[LOGO] ISSI(R)
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INTEGRATED SILICON SOLUTION, INC.
FOR IMMEDIATE RELEASE
ISSI ANNOUNCES THIRD QUARTER FISCAL YEAR 2007 RESULTS
San Jose Calif.--July 26, 2007--Integrated Silicon Solution, Inc. (Nasdaq:
ISSI) today reported its financial results for the third fiscal quarter ended
June 30, 2007.
Revenue in the third fiscal quarter ending June 30, 2007 was $59.9
million, compared with $60.0 million in the March 2007 quarter and $53.2 million
in the June 2006 quarter. The reported net profit for the June 2007 quarter was
$4.9 million, or $0.13 per diluted share, with gross margins of 19.6%. This
profit includes a $2.3 million gain on sale of investments, a $2.3 million gain
in connection with the settlement of a commercial dispute, a $0.9 million charge
for FAS 123R stock option expense, and a $0.9 million expense for legal and
accounting fees for the recently completed restatement of our prior financial
results. These results compare with a net loss for the June 2006 quarter of
($6.9) million, or ($0.18) per share on a diluted share basis, which included a
$4.9 million inventory write-down and a $0.9 million charge for FAS 123R stock
option expense.
The Company's cash, cash equivalents and short-term investments totaled
$126.1 million at June 30, 2007 which was an increase of $4.6 million from March
31, 2007. This increase was primarily due to operating results and from sales of
investment securities. The Company's inventory at June 30, 2007 totaled $40.5
million which was a reduction of $15.1 million from the quarter ending March 31,
2007.
"Despite soft pricing this quarter, we were able to meet our revenue and
margin expectations and deliver solid financial results. We are pleased with the
significant inventory reduction and a 12.5% growth in revenue from the same
quarter in 2006," said Jimmy Lee, ISSI's Chairman and CEO.
Conference Call
A conference call will be held today at 1:30 p.m. Pacific time to discuss
this release. To access ISSI's conference call via telephone, dial 1 (719)
457-2657 by 1:20 p.m. Pacific time. The call will be webcast from ISSI's website
at www.issi.com.
-more-
ISSI Release
July 26, 2007
Page 2
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.
Risk Factors to our Business
The statements in this press release regarding our results for the June
2007 quarter and pricing conditions in the market are historical and should not
be read as predictive of future results. Among the risks affecting our business
are supply and demand conditions in the market place, unexpected reductions in
average selling prices for our products, our ability to sell our products for
the die business and automotive applications and the pricing and gross margins
achieved on such sales, our ability to control or reduce operating expenses,
changes in manufacturing yields, order cancellations, order rescheduling,
product warranty claims, competition, the level and value of inventory held by
OEM customers, or other factors. In addition, the financial information in this
press release is unaudited and subject to any adjustments that may be made in
connection with the year end audit and quarterly reviews.
Further information about risks that could affect the Company's business
are detailed in ISSI's periodic filings with the Securities and Exchange
Commission, including its report on Form 10-K for the year ending September 30,
2006, and Form 10-Q for the quarter ended March 31, 2007.
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CONTACT:
Scott Howarth
Vice-President & CFO
Investor Relations
(408) 969-6600
ir@issi.com
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,
------------------------ ------------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Net sales $ 59,927 $ 53,249 $ 182,066 $ 157,587
Cost of sales 48,192 48,911 146,392 140,219
--------- --------- --------- ---------
Gross profit 11,735 4,338 35,674 17,368
--------- --------- --------- ---------
Operating expenses:
Research and development 4,978 5,459 15,480 16,574
Selling, general and administrative 7,876 6,509 25,644 20,360
Acquired in-process technology charge -- -- -- 499
--------- --------- --------- ---------
Total operating expenses 12,854 11,968 41,124 37,433
--------- --------- --------- ---------
Operating loss (1,119) (7,630) (5,450) (20,065)
Interest and other income (expense), net 3,820 696 6,372 3,441
Gain on sale of investments 2,282 267 11,429 2,454
--------- --------- --------- ---------
Income (loss) before income taxes, minority
interest and equity in net loss of
affiliated companies 4,983 (6,667) 12,351 (14,170)
Provision for income taxes 32 51 45 164
--------- --------- --------- ---------
Income (loss) before minority interest
and equity in net loss of
affiliated companies 4,951 (6,718) 12,306 (14,334)
Minority interest in net (income) loss of
consolidated subsidiary (33) 39 (105) 689
Equity in net loss of
affiliated companies -- (233) (92) (709)
--------- --------- --------- ---------
Net income (loss) $ 4,918 $ (6,912) $ 12,109 $ (14,354)
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Basic and diluted net income (loss) per share $ 0.13 $ (0.18) $ 0.32 $ (0.38)
========= ========= ========= =========
Shares used in basic per share calculation 37,618 37,488 37,614 37,367
========= ========= ========= =========
Diluted net income (loss) per share $ 0.13 $ (0.18) $ 0.32 $ (0.38)
========= ========= ========= =========
Shares used in diluted per share calculation 37,999 37,488 37,995 37,367
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Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, September 30,
2007 2006
----------- -------------
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $ 58,045 $ 37,318
Short-term investments 68,083 76,015
Accounts receivable, net 37,175 31,906
Inventories 40,487 52,417
Other current assets 6,958 4,799
--------- ---------
Total current assets 210,748 202,455
Property, equipment and leasehold improvements, net 22,334 21,984
Goodwill 25,338 25,338
Purchased intangible assets, net 4,103 5,391
Other assets 1,809 5,110
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Total assets $ 264,332 $ 260,278
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 606 $ 1,632
Accounts payable 33,952 40,123
Accrued compensation and benefits 3,312 2,928
Accrued expenses 7,161 9,665
--------- ---------
Total current liabilities 45,031 54,348
Other long-term liabilities 1,917 2,048
--------- ---------
Total liabilities 46,948 56,396
Commitments and contingencies
Minority interest 662 690
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 382,422 379,038
Accumulated deficit (165,920) (178,029)
Accumulated comprehensive income 216 2,179
--------- ---------
Total stockholders' equity 216,722 203,192
--------- ---------
Total liabilities and stockholders' equity $ 264,332 $ 260,278
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(1) Derived from audited financial statements.