SAN JOSE, Calif., July 27 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (Nasdaq: ISSI) today reported its financial
results for the third fiscal quarter ended June 30, 2010.
Revenue in the third fiscal quarter ended June 30, 2010 was a record $71.2 million, a 24.9% increase from revenue of
$57.0 million in the March 2010 quarter and an 83.1% increase from
revenue of $38.9 million in the
June 2009 quarter. The
June 2010 quarter revenue of
$71.2 million was the highest in the
Company's 22 year history. Gross margin for the third quarter
was 38.4%, which compares with gross margin of 37.2% in the
March 2010 quarter, and 25.1% in the
June 2009 quarter.
The Company reported operating income in the third quarter of
fiscal 2010 of $13.3 million,
compared to operating income of $6.8
million in the March 2010
quarter, and an operating loss of $1.9
million in the June 2009
quarter. Net income for the third quarter was $16.0 million, or $0.57 per diluted share. This compares with
net income for the March 2010 quarter
of $7.2 million, or $0.27 per diluted share, and a net loss for the
June 2009 quarter of $1.9 million, or $(0.08) per diluted share.
The Company's cash, cash equivalents and short-term investments
totaled $90.0 million at June 30, 2010, compared to $83.0 million at March 31,
2010. The Company's inventory at June 30, 2010 totaled $45.4 million, an increase of $9.8 million from March
31, 2010.
"We are very pleased that we achieved record revenue in the June
quarter. Demand for our products exceeded our expectations in
our target markets and drove quarter to quarter revenue growth of
almost 25%," said Scott Howarth,
ISSI's President and CEO. "We also had another strong quarter
of new design wins and the beginning backlog for the September
quarter is the highest we have seen in several years," added Mr.
Howarth.
September Quarter Outlook
The Company currently expects its revenue for the September
quarter to be between $74 million and $80
million and its gross margin to be between 34% and 37%.
Operating expenses for the September quarter are expected to
be in the range of $14.0 million to $14.7
million. Gains on sales of investments and interest
and other income in the September quarter are expected to be
approximately $0.8 million. As
a result of the above, net income per share is expected to be
between $0.42 and $0.52 per diluted
share.
Conference Call
A conference call will be held today at 1:30 p.m. Pacific time to discuss the Company's
third quarter fiscal 2010 financial results. To access ISSI's
conference call via telephone, dial 1-888-233-8128 by 1:20 p.m. Pacific time. The participant passcode
is 4629920. 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 September quarter with
respect to revenue, gross margin, operating expenses, gains on
sales of investments and interest and other income, 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 product inventory and mix of inventory 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 March 31, 2010. 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 Ended
|
|
Nine Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 71,228
|
|
$ 38,901
|
|
$ 178,826
|
|
$ 107,819
|
|
Cost of sales
|
43,904
|
|
29,152
|
|
110,165
|
|
83,870
|
|
Gross profit
|
27,324
|
|
9,749
|
|
68,661
|
|
23,949
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
5,900
|
|
4,980
|
|
16,788
|
|
14,374
|
|
Selling, general and
administrative
|
8,121
|
|
5,958
|
|
24,297
|
|
19,667
|
|
Acquired in-process
technology charge
|
-
|
|
710
|
|
-
|
|
710
|
|
Total operating
expenses
|
14,021
|
|
11,648
|
|
41,085
|
|
34,751
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
13,303
|
|
(1,899)
|
|
27,576
|
|
(10,802)
|
|
Interest and other income
(expense), net
|
585
|
|
(68)
|
|
1,156
|
|
796
|
|
Gain on sale of
investments
|
2,561
|
|
-
|
|
2,761
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
16,449
|
|
(1,967)
|
|
31,493
|
|
(10,006)
|
|
Provision (benefit) for income
taxes
|
272
|
|
50
|
|
963
|
|
(52)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
(loss)
|
16,177
|
|
(2,017)
|
|
30,530
|
|
(9,954)
|
|
|
|
|
|
|
|
|
|
|
Less: Net (income) loss
attributable to
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
(136)
|
|
91
|
|
(139)
|
|
132
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 16,041
|
|
$ (1,926)
|
|
$ 30,391
|
|
$ (9,822)
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$
0.62
|
|
$
(0.08)
|
|
$
1.20
|
|
$
(0.39)
|
|
Shares used in basic per share
calculation
|
25,965
|
|
25,410
|
|
25,429
|
|
25,507
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share
|
$
0.57
|
|
$
(0.08)
|
|
$
1.13
|
|
$
(0.39)
|
|
Shares used in diluted per share
calculation
|
28,026
|
|
25,410
|
|
26,807
|
|
25,507
|
|
|
|
|
|
|
|
|
|
Integrated Silicon Solution,
Inc.
|
|
Condensed Consolidated Balance
Sheets
|
|
(In thousands)
|
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
(1)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
69,525
|
|
$
54,944
|
|
Restricted cash
|
4,957
|
|
-
|
|
Short-term
investments
|
15,521
|
|
28,542
|
|
Accounts receivable,
net
|
39,874
|
|
26,501
|
|
Inventories
|
45,378
|
|
19,275
|
|
Other current
assets
|
4,450
|
|
2,922
|
|
|
|
|
|
|
Total current assets
|
179,705
|
|
132,184
|
|
Property, equipment and
leasehold improvements, net
|
25,381
|
|
23,218
|
|
Long-term investments
|
-
|
|
1,408
|
|
Purchased intangible assets,
net
|
1,530
|
|
2,313
|
|
Goodwill
|
1,251
|
|
1,251
|
|
Other assets
|
11,337
|
|
1,556
|
|
Total assets
|
$
219,204
|
|
$
161,930
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
43,151
|
|
$
26,825
|
|
Accrued compensation and
benefits
|
6,286
|
|
4,364
|
|
Accrued
expenses
|
5,606
|
|
5,368
|
|
|
|
|
|
|
Total current
liabilities
|
55,043
|
|
36,557
|
|
|
|
|
|
|
Other long-term
liabilities
|
814
|
|
797
|
|
|
|
|
|
|
Total liabilities
|
55,857
|
|
37,354
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
3
|
|
2
|
|
Additional paid-in
capital
|
315,899
|
|
309,649
|
|
Accumulated
deficit
|
(155,090)
|
|
(185,481)
|
|
Accumulated comprehensive
income (loss)
|
(2,598)
|
|
(1,344)
|
|
|
|
|
|
|
Total parent stockholders'
equity
|
158,214
|
|
122,826
|
|
|
|
|
|
|
Noncontrolling
interest
|
5,133
|
|
1,750
|
|
|
|
|
|
|
Total stockholders'
equity
|
163,347
|
|
124,576
|
|
Total liabilities and
stockholders' equity
|
$
219,204
|
|
$
161,930
|
|
|
|
|
|
|
|
|
(1) Derived from
audited financial
statements.
|
|
|
|
|
|
SOURCE Integrated Silicon Solution, Inc.