Exhibit 99.1
Alliance Semiconductor Reports Financial Results for the
Second Quarter Ended September 30, 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 23, 2003--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the second fiscal quarter of 2004 ended September 30,
2003.
Second Quarter Highlights
-- Increased total revenue by 10% sequentially and 37% over the
prior year's results
-- Increased Analog and Mixed Signal revenues by 45% on a
sequential basis and introduced 8 new products
-- Maintained a leadership position in the high growth, low
power/low voltage markets through design wins in the display
markets with our 2.5-volt analog and mixed signal devices
-- Secured 38 new customer qualifications for our Synchronous
SRAM product family
-- Achieved volume production with 9M and 18M Synchronous SRAM
products, driving a 23% sequential increase in SRAM revenue
-- Penetrated the rapidly growing VDSL modem market in Japan,
Korea & Taiwan
-- Engaged a Tier 1 customer with our Resilient Packet Ring (RPR)
controller family
-- Increased design wins for automotive, printing,
telecommunications, networking and consumer audio applications
The Company reported revenues of $5.6 million, compared to $5.1
million in the previous quarter and $4.1 million for the second
quarter of 2003. Revenue from the non-memory business units
represented approximately 35% of total revenue, compared to 32% in the
previous quarter.
The net loss for the second quarter was $4.5 million or ($0.13)
per share, compared to a net loss of $13 million or ($0.37) per share
for the previous quarter, and a net loss of $21.7 million or ($0.56)
per share for the second quarter 2003.
Operating expenses for the quarter were $11.0 million, compared to
$10.6 million in the previous quarter and $11.1 million for the second
quarter of fiscal 2003.
"The growth in revenues this quarter was driven primarily from the
Analog and Mixed Signal and the Memory business units, the most
significant of which was derived from increased customer traction with
major OEMs for our 9M and 18M Synchronous SRAM products," said N.D.
Reddy, Alliance chairman, president and CEO. "During the quarter,
Alliance further penetrated high growth markets such as the power
management, notebook and automotive markets, with the introduction of
several new products. These products are complementary to our existing
product offerings and enable us to provide more comprehensive
solutions to our customers."
Mr. Reddy continued, "We anticipate the momentum in our Memory and
Mixed Signal business units to continue into the next quarter with a
more significant contribution from System Solutions in 2004. We are
well positioned to increase our leadership in the market by being the
premier provider of mixed signal, system solutions and high-value
memory products."
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 the second quarter of fiscal 2004 during the
earnings conference call at 2:00 PT on October 23, 2003.
Second Quarter 2004 Financial Results Web cast/Conference Call
The Alliance management team will host a live web cast and
conference call to discuss the second quarter financial results
beginning at 2:00 P.M. (PT) on Thursday, October 23, 2003. Investors
and other interested parties may participate in the call by dialing
888-343-7141 at least fifteen minutes prior to the call and enter pass
code 21162801 or listen to the live web cast by visiting the investor
relations section of the Alliance website at www.alsc.com.
About Alliance:
Alliance Semiconductor Corporation is a leading worldwide provider
of memory, analog and mixed signal and systems solutions for
networking, wireless, consumer and computing markets. Through these
integrated business units, Alliance provides leading OEMs with
synchronous and fast asynchronous SRAMs, high-speed chip-to-chip
interconnects based on HyperTransport(TM) technology and analog 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. Alliance,
founded in 1985 and headquartered in Santa Clara, California, is
traded on the NASDAQ Stock Market under the ALSC symbol and is
included in the S&P 600 Index. 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; 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, 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)
September March
2003 2003
----------- ---------
ASSETS
Current assets:
Cash and cash equivalents $3,514 $8,642
Short term investments 199,247 148,711
Accounts receivable, net 2,749 2,058
Inventory 5,573 2,862
Other current assets 4,189 5,154
------------ ----------
Total current assets 215,272 167,427
Property and equipment, net 7,411 8,205
Investment in Tower Semiconductor Corporation 17,298 15,822
(excluding short term portion)
Alliance Ventures LP and other investments 39,401 38,319
Other non-current assets 13,054 15,408
------------ ----------
Total assets $292,436 $245,181
============ ==========
Current liabilities:
Accounts payable $5,070 $4,298
Accrued liabilities 5,275 5,053
Income taxes payable 15,750 4,520
Deferred income taxes 43,634 23,840
Short term borrowings and current portion
of long term obligations 38,695 46,009
------------ ----------
Total current liabilities 108,424 83,720
Long term liabilities:
Long term obligations 708 1,326
Deferred income taxes 1,627 0
------------ ----------
Total liabilities 110,759 85,046
------------ ----------
Minority interest in consolidated
subsidiaries 1,026 915
------------ ----------
Stockholders' equity:
Common stock 433 432
Additional paid-in capital 131,465 131,175
Retained earnings 7,939 25,510
Accumulated other comprehensive income 40,814 2,103
------------ ----------
Total stockholders' equity 180,651 159,220
------------ ----------
$292,436 $245,181
============ ==========
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) (unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------ ------------------
2003 2002 2003 2002
-------- --------- -------- ---------
Net revenues $5,561 $4,096 $10,635 $8,394
Cost of revenues 4,218 15,061 7,463 30,075
-------- --------- -------- ---------
Gross profit (loss) 1,343 (10,965) 3,172 (21,681)
-------- --------- -------- ---------
Operating expenses:
Research and development 6,472 6,109 13,071 10,624
Selling, general and
administrative 4,479 5,034 8,471 9,584
-------- --------- -------- ---------
Total operating expenses 10,951 11,143 21,542 20,208
-------- --------- -------- ---------
Loss from operations (9,608) (22,108) (18,370) (41,889)
Gain on investments 4,725 3,237 3,973 15,292
Writedown of marketable
securities and venture
investments (555) (7,930) (958) (18,931)
Other expense, net (2,028) (2,639) (2,939) (3,429)
-------- --------- -------- ---------
Loss before income taxes and
equity in loss of investees (7,466) (29,440) (18,294) (48,957)
Benefit for income taxes (5,784) (9,430) (5,962) (15,600)
-------- --------- -------- ---------
Loss before minority interest
in consolidated subsidiaries
and equity in loss of investees (1,682) (20,010) (12,332) (33,357)
Minority interest in
consolidated subsidiaries 93 1,330 571 1,858
Equity in loss of investees (2,951) (2,999) (5,810) (5,443)
-------- --------- -------- ---------
Net loss ($4,540) ($21,679) ($17,571) ($36,942)
======== ========= ======== =========
Net loss per share:
Basic ($0.13) ($0.56) ($0.50) ($0.94)
======== ========= ======== =========
Diluted ($0.13) ($0.56) ($0.50) ($0.94)
======== ========= ======== =========
Weighted average number of
common shares:
Basic 35,033 38,657 35,011 39,269
======== ========= ======== =========
Diluted 35,033 38,657 35,011 39,269
======== ========= ======== =========
CONTACT: Alliance Semiconductor Corporation
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Investor Contact:
Shelton Investor Relations
Stephanie Elwood, 972-239-5119, ext. 115
selwood@sheltongroup.com