Exhibit 99.1
Alliance Semiconductor Reports Financial
Results for the First Quarter Ended June 30, 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 24, 2003--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the first fiscal quarter of 2004 ended June 30, 2003.
First Quarter Highlights
-- Increased System Solutions revenue by 32% sequentially and
added 4 new customers and 4 new design wins in the quarter
-- Introduced development platform for PMC-Sierra's RM9000(TM)
family of integrated processors
-- Released a programmable serial dual PLL EMI reduction device
and design kit
-- Introduced 7 new products in the Mixed Signal business unit
and continued to penetrate the notebook market by securing
design wins at major notebook suppliers
-- Achieved design wins in the mobile applications market
providing ultra-low power general purpose EMI reduction
devices
-- Successfully penetrated the audio market with design wins at
OEMs, such as Bantam, and a leading MP3 chipmaker
-- Licensed IP related to supervisory devices that the company
will introduce in the second half of this calendar year
-- Named semiconductor industry veteran David Casey, Vice
President of Worldwide Sales
The Company reported revenues of $5.1 million, compared to $5.1
million in the previous quarter and $4.3 million for the first quarter
of fiscal 2003. The non-memory business units represented 32% of the
Company's total revenue compared to 39% in the previous quarter.
The net loss for the first quarter was $13 million, or ($0.37) per
share, compared to a net loss of $25.5 million or ($0.72) per share
for the previous quarter, and a net loss of $15.3 million or ($0.38)
per share in the same quarter last year.
Operating expenses for the quarter were $10.6 million, a decrease
from the $12.1 million reported in the fourth quarter of fiscal 2003.
Operating expenses for the fourth quarter of fiscal 2003 included a
one-time charge of $1.6 million related to the acquisition of Chip
Engines, Inc.
"Our results reflect sequential growth in both our System
Solutions and Memory business units, which were offset by a decline in
sales for our Mixed Signal business unit," said N.D. Reddy, Alliance
Chairman, President and CEO. "System Solutions continues to build
momentum and has experienced a consistent increase in demand from end
customers for the SP1011 in a variety of market segments.
Additionally, we have seen an increase in activity and product
introductions within the Mixed Signal business unit, however, these
opportunities did not translate into revenue during the quarter.
Overall, we anticipate that the design wins we are generating with
industry leaders will result in an expansion of our revenue base in
the second half of fiscal 2004."
Mr. Reddy continued, "One of our key objectives in achieving
profitability is strengthening our sales efforts, which was
accomplished this quarter through the appointment of David Casey as
our Vice President of Worldwide Sales. Mr. Casey joined Alliance with
more than 19 years of industry experience and a proven track record of
growing revenues and leading sales initiatives for world-class
organizations. With his appointment, our infrastructure is firmly in
place to drive our growth over the coming twelve months."
Business Outlook
Alliance Chairman, President and Chief Executive Officer, N.D.
Reddy, and Chief Financial Officer, Ron Shelton will update the
business outlook and give guidance for the second quarter of fiscal
2004 during the earnings conference call at 2:00 PT on July 24, 2003.
First Quarter 2004 Financial Results Web cast/Conference Call
The Alliance management team will host a live web cast and
conference call to discuss the first quarter financial results
beginning at 2:00 P.M. (PT) on Thursday, July 24, 2003. Investors and
other interested parties may participate in the call by dialing
800-633-8489 at least fifteen minutes prior to the call and enter pass
code 21153893 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.
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; continued decline in value of
securities that we hold and have a limited ability to sell; 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 29,
2003, 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)
June March
2003 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $2,916 $8,642
Short term investments 166,145 148,711
Accounts receivable, net 1,748 2,058
Inventory 4,306 2,862
Other current assets 3,693 5,154
--------- ---------
Total current assets 178,808 167,427
Property and equipment, net 7,817 8,205
Investment in Tower Semiconductor Corporation 17,980 15,822
(excluding short term portion)
Alliance Ventures LP and other investments 39,625 38,319
Other non-current assets 14,384 15,408
--------- ---------
Total assets $258,614 $245,181
========= =========
Current liabilities:
Accounts payable $3,635 $4,298
Accrued liabilities 5,437 5,053
Income taxes payable 19,490 4,520
Deferred income taxes 30,379 23,840
Short term borrowings and current portion of
long term obligations 38,984 46,009
--------- ---------
Total current liabilities 97,925 83,720
Long term liabilities:
Long term obligations 1,002 1,326
Deferred income taxes 730 0
--------- ---------
Total liabilities 99,657 85,046
--------- ---------
Minority interest in consolidated subsidiaries 152 915
--------- ---------
Stockholders' equity:
Common stock 432 432
Additional paid-in capital 131,223 131,175
Retained earnings 12,479 25,510
Accumulated other comprehensive income 14,671 2,103
--------- ---------
Total stockholders' equity 158,805 159,220
--------- ---------
$258,614 $245,181
========= =========
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
---------------------
2003 2002
--------- ---------
Net revenues $5,074 $4,299
Cost of revenues 3,245 15,015
--------- ---------
Gross profit (loss) 1,829 (10,716)
--------- ---------
Operating expenses:
Research and development 6,599 4,516
Selling, general and administrative 3,992 4,550
--------- ---------
Total operating expenses 10,591 9,066
--------- ---------
Income (loss) from operations (8,762) (19,782)
Gain (loss) on investments (752) 12,058
Writedown of marketable securities and venture
investments (403) (11,002)
Other income (expense), net (911) (792)
--------- ---------
Income (loss) before income taxes and equity in
income (loss) of investees (10,828) (19,518)
Provision (benefit) for income taxes (178) (6,171)
--------- ---------
Income (loss) before minority interest in
consolidated subsidiaries and equity in income
(loss) of investees (10,650) (13,347)
Minority interest in consolidated subsidiaries 478 528
Equity in income (loss) of investees (2,859) (2,444)
--------- ---------
Net income (loss) ($13,031) ($15,263)
========= =========
Net income (loss) per share:
Basic ($0.37) ($0.38)
========= =========
Diluted ($0.37) ($0.38)
========= =========
Weighted average number of common shares:
Basic 34,988 39,872
========= =========
Diluted 34,988 39,872
========= =========
CONTACT: Alliance Semiconductor Corporation
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Investor Contact:
Shelton Investor Relations
Leanne Sievers, 972-239-5119, ext.114
lsievers@sheltongroup.com