Exhibit 99.1
ISSI Announces Fourth Quarter and Fiscal Year 2004 Results
SANTA CLARA, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its preliminary financial results
for the fourth fiscal quarter and year ended September 30, 2004.
Revenue in the fourth quarter was $31.1 million, compared with $30.0
million in the prior year period. The Company reported a net loss for the
fourth quarter of ($15.6) million or ($0.43) per diluted share, compared with
a net loss of ($2.5) million or ($0.09) per diluted share, in the prior year
period. The September quarter loss of ($15.6) million includes a charge for
inventory write downs of $12.1 million.
For the fiscal year ended September 30, 2004, revenue totaled $181.0
million compared to $97.7 million for fiscal year 2003, or 85% growth. The
net profit for the year ended September 30, 2004 totaled $3.5 million or $0.10
per diluted share compared to a net loss of ($28.1) million or ($1.01) per
diluted share in fiscal year 2003.
The Company ended the 2004 fiscal year with cash and cash equivalents of
$139.0 million and no long or short-term debt obligations.
"Following a period of shortages and product allocation in the first half
of the year, we experienced the results of too much inventory build up in the
channels and a high inventory level at certain customers. The result was that,
for the September 2004 quarter, our DRAM family saw average selling prices
drop by about 36% from the June quarter, and overall unit shipments also
declined," said Jimmy Lee, ISSI's chief executive officer. "This resulted in
disappointing operating results for the September 2004 quarter. Our balance
sheet remains strong and we will work diligently to expand our revenue and to
leverage off our subsidiaries in Asia to reduce operating costs."
The statement of operations for the year ended September 30, 2004
currently includes an estimated tax provision of $488K. The company is still
analyzing the utilization of its tax loss carry forwards in light of certain
possible carry forward restrictions in Section 382 of the federal tax code.
If this analysis results in a conclusion that the company's tax loss carry
forwards are restricted, then the tax provision for the quarter and year ended
September 30, 2004 could be increased by a material amount when the company
reports its audited results for the year.
Conference Call
ISSI will host a conference call today, October 28, 2004, beginning at
1:30 p.m. Pacific time. To access the call, dial 719-457-2692. The call will
be simulcast over the Internet at www.issi.com. The webcast will be available
for replay until November 28, 2004.
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, SmartCards 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.
Safe Harbor Statement
Certain statements in this news release may be considered forward-looking
statements, including statements related to working diligently to expand
revenue, leveraging to reduce operating costs, and such statements are subject
to risks and uncertainties. Actual results may differ materially from current
expectations due to many factors, including completion of the Section 382 tax
analysis and the fiscal 2004 year-end audit, a reduction in average selling
prices for the Company's products and a resultant decrease in the Company's
gross profit margin, changes in demand for the Company's products or the
products in which the Company's products are used, changes in market
conditions, inability to expand revenue, inability to effectively reduce
expenses, inability to add new products or diversify product lines, order
cancellations, and order rescheduling, product warranty claims, competition,
the level and value of inventory held by OEM customers or the Company, the
Company's ability to secure manufacturing capacity from its foundries, or
other factors. Further information that could affect the Company's results is
detailed in ISSI's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10K for the fiscal year ended
September 30, 2003 and its most recent Quarterly Report on Form 10Q for the
quarter ended June 30, 2004.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Year Ended
September 30, September 30,
2004 2003 2004 2003
Net sales $31,124 $30,025 $181,012 $97,660
Cost of sales 39,103 24,543 154,315 86,046
Gross profit (loss) (7,979) 5,482 26,697 11,614
Operating Expenses:
Research and development 5,302 4,871 20,838 23,394
Selling, general and administrative 3,971 3,233 16,403 13,328
Total operating expenses 9,273 8,104 37,241 36,722
Operating loss (17,252) (2,622) (10,544) (25,108)
Other income (expense), net 108 157 1,238 (807)
Gain on sale of investments 2,134 134 10,874 552
Income (loss) before income taxes,
minority interest and equity in
net (income) loss of affiliated
companies (15,010) (2,331) 1,568 (25,363)
Provision (benefit) for income taxes (9) 3 488 3
Income (loss) before minority interest
and equity in net income (loss)
of affiliated companies (15,001) (2,334) 1,080 (25,366)
Minority interest in net loss of
consolidated subsidiary -- -- -- 17
Equity in net income (loss) of
affiliated companies (560) (144) 2,405 (2,728)
Net income (loss) $(15,561) $(2,478) $3,485 $(28,077)
Basic net income (loss) per share $(0.43) $(0.09) $0.10 $(1.01)
Shares used in basic per share
calculation 36,061 28,062 33,444 27,777
Diluted net income (loss) per share $(0.43) $(0.09) $0.10 $(1.01)
Shares used in diluted per share
calculation 36,061 28,062 36,121 27,777
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, September 30,
2004 2003
(1)
ASSETS
Current assets:
Cash and cash equivalents $17,015 $19,992
Restricted cash 1,500 --
Short-term investments 120,450 38,450
Accounts receivable 26,733 12,152
Inventories 44,718 16,638
Other current assets 1,541 1,712
Total current assets 211,957 88,944
Property, equipment, and leasehold
improvements, net 5,622 6,295
Other assets 83,285 62,860
Total assets $300,864 $158,099
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $30,493 $17,230
Accrued compensation and benefits 2,431 3,406
Accrued expenses 4,903 5,436
Total current liabilities 37,827 26,072
Minority interest -- 78
Stockholders' equity:
Common stock 4 3
Additional paid-in capital 336,524 233,957
Accumulated deficit (93,843) (97,328)
Unearned compensation (218) (268)
Accumulated comprehensive income (loss) 20,570 (4,415)
Total stockholders' equity 263,037 131,949
Total liabilities and stockholders' equity $300,864 $158,099
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solution, Inc.
-0- 10/28/2004
/CONTACT: Suzanne Weaver, Investor Relations, +1-408-969-6600, or
ir@issi.com, or Gary 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.; ISSI
ST: California
IN: CPR SEM HRD ECP
SU: ERN CCA