2009 quarter
of $7.2 million, or $0.28 per diluted share, and a net loss for the
March 2009 quarter of $3.8 million, or $(0.15) per diluted share.
The Company's cash, cash equivalents and short-term investments
totaled $83.0 million at March 31, 2010, compared to $85.2 million at December
31, 2009. The Company's inventory at March 31, 2010 totaled $35.6 million, an increase of $8.0 million from December
31, 2009.
"We are very pleased with our results in the March quarter.
Demand for our products was strong and exceeded our
expectations in our target markets while DRAM pricing continued to
improve. We also had one of our best quarters in new design
wins," said Scott Howarth, ISSI's
President and CEO. "In addition, the beginning backlog and
orders to date for the June quarter have been the strongest we have
seen in several years," added Mr. Howarth.
June Quarter Outlook
The Company currently expects its revenue for the June quarter
to be between $64 million and $70
million and its gross margin to be between 34% and 37%.
Operating expenses for the June quarter are expected to be in
the range of $12.9 million to $13.4
million. Gains on sales of investments in the June
quarter are expected to be in the range of $2.5 million to $3.0 million and the Company
expects approximately $0.3 million in
interest and other income. As a result of the above, net
income per share is expected to be between $0.44 and $0.50 per diluted share.
Conference Call
A conference call will be held today at 1:30 p.m. Pacific time to discuss the Company's
second quarter fiscal 2010 financial results. To access ISSI's
conference call via telephone, dial 1-800-474-8920 by 1:20 p.m. Pacific time. The participant passcode
is 6491336. 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. Through its Giantec
business unit, the Company also designs and markets EEPROM,
SmartCards and analog power management devices 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 outlook for the June 2010 quarter with respect to revenue, gross
margin, operating expenses, gains on sales of investments, and net
income per share 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 in our key target markets and the
pricing and gross margins achieved on such sales, our ability to
control our operating expenses, our ability to obtain a sufficient
supply of wafers and assembly and test capacity, wafer pricing, 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 year ended September 30, 2009 and our Form 10-Q for the
quarter ended December 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 Operations
|
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
57,043
|
|
$
31,253
|
|
$
107,598
|
|
$
68,918
|
|
Cost of sales
|
35,827
|
|
24,786
|
|
66,261
|
|
54,718
|
|
Gross profit
|
21,216
|
|
6,467
|
|
41,337
|
|
14,200
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
5,899
|
|
4,186
|
|
10,888
|
|
9,394
|
|
Selling, general and
administrative
|
8,550
|
|
6,408
|
|
16,176
|
|
13,709
|
|
Total operating
expenses
|
14,449
|
|
10,594
|
|
27,064
|
|
23,103
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
6,767
|
|
(4,127)
|
|
14,273
|
|
(8,903)
|
|
Interest and other income,
net
|
435
|
|
282
|
|
771
|
|
864
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
7,202
|
|
(3,845)
|
|
15,044
|
|
(8,039)
|
|
Provision (benefit) for income
taxes
|
47
|
|
(42)
|
|
691
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
(loss)
|
7,155
|
|
(3,803)
|
|
14,353
|
|
(7,937)
|
|
|
|
|
|
|
|
|
|
|
Less: Net (income) loss
attributable to
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
(1)
|
|
(23)
|
|
(3)
|
|
41
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
7,154
|
|
$
(3,826)
|
|
$
14,350
|
|
$
(7,896)
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$
0.28
|
|
$
(0.15)
|
|
$
0.57
|
|
$
(0.31)
|
|
Shares used in basic per share
calculation
|
25,310
|
|
25,508
|
|
25,161
|
|
25,556
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share
|
$
0.27
|
|
$
(0.15)
|
|
$
0.55
|
|
$
(0.31)
|
|
Shares used in diluted per share
calculation
|
26,771
|
|
25,508
|
|
26,147
|
|
25,556
|
|
|
|
|
|
|
|
|
|
Integrated Silicon
Solution, Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(In
thousands)
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
(1)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
48,814
|
|
$
54,944
|
|
Restricted cash
|
5,029
|
|
-
|
|
Short-term
investments
|
29,150
|
|
28,542
|
|
Accounts receivable,
net
|
37,010
|
|
26,501
|
|
Inventories
|
35,592
|
|
19,275
|
|
Other current assets
|
4,655
|
|
2,922
|
|
|
|
|
|
|
Total current assets
|
160,250
|
|
132,184
|
|
Property, equipment and leasehold
improvements, net
|
23,493
|
|
23,218
|
|
Long-term investments
|
-
|
|
1,408
|
|
Purchased intangible assets,
net
|
1,777
|
|
2,313
|
|
Goodwill
|
1,251
|
|
1,251
|
|
Other assets
|
11,296
|
|
1,556
|
|
Total assets
|
$
198,067
|
|
$
161,930
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
36,063
|
|
$
26,825
|
|
Accrued compensation and
benefits
|
5,355
|
|
4,364
|
|
Accrued expenses
|
5,686
|
|
5,368
|
|
|
|
|
|
|
Total current liabilities
|
47,104
|
|
36,557
|
|
|
|
|
|
|
Other long-term liabilities
|
750
|
|
797
|
|
|
|
|
|
|
Total liabilities
|
47,854
|
|
37,354
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
3
|
|
2
|
|
Additional paid-in
capital
|
314,273
|
|
309,649
|
|
Accumulated deficit
|
(171,131)
|
|
(185,481)
|
|
Accumulated comprehensive income
(loss)
|
2,131
|
|
(1,344)
|
|
Noncontrolling
interest
|
4,937
|
|
1,750
|
|
|
|
|
|
|
Total stockholders' equity
|
150,213
|
|
124,576
|
|
Total liabilities and stockholders'
equity
|
$
198,067
|
|
$
161,930
|
|
|
|
|
|
|
|
|
(1) Derived
from audited financial
statements.
|
|
|
|
|
|
SOURCE Integrated Silicon Solution, Inc.