Exhibit 99.1
ISSI Announces Second Quarter Fiscal Year 2004 Results
SANTA CLARA, Calif., April 22 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the
second fiscal quarter ended March 31, 2004.
Revenues in the second quarter of fiscal 2004 were $51.5 million, compared
with $22.3 million in the second quarter of the prior year and $40.3 million
in the quarter ended December 31, 2003. The Company reported a net profit for
the March 2004 quarter of $12.5 million or $0.34 per share on a diluted share
basis. This profit includes a pre-tax gain on the sale of stock held in SMIC
of $8.7 million or $0.24 per share. This compares to a net loss for the March
2003 quarter of ($7.0) million or ($0.25) per share and a net profit in the
recent December 2003 quarter of $0.9 million, or $0.03 per share.
The Company ended the March 31, 2004 quarter with cash and short-term
investments of $160.6 million.
"Our March quarter revenue represents 28 percent sequential growth over
the recent December quarter and 131 percent growth over the same period last
year," said Jimmy Lee, ISSI's Chairman and CEO. "We are seeing strong demand
for our low and medium density DRAMs and this was a leading factor in our
growth."
The Company also announced that, on March 17, 2004, it sold approximately
11% of its holdings in SMIC as part of SMIC's initial public offering on that
date. Proceeds from the sale totaled $13.2 million. The Company now holds
approximately 6,542,610 ADRs of SMIC. Each ADR consists of 50 shares of SMIC
Common Stock. In accordance with generally accepted accounting principles,
the Company has marked its investment to the market value as of March 31, 2004
by increasing other assets and by increasing accumulated comprehensive income
in the equity section of its balance sheet. In accordance with generally
accepted accounting principles, no gain is reflected in the Company's income
statement unless shares are actually sold or otherwise divested.
About the Company
ISSI is a fabless semiconductor company that designs and markets high
performance integrated circuits for the following key markets: (i) digital
consumer electronics, (ii) networking, (iii) mobile communications and (iv)
automotive electronics. The Company's primary products are high speed and low
power SRAM and low and medium density DRAM. The Company also designs and
markets EEPROM, Pseudo SRAM and multi-chip packages and is developing selected
non-memory products focused on its key markets. ISSI is headquartered in
Silicon Valley with worldwide offices in China, Europe, Hong Kong, India,
Korea and Taiwan. Visit our web site at www.issi.com.
ISSI will host a conference call today, April 22, 2004, at 1:30 p.m.
(Pacific Time) to discuss this release. This call will be simulcast over the
Internet at www.issi.com. The webcast will be available for replay for 30
days from today.
Safe Harbor Statement
Certain statements in this news release, including statements regarding
strong demand for DRAMs, are forward-looking statements and are subject to
risks and uncertainties. Actual results may differ materially from current
expectations due to many factors, including the Company's inability to secure
wafers or manufacturing capacity, adverse changes in market conditions, the
Company's inability to effectively reduce expenses, the Company's inability to
add new products or diversify product lines, manufacturing yields, order
cancellations, order rescheduling, decreasing demand, unexpected reductions in
average selling prices for the Company's products and a resultant decrease in
the Company's gross profit margin, product warranty claims, competition, the
level and value of inventory held by OEM customers or the Company, or other
factors. Stockholders of ISSI are cautioned not to place undue reliance on
our forward-looking statements, which speak only as of the date such
statements are made. ISSI does not undertake any obligation to publicly
update any forward-looking statements to reflect events, circumstances, or new
information after this April 22, 2004 press release, or to reflect the
occurrence of unanticipated events. Further information that could affect the
Company's results is detailed in ISSI's periodic filings with the Securities
and Exchange Commission, including its Annual Report on Form 10K for the
fiscal year ended September 30, 2003 and its Quarterly Report for the fiscal
quartered ended December 31, 2003.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
2004 2003 2004 2003
Net sales $51,504 $22,312 $91,759 $43,350
Cost of sales 39,619 18,972 70,922 41,232
Gross profit 11,885 3,340 20,837 2,118
Operating expenses:
Research and development 5,381 6,134 9,921 12,939
Selling, general and administrative 4,162 3,398 8,053 7,056
Total operating expenses 9,543 9,532 17,974 19,995
Operating income (loss) 2,342 (6,192) 2,863 (17,877)
Other income (expense), net 896 152 992 170
Gain on sale of other investments 8,740 -- 8,740 --
Income (loss) before income taxes,
minority interest and equity in net
loss of affiliated companies 11,978 (6,040) 12,595 (17,707)
Provision for income taxes 366 -- 378 --
Income (loss) before minority interest
and equity in net income (loss) of
affiliated companies 11,612 (6,040) 12,217 (17,707)
Minority interest in net loss of
consolidated subsidiary -- -- -- 17
Equity in net income (loss) of
affiliated companies 900 (930) 1,190 (1,969)
Net income (loss) $12,512 $(6,970) $13,407 $(19,659)
Basic net income (loss) per share $0.38 $(0.25) $0.43 $(0.71)
Shares used in basic per share
calculation 33,350 27,708 31,000 27,637
Diluted net income (loss) per share $0.34 $(0.25) $0.39 $(0.71)
Shares used in diluted per share
calculation 36,550 27,708 34,242 27,637
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, Sept. 30,
2004 2003
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $27,450 $19,992
Short-term investments 133,100 38,450
Accounts receivable 28,947 12,152
Inventories 27,254 16,638
Other current assets 1,715 1,712
Total current assets 218,466 88,944
Property, equipment, and leasehold
improvements, net 4,738 6,295
Other assets 121,755 62,860
Total assets $344,959 $158,099
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $29,217 $17,230
Accrued compensation and benefits 3,751 3,406
Accrued expenses 5,861 5,436
Total current liabilities 38,829 26,072
Minority interest -- 78
Stockholders' equity:
Common stock 4 3
Additional paid-in capital 333,077 233,957
Accumulated deficit (83,921) (97,328)
Unearned compensation (263) (268)
Accumulated comprehensive loss 57,233 (4,415)
Total stockholders' equity 306,130 131,949
Total liabilities and stockholders' equity $344,959 $158,099
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solution, Inc.
-0- 04/22/2004
/CONTACT: Suzanne Weaver, Investor Relations, +1-408-969-4774, or
Gary L. Fischer, President & COO, +1-408-969-4612, both of Integrated Silicon
Solution, Inc., ir@issi.com/
/Web site: http://www.issi.com /