ISSI (MM)

ISSI Announces Fourth Quarter and Fiscal Year 2003 Results SANTA CLARA, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Integrated Silicon Solution, Inc. today reported its financial results for the fourth fiscal quarter and year ended September 30, 2003. Revenue in the fourth quarter was $30.0 million, compared with $20.2 million in the prior year period. The Company reported a net loss for the fourth quarter of ($2.5) million or ($0.09) per diluted share, compared with a net loss of ($22.0) million or ($0.80) per diluted share, in the prior year period. For the fiscal year ended September 30, 2003, revenue totaled $97.7 million compared to $70.4 million for fiscal year 2002, or 39% growth. The net loss for the year ended September 30, 2003 totaled ($28.1) million or ($1.01) per diluted share compared to a net loss of ($67.5) million or ($2.49) per diluted share in fiscal year 2002. The Company ended the 2003 fiscal year with cash and liquid investments of $58.4 million and no long or short-term debt obligations. "Revenue growth accelerated in the September quarter and grew approximately 24% over the June 2003 quarter after growing 9% sequentially in June," said Jimmy Lee, ISSI's chief executive officer. "The recent September quarter shows a 49% growth over the September 2002 quarter and we are pleased with these trends." The Company also announced that it invested an additional $2.0 million in Semiconductor Manufacturing International Corporation (SMIC), a foundry located in China. This increases ISSI's total investment in SMIC to $42.0 million. About the Company ISSI is a technology leader in high performance memory semiconductors. The Company designs, develops and markets memory products used in consumer electronics, networking, Internet infrastructure, telecommunications, wireless products, handheld devices, computer peripherals, and automotive electronics. ISSI's products incorporate state-of-the-art circuit design and advanced process technology. The Company's high speed and low power SRAM, low to medium density DRAM, MCP (combining Flash and SRAM/PSRAM/DRAM), family of EEPROMs, Parallel Search Processors (CAM), and Bluetooth(TM) wireless chipsets (in development), enable designers to meet the demanding connectivity, portability, and bandwidth requirements of today's high tech products. ISSI is headquartered in Silicon Valley with worldwide offices in China, Europe, Hong Kong, Taiwan and Korea. Visit our web site at http://www.issi.com/. Safe Harbor Statement Certain statements in this news release, including statements regarding the Company's revenue growth acceleration and trends may be considered forward-looking statements and are subject to risks and uncertainties. Actual results may differ materially from current expectations due to many factors, including the Company's ability to secure manufacturing capacity from its foundries, changes in market conditions, inability to effectively reduce expenses, inability to add new products or diversify product lines, order cancellations, order rescheduling, changes in demand for the Company's products or the products in which the Company's products are used, reduction in average selling prices for the Company's products and a resultant decrease in the Company's gross profit margin, product warranty claims, competition, the level and value of inventory held by OEM customers or the Company, or other factors. Further information that could affect the Company's results is detailed in ISSI's periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10K for the fiscal year ended September 30, 2002 and its most recent Quarterly Report on Form 10Q for the quarter ended June 30, 2003. Integrated Silicon Solution, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended September 30, September 30, 2003 2002 2003 2002 Net sales $30,025 $20,187 $97,660 $70,448 Cost of sales 24,543 28,616 86,046 86,213 Gross profit (loss) 5,482 (8,429) 11,614 (15,765) Operating Expenses: Research and development 4,871 8,026 23,394 29,841 Selling, general and administrative 3,233 3,781 13,328 15,962 In-process technology charge -- -- -- 4,689 Total operating expenses 8,104 11,807 36,722 50,492 Operating loss (2,622) (20,236) (25,108) (66,257) Other income (expense), net 291 174 (255) 2,392 Loss before income taxes, minority interest and equity in net loss of affiliated companies (2,331) (20,062) (25,363) (63,865) Provision (benefit) for income taxes 3 -- 3 (3,220) Net loss before minority interest and equity in net loss of affiliated companies (2,334) (20,062) (25,366) (60,645) Minority interest in net loss of consolidated subsidiary -- 32 17 50 Equity in net loss of affiliated companies (144) (1,999) (2,728) (6,945) Net loss $(2,478) $(22,029) $(28,077) $(67,540) Basic and diluted net loss per share $(0.09) $(0.80) $(1.01) $(2.49) Shares used in per share calculation 28,062 27,473 27,777 27,084 Integrated Silicon Solution, Inc. Condensed Consolidated Balance Sheets (In thousands) September 30, September 30, 2003 2002 (1) ASSETS Current assets: Cash and cash equivalents $19,992 $11,622 Short-term investments 38,450 67,200 Accounts receivable 12,152 8,391 Inventories 16,638 17,665 Other current assets 1,712 3,448 Total current assets 88,944 108,326 Property, equipment, and leasehold improvements, net 6,295 10,673 Other assets 62,860 65,677 Total assets $158,099 $184,676 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $17,230 $21,776 Accrued compensation and benefits 3,406 3,394 Accrued expenses 5,436 3,830 Current portion of long-term obligations -- 158 Total current liabilities 26,072 29,158 Long-term obligations -- -- Minority interest 78 95 Stockholders' equity: Common stock 3 3 Additional paid-in capital 233,957 231,032 Accumulated deficit (97,328) (69,251) Unearned compensation (268) (778) Accumulated comprehensive loss (4,415) (5,583) Total stockholders' equity 131,949 155,423 Total liabilities and stockholders' equity $158,099 $184,676 (1) Derived from audited financial statements. DATASOURCE: Integrated Silicon Solution, Inc. CONTACT: Suzanne Weaver, Investor Relations, +1-408-969-6600, or , or Gary Fischer, President & COO, +1-408-969-4612, or , for Integrated Silicon Solution, Inc. Web site: http://www.issi.com/ x

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