Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Feb. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INTEGRATED SILICON SOLUTION INC | |
Entity Central Index Key | 854701 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 31,502,154 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement [Abstract] | ||
Net sales | $80,910 | $79,123 |
Cost of sales | 51,765 | 53,594 |
Gross profit | 29,145 | 25,529 |
Operating expenses: | ||
Research and development | 12,248 | 10,558 |
Selling, general and administrative | 12,897 | 11,434 |
Total operating expenses | 25,145 | 21,992 |
Operating income | 4,000 | 3,537 |
Interest and other income (expense), net | 162 | 431 |
Gain on sale of investments | 0 | 3,121 |
Income before income taxes | 4,162 | 7,089 |
Provision for income taxes | 926 | 1,643 |
Consolidated net income | 3,236 | 5,446 |
Net income attributable to noncontrolling interests | -50 | -11 |
Net income attributable to ISSI | $3,186 | $5,435 |
Basic net income per share (in dollars per share) | $0.10 | $0.19 |
Shares used in basic per share calculation | 30,990 | 29,318 |
Diluted net income per share (in dollars per share) | $0.10 | $0.18 |
Shares used in diluted per share calculation | 32,521 | 30,717 |
Condensed_Statement_of_Compreh
Condensed Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income | $3,236 | $5,446 |
Change in unrealized loss on investments: | ||
Changes arising during current period, net of tax benefit of $0 and $251, respectively | 0 | -349 |
Reclassification for gain included in net income, net of tax expense of $0 and $1,373, respectively | 0 | -2,296 |
Change in unrealized loss on investments: | 0 | -2,645 |
Change in cumulative translation adjustment: | ||
Changes arising during current period | -6,504 | -1,222 |
Change in retirement plan actuarial losses: | ||
Reclassification for gain included in net income, net of tax expense (benefit) of $0 for the three months ended December 31, 2014 and 2013 | 29 | 27 |
Change in retirement plan transition obligation: | ||
Reclassification for gain included in net income, net of tax expense (benefit) of $0 for the three months ended December 31, 2014 and 2013 | -15 | -15 |
Other comprehensive loss | -6,490 | -3,855 |
Comprehensive income (loss) | -3,254 | 1,591 |
Comprehensive income attributable to noncontrolling interest | -50 | -11 |
Comprehensive income (loss) attributable to ISSI | ($3,304) | $1,580 |
Condensed_Statement_of_Compreh1
Condensed Statement of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on investments, Changes arising during current period, tax | $0 | $251 |
Unrealized gain (loss) on investments, Reclassification for gain included in net income, tax | 0 | 1,373 |
Retirement plan actuarial losses, Reclassification for gain included in net income, tax | 0 | 0 |
Retirement plan transition obligation, Reclassification for gain included in net income, tax | $0 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $130,731 | $137,534 | [1] |
Restricted cash | 0 | 1,000 | [1] |
Short-term investments | 1,417 | 1,477 | [1] |
Accounts receivable, net | 51,735 | 50,458 | [1] |
Inventories | 88,105 | 85,093 | [1] |
Deferred tax assets | 1,908 | 1,868 | [1] |
Other current assets | 14,934 | 17,033 | [1] |
Total current assets | 288,830 | 294,463 | [1] |
Property, equipment and leasehold improvements, net | 57,350 | 58,847 | [1] |
Purchased intangible assets, net | 4,746 | 5,093 | [1] |
Goodwill | 9,178 | 9,178 | [1] |
Deferred tax assets | 8,508 | 8,392 | [1] |
Other assets | 29,372 | 24,369 | [1] |
Total assets | 397,984 | 400,342 | [1] |
Current liabilities: | |||
Accounts payable | 50,501 | 54,554 | [1] |
Accrued compensation and benefits | 10,362 | 9,875 | [1] |
Accrued expenses | 14,055 | 11,365 | [1] |
Current portion of long-term debt | 195 | 195 | [1] |
Total current liabilities | 75,113 | 75,989 | [1] |
Long-term debt | 4,290 | 4,339 | [1] |
Other long-term liabilities | 5,334 | 5,456 | [1] |
Total liabilities | 84,737 | 85,784 | [1] |
Commitments and contingencies | [1] | ||
Stockholders’ equity: | |||
Common stock | 3 | 3 | [1] |
Additional paid-in capital | 368,382 | 364,587 | [1] |
Accumulated deficit | -49,743 | -51,076 | [1] |
Accumulated other comprehensive loss | -7,533 | -1,044 | [1] |
Total ISSI stockholders’ equity | 311,109 | 312,470 | [1] |
Noncontrolling interest | 2,138 | 2,088 | [1] |
Total stockholders’ equity | 313,247 | 314,558 | [1] |
Total liabilities and stockholders’ equity | $397,984 | $400,342 | [1] |
[1] | Derived from audited financial statements. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Consolidated net income | $3,236 | $5,446 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,166 | 1,670 | |
Stock-based compensation | 1,526 | 1,491 | |
Excess tax benefits from share-based compensation | 0 | -510 | |
Amortization of intangibles | 347 | 409 | |
Gain on sale of investments | 0 | -3,121 | |
Equity in net loss of affiliate | 30 | 100 | |
Net foreign currency transaction (gains) losses | 24 | -263 | |
Deferred tax assets | -337 | 280 | |
Other non-cash items | 32 | 17 | |
Net effect of changes in current and other assets and current liabilities | -4,782 | -4,832 | |
Net cash provided by operating activities | 2,242 | 687 | |
Cash flows from investing activities | |||
Acquisition of property and equipment | -1,889 | -6,336 | |
Acquisition of noncontrolling interest in consolidated subsidiary | 0 | -199 | |
Payment of license fees | -5,779 | 0 | |
Decrease in restricted cash | 1,000 | 0 | |
Purchases of available-for-sale securities | -252 | -267 | |
Sales of available-for-sale securities | 267 | 7,278 | |
Cash provided by (used in) investing activities | -6,653 | 476 | |
Cash flows from financing activities | |||
Repurchases and retirement of common stock | -494 | -341 | |
Proceeds from issuance of stock through compensation plans | 2,763 | 2,550 | |
Dividends Paid | -1,853 | 0 | |
Excess tax benefit from share-based compensation | 0 | 510 | |
Principal payments of long-term obligations | -49 | -49 | |
Cash provided by financing activities | 367 | 2,670 | |
Effect of exchange rate changes on cash and cash equivalents | -2,759 | -431 | |
Net increase (decrease) in cash and cash equivalents | -6,803 | 3,402 | |
Cash and cash equivalents at beginning of period | 137,534 | [1] | 119,997 |
Cash and cash equivalents at end of period | $130,731 | $123,399 | |
[1] | Derived from audited financial statements. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements include the accounts of Integrated Silicon Solution, Inc. (the Company or ISSI) and its majority owned subsidiaries, after elimination of all significant intercompany accounts and transactions. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (which are of a normal, recurring nature) considered necessary for fair presentation have been included. | |
On September 14, 2012, the Company acquired approximately 94.1% of the outstanding shares of Chingis Technology Corporation (Chingis) and the Company’s financial results reflect accounting for Chingis on a consolidated basis from the date of acquisition. In May 2013, the Company acquired an additional 4.8% of Chingis for approximately $1.6 million. In fiscal 2014, the Company acquired the remaining 1.1% of Chingis for approximately $0.4 million, and at December 31, 2014, the Company owned 100% of Chingis. | |
The Company’s operating results for the three months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2015 or for any other period. The financial statements included herein should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. |
Use_of_Estimates
Use of Estimates | 3 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Such estimates include the useful lives of fixed assets, allowances for doubtful accounts and customer returns, valuation allowances for deferred tax assets, inventory write-downs, potential reserves relating to litigation matters, accrued liabilities, and other reserves. The Company bases its estimates and judgments on its historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results may differ from those estimates, and such differences may be material to the financial statements. |
Impact_of_Recently_Issued_Acco
Impact of Recently Issued Accounting Pronouncements and Standards | 3 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Recently Issued Accounting Pronouncements and Standards | Impact of Recently Issued Accounting Pronouncements and Standards |
Impact of Recently Adopted Accounting Standards | |
On October 1, 2014, the Company adopted the following accounting standards, which did not have any impact on its consolidated results of operations during such period or its financial condition at the end of such period: | |
Liabilities | |
In February 2013, the Financial Accounting Standards Board (FASB) issued guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date. Examples of obligations include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The guidance requires an entity to measure such obligations as the sum of the amount that the reporting entity agreed to pay on the basis of its arrangement among its co-obligors in addition to amounts the reporting entity expects to pay on behalf of its co-obligors. | |
Foreign Currency Matters | |
In March 2013, FASB issued guidance on when foreign currency translation adjustments should be released to net income. When a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | |
Accounting Pronouncements | |
The following issued accounting pronouncements are not yet effective for the Company as of December 31, 2014. | |
Revenue from Contracts with Customers | |
In May 2014, FASB amended the existing accounting standards for revenue recognition. The new guidance establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The guidance becomes effective for the Company beginning in the first quarter of fiscal 2018. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company has not yet selected a transition method nor has the Company determined the impact of adopting the new revenue standard on its consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
Under FASB guidance, fair value is defined as the price expected to be received from the sale of an asset or paid to transfer a liability in a transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. The FASB guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that the market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect a company’s judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available at that time. The fair value hierarchy is broken down into the following three levels based on the reliability of inputs: | |||||||||||||||||
• | Level 1 – Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices which are readily and regularly available in an active market, valuation of these products can be done without a significant degree of judgment. | ||||||||||||||||
• | Level 2 – Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments and model-derived valuations in which all significant inputs and significant value drives are observable in active markets. | ||||||||||||||||
• | Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. | ||||||||||||||||
As of December 31, 2014 and September 30, 2014, all of the Company’s financial assets utilized Level 1 inputs. | |||||||||||||||||
As of December 31, 2014, the Company did not have any liabilities or non-financial assets that are measured at fair value on a recurring basis. | |||||||||||||||||
Available-for-sale marketable securities consisted of the following: | |||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available-for-sale | |||||||||||||||||
Level 1: | |||||||||||||||||
Money market instruments | $ | 22,520 | $ | — | $ | — | $ | 22,520 | |||||||||
Certificates of deposit | 19,884 | — | — | 19,884 | |||||||||||||
Total | 42,404 | — | — | 42,404 | |||||||||||||
Less: Amounts included in cash and cash | |||||||||||||||||
equivalents | (40,987 | ) | — | — | (40,987 | ) | |||||||||||
$ | 1,417 | $ | — | $ | — | $ | 1,417 | ||||||||||
September 30, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available-for-sale | |||||||||||||||||
Level 1: | |||||||||||||||||
Money market instruments | $ | 22,519 | $ | — | $ | — | $ | 22,519 | |||||||||
Certificates of deposit | 20,679 | — | — | 20,679 | |||||||||||||
Total | 43,198 | — | — | 43,198 | |||||||||||||
Less: Amounts included in cash, cash | |||||||||||||||||
equivalents and restricted cash | (41,721 | ) | — | — | (41,721 | ) | |||||||||||
$ | 1,477 | $ | — | $ | — | $ | 1,477 | ||||||||||
There were no transfers in or out of Level 1 assets during the three months ended December 31, 2014. | |||||||||||||||||
As of December 31, 2014 and September 30, 2014, the Company had cash, cash equivalents, restricted cash and short-term investments in foreign financial institutions of $74.9 million ($2.2 million of which was in China and subject to exchange control regulations) and $71.9 million, respectively. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-based Compensation | Stock-based Compensation | |||||||||||||
Stock-Based Benefit Plans | ||||||||||||||
The Company grants stock-based compensation awards under its 2007 Incentive Compensation Plan (the 2007 Plan) which permits the grant of stock options, stock appreciation rights (SARs), restricted stock awards, restricted stock units (RSUs), performance shares and performance units. The Company has outstanding grants under its 2012 Inducement Option Plan (the Inducement Plan) and under prior plans, though no further grants can be made under these plans. At December 31, 2014, 1,532,000 shares were available for future grant under the 2007 Plan. Options generally vest ratably over a four-year period with a 6-month or 1-year cliff vest and then vesting ratably over the remaining period. Options granted prior to October 1, 2005 expire ten years after the date of grant; options granted after October 1, 2005 expire seven years after the date of the grant. RSUs generally vest annually over periods ranging from two years to four years based upon continued employment with the Company. | ||||||||||||||
The Company began granting cash-settled SARs in the first quarter of fiscal 2014. The SARs vest ratably over a four-year period with a 6-month or 1-year cliff vest and then vest ratably each month over the remaining period based upon continued employment with the Company. The SARs expire seven years after the date of grant. These SARs allow the holder to receive in cash the difference between the SARs' exercise price (which is the closing market price of the Company's common stock on the grant date) and the closing market price of the Company's common stock on the date the holder exercises the SAR. The SARs are recorded as a liability in accrued compensation and benefits in the Company's balance sheet. | ||||||||||||||
The Company has an Employee Stock Purchase Plan (ESPP) which permits eligible employees to purchase shares of the Company’s common stock through payroll deductions. As approved by the Board of Directors, effective August 1, 2010, shares under the ESPP are purchased at a price equal to 85% of the lesser of the fair market value of the Company’s common stock as of the first day or the last day of each six-month offering period. The offering periods under the ESPP commence on approximately February 1 and August 1 of each year. At December 31, 2014, 332,000 shares were available for future issuance under the ESPP. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The following table outlines the effects of total stock-based compensation including expense related to SARs. | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Stock-based compensation | ||||||||||||||
Cost of sales | $ | 51 | $ | 50 | ||||||||||
Research and development | 767 | 649 | ||||||||||||
Selling, general and administrative | 1,234 | 949 | ||||||||||||
Total stock-based compensation | 2,052 | 1,648 | ||||||||||||
Tax effect on stock-based compensation | (420 | ) | (302 | ) | ||||||||||
Net effect on net income | $ | 1,632 | $ | 1,346 | ||||||||||
Compensation related to SARs included in total stock-based compensation | $ | 526 | $ | 157 | ||||||||||
As of December 31, 2014, there was approximately $10.0 million of total unrecognized stock-based compensation expense related to options and awards under the Company’s stock-based benefit plans that will be recognized over a weighted-average period of approximately 2.50 years. Future stock option and award grants will add to this total whereas quarterly amortization and the vesting of existing stock option and award grants will reduce this total. In addition, as of December 31, 2014, there was approximately $56,000 of total unrecognized stock-based compensation expense under the Company’s ESPP that will be recognized over a weighted-average period of approximately one month. As of December 31, 2014, there was approximately $7.1 million of total unrecognized stock-based compensation expense related to SARs that will be recognized over a weighted-average period of approximately 3.37 years. Future SAR grants will add to this total whereas quarterly amortization and the vesting of the SARs will reduce this total. In addition, because the SARs are settled with cash, the fair value of the SARs must be revalued on a quarterly basis which will likely impact the amount of expense in future periods. | ||||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of the options and SARs granted and rights to acquire stock granted under the ESPP. The weighted average estimated fair values of stock option grants and rights granted under the ESPP, as well as the weighted average assumptions used in calculating these values during the three month periods ended December 31, 2014 and 2013 were based on estimates at the date of grant as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Options | ||||||||||||||
Weighted-average fair value of grants | $ | 3.86 | $ | 4.54 | ||||||||||
Expected term in years | 4.27 | 4.42 | ||||||||||||
Estimated volatility | 39 | % | 50 | % | ||||||||||
Risk-free interest rate | 1.29 | % | 0.98 | % | ||||||||||
Dividend yield | 1.74 | % | — | % | ||||||||||
The Company issues RSUs from time to time. The estimated fair value of RSU awards is calculated based on the market price of the Company’s common stock on the date of grant. The weighted average grant date fair value of RSUs granted in the three month periods ended December 31, 2014 and December 31, 2013, was $13.54 per share and $10.96 per share, respectively. | ||||||||||||||
A summary of the Company’s stock option activity and related information for the three months ended December 31, 2014 follows (number of shares and aggregate intrinsic value are presented in thousands): | ||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Term in Years | ||||||||||||||
Outstanding at September 30, 2014 | 4,240 | $ | 8.1 | |||||||||||
Granted | 46 | $ | 13.54 | |||||||||||
Exercised | (385 | ) | $ | 7.19 | $ | 3,302 | ||||||||
Cancelled/Expired | (7 | ) | $ | 10.22 | ||||||||||
Outstanding at December 31, 2014 | 3,894 | $ | 8.25 | 3.63 | $ | 32,414 | ||||||||
Exercisable at December 31, 2014 | 2,631 | $ | 7.26 | 2.96 | $ | 24,481 | ||||||||
Vested and expected to vest after December 31, 2014 | 3,844 | $ | 8.22 | 3.61 | $ | 32,114 | ||||||||
A summary of the Company’s RSU activity and related information for the three months ended December 31, 2014 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands): | ||||||||||||||
Number of | Weighted-Average | Aggregate | ||||||||||||
Shares | Grant Date | Intrinsic Value | ||||||||||||
Fair Value | ||||||||||||||
Outstanding at September 30, 2014 | 262 | $ | 9.91 | |||||||||||
Granted | 228 | $ | 13.54 | |||||||||||
Vested | (100 | ) | $ | 9.19 | $ | 1,376 | ||||||||
Forfeited | — | $ | 9.72 | |||||||||||
Outstanding at December 31, 2014 | 390 | $ | 12.22 | $ | 6,455 | |||||||||
A summary of the Company’s SAR activity and related information for the three months ended December 31, 2014 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands): | ||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Term in Years | ||||||||||||||
Outstanding at September 30, 2014 | 747 | $ | 10.96 | |||||||||||
Granted | 680 | $ | 13.54 | |||||||||||
Exercised | (23 | ) | $ | 10.96 | $ | 112 | ||||||||
Cancelled/Expired | (5 | ) | $ | 11.98 | ||||||||||
Outstanding at December 31, 2014 | 1,399 | $ | 12.21 | 6.33 | $ | 6,101 | ||||||||
Exercisable at December 31, 2014 | 175 | $ | 10.96 | 5.85 | $ | 983 | ||||||||
Concentrations
Concentrations | 3 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations |
In the three months ended December 31, 2014, revenue from the Company's largest distributor accounted for approximately 15% of the Company's total net sales. In the three months ended December 31, 2014, revenue from the Company's second largest distributor accounted for approximately 14% of the Company's total net sales. In the three months ended December 31, 2013, revenue from the Company's largest distributor accounted for approximately 15% of the Company's total net sales. In the three months ended December 31, 2013, revenue from the Company's second largest distributor accounted for approximately 13% of the Company's total net sales. |
Inventories
Inventories | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories | ||||||||
The following is a summary of inventories by major category: | |||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Purchased components | $ | 25,958 | $ | 21,677 | |||||
Work-in-process | 25,241 | 27,058 | |||||||
Finished goods | 36,906 | 36,358 | |||||||
$ | 88,105 | $ | 85,093 | ||||||
During the three months ended December 31, 2014, the Company recorded inventory write-downs of $1.5 million. During the three months ended December 31, 2013, the Company recorded inventory write-downs of $0.8 million. The inventory write-downs were predominantly for excess and obsolescence and lower of cost or market issues on certain of the Company's products. |
Other_Assets
Other Assets | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets [Abstract] | |||||||||
Other Assets | Other Assets | ||||||||
Other assets consisted of the following: | |||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Restricted assets | $ | 637 | $ | 499 | |||||
Other investment | 1,406 | 1,436 | |||||||
Nanya private placement shares | 10,215 | 10,645 | |||||||
Technology licenses, net | 15,975 | 10,644 | |||||||
Other | 1,139 | 1,145 | |||||||
$ | 29,372 | $ | 24,369 | ||||||
The Company has various deposits including deposits with suppliers for purchase guarantees and for customs clearance. These deposits are included in restricted assets. | |||||||||
The Company accounts for the private placement shares it acquired in Nanya on the cost-basis as these securities are restricted and the restrictions do not terminate within one year of the reporting date. | |||||||||
From time-to-time, the Company licenses patents or other intellectual property rights from third parties. The technology licenses are being amortized over their estimated useful lives ranging from three to ten years. | |||||||||
In March 2012, the Company made an equity investment of $2.0 million in a private technology company headquartered in Hong Kong. At December 31, 2014, the Company's ownership interest in such company was approximately 25%. This investment is accounted for under the equity method and the Company's results include its percentage share of such company's results of operations in interest and other income (expense), net. |
Purchased_Intangible_Assets
Purchased Intangible Assets | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Purchased Intangible Assets | Purchased Intangible Assets | ||||||||||||
The following tables present details of the Company’s total purchased intangible assets: | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(In thousands) | |||||||||||||
December 31, 2014 | |||||||||||||
Developed technology | $ | 5,330 | $ | 2,755 | $ | 2,575 | |||||||
Customer relationships | 3,340 | 1,276 | 2,064 | ||||||||||
Other | 450 | 343 | 107 | ||||||||||
Total | $ | 9,120 | $ | 4,374 | $ | 4,746 | |||||||
September 30, 2014 | |||||||||||||
Developed technology | $ | 5,330 | $ | 2,584 | $ | 2,746 | |||||||
Customer relationships | 3,340 | 1,137 | 2,203 | ||||||||||
Other | 450 | 306 | 144 | ||||||||||
Total | $ | 9,120 | $ | 4,027 | $ | 5,093 | |||||||
The following table presents details of the amortization expense of purchased intangible assets as reported in the consolidated statements of income: | |||||||||||||
Three Months Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Reported as: | |||||||||||||
Cost of sales | $ | 171 | $ | 232 | |||||||||
Operating expenses | 176 | 177 | |||||||||||
Total | $ | 347 | $ | 409 | |||||||||
The following table presents the estimated future amortization expense of the Company’s purchased intangible assets at December 31, 2014 (in thousands). The weighted-average remaining amortization period for developed technology, customer relationships and other intangibles is 3.79 years, 3.71 years and 0.71 years, respectively. If the Company acquires additional purchased intangible assets in the future, its future amortization may be increased by those assets. | |||||||||||||
Fiscal year | |||||||||||||
Remainder of 2015 | $ | 1,035 | |||||||||||
2016 | 1,238 | ||||||||||||
2017 | 1,239 | ||||||||||||
2018 | 1,195 | ||||||||||||
2019 | 39 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 4,746 | |||||||||||
Borrowings
Borrowings | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Disclosure [Abstract] | ||||
Borrowings | Borrowings | |||
In December 2012, the Company obtained a bank loan in the amount of $4.9 million (the Loan), to partially finance the $6.5 million purchase price of approximately 2.85 acres of land and a 55,612 square foot building located at 1623 Buckeye Drive, Milpitas, California for its corporate headquarters. The Loan has a maturity date of November 30, 2017 and is secured by the property and an assignment of all leases and rents relating to the property. The Loan is subject to customary events of default, including defaults in the payment of principal and interest. The Loan bears an interest rate of one percent above LIBOR adjusted on a monthly basis. The interest rate on the Loan was 1.25% at December 31, 2014. Principal payments due under the Loan are as follows (in thousands): | ||||
Fiscal year | ||||
Remainder of 2015 | $ | 146 | ||
2016 | 195 | |||
2017 | 195 | |||
2018 | 3,949 | |||
2019 | — | |||
Thereafter | — | |||
Total | $ | 4,485 | ||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||
The components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): | |||||||||||
December 31, | September 30, | ||||||||||
2014 | 2014 | ||||||||||
Accumulated foreign currency translation adjustments | $ | (5,452 | ) | $ | 1,051 | ||||||
Accumulated net retirement plan transition asset (net of tax of $124 and $124, respectively) | (7 | ) | 8 | ||||||||
Accumulated net retirement plan actuarial losses (net of tax of $477 and $477, respectively) | (2,074 | ) | (2,103 | ) | |||||||
Total accumulated other comprehensive loss | $ | (7,533 | ) | $ | (1,044 | ) | |||||
The significant amounts reclassified out of accumulated other comprehensive loss into the consolidated condensed statements of income, with presentation location, during the three months ended December 31, 2014 and December 31, 2013 were as follows: | |||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Location | |||||||||
Unrealized holding gains on available-for -sale investments | |||||||||||
$ | — | $ | 3,669 | Gain on the sale of investments | |||||||
— | (1,373 | ) | Provision for income taxes | ||||||||
$ | — | $ | 2,296 | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The income tax provision includes U.S. federal, state and local, and foreign income taxes and is based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income for fiscal 2015. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than being included in the estimated annual effective income tax rate. | |
For the three months ended December 31, 2014, the Company recorded income tax expense of $0.9 million that represents an effective tax rate of approximately 22%. The differences between the recorded provision for income taxes and the tax provision, based on the federal statutory rate of 35%, were primarily attributable to the differential in foreign tax rates, non-deductible stock-based compensation expense and certain foreign losses not benefited. | |
For the three months ended December 31, 2013, the Company recorded income tax expense of $1.6 million that represents an effective tax rate of approximately 23%. The difference between the recorded provision for income taxes and the tax provision, based on the federal statutory rate of 35%, was primarily attributable to the differential in foreign tax rates and non-deductible stock-based compensation expense. | |
As of December 31, 2014, the Company had unrecognized tax positions that would impact its effective tax rate, if realized. |
Per_Share_Data
Per Share Data | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Per Share Data | Per Share Data | |||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Numerator for basic and diluted net income per share: | ||||||||||
Net income attributable to ISSI | $ | 3,186 | $ | 5,435 | ||||||
Denominator for basic net income per share: | ||||||||||
Weighted average common shares outstanding | 30,990 | 29,318 | ||||||||
Dilutive stock options and awards | 1,531 | 1,399 | ||||||||
Denominator for diluted net income per share | 32,521 | 30,717 | ||||||||
Basic net income per share | $ | 0.1 | $ | 0.19 | ||||||
Diluted net income per share | $ | 0.1 | $ | 0.18 | ||||||
For the three months ended December 31, 2014 and December 31, 2013, stock options and awards for 538,000 shares and 2,749,000 shares, respectively, were excluded from diluted earnings per share by the application of the treasury stock method. |
Common_Stock_Repurchase_Progra
Common Stock Repurchase Program | 3 Months Ended |
Dec. 31, 2014 | |
Common Stock Repurchase Program [Abstract] | |
Common Stock Repurchase Program | Common Stock Repurchase Program |
In the three month period ended December 31, 2014, the Company did not repurchase any shares of its common stock in the open market. As of December 31, 2014, the Company had repurchased and retired an aggregate of 14,179,711 shares of common stock at a cost of approximately $88.5 million since September 2007. As of December 31, 2014, $19.8 million remained available under the Company's existing share repurchase authorization. | |
The Company issues RSUs as part of its equity incentive plan. For a portion of the RSUs granted, the number of shares issued on the date the RSUs vest is net of the statutory withholding requirements that the Company pays on behalf of its employees. During the three months ended December 31, 2014, the Company withheld 35,806 shares to satisfy approximately $0.5 million of employee tax obligations. Although the shares withheld are not issued, they are treated as common stock repurchases for accounting purposes, as they reduce the number of shares that would have been issued upon vesting. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Legal Matters | |
In the semiconductor industry, it is not unusual for companies to receive notices alleging infringement of patents or other intellectual property rights of others. The Company has been, and from time-to-time expects to be, notified of claims that it may be infringing patents, maskwork rights or copyrights owned by third parties. If it appears necessary or desirable, the Company may seek licenses under patents that it is alleged to be infringing. Although patent holders commonly offer such licenses, licenses may not be offered and the terms of any offered licenses may not be acceptable to the Company. The failure to obtain a license under a key patent or intellectual property right from a third party for technology used by the Company could cause it to incur substantial liabilities and to suspend the manufacture of the products utilizing the invention or to attempt to develop non-infringing products, any of which could materially and adversely affect the Company’s business and operating results. Furthermore, there can be no assurance that the Company will not become involved in protracted litigation regarding its alleged infringement of third party intellectual property rights or litigation to assert and protect its patents or other intellectual property rights. Any litigation relating to patent infringement or other intellectual property matters could result in substantial cost and diversion of the Company’s resources. | |
GSI Technology Inc. v. Integrated Silicon Solution, Inc., et al. | |
On October 2, 2013, GSI Technology Inc. (GSI) filed a Second Amended Complaint in a lawsuit filed earlier in 2013 solely against defendant United Memories, Inc. in the United States District Court for the Northern District of California. GSI named the Company as a new, second defendant in the Second Amended Complaint. On April 18, 2014, the Court granted the Company's motion to dismiss that complaint in part, leaving claims against the Company for Unfair Competition under California Business & Professions Code 17200, misappropriation of trade secrets, and intentional interference with prospective economic advantage. In the remaining portion of the complaint, GSI alleged that the Company acted together with United Memories, Inc. to harm GSI in connection with a bid requested by Cisco Systems, Inc. and misappropriated alleged GSI trade secrets. GSI seeks damages and injunctive relief. The Company filed an answer on June 2, 2014 and asserted a declaratory relief counterclaim against GSI. Before the Company was named as a defendant, the Court denied motions by GSI against United Memories, Inc. for temporary and preliminary injunctive relief. The Court issued a revised case management order on January 7, 2015 with a scheduled trial date of October 26, 2015. The Company believes it has meritorious defenses to the claims alleged by GSI and intends to defend this suit vigorously. However, there can be no assurance as to the outcome of this matter or any future litigation. | |
Other Legal Proceedings | |
In the ordinary course of its business, the Company has been involved in a limited number of other legal actions, both as plaintiff and defendant, and could incur uninsured liability in any one or more of them. Although the outcome of these actions is not presently determinable, the Company believes that the ultimate resolution of these matters will not have a material adverse effect on its financial position, cash flows or results of operations. However, no assurances can be given with respect to the extent or outcome of any such litigation in the future. | |
Commitments to Wafer Fabrication Facilities and Contract Manufacturers | |
The Company issues purchase orders for wafers to various wafer foundries. These purchase orders are generally considered to be cancelable. However, to the degree that the wafers have entered into work-in-process at the foundry, as a matter of practice, it becomes increasingly difficult to cancel the purchase order. As of December 31, 2014, the Company had approximately $19.5 million of purchase orders for which the related wafers had been entered into wafer work-in-process (i.e., manufacturing had begun). |
Geographic_and_Segment_Informa
Geographic and Segment Information | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Geographic and Segment Information | Geographic and Segment Information | |||||||||
The Company has one operating segment, which is to design, develop, and market high-performance SRAM, DRAM, and other semiconductor products. The following table summarizes the Company’s operations in different geographic areas: | ||||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Net sales | ||||||||||
United States | $ | 10,893 | $ | 9,062 | ||||||
China | 9,872 | 11,912 | ||||||||
Hong Kong | 13,840 | 15,021 | ||||||||
Japan | 5,657 | 6,073 | ||||||||
Korea | 3,919 | 3,377 | ||||||||
Taiwan | 11,397 | 11,003 | ||||||||
Other Asia Pacific countries | 5,969 | 6,264 | ||||||||
Europe | 19,096 | 16,066 | ||||||||
Other | 267 | 345 | ||||||||
Total net sales | $ | 80,910 | $ | 79,123 | ||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
(In thousands) | ||||||||||
Long-lived assets | ||||||||||
United States | $ | 11,140 | $ | 11,174 | ||||||
Hong Kong | 13 | 14 | ||||||||
China | 12,843 | 12,908 | ||||||||
Taiwan | 33,354 | 34,751 | ||||||||
$ | 57,350 | $ | 58,847 | |||||||
Revenues are attributed to countries based on the customers' ship-to location. | ||||||||||
Long-lived assets by geographic area are those assets used in the Company’s operations in each area. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company sells semiconductor products to Chrontel International Ltd. (Chrontel). Jimmy S.M. Lee, the Company’s Executive Chairman, has been a director of Chrontel since July 1995. Sales to Chrontel were $58,000 and $21,000 during the three months ended December 31, 2014 and December 31, 2013, respectively. Accounts receivable from Chrontel were approximately $26,000 and $59,000 at December 31, 2014 and September 30, 2014, respectively. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements include the accounts of Integrated Silicon Solution, Inc. (the Company or ISSI) and its majority owned subsidiaries, after elimination of all significant intercompany accounts and transactions. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (which are of a normal, recurring nature) considered necessary for fair presentation have been included. | |
Impact of Recently Adopted Accounting Standards and Accounting Pronouncements | Impact of Recently Adopted Accounting Standards |
On October 1, 2014, the Company adopted the following accounting standards, which did not have any impact on its consolidated results of operations during such period or its financial condition at the end of such period: | |
Liabilities | |
In February 2013, the Financial Accounting Standards Board (FASB) issued guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date. Examples of obligations include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The guidance requires an entity to measure such obligations as the sum of the amount that the reporting entity agreed to pay on the basis of its arrangement among its co-obligors in addition to amounts the reporting entity expects to pay on behalf of its co-obligors. | |
Foreign Currency Matters | |
In March 2013, FASB issued guidance on when foreign currency translation adjustments should be released to net income. When a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | |
Accounting Pronouncements | |
The following issued accounting pronouncements are not yet effective for the Company as of December 31, 2014. | |
Revenue from Contracts with Customers | |
In May 2014, FASB amended the existing accounting standards for revenue recognition. The new guidance establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The guidance becomes effective for the Company beginning in the first quarter of fiscal 2018. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company has not yet selected a transition method nor has the Company determined the impact of adopting the new revenue standard on its consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Available-for-sale Securities | Available-for-sale marketable securities consisted of the following: | ||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available-for-sale | |||||||||||||||||
Level 1: | |||||||||||||||||
Money market instruments | $ | 22,520 | $ | — | $ | — | $ | 22,520 | |||||||||
Certificates of deposit | 19,884 | — | — | 19,884 | |||||||||||||
Total | 42,404 | — | — | 42,404 | |||||||||||||
Less: Amounts included in cash and cash | |||||||||||||||||
equivalents | (40,987 | ) | — | — | (40,987 | ) | |||||||||||
$ | 1,417 | $ | — | $ | — | $ | 1,417 | ||||||||||
September 30, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available-for-sale | |||||||||||||||||
Level 1: | |||||||||||||||||
Money market instruments | $ | 22,519 | $ | — | $ | — | $ | 22,519 | |||||||||
Certificates of deposit | 20,679 | — | — | 20,679 | |||||||||||||
Total | 43,198 | — | — | 43,198 | |||||||||||||
Less: Amounts included in cash, cash | |||||||||||||||||
equivalents and restricted cash | (41,721 | ) | — | — | (41,721 | ) | |||||||||||
$ | 1,477 | $ | — | $ | — | $ | 1,477 | ||||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table outlines the effects of total stock-based compensation including expense related to SARs. | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Stock-based compensation | ||||||||||||||
Cost of sales | $ | 51 | $ | 50 | ||||||||||
Research and development | 767 | 649 | ||||||||||||
Selling, general and administrative | 1,234 | 949 | ||||||||||||
Total stock-based compensation | 2,052 | 1,648 | ||||||||||||
Tax effect on stock-based compensation | (420 | ) | (302 | ) | ||||||||||
Net effect on net income | $ | 1,632 | $ | 1,346 | ||||||||||
Compensation related to SARs included in total stock-based compensation | $ | 526 | $ | 157 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The weighted average estimated fair values of stock option grants and rights granted under the ESPP, as well as the weighted average assumptions used in calculating these values during the three month periods ended December 31, 2014 and 2013 were based on estimates at the date of grant as follows: | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Options | ||||||||||||||
Weighted-average fair value of grants | $ | 3.86 | $ | 4.54 | ||||||||||
Expected term in years | 4.27 | 4.42 | ||||||||||||
Estimated volatility | 39 | % | 50 | % | ||||||||||
Risk-free interest rate | 1.29 | % | 0.98 | % | ||||||||||
Dividend yield | 1.74 | % | — | % | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | A summary of the Company’s stock option activity and related information for the three months ended December 31, 2014 follows (number of shares and aggregate intrinsic value are presented in thousands): | |||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Term in Years | ||||||||||||||
Outstanding at September 30, 2014 | 4,240 | $ | 8.1 | |||||||||||
Granted | 46 | $ | 13.54 | |||||||||||
Exercised | (385 | ) | $ | 7.19 | $ | 3,302 | ||||||||
Cancelled/Expired | (7 | ) | $ | 10.22 | ||||||||||
Outstanding at December 31, 2014 | 3,894 | $ | 8.25 | 3.63 | $ | 32,414 | ||||||||
Exercisable at December 31, 2014 | 2,631 | $ | 7.26 | 2.96 | $ | 24,481 | ||||||||
Vested and expected to vest after December 31, 2014 | 3,844 | $ | 8.22 | 3.61 | $ | 32,114 | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company’s RSU activity and related information for the three months ended December 31, 2014 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands): | |||||||||||||
Number of | Weighted-Average | Aggregate | ||||||||||||
Shares | Grant Date | Intrinsic Value | ||||||||||||
Fair Value | ||||||||||||||
Outstanding at September 30, 2014 | 262 | $ | 9.91 | |||||||||||
Granted | 228 | $ | 13.54 | |||||||||||
Vested | (100 | ) | $ | 9.19 | $ | 1,376 | ||||||||
Forfeited | — | $ | 9.72 | |||||||||||
Outstanding at December 31, 2014 | 390 | $ | 12.22 | $ | 6,455 | |||||||||
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | A summary of the Company’s SAR activity and related information for the three months ended December 31, 2014 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands): | |||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Shares | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Term in Years | ||||||||||||||
Outstanding at September 30, 2014 | 747 | $ | 10.96 | |||||||||||
Granted | 680 | $ | 13.54 | |||||||||||
Exercised | (23 | ) | $ | 10.96 | $ | 112 | ||||||||
Cancelled/Expired | (5 | ) | $ | 11.98 | ||||||||||
Outstanding at December 31, 2014 | 1,399 | $ | 12.21 | 6.33 | $ | 6,101 | ||||||||
Exercisable at December 31, 2014 | 175 | $ | 10.96 | 5.85 | $ | 983 | ||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current | The following is a summary of inventories by major category: | ||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Purchased components | $ | 25,958 | $ | 21,677 | |||||
Work-in-process | 25,241 | 27,058 | |||||||
Finished goods | 36,906 | 36,358 | |||||||
$ | 88,105 | $ | 85,093 | ||||||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets [Abstract] | |||||||||
Schedule of Other Assets | Other assets consisted of the following: | ||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Restricted assets | $ | 637 | $ | 499 | |||||
Other investment | 1,406 | 1,436 | |||||||
Nanya private placement shares | 10,215 | 10,645 | |||||||
Technology licenses, net | 15,975 | 10,644 | |||||||
Other | 1,139 | 1,145 | |||||||
$ | 29,372 | $ | 24,369 | ||||||
Purchased_Intangible_Assets_Ta
Purchased Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | The following tables present details of the Company’s total purchased intangible assets: | ||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(In thousands) | |||||||||||||
December 31, 2014 | |||||||||||||
Developed technology | $ | 5,330 | $ | 2,755 | $ | 2,575 | |||||||
Customer relationships | 3,340 | 1,276 | 2,064 | ||||||||||
Other | 450 | 343 | 107 | ||||||||||
Total | $ | 9,120 | $ | 4,374 | $ | 4,746 | |||||||
September 30, 2014 | |||||||||||||
Developed technology | $ | 5,330 | $ | 2,584 | $ | 2,746 | |||||||
Customer relationships | 3,340 | 1,137 | 2,203 | ||||||||||
Other | 450 | 306 | 144 | ||||||||||
Total | $ | 9,120 | $ | 4,027 | $ | 5,093 | |||||||
Schedule of amortization expense of purchased intangible assets as reported in the consolidated statements of income | The following table presents details of the amortization expense of purchased intangible assets as reported in the consolidated statements of income: | ||||||||||||
Three Months Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Reported as: | |||||||||||||
Cost of sales | $ | 171 | $ | 232 | |||||||||
Operating expenses | 176 | 177 | |||||||||||
Total | $ | 347 | $ | 409 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated future amortization expense of the Company’s purchased intangible assets at December 31, 2014 (in thousands). The weighted-average remaining amortization period for developed technology, customer relationships and other intangibles is 3.79 years, 3.71 years and 0.71 years, respectively. If the Company acquires additional purchased intangible assets in the future, its future amortization may be increased by those assets. | ||||||||||||
Fiscal year | |||||||||||||
Remainder of 2015 | $ | 1,035 | |||||||||||
2016 | 1,238 | ||||||||||||
2017 | 1,239 | ||||||||||||
2018 | 1,195 | ||||||||||||
2019 | 39 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 4,746 | |||||||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Disclosure [Abstract] | ||||
Schedule of Maturities of Long-term Debt | Principal payments due under the Loan are as follows (in thousands): | |||
Fiscal year | ||||
Remainder of 2015 | $ | 146 | ||
2016 | 195 | |||
2017 | 195 | |||
2018 | 3,949 | |||
2019 | — | |||
Thereafter | — | |||
Total | $ | 4,485 | ||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): | ||||||||||
December 31, | September 30, | ||||||||||
2014 | 2014 | ||||||||||
Accumulated foreign currency translation adjustments | $ | (5,452 | ) | $ | 1,051 | ||||||
Accumulated net retirement plan transition asset (net of tax of $124 and $124, respectively) | (7 | ) | 8 | ||||||||
Accumulated net retirement plan actuarial losses (net of tax of $477 and $477, respectively) | (2,074 | ) | (2,103 | ) | |||||||
Total accumulated other comprehensive loss | $ | (7,533 | ) | $ | (1,044 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The significant amounts reclassified out of accumulated other comprehensive loss into the consolidated condensed statements of income, with presentation location, during the three months ended December 31, 2014 and December 31, 2013 were as follows: | ||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Location | |||||||||
Unrealized holding gains on available-for -sale investments | |||||||||||
$ | — | $ | 3,669 | Gain on the sale of investments | |||||||
— | (1,373 | ) | Provision for income taxes | ||||||||
$ | — | $ | 2,296 | ||||||||
Per_Share_Data_Tables
Per Share Data (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | |||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Numerator for basic and diluted net income per share: | ||||||||||
Net income attributable to ISSI | $ | 3,186 | $ | 5,435 | ||||||
Denominator for basic net income per share: | ||||||||||
Weighted average common shares outstanding | 30,990 | 29,318 | ||||||||
Dilutive stock options and awards | 1,531 | 1,399 | ||||||||
Denominator for diluted net income per share | 32,521 | 30,717 | ||||||||
Basic net income per share | $ | 0.1 | $ | 0.19 | ||||||
Diluted net income per share | $ | 0.1 | $ | 0.18 | ||||||
Geographic_and_Segment_Informa1
Geographic and Segment Information (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table summarizes the Company’s operations in different geographic areas: | |||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Net sales | ||||||||||
United States | $ | 10,893 | $ | 9,062 | ||||||
China | 9,872 | 11,912 | ||||||||
Hong Kong | 13,840 | 15,021 | ||||||||
Japan | 5,657 | 6,073 | ||||||||
Korea | 3,919 | 3,377 | ||||||||
Taiwan | 11,397 | 11,003 | ||||||||
Other Asia Pacific countries | 5,969 | 6,264 | ||||||||
Europe | 19,096 | 16,066 | ||||||||
Other | 267 | 345 | ||||||||
Total net sales | $ | 80,910 | $ | 79,123 | ||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | ||||||||||
December 31, | September 30, | |||||||||
2014 | 2014 | |||||||||
(In thousands) | ||||||||||
Long-lived assets | ||||||||||
United States | $ | 11,140 | $ | 11,174 | ||||||
Hong Kong | 13 | 14 | ||||||||
China | 12,843 | 12,908 | ||||||||
Taiwan | 33,354 | 34,751 | ||||||||
$ | 57,350 | $ | 58,847 | |||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Details) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 14, 2012 |
Business Acquisition [Line Items] | |||||
Additional interest acquired | $0 | $199 | |||
Chingis Technology Corporation | |||||
Business Acquisition [Line Items] | |||||
Percentage of interests acquired | 94.10% | ||||
Percentage of additional voting interests acquired | 4.80% | 1.10% | |||
Additional interest acquired | $1,600 | $400 | |||
Percentage ownership of Chingis | 100.00% |
Fair_Value_Measurements_Market
Fair Value Measurements (Marketable Equity and Cash Equivalents (Classified as Available-for-sale) and Cost Method Investments) (Details) (Fair Value, Inputs, Level 1, USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $42,404 | $43,198 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | 42,404 | 43,198 |
Money market instruments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,520 | 22,519 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | 22,520 | 22,519 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,884 | 20,679 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | 19,884 | 20,679 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 40,987 | |
Gross Unrealized Holding Gains | 0 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | 40,987 | |
Cash and Cash Equivalents and Restricted Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41,721 | |
Gross Unrealized Holding Gains | 0 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | 41,721 | |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,417 | 1,477 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | $1,417 | $1,477 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Foreign | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents, and short-term investments | $74.90 | $71.90 |
China | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents, and short-term investments | $2.20 |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant under the 2007 Plan (shares) | 1,532,000 | |
Vesting period | 4 years | |
1995 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage discount from fair market value for shares purchased under the Employee Stock Purchase Plan | 85.00% | |
Offering period (years) | 6 months | |
Shares available for future issuance under the Employee Stock Purchase Plan (shares) | 332,000 | |
Prior to October 1 2005 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option expiration period (years) | 10 years | |
After October 1 2005 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option expiration period (years) | 7 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Cliff vesting period | 6 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Cliff vesting period | 1 year | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of grants | $13.54 | $10.96 |
Restricted Stock Units (RSUs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
SARS | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Option expiration period (years) | 7 years | |
Total unrecognized stock-based compensation expense | $7,100 | |
Nonvested awards, total compensation cost not yet recognized, period for recognition (years) | 3 years 4 months 13 days | |
SARS | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Cliff vesting period | 6 months | |
SARS | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Cliff vesting period | 1 year | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized stock-based compensation expense | 10,000 | |
Nonvested awards, total compensation cost not yet recognized, period for recognition (years) | 2 years 6 months | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized stock-based compensation expense | $56 | |
Nonvested awards, total compensation cost not yet recognized, period for recognition (years) | 1 month |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $2,052 | $1,648 |
Tax effect on stock-based compensation | -420 | -302 |
Net effect on net income | 1,632 | 1,346 |
SARS | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Net effect on net income | 526 | 157 |
Cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 51 | 50 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 767 | 649 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $1,234 | $949 |
Stockbased_Compensation_Shareb
Stock-based Compensation (Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value) (Details) (Options, USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of grants | $3.86 | $4.54 |
Expected term in years | 4 years 3 months 7 days | 4 years 5 months 1 day |
Estimated volatility | 39.00% | 50.00% |
Risk-free interest rate | 1.29% | 0.98% |
Dividend yield | 1.74% | 0.00% |
Stockbased_Compensation_Shareb1
Stock-based Compensation (Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable) (Details) (Options, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at September 30, 2014 | 4,240 |
Granted | 46 |
Exercised | -385 |
Cancelled/Expired | -7 |
Outstanding at December 31, 2014 | 3,894 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at September 30, 2014 | $8.10 |
Granted | $13.54 |
Exercised | $7.19 |
Cancelled/Expired | $10.22 |
Outstanding at December 31, 2014 | $8.25 |
Aggregate Intrinsic Value, options exercised | $3,302 |
Weighted-Average Remaining Contractual Term in Years, Outstanding at December 31, 2014 (years) | 3 years 7 months 17 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2014 | 32,414 |
Number of Shares, Exercisable at December 31, 2014 (shares) | 2,631 |
Weighted-Average Exercise Price, Exercisable at December 31, 2014 | $7.26 |
Weighted-Average Remaining Contractual Term in Years, Exercisable at December 31, 2014 (years) | 2 years 11 months 16 days |
Aggregate Intrinsic Value, Exercisable at December 31, 2014 | 24,481 |
Number of Shares, Vested and expected to vest after December 31, 2014 (shares) | 3,844 |
Weighted-Average Exercise Price, Vested and expected to vest after December 31, 2014 | $8.22 |
Weighted-Average Remaining Contractual Term in Years, Vested and expected to vest after December 31, 2014 (years) | 3 years 7 months 10 days |
Aggregate Intrinsic Value, Vested and expected to vest after December 31, 2014 | $32,114 |
Stockbased_Compensation_Restri
Stock-based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at September 30, 2014 | 262 | |
Granted | 228 | |
Vested | -100 | |
Forfeited | 0 | |
Outstanding at December 31, 2014 | 390 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Outstanding at September 30, 2012, Weighted-Average Grant Date Fair Value | $9.91 | |
Weighted-average fair value of grants | $13.54 | $10.96 |
Weighted average grant date fair value, vested | $9.19 | |
Weighted average grant date fair value, forfeited | $9.72 | |
Outstanding at June 30, 2014, Weighted-Average Grant Date Fair Value | $12.22 | |
Aggregate Intrinsic Value, Vested | $1,376 | |
Aggregate Intrinsic Value, Outstanding at June 30, 2014 | $6,455 |
Stockbased_Compensation_Schedu1
Stock-based Compensation (Schedule of SAR Activity) (Details) (SARS, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
SARS | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at September 30, 2014 | 747 |
Granted | 680 |
Exercised | -23 |
Cancelled/Expired | -5 |
Outstanding at December 31, 2014 | 1,399 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at September 30, 2014 | $10.96 |
Granted | $13.54 |
Exercised | $10.96 |
Cancelled/Expired | $11.98 |
Outstanding at December 31, 2014 | $12.21 |
Aggregate Intrinsic Value, exercised | $112 |
Weighted-Average Remaining Contractual Term in Years, Outstanding at December 31, 2014 (years) | 6 years 3 months 29 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2014 | 6,101 |
Number of Shares, Exercisable at December 31, 2014 (shares) | 175 |
Weighted-Average Exercise Price, Exercisable at December 31, 2014 | $10.96 |
Weighted-Average Remaining Contractual Term in Years, Exercisable at December 31, 2014 (years) | 5 years 10 months 6 days |
Aggregate Intrinsic Value, Exercisable at December 31, 2014 | $983 |
Concentrations_Narrative_Detai
Concentrations (Narrative) (Details) (Sales Revenue, Goods, Net) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Largest Distributor | ||
Concentration Risk [Line Items] | ||
Concentration risk, largest customers | 15.00% | 15.00% |
Second Largest Distributor | ||
Concentration Risk [Line Items] | ||
Concentration risk, largest customers | 14.00% | 13.00% |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Inventory write-downs | $1.50 | $0.80 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventory, Current by major category) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Purchased components | $25,958 | $21,677 | |
Work-in-process | 25,241 | 27,058 | |
Finished goods | 36,906 | 36,358 | |
Inventories | $88,105 | $85,093 | [1] |
[1] | Derived from audited financial statements. |
Other_Assets_Schedule_of_Other
Other Assets (Schedule of Other Assets) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2012 | |
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Restricted assets | $637 | $499 | ||
Other investment | 1,406 | 1,436 | 2,000 | |
Nanya private placement shares | 10,215 | 10,645 | ||
Other | 1,139 | 1,145 | ||
Other assets | 29,372 | 24,369 | [1] | |
Technology licenses, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Technology licenses, net | $15,975 | $10,644 | ||
[1] | Derived from audited financial statements. |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2012 |
Entity Information [Line Items] | ||||
Termination period | 1 year | |||
Other investment | 1,406 | $1,436 | $2,000 | |
Hong Kong | ||||
Entity Information [Line Items] | ||||
Equity method investment ownership percentage | 25.00% | |||
Technology licenses, net | Minimum | ||||
Entity Information [Line Items] | ||||
Estimated useful lives | 3 years | |||
Technology licenses, net | Maximum | ||||
Entity Information [Line Items] | ||||
Estimated useful lives | 10 years |
Purchased_Intangible_Assets_Sc
Purchased Intangible Assets (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $9,120 | $9,120 | |
Accumulated Amortization | 4,374 | 4,027 | |
Net | 4,746 | ||
Total, Net | 4,746 | 5,093 | [1] |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 5,330 | 5,330 | |
Accumulated Amortization | 2,755 | 2,584 | |
Net | 2,575 | 2,746 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 3,340 | 3,340 | |
Accumulated Amortization | 1,276 | 1,137 | |
Net | 2,064 | 2,203 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 450 | 450 | |
Accumulated Amortization | 343 | 306 | |
Net | $107 | $144 | |
[1] | Derived from audited financial statements. |
Purchased_Intangible_Assets_Sc1
Purchased Intangible Assets (Schedule of Current Finite-Lived Intangible Asset Amortization Expense by Income Statement Line Item) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Current Intangible Asset Amortization Expense By Income Statement Line Item [Line Items] | ||
Amortization of intangibles | $347 | $409 |
Cost of sales | ||
Schedule of Current Intangible Asset Amortization Expense By Income Statement Line Item [Line Items] | ||
Amortization of intangibles | 171 | 232 |
Operating expenses | ||
Schedule of Current Intangible Asset Amortization Expense By Income Statement Line Item [Line Items] | ||
Amortization of intangibles | $176 | $177 |
Purchased_Intangible_Assets_Na
Purchased Intangible Assets (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Developed technology | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Weighted average useful life for intangibles (years) | 3 years 9 months 15 days |
Customer relationships | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Weighted average useful life for intangibles (years) | 3 years 8 months 16 days |
Other | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Weighted average useful life for intangibles (years) | 8 months 16 days |
Purchased_Intangible_Assets_Sc2
Purchased Intangible Assets (Schedule Finite-Lived Intangible Assets, Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $1,035 |
2016 | 1,238 |
2017 | 1,239 |
2018 | 1,195 |
2019 | 39 |
Thereafter | 0 |
Net | $4,746 |
Borrowings_Narrative_Details
Borrowings (Narrative) (Details) (Secured Debt, USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||
Amount of bank loan | 4.9 | |
Purchase price of headquarters | 6.5 | |
Acres of land | 2.85 | |
Square footage of building | 55,612 | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate spread above LIBOR | 1.00% | |
LIBOR | LIBOR | |
Interest rate on loan at period end | 1.25% |
Borrowings_Schedule_of_Maturit
Borrowings (Schedule of Maturities of Debt) (Details) (Secured Debt, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Secured Debt | |
Debt Instrument [Line Items] | |
Remainder of 2015 | $146 |
2016 | 195 |
2017 | 195 |
2018 | 3,949 |
2019 | 0 |
Thereafter | 0 |
Total | $4,485 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | |||
Stockholders' Equity Note [Abstract] | |||
Accumulated foreign currency translation adjustments | ($5,452) | $1,051 | |
Accumulated net retirement plan transition asset (net of tax of $124 and $124, respectively) | -7 | 8 | |
Accumulated net retirement plan actuarial losses (net of tax of $477 and $477, respectively) | -2,074 | -2,103 | |
Total accumulated other comprehensive loss | -7,533 | -1,044 | [1] |
Accumulated net retirement plan transition asset, tax | 124 | 124 | |
Accumulated net retirement plan actuarial losses, tax | $477 | $477 | |
[1] | Derived from audited financial statements. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Schedule of Reclassification out of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of investments | $0 | $3,121 |
Provision for income taxes | -926 | -1,643 |
Consolidated net income | 3,236 | 5,446 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Unrealized holding gains on available-for -sale investments | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of investments | 0 | 3,669 |
Provision for income taxes | 0 | -1,373 |
Consolidated net income | $0 | $2,296 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $926 | $1,643 |
Effective tax rate | 22.00% | 23.00% |
Federal statutory rate | 35.00% | 35.00% |
Per_Share_Data_Calculation_of_
Per Share Data (Calculation of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ||
Net income attributable to ISSI | $3,186 | $5,435 |
Denominator for basic net income per share: | ||
Weighted average common shares outstanding | 30,990 | 29,318 |
Dilutive stock options and awards | 1,531 | 1,399 |
Denominator for diluted net income per share | 32,521 | 30,717 |
Basic net income per share (in dollars per share) | $0.10 | $0.19 |
Diluted net income per share (in dollars per share) | $0.10 | $0.18 |
Per_Share_Data_Narrative_Detai
Per Share Data (Narrative) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ||
Stock options and awards excluded from diluted earnings per share (shares) | 538 | 2,749 |
Common_Stock_Repurchase_Progra1
Common Stock Repurchase Program (Narrative) (Details) (USD $) | 3 Months Ended | 88 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 |
Common Stock Repurchase Program [Abstract] | ||
Stock repurchased and retired during period (shares) | 14,179,711 | |
Stock repurchased and retired during period, value | $88.50 | |
Stock repurchase program, remaining authorized repurchase amount | 19.8 | 19.8 |
Shares paid for tax withholding for share based compensation (shares) | 35,806 | |
Payments related to tax withholding for share-based compensation | $0.50 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Amount of purchase orders that had been entered into wafer work-in-process | $19.50 |
Geographic_and_Segment_Informa2
Geographic and Segment Information (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Business_Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Geographic_and_Segment_Informa3
Geographic and Segment Information (Schedule of Revenues, by Geographical Areas) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $80,910 | $79,123 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 10,893 | 9,062 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 9,872 | 11,912 |
Hong Kong | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 13,840 | 15,021 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 5,657 | 6,073 |
Korea | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 3,919 | 3,377 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 11,397 | 11,003 |
Other Asia Pacific countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 5,969 | 6,264 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 19,096 | 16,066 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $267 | $345 |
Geographic_and_Segment_Informa4
Geographic and Segment Information (Schedule of Long-Lived Assets, by Geographical Areas) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $57,350 | $58,847 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 11,140 | 11,174 |
Hong Kong | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 13 | 14 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 12,843 | 12,908 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $33,354 | $34,751 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (Jimmy S.M. Lee, Executive Chairman, USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Jimmy S.M. Lee, Executive Chairman | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $58 | $21 | |
Accounts receivable, related parties | $26 | $59 |