SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACTS OF 1934
FOR THE MONTH OF July 2008
PSi TECHNOLOGIES HOLDINGS,
INC.
(Exact name of Registrant as specified in its Charter)
NOT APPLICABLE
(Translation of Registrant's name into English)
Electronics Avenue
FTI Industrial
Complex
Taguig, Metro Manila 1604, Philippines
(Address of Registrant's principal executive offices)
Indicate by check mark whether
the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F
x
Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
No
x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
82-
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 28, 2008
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PSi TECHNOLOGIES HOLDINGS, INC.
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By:
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/s/ Arthur J. Young, Jr.
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Arthur J. Young, Jr.
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President and Chief Executive Officer
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PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
PSi TECHNOLOGIES REPORTS SECOND QUARTER 2008 RESULTS
Manila, Philippines July 28, 2008 PSi Technologies Holdings, Inc., (NASDAQ: PSIT),
an independent provider of assembly and test services for
the power semiconductor market, today announced financial results for the second quarter ended June 30, 2008:
Second Quarter Financial Results
Second quarter revenue totaled $22.9 million, an increase of 6.7% compared to $21.5 million in the first quarter of 2008, and an increase of 1.0% as
compared to the same quarter in 2007. The sequential increase in sales compared to the first quarter was largely driven by a steady month-to-month increase in the Companys standard package for high power, medium current and fast-switching
power devices. These are commonly used for home appliances, office and industrial equipment, and personal and consumer electronic applications.
The top
five customers for the second quarter of 2008 (in alphabetical order) were Infineon Technologies, NXP Semiconductors, ON Semiconductors, Power Integrations, and ST Microelectronics. The products assembled and tested for these customers are used in
various end user applications, such as automotive systems, consumer electronics, communications equipment, industrial applications, home appliances and PC motherboards.
The cost of sales increased by 2.7% from $21.1 million in the first quarter of 2008 to $21.7 million in the second quarter of 2008, due to higher sales volumes. However, as a percentage of sales, the cost of sales
improved by 3.7 percentage pointsfrom 98.4% of sales in the first quarter to 94.7% of sales in the second quarter of 2008. Compared to the second quarter of 2007, cost of sales improved by 1.7 percentage pointsfrom 96.4% of sales in the
second quarter of 2007 to 94.7% of sales in the second quarter of 2008.
The reduction in cost of sales as a percentage of sales for second quarter of 2008
is attributable to the cost savings arising from operational efficiencies in raw materials usage; improvement in equipment productivity; better manpower deployment and management; and continued energy conservation efforts complemented by reduction
in power rates per kilowatt-hour.
The increase in sales, combined with the savings brought by the improvement in cost of sales as percentage of sales in
the second quarter of 2008, resulted to a 245% increase in gross profit, from $0.4 million in the first quarter to $1.2 million in the second quarter of 2008. Compared to the same period in 2007, gross profit grew by 48.5%.
Total operating expenses of $2.2 million in the second quarter of 2008 were lower by 10.8% as compared to $2.5 million in the first quarter. The increase in research and
development expenditures and marketing initiatives, were offset by a 19.1% reduction in administrative expenses from the first quarter of 2008 amounting to $2.0 million, down to $1.6 million in the second quarter of 2008.
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
Net loss
decreased by 56% to $1.4 million for the second quarter of 2008 from $3.2 million in the first quarter of 2008. This is largely due to the 245% increase in gross profit and supplemented by favorable foreign exchange and a reduction in financing
interest expenses.
Balance Sheet Highlights
Cash and
cash equivalents totaled $2.0 million as of June 30, 2008, compared to $3.4 million as of December 31, 2007. The decrease in cash and cash equivalents is largely attributable to increase in payments for purchases of raw materials driven by
the increase in sales volume. Cash held in escrow was restricted for withdrawal and is classified as Restricted Cash in the consolidated balance sheet, since the balance of the outstanding trade receivables assigned was not adequate to
cover the Companys outstanding loan payable.
New acquisitions of property, plant and equipment totaled $1.8 million in the first half of 2008,
mostly related to the purchase of machinery and equipment to improve capacity and support ramp up for new products.
Total current liabilities increased by
$4.6 million, from $37.4 million as of December 31, 2007 to $42.0 million as of June 30, 2008, mainly due to the reclassification as current liability of our 2005 Exchangeable Senior Subordinated Note which will mature on June 1,
2009.
As of December 31, 2007, the 2003 Exchangeable Senior Subordinated Note (the 2003 Note) was classified as current liability in the
Companys consolidated balance sheet. The 2003 Note issued to Merrill Lynch LLC was amended to mature on July 31, 2008. All other terms and conditions remained the same. On July 31, 2008, Merrill Lynch LLC may redeem the note together
with the accrued interest and any unpaid interest. However, the Companys Board of Directors, at its May 26, 2008 meeting, after reviewing our financial condition and in consideration of the 2003 Notes maturity date, delegated
authority to the Companys Audit Committee to negotiate with Merrill Lynch LLC an extension of the 2003 Note to June 2009. The Audit Committee and Merrill Lynch LLC have reached a non-binding agreement to extend the maturity date of the 2003
Note and we are currently working on finalizing the documents to effect such extension. The Company expect to execute the final documents on or before July 31, 2008.
Business Outlook
Commenting on Psis business outlook, Arthur J. Young, Jr., Chairman and CEO said, Given
the existing environment in our market today, I am pleased that our PSi team executed our business plan in the face of the challenges of the second quarter of 2008. Keeping focused on our deliverables resulted in improved efficiencies in all
operating indices, which translated in better margins. We identified opportunities, continued to invest in research and development, and implemented our marketing initiatives in line with our business plan. Our efforts to diversify our customer base
and introduce new product packages to our already extensive package portfolio continue to remain on track and we expect to start seeing results from these initiatives in the third and fourth quarters of 2008. We have seen our sales revenues trend
upward, and we are cautiously optimistic that we can maintain that trend through the third quarter of 2008. We continue to watch a very fluid market environment with customer forecasts changing frequently in either direction. The price of oil and
our basic raw material costs, as well as weakening consumer sentiment, continue to be major issues on our radar screen.
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
In
addition, George A. Shaw, COO commented, We continue to focus on strengthening the systems and processes of our organization especially in areas of logistics and supply chain. With the price of oil driving up the costs of our basic raw
materials, our execution to low cost alternatives remains a major initiative of our company. The successful qualification and production ramp up of our single gauge dpak package to four new Taiwanese customers was achieved in record time. The
introduction of this package enabled us to reduce our copper content on this package by almost 38%. Moving forward we are completing the development of our ECO family of packages in our TO 220, TO 247 and Fullpak platforms. This development will
reduce the copper content by 35% to 40% on these selected packages. We hope to bring these packages into the market by the fourth quarter.
Our Power
QFN family of packages continues to gain market acceptance and we continue to see a wide range of end product applications for this. From the standard applications in power protection devices to multi-die applications in power management devices to
optical applications in solar chargers.
We are also working on customer specific applications in different customer proprietary package technologies
in high-power applications for industrial, automotive and medical products. Finally, we expect to introduce to the market our new high-voltage family of packages in our SOT 227 configuration by the end of the third quarter of 2008. This family of
high-power packages will have the capability of achieving isolation voltages of up to 3000 volts. We expect to provide samples to our customers by the end of the third quarter of 2008.
About PSi Technologies
PSi Technologies is a focused independent
semiconductor assembly and test service provider to the power semiconductor market. The Company provides comprehensive package design, assembly and test services for power semiconductors used in telecommunications and networking systems, computers
and computer peripherals, consumer electronics, electronic office equipment, automotive systems and industrial products. Their customers include most of the major power semiconductor manufacturers in the world such as Infineon Technologies, ON
Semiconductor, Philips Semiconductor, and ST Microelectronics. For more information, visit the Companys web site at
www.psitechnologies.com
or call:
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At PSi Technologies Holdings, Inc.:
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At Financial Relations Board:
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Larry Cajucom
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Lasse Glassen
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(63 2) 838 4489
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(213) 486 6546
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lvcajucomjr@psitechnologies.com.ph
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lglassen@frbir.com
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This press release contains forward-looking statements that involve risks and uncertainties. Actual results and
outcomes may differ materially. Factors that might cause a difference include, but are not limited to, those relating to our ability to negotiate final documentation with Merrill Lynch LLC to extend the 2003 Note, the pace of development and market
acceptance of PSis products and the power semiconductor market generally, commercialization and technological delays or difficulties, the impact of competitive products and technologies, competitive pricing pressures, manufacturing risks, the
possibility of our products infringing patents and other intellectual property of third parties, product defects, costs of product development, manufacturing and government regulation,
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
risks inherent in emerging markets, including but not limited to, currency volatility and depreciation, restricted access to financing and political and
social unrest and the possibility that the initiatives described herein may not produce the intended results. PSi undertakes no responsibility to update these forward-looking statements to reflect events or circumstances after the date hereof. More
detailed information about potential factors that could affect PSis financial results is included in the documents PSi files from time to time with the Securities and Exchange Commission.
-Financial Tables Follow-
PSi
Technologies Holdings, Inc.
Unaudited Income Statement
(In US Dollars)
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For the Three Months Ended
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For the Six Months Ended
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30-Jun-08
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31-Mar-08
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30-Jun-07
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30-Jun-08
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30-Jun-07
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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REVENUES
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$
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22,897,981
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$
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21,458,501
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$
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22,675,639
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$
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44,356,482
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$
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47,354,304
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COST OF SALES
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21,678,534
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21,104,906
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21,854,639
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42,783,440
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45,220,610
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GROSS PROFIT
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1,219,447
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353,595
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821,000
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1,573,042
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2,133,694
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OPERATING EXPENSES
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Research and development
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397,350
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330,709
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274,256
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728,059
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526,055
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Administrative expenses
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1,606,729
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1,986,388
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1,690,132
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3,593,117
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3,367,363
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Marketing expenses
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239,191
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196,380
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225,038
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435,571
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|
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454,513
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Total Operating Expenses
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2,243,270
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2,513,477
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2,189,426
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4,756,747
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4,347,931
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LOSS FROM CONTINUING OPERATIONS
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(1,023,823
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)
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(2,159,882
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)
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(1,368,426
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)
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(3,183,705
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)
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(2,214,237
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)
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Interest and bank charges-net
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(144,694
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)
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(235,157
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)
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(336,662
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)
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(379,851
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)
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(589,326
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)
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Foreign exchange gains(losses)-net
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447,891
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(153,964
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)
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(472,747
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)
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293,927
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(605,780
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)
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Lease income
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41,370
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41,370
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|
|
41,370
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|
|
|
82,740
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|
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82,740
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Exchangeable Note interest and financing charges
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(732,827
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)
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(716,049
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)
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(612,979
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)
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(1,448,876
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)
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|
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(1,229,908
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)
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Gain on disposal of assets
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|
(33,719
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)
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|
|
3,900
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|
|
|
|
|
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(29,819
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)
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Miscellaneous
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36,428
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|
|
|
19,258
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|
|
|
35,267
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|
|
|
55,686
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|
|
|
47,530
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net Other Expense
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(385,551
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)
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(1,040,642
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)
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(1,345,751
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)
|
|
|
(1,426,193
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)
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|
|
(2,294,744
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)
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NET LOSS
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$
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(1,409,374
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)
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$
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(3,200,524
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)
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$
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(2,714,177
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)
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$
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(4,609,898
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)
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|
$
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(4,508,981
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)
|
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|
|
|
|
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|
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|
|
|
|
|
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No. of Shares Outstanding
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|
13,289,525
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|
|
|
13,289,525
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|
|
|
13,289,525
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|
|
13,289,525
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|
|
|
13,289,525
|
|
|
|
|
|
|
|
EPS- based on Outstanding Shares
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$
|
(0.11
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)
|
|
$
|
(0.24
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)
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$
|
(0.20
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)
|
|
$
|
(0.35
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)
|
|
$
|
(0.34
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)
|
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
PSi Technologies Holdings, Inc.
Unaudited Consolidated Balance Sheet
(In US Dollars)
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30-Jun-08
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31-Dec-07
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Unaudited
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Audited
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ASSETS
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Current Assets
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Cash and cash equivalents
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$
|
2,001,067
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|
|
$
|
3,414,322
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Restricted cash
|
|
|
1,911,472
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|
|
|
1,096,376
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Accounts receivable-net
|
|
|
13,469,036
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|
|
|
12,752,236
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Inventories-net
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|
|
5,405,639
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|
|
|
4,477,486
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Other current assets-net
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|
527,636
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|
|
|
438,430
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|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
|
23,314,850
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|
|
|
22,178,850
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|
|
|
|
|
|
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|
|
Noncurrent Assets
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|
|
|
|
|
|
|
|
Property, plant and equipment-net
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|
|
22,940,482
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|
|
|
26,723,243
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Other noncurrent assets-net
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|
|
1,117,476
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|
|
|
876,565
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|
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Total Noncurrent Assets
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|
|
24,057,958
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|
|
|
27,599,808
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|
|
|
|
|
|
|
|
|
|
|
|
$
|
47,372,808
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|
|
$
|
49,778,658
|
|
|
|
|
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|
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LIABILITIES AND STOCKHOLDERS EQUITY
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|
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|
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Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
23,534,415
|
|
|
$
|
21,647,112
|
|
Accounts payable CAPEX
|
|
|
487,018
|
|
|
|
425,120
|
|
Loans Payable
|
|
|
9,800,000
|
|
|
|
10,020,000
|
|
Exchangeable notes
|
|
|
8,186,416
|
|
|
|
4,816,349
|
|
Advance from customer
|
|
|
|
|
|
|
466,503
|
|
Trust receipts payable
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|
|
|
|
|
|
52,520
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|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
42,007,849
|
|
|
|
37,427,604
|
|
|
|
|
|
|
|
|
|
|
Noncurrent Liabilities
|
|
|
|
|
|
|
|
|
Noncurrent portion of exchangeable notes
|
|
|
|
|
|
|
2,027,347
|
|
Accrued retirement benefit cost
|
|
|
1,122,721
|
|
|
|
1,475,276
|
|
|
|
|
|
|
|
|
|
|
Total Noncurrent Liabilities
|
|
|
1,122,721
|
|
|
|
3,502,623
|
|
|
|
|
|
|
|
|
|
|
Stockhoders Equity
|
|
|
|
|
|
|
|
|
Capital stock-Philippine peso 1-
2
/
3
par value
|
|
|
|
|
|
|
|
|
Authorized-37,058,100 shares Issued and outstanding-13,289,525 shares
|
|
|
590,818
|
|
|
|
590,818
|
|
Additional paid-in capital
|
|
|
79,425,279
|
|
|
|
79,421,574
|
|
Other comprehensive loss
|
|
|
280,257
|
|
|
|
280,257
|
|
Deficit
|
|
|
(76,054,116
|
)
|
|
|
(71,444,218
|
)
|
|
|
|
|
|
|
|
|
|
Total Stockholders Equity
|
|
|
4,242,238
|
|
|
|
8,848,431
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
47,372,808
|
|
|
$
|
49,778,658
|
|
|
|
|
|
|
|
|
|
|
PSi Technologies Holdings, Inc.
Second Quarter 2008 Results
PSi Technologies Holdings, Inc
Unaudited Consolidated Statement of Cash Flows
(In US Dollars)
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2008
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net loss
|
|
$
|
(4,609,898
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
Depreciation
|
|
|
5,562,036
|
|
Stock compensation costs
|
|
|
3,705
|
|
Amortization of debt issuance costs and discount
|
|
|
639,682
|
|
Interest on exchangeable notes converted to principal
|
|
|
716,189
|
|
Accretion of interest receivable from Manila Electric Company
|
|
|
(17,779
|
)
|
Unrealized foreign exchange gain
|
|
|
(382,197
|
)
|
Provision for pension expense
|
|
|
191,008
|
|
Loss on disposal of inventories
|
|
|
71,689
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Decrease (increase) in:
|
|
|
|
|
Trade and other receivables
|
|
|
(1,182,305
|
)
|
Inventories
|
|
|
(999,842
|
)
|
Other current assets
|
|
|
(119,989
|
)
|
Decrease in trade and other payables
|
|
|
1,388,708
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
1,261,007
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Acquisitions of property and equipment
|
|
|
(1,292,258
|
)
|
Decrease (increase) in other noncurrent assets
|
|
|
(287,428
|
)
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(1,579,686
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Net proceeds from (payments of) trust receipts payable
|
|
|
(220,000
|
)
|
Net proceeds from (payments of) loans payable
|
|
|
(52,520
|
)
|
Increase in restricted cash
|
|
|
(815,097
|
)
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
(1,087,617
|
)
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
|
(6,959
|
)
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(1,413,255
|
)
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
3,414,322
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
2,001,067
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION ON NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
Property and equipment acquired on account under accounts payable
|
|
$
|
487,018
|
|
Psi Tech Hldgs (MM) (NASDAQ:PSIT)
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From Jun 2024 to Jul 2024
Psi Tech Hldgs (MM) (NASDAQ:PSIT)
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From Jul 2023 to Jul 2024