Exhibit 99.1
Alliance Semiconductor Reports Financial Results
for the Third Quarter Ended December 31, 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 26, 2004--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the third fiscal quarter of 2004 ended December 31, 2003.
Third Quarter Highlights
-- Increased total revenue by 28% sequentially and 40% over the
prior year's results
-- Synchronous SRAM revenue 114% over the previous quarter
results
-- Achieved a book to bill ratio of 1.27 and exited the quarter
with the highest level of backlog in more than one year
-- Introduced 14 new products and secured 25 design-wins,
including:
-- The industry's first I2C programmable dual PLL EMI
reduction IC which reduces EMI at the clock source,
enabling significant system cost savings
-- The industry's smallest footprint low-voltage/low-power
EMI reduction IC for the portable market
-- Two design-wins, one with a major datacom/telecom company
and the other with a leading office automation company for
the AS90L10204 a high performance
HyperTransport(TM)-to-PCI-X Bridge optimized for compute
applications, including workstations, computer servers,
server blades and desktop PCs
-- A family of Resilient Packet Ring Controllers(TM) which
includes the first RPR Controllers with adaptive compute
technology
The Company reported revenues of $7.1 million, compared to $5.6
million in the previous quarter and $5.1 million for the third fiscal
quarter of 2003. Revenue from the non-memory business units
represented approximately 30% of total revenue, compared to 35% in the
previous quarter.
The net loss for the third quarter was $6.6 million or ($0.19) per
share, compared to a net loss of $4.5 million or ($0.13) per share for
the previous quarter, and a net loss of $43.6 million or ($1.21) per
share for the third fiscal quarter of 2003.
Operating expenses for the quarter were $9.7 million, compared to
$11.0 million in the previous quarter and $10.3 million for the third
quarter of fiscal 2003.
N.D. Reddy, Alliance chairman, president and CEO commented, "The
revenue growth we achieved in the quarter was primarily the result of
a 61% increase in SRAM revenue with the most significant portion of
that increase being derived from our Synchronous SRAM product line.
Revenues from our synchronous SRAM products increased approximately
114% over the previous quarter with our 18M products experiencing
significant growth in the communications markets as a result of the
growing market acceptance of our broadening portfolio of Synchronous
SRAM products. We ended the quarter with our SRAM backlog 62% higher
than the prior quarter and are encouraged by our recent successes in
this area."
Mr. Reddy continued, "Our Analog/Mixed Signal and System Solutions
business units on a combined basis grew 12% sequentially and generated
a significant number of new design wins with tier one customers. The
revenue momentum, coupled with continued design win success and
significant product announcements, enables us to gain additional
penetration into our target markets specifically in the consumer and
automotive markets. We are well positioned to see a more significant
portion of our revenues come from these business units in the future
and anticipate each of these businesses to grow in the March 2004
quarter."
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 fourth quarter of fiscal 2004 during the
earnings conference call at 2:00 PT on January 26, 2004.
Third Quarter 2004 Financial Results Web cast/Conference Call
The Alliance management team will host a live Web cast and
conference call to discuss the third quarter financial results
beginning at 2:00 p.m. (PT) on Monday, January 26, 2004. Investors and
other interested parties may participate in the call by dialing
800-299-7635 at least fifteen minutes prior to the call and enter pass
code 24428212 or listen to the live web cast by visiting the investor
relations section of the Alliance website at www.alsc.com. A replay of
the call will be available for 48 hours beginning at 7:00 p.m. ET and
can be accessed by dialing 888-286-8010 with the pass code 14144126.
About Alliance:
Alliance Semiconductor Corporation (Nasdaq:ALSC) is powering every
application with high performance solutions for the communications,
computing and consumer electronics markets. Utilizing advanced process
technologies and design expertise, Alliance provides leading OEMs with
a broad portfolio of complementary technologies including analog and
mixed-signal products, chip-to-chip connectivity products, networking
controllers and high-performance memories. Alliance addresses the
complete needs of system developers by leveraging its proprietary
advances in Electromagnetic Interference (EMI) reduction, power
management and timing technology, HyperTransport(TM) I/O connectivity
and specialized memory solutions for next-generation applications.
Founded in 1985, Alliance is headquartered in Santa Clara, Calif. with
design centers in Bangalore and Hyderabad, India. The company is
publicly traded and included in the S&P 600 Index. Additional
information is available on the Alliance 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 our inability to timely ramp up production of and deliver
new or enhanced products; significant price erosion of the Company's
products; 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 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; 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 STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) (unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ -------------------
2003 2002 2003 2002
-------- --------- --------- ---------
Net revenues $7,102 $5,062 $17,737 $13,457
Cost of revenues 4,700 5,810 12,163 35,886
-------- --------- --------- ---------
Gross profit (loss) 2,402 (748) 5,574 (22,429)
-------- --------- --------- ---------
Operating expenses:
Research and development 6,088 6,321 19,159 16,945
Selling, general and
administrative 3,568 3,939 12,039 13,523
-------- --------- --------- ---------
Total operating expenses 9,656 10,260 31,198 30,468
-------- --------- --------- ---------
Loss from operations (7,254) (11,008) (25,624) (52,897)
Gain (loss) on investments 12,942 (892) 16,915 14,400
Writedown of marketable
securities
and venture investments (4,255) (35,334) (5,213) (54,266)
Other expense, net (2,616) (927) (5,555) (4,357)
-------- --------- --------- ---------
Loss before income taxes and
equity in loss of
investees (1,183) (48,161) (19,477) (97,120)
Benefit for income taxes (1,373) (7,461) (7,335) (25,756)
-------- --------- --------- ---------
Gain (loss) before minority
interest in consolidated
subsidiaries and
equity in loss of investees 190 (40,700) (12,142) (71,364)
Minority interest in
consolidated subsidiaries 75 1,059 646 2,917
Equity in loss of investees (6,897) (3,989) (12,707) (12,126)
-------- --------- --------- ---------
Net loss ($6,632) ($43,630) ($24,203) ($80,573)
======== ========= ========= =========
Net loss per share:
Basic ($0.19) ($1.21) ($0.69) ($2.14)
======== ========= ========= =========
Diluted ($0.19) ($1.21) ($0.69) ($2.14)
======== ========= ========= =========
Weighted average number of
common shares:
Basic 35,141 36,089 35,054 37,721
======== ========= ========= =========
Diluted 35,141 36,089 35,054 37,721
======== ========= ========= =========
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December March
2003 2003
-------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $7,596 $8,642
Short term investments 183,149 148,711
Accounts receivable, net 3,308 2,058
Inventory 8,337 2,862
Other current assets 4,453 5,154
-------------- -----------
Total current assets 206,843 167,427
Property and equipment, net 6,573 8,205
Investment in Tower Semiconductor
Corporation 18,128 15,822
(excluding short term portion)
Alliance Ventures LP and other investments 38,691 38,319
Other non-current assets 17,175 15,408
-------------- -----------
Total assets $287,410 $245,181
============== ===========
Current liabilities:
Accounts payable $5,750 $4,298
Accrued liabilities 6,604 3,569
Income taxes payable 21,739 4,520
Deferred income taxes 41,551 23,840
Short term borrowings and current portion
of long term obligations 33,588 47,493
-------------- -----------
Total current liabilities 109,232 83,720
Long term liabilities:
Long term obligations 1,692 1,326
Deferred income taxes 0 0
-------------- -----------
Total liabilities 110,924 85,046
-------------- -----------
Minority interest in consolidated
subsidiaries 911 915
-------------- -----------
Stockholders' equity:
Common stock 434 432
Additional paid-in capital 131,748 131,175
Retained earnings 1,306 25,510
Accumulated other comprehensive income 42,087 2,103
-------------- -----------
Total stockholders' equity 175,575 159,220
-------------- -----------
$287,410 $245,181
============== ===========
CONTACT: Alliance Semiconductor Corporation, Santa Clara
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Investor Contact:
Shelton Investor Relations, Dallas
Stephanie Elwood, 972-239-5119 Ext 115
selwood@sheltongroup.com