SAN JOSE, Calif., Oct 27 /PRNewswire-FirstCall/ -- Integrated
Silicon Solution, Inc. (Nasdaq: ISSI) today reported its financial
results for the fourth fiscal quarter and fiscal year ended
September 30, 2010.
Revenue in the fourth fiscal quarter ended September 30, 2010 was a record $73.6 million, a 3.4% increase from revenue of
$71.2 million in the June 2010 quarter, and a 58.6% increase from
revenue of $46.4 million in the
September 2009 quarter. Gross
margin in the fourth quarter was 37.8%, compared with 38.4% in the
June 2010 quarter and 36.5% in the
September 2009 quarter.
The Company reported net income in the fourth quarter of
$11.8 million or $0.43 per diluted share. This compares with
net income in the June 2010 quarter
of $16.0 million, or $0.57 per share, which included $0.09 per share from gains on sale of
investments, and net income in the September
2009 fourth quarter of $4.8
million, or $0.19 per diluted
share.
Revenue in the fiscal year ended September 30, 2010 was a record $252.5 million, an increase of 63.7% from revenue
of $154.3 million in fiscal 2009.
Gross margin in fiscal 2010 was 38.2%, compared with 26.5% in
fiscal 2009. Net income in fiscal 2010 was a record
$42.2 million, or $1.56 per diluted share, compared with a net loss
in fiscal 2009 of $5.1 million, or
($0.20) per share.
The Company's cash, cash equivalents and short-term investments
totaled $91.6 million at September 30, 2010, compared with $90.0 million at June 30,
2010. The Company's inventory at September 30, 2010 totaled $54.6 million, including $10.2 million held for the transition of DRAM
production from SMIC to other foundries, compared to $45.4 million at June 30,
2010.
"We are pleased that we achieved record revenue in both the
September quarter and in our 2010 fiscal year and record annual net
income. We also had another strong quarter of design wins.
We believe these results reflect the positive changes that we
have made to our business over the last few years," said
Scott Howarth, ISSI's President and
CEO. "End market demand softened in the last half of the
September quarter and orders to date in the December quarter have
been lower than seasonal norms. As a result, our revenue in
the September quarter was slightly below our expectations, and we
are expecting sequential revenue to be down slightly in the
December quarter. Despite this near term market weakness, we
believe we are well positioned for growth in our new fiscal year,"
added Mr. Howarth.
Stock Buy-back Program
The Company's board of directors has authorized an additional
$20.0 million repurchase of the
Company's common stock. This authorization, in addition to
the $3.8 million remaining from a
prior board authorization, allows the Company to purchase shares of
its common stock on the open market from time to time. The
timing of any repurchases and the actual amount purchased will
depend on a variety of factors including the market price of ISSI
stock, economic and business conditions and other corporate
considerations. The program does not obligate the Company to
repurchase any particular amount of common stock and the program
may be modified or suspended at any time at the Company's
discretion.
December Quarter Outlook
The Company currently expects its revenue for the December
quarter to be between $68 million and $72
million and gross margin to be between 34 percent and 37
percent. December quarter operating expenses are expected to
be in the range of $15.0 million to $15.8
million. Gains on sales of investments and interest
and other income in the December quarter are expected to be
approximately $0.8 million. The
Company expects net income per share to be between $0.30 and $0.36. This outlook assumes
Giantec is consolidated for the entire quarter.
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 1-888-515-2880
by 1:20 p.m. Pacific time. The
participant pass code is 1802437. The call will 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 expecting our sequential revenue to be down
slightly in the December quarter, near term market weakness, our
believe that we are well positioned for growth in our new fiscal
year, our stock buyback program and our outlook for the December
quarter for 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 resulting
from unexpected fluctuations in the market, liquidity and economic
concerns or other factors, 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, changes
in manufacturing yields, order cancellations, order rescheduling,
product warranty claims, competition, our ability to obtain a
sufficient supply of wafers and assembly and test capacity at
acceptable prices, the level and value of inventory held by us and
our 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, 2009 and our Quarterly Report on
Form 10-Q for the period ended June 30,
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
|
|
Year
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 73,632
|
|
$ 46,432
|
|
$ 252,458
|
|
$ 154,251
|
|
Cost of sales
|
45,762
|
|
29,503
|
|
155,927
|
|
113,373
|
|
Gross profit
|
27,870
|
|
16,929
|
|
96,531
|
|
40,878
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
7,278
|
|
5,646
|
|
24,066
|
|
20,020
|
|
Selling, general and
administrative
|
8,212
|
|
6,554
|
|
32,509
|
|
26,221
|
|
Acquired in-process
technology charge
|
-
|
|
-
|
|
-
|
|
710
|
|
Total operating
expenses
|
15,490
|
|
12,200
|
|
56,575
|
|
46,951
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
12,380
|
|
4,729
|
|
39,956
|
|
(6,073)
|
|
Interest and other income
(expense), net
|
36
|
|
165
|
|
1,192
|
|
961
|
|
Gain on sale of
investments
|
-
|
|
-
|
|
2,761
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
12,416
|
|
4,894
|
|
43,909
|
|
(5,112)
|
|
Provision (benefit) for income
taxes
|
191
|
|
34
|
|
1,154
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income
(loss)
|
12,225
|
|
4,860
|
|
42,755
|
|
(5,094)
|
|
|
|
|
|
|
|
|
|
|
Less: Net (income) loss
attributable to
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
(420)
|
|
(88)
|
|
(559)
|
|
44
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$ 11,805
|
|
$ 4,772
|
|
$ 42,196
|
|
$ (5,050)
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$ 0.45
|
|
$ 0.19
|
|
$
1.65
|
|
$
(0.20)
|
|
Shares used in basic per share
calculation
|
26,126
|
|
25,244
|
|
25,603
|
|
25,441
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share
|
$ 0.43
|
|
$ 0.19
|
|
$
1.56
|
|
$
(0.20)
|
|
Shares used in diluted per share
calculation
|
27,672
|
|
25,595
|
|
27,041
|
|
25,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Derived
from audited financial statements.
|
|
|
|
|
|
|
|
|
|
Integrated
Silicon Solution, Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(In
thousands)
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
(1)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
81,665
|
|
$
54,944
|
|
Restricted cash
|
5,107
|
|
-
|
|
Short-term
investments
|
4,837
|
|
28,542
|
|
Accounts receivable,
net
|
41,148
|
|
26,501
|
|
Inventories
|
54,560
|
|
19,275
|
|
Other current
assets
|
4,479
|
|
2,922
|
|
|
|
|
|
|
Total current assets
|
191,796
|
|
132,184
|
|
Property, equipment and
leasehold improvements, net
|
28,078
|
|
23,218
|
|
Long-term investments
|
-
|
|
1,408
|
|
Purchased intangible assets,
net
|
1,294
|
|
2,313
|
|
Goodwill
|
1,301
|
|
1,251
|
|
Other assets
|
11,562
|
|
1,556
|
|
Total assets
|
$
234,031
|
|
$
161,930
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
41,586
|
|
$
26,825
|
|
Accrued compensation and
benefits
|
6,406
|
|
4,364
|
|
Accrued
expenses
|
5,930
|
|
5,368
|
|
|
|
|
|
|
Total current
liabilities
|
53,922
|
|
36,557
|
|
|
|
|
|
|
Other long-term
liabilities
|
2,288
|
|
797
|
|
|
|
|
|
|
Total liabilities
|
56,210
|
|
37,354
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
3
|
|
2
|
|
Additional paid-in
capital
|
317,773
|
|
309,649
|
|
Accumulated
deficit
|
(143,285)
|
|
(185,481)
|
|
Accumulated comprehensive
loss
|
(2,286)
|
|
(1,344)
|
|
|
|
|
|
|
Total parent stockholders'
equity
|
172,205
|
|
122,826
|
|
|
|
|
|
|
Noncontrolling
interest
|
5,616
|
|
1,750
|
|
|
|
|
|
|
Total stockholders'
equity
|
177,821
|
|
124,576
|
|
Total liabilities and
stockholders' equity
|
$
234,031
|
|
$
161,930
|
|
|
|
|
|
|
|
|
(1) Derived
from audited financial statements.
|
|
|
|
|
|
SOURCE Integrated Silicon Solution, Inc.