Exhibit 99.1
Alliance Semiconductor Reports Financial Results for the
Fiscal Fourth Quarter and Fiscal Year Ended March 31, 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 29, 2003--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the fiscal fourth quarter and fiscal year ended March 31,
2003.
Fiscal Year 2003 Highlights
-- Successfully diversified company into three main business
units: mixed signal, system solutions and memory
-- Non-memory business units represented 25% of revenue for the
fiscal year and 40% of revenue in fiscal fourth quarter.
-- Repurchased over 6 million shares of Alliance common stock in
fiscal year 2003
-- Introduced 40 new products in our Mixed Signal business unit,
including 2 new general purpose EMI reduction IC's in the
switching power supply market that were featured as products
of the month in "Power Electronics Magazine"
-- Added 23 new design wins in the System Solutions business unit
-- Acquired Chip Engines, Inc., a leading fabless supplier of
silicon solutions for next generation Metropolitan Area
Network (MAN) platforms
-- Expanded product portfolio with wide range of synchronous
SRAMs, now qualified with over 50 customers
Fourth Quarter Results
The Company reported revenues of $5.1 million, as compared to the
$5.1 million reported in the third quarter of fiscal 2003 and the $3.0
million for the same quarter in the previous year. The revenue
attributable to the non-memory business units sequentially grew 36%
and represented approximately 39% of the Company's total revenue
compared to 28% in the previous quarter. This increase signifies the
growing demand for the company's product offerings, and Alliance's
continued commitment to diversifying its revenue channels.
The net loss for the fourth quarter was $25.5 million, or ($0.72)
per share, compared to a net loss of $43.6 million, or ($1.21) per
share for the previous quarter, and the $18.3 million or ($0.44) per
share reported in the fourth quarter 2002.
Operating expenses for the quarter were $12.1 million, an increase
from the $10.3 million reported in the third quarter of fiscal 2003.
The increase in operating expenses for the fiscal fourth quarter was
primarily due to costs associated with the Chip Engine acquisition and
the ramp-up in product development of our mixed signal business unit,
which resulted in the introduction of 9 new products in the fourth
quarter.
Fiscal 2003 Results
For fiscal year 2003, the Company reported revenues of $18.5
million, a decrease from the $26.5 million reported in fiscal 2002.
The net loss for fiscal year 2003 is $106.0 million or ($2.85) per
share, compared to a net loss of $240.7 million, or ($5.86) per share
reported in 2002.
"The Company continues to accomplish key objectives in our pursuit
of an accelerated path towards break-even and profitability. One of
these objectives was to diversify the company into three main business
units, and I am pleased to report this was our first year as a
diversified company. In the March quarter, we achieved sequential
revenue growth in our non-memory business units that accounted for
approximately 40% of our overall revenue, and introduced 9 new
products in the mixed signal business unit," said N.D. Reddy, Alliance
Chairman, President and CEO.
Mr. Reddy concluded by stating, "Increased activity from customers
and broadened sales channels into higher growth markets have allowed
us to better position ourselves within new markets, including the
notebook and LCD display markets. Until overall market conditions
improve, we are taking internal measures to manage costs by reducing
expenses and overhead to allow us to further invest in research and
development, thereby broadening our product portfolio."
Business Outlook
Alliance President and Chief Executive Officer, N.D. Reddy, and
Chief Financial Officer, Ron Shelton will update the business outlook
and give guidance for fiscal first quarter 2004 during the earnings
conference call at 2:00 PT on April 29, 2003.
Fiscal Year and Fourth Quarter 2003 Financial Results Web
cast/Conference Call
The Alliance management team will host a live web cast and
conference call to discuss the fourth quarter and fiscal year 2003
financial results beginning at 2:00 P.M. PT on Tuesday, April 29,
2003. Investors and other interested parties may participate in the
call by dialing 800-937-4589 at least fifteen minutes prior to the
call and enter pass code 21140261 or listen to the live web cast by
visiting the investor relations section of the Alliance website at
www.alsc.com
Company Information:
Alliance Semiconductor Corporation is a leading worldwide provider
of memory, mixed signal and system solutions for networking, wireless,
consumer and computing markets. Through these integrated business
units, Alliance provides leading OEMs with synchronous and fast
asynchronous SRAMs and super low-power and pseudo SRAMs, high-speed
chip-to-chip interconnects based on HyperTransport technology and
mixed signal products for Electromagnetic Interference (EMI)
management. Alliance develops and manufactures its products through
independent manufacturing foundries using advanced CMOS process
technologies with line widths as narrow as 0.13-microns. Founded in
1985, Alliance is headquartered in Santa Clara, California. Additional
information is available on Alliance's Web site at:
http://www.alsc.com.
Alliance was founded in 1985. Additional Company information can
be found on its home page: http://www.alsc.com.
Forward Looking Statements
Except for historical information, the above statements of this
press release are forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward looking
statements. These risks and uncertainties include such factors, among
others, as further significant price erosion of the Company's
products; continued significantly decreased demand and increased
competitive environment for the Company's products; the Company's
potential status as an Investment Act of 1940 reporting company;
obsolescence of the Company's products; further accumulation of excess
inventory or price erosion or obsolescence of existing inventory, any
of which may result in charges against the Company's earnings;
inability to timely ramp up production of and deliver new or enhanced
products; inability to successfully recruit and retain qualified
technical and other personnel; adverse developments in current or
future litigation or administrative proceedings; further diminution in
value of investments made by Alliance or by Alliance Venture
Management, LLC; continued cancellation of orders in the Company's
backlog and the risk factors listed in the Company's Form 10-K for the
fiscal year ended March 30, 2002, which has been filed with the
Securities and Exchange Commission, and which is available through the
Company's home page, www.alsc.com. These forward-looking statements
speak only as of the date of this press release. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with regard
thereto or to reflect any change in events, conditions or
circumstances on which any such forward-looking statement is based.
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March March
2003 2002
------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $8,642 $31,574
Short term investments 148,711 466,986
Accounts receivable, net 2,058 2,891
Inventory 2,862 19,636
Other current assets 5,154 12,913
--------------- --------------
Total current assets 167,427 534,000
Property and equipment, net 8,205 8,214
Investment in United
Microelectronics Corp. 0 43,750
(excluding short term portion)
Investment in Tower
Semiconductor Corporation 15,822 16,278
(excluding short term portion)
Alliance Ventures LP and other
investments 38,319 72,575
Other non-current assets 15,408 7,753
--------------- --------------
Total assets $245,181 $682,570
=============== ==============
Current liabilities:
Accounts payable $4,298 $2,893
Accrued liabilities 5,053 6,178
Income taxes payable 4,520 22,087
Deferred income taxes 23,840 107,495
Short term borrowings and current
portion of long term obligations 46,009 71,556
--------------- --------------
Total current
liabilities 83,720 210,209
Long term liabilities:
Long term obligations 1,326 4,808
Deferred income taxes 0 12,827
--------------- --------------
Total liabilities 85,046 227,844
--------------- --------------
Minority interest in
consolidated subsidiaries 915 3,471
--------------- --------------
Stockholders' equity:
Common stock 432 430
Additional paid-in capital 131,175 168,770
Retained earnings 25,510 131,558
Accumulated other
comprehensive income 2,103 150,497
--------------- --------------
Total stockholders' equity 159,220 451,255
--------------- --------------
$245,181 $682,570
=============== ==============
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) (unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------- ----------------------
2003 2002 2003 2002
--------- --------- ---------- ----------
Net revenues $5,065 $3,021 $18,522 $26,547
Cost of revenues 3,858 23,117 39,744 73,966
--------- --------- ---------- ----------
Gross profit (loss) 1,207 (20,096) (21,222) (47,419)
--------- --------- ---------- ----------
Operating expenses:
Research and
development 7,598 4,114 24,543 11,341
Selling, general and
administrative 4,543 8,373 18,066 20,377
--------- --------- ---------- ----------
Total operating expenses 12,141 12,487 42,609 31,718
--------- --------- ---------- ----------
Income (loss) from
operations (10,934) (32,583) (63,831) (79,137)
Gain (loss) on investments (257) 14,382 14,143 4,777
Writedown of marketable
securities
and venture investments (1,526) 0 (55,792) (296,846)
Other income (expense),
net (50) (3,704) (4,406) (5,287)
--------- --------- ---------- ----------
Income (loss) before income
taxes, equity in income
(loss) of investees, and
effect of accounting
change (12,767) (21,905) (109,886) (376,493)
Provision (benefit) for
income taxes 10,448 (5,606) (11,303) (142,701)
--------- --------- ---------- ----------
Income (loss) before minority
interest in consolidated
subsidiaries, equity in
income (loss) ofinvestees,
and effect of accounting
change (23,215) (16,299) (98,583) (233,792)
Minority interest in
consolidated subsidiaries 405 533 3,322 533
Equity in income (loss) of
investees (2,666) (2,505) (10,787) (9,512)
Cumulative effect of change
in accounting princple 0 0 0 2,055
--------- --------- ---------- ----------
Net income (loss) ($25,476) ($18,271) ($106,048) ($240,716)
========= ========= ========== ==========
Net income (loss) per
share:
Basic ($0.72) ($0.44) ($2.85) ($5.86)
========= ========= ========== ==========
Diluted ($0.72) ($0.44) ($2.85) ($5.86)
========= ========= ========== ==========
Weighted average number of
common shares:
Basic 35,480 41,321 37,160 41,078
========= ========= ========== ==========
Diluted 35,480 41,321 37,160 41,078
========= ========= ========== ==========
CONTACT: Alliance Semiconductor Corporation
Ron Shelton, 408/855-4958
rshelton@alsc.com
or
Shelton Investor Relations
INVESTOR CONTACT
Katherine Stubblefield, 512/482-8644
kstubblefield@sheltongroup.com