Exhibit 99.1
ISSI Announces Third Quarter Fiscal Year 2004 Results
SANTA CLARA, Calif., July 22 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the
third fiscal quarter ended June 30, 2004.
Revenues in the third quarter of fiscal 2004 were $58.1 million, compared
with $24.3 million in the third quarter of the prior year and $51.5 million in
the quarter ended March 31, 2004. The Company reported a net profit for the
June 2004 quarter of $5.6 million or $0.15 per share on a diluted share basis.
This compares to a net loss for the June 2003 quarter of ($5.9) million or
($0.21) per share and a net profit in the recent March 2004 quarter of
$12.5 million, or $0.34 per share on a diluted share basis. The profit for
the March 2004 quarter included $8.7 million or $0.24 per diluted share for a
pre-tax gain on the Company's sale of a portion of its stock held in SMIC.
"Quarter to quarter, our June 2004 revenue is 13% growth over March 2004,
and our revenue growth over the June 2003 quarter is 139%," said Jimmy Lee,
ISSI's Chairman and CEO. "We are seeing some increase in orders for our SRAM
products from the networking and telecom markets, and we believe that, with
both Christmas and Chinese New Year on the horizon, the consumer electronics
markets for our DRAM will see good growth."
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, July 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 release, including statements regarding the
increase in orders for our SRAM products and expected growth in the consumer
electronics market for our DRAM products, 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, including in the networking and telecom and consumer
electronics markets, slow down in demand, manufacturing yields, the Company's
inability to effectively reduce expenses, the Company's inability to add new
products or diversify product lines, order cancellations, order rescheduling,
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 July 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 March 31, 2004.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
June 30, June 30,
2004 2003 2004 2003
Net sales $58,129 $24,285 $149,888 $67,635
Cost of sales 44,290 20,271 115,212 61,503
Gross profit 13,839 4,014 34,676 6,132
Operating Expenses:
Research and development 5,615 5,584 15,736 18,523
Selling, general and
administrative 4,379 3,039 12,232 10,095
Total operating expenses 9,994 8,623 27,968 28,618
Operating income (loss) 3,845 (4,609) 6,708 (22,486)
Other income (expense), net 138 (1,134) 1,130 (964)
Gain on sale of investments -- 418 8,740 418
Income (loss) before income taxes,
minority
interest and equity in net
(income) loss of
affiliated companies 3,983 (5,325) 16,578 (23,032)
Provision for income taxes 119 -- 497 --
Income (loss) before minority
interest
and equity in net income (loss) of
affiliated companies 3,864 (5,325) 16,081 (23,032)
Minority interest in net loss of
consolidated subsidiary -- -- -- 17
Equity in net income (loss) of
affiliated companies 1,775 (615) 2,965 (2,584)
Net income (loss) $5,639 $(5,940) $19,046 $(25,599)
Basic net income (loss) per share $0.16 $(0.21) $0.58 $(0.92)
Shares used in basic per share
calculation 35,717 27,774 32,572 27,682
Diluted net income (loss) per share $0.15 $(0.21) $0.53 $(0.92)
Shares used in diluted per share
calculation 38,399 27,774 35,628 27,682
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, September 30,
2004 2003
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $16,405 $19,992
Short-term investments 133,400 38,450
Accounts receivable 35,086 12,152
Inventories 38,155 16,638
Other current assets 1,956 1,712
Total current assets 225,002 88,944
Property, equipment, and leasehold
improvements, net 4,269 6,295
Other assets 95,007 62,860
Total assets $324,278 $158,099
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $29,347 $17,230
Accrued compensation and benefits 2,812 3,406
Accrued expenses 6,560 5,436
Total current liabilities 38,719 26,072
Minority interest -- 78
Stockholders' equity:
Common stock 4 3
Additional paid-in capital 335,360 233,957
Accumulated deficit (78,282) (97,328)
Unearned compensation (240) (268)
Accumulated comprehensive loss 28,717 (4,415)
Total stockholders' equity 285,559 131,949
Total liabilities and stockholders'
equity $324,278 $158,099
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solution, Inc.
-0- 07/22/2004
/CONTACT: Suzanne Weaver, Investor Relations, +1-408-969-4774, or
ir@issi.com; or Gary L. Fischer, President & COO, +1-408-969-4612, or
ir@issi.com, both of ISSI/
/Web site: http://www.issi.com /
(ISSI)
CO: Integrated Silicon Solution, Inc.
ST: California
IN: CPR SEM HRD
SU: ERN CCA