EXHIBIT 99.1
Alliance Semiconductor Reports Financial Results for the Fiscal Fourth
Quarter and Fiscal Year Ended March 31, 2004
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 22, 2004--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the fiscal fourth quarter and fiscal year ended March 31,
2004.
Fourth Quarter 2004 Highlights
-- Increased overall revenue by 26% sequentially
-- Increased System Solutions product revenue by 37% sequentially
-- Increased Analog and Mixed Signal revenues by 17% and
introduced 15 new products
-- Continued penetration into target markets with design wins in
both the mobile and consumer markets
-- The Systems Solutions business unit announced its next
generation bridge products -- the AS90L10204 and AS90L10208 --
generating initial design wins for these products during the
quarter.
-- Announced strategic licensing agreement with Firecron enabling
Alliance entry into the JTAG market.
-- Announced availability of our 36Mb Synchronous SRAM family
Fourth Quarter Results
The Company reported revenues of $8.9 million, a 26% increase from
the $7.1 million in the previous quarter and a 76% increase from the
$5.1 million for the fourth fiscal quarter of 2003. Revenue from the
non-memory business units represented approximately 35% of total
revenue, compared to 30% in the previous quarter.
Net income for the fourth quarter was $4.8 million or $0.13 per
share on a fully diluted basis, compared to a net loss of $6.6 million
or ($0.19) per share for the previous quarter, and a net loss of $25.5
million or ($0.72) per share for the fourth fiscal quarter of 2003.
Operating expenses for the quarter were $9.1 million, compared to
$9.7 million reported in the previous quarter and the $11.9 million
reported in the fourth quarter of fiscal 2003.
Fiscal 2004 Results
For fiscal year 2004, the Company reported revenues of $26.7
million, an increase from the $18.5 million reported in fiscal 2003.
The net loss for fiscal year 2004 is $19.4 million or ($0.55) per
share, compared to a net loss of $106.0 million, or ($2.85) per share
reported in 2003.
"We are pleased with the 44% increase in revenue we achieved over
the 2003 results," said N.D. Reddy, Alliance Chairman, President and
CEO. "This is due, in part, to the significant advancements made in
our business units through the introduction of many new products
during fiscal 2004 and the subsequent generation of revenue resulting
from both new and existing products."
Mr. Reddy concluded by stating, "We anticipate the positive
momentum established in the past year will continue throughout fiscal
2005 as we continue to broaden both our customer base and product
offerings."
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 2005 during the earnings
conference call at 8:00 a.m. PT on April 22, 2004.
Fiscal Year and Fourth Quarter 2004 Financial Results Web
cast/Conference Call
The Alliance management team will host a live Web cast and
conference call to discuss the fourth quarter financial results
beginning at 8:00 a.m. PT on Thursday, April 22, 2004. Investors and
other interested parties may participate in the call by dialing
800-901-5241 at least fifteen minutes prior to the call and enter pass
code 24165215 or listen to the live Web cast by visiting the investor
relations section of the Alliance Web site 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
87372931.
Company Information:
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 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 31, 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)
March March
2004 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $6,107 $8,642
Short term investments 159,778 148,711
Accounts receivable, net 4,081 2,058
Inventory 11,609 2,862
Other current assets 3,111 3,574
------------ ------------
Total current assets 184,686 165,847
Property and equipment, net 6,161 8,434
Investment in Tower Semiconductor
Corporation
(excluding short term portion) 21,208 15,822
Alliance Ventures LP and other investments 37,180 38,319
Other non-current assets 12,665 14,300
------------ ------------
Total assets $261,900 $242,722
============ ============
Current liabilities:
Accounts payable $9,406 $4,298
Accrued liabilities 2,881 3,608
Income taxes payable 33,766 4,520
Deferred income taxes 38,921 23,840
Short term borrowings and current portion
of long term obligations 33 46,009
------------ ------------
Total current liabilities 85,007 82,275
Long term liabilities:
Long term obligations 241 312
------------ ------------
Total liabilities 85,248 82,587
------------ ------------
Minority interest in consolidated
subsidiaries 832 915
------------ ------------
Stockholders' equity:
Common stock 435 432
Additional paid-in capital 132,146 131,175
Retained earnings 6,099 25,510
Accumulated other comprehensive income 37,140 2,103
------------ ------------
Total stockholders' equity 175,820 159,220
------------ ------------
$261,900 $242,722
============ ============
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,
------------------- --------------------
2004 2003 2004 2003
--------- --------- --------- ----------
Net revenues $8,934 $5,065 $26,671 $18,522
Cost of revenues 8,677 3,858 20,840 39,744
--------- --------- --------- ----------
Gross profit (loss) 257 1,207 5,831 (21,222)
--------- --------- --------- ----------
Operating expenses:
Research and development 5,494 7,598 24,653 24,543
Selling, general and
administrative 3,582 4,323 15,621 17,846
--------- --------- --------- ----------
Total operating expenses 9,076 11,921 40,274 42,389
--------- --------- --------- ----------
Loss from operations (8,819) (10,714) (34,443) (63,611)
Gain (loss) on investments 11,274 (257) 28,189 14,143
Writedown of marketable
securities and venture
investments (574) (1,526) (5,787) (55,792)
Loss in investees accounted
for under the equity method (1,550) (4,102) (14,257) (16,597)
Other expense, net (2,338) (270) (7,893) (4,626)
--------- --------- --------- ----------
Loss before income taxes and
minority interest in
consolidated subsidiaries (2,007) (16,869) (34,191) (126,483)
Provision (benefit) for
income taxes (6,748) 9,012 (14,083) (17,113)
--------- --------- --------- ----------
Income (loss) before minority
interest in consolidated
subsidiaries 4,741 (25,881) (20,108) (109,370)
Minority interest in
consolidated subsidiaries 51 405 697 3,322
--------- --------- --------- ----------
Net income (loss) $4,792 ($25,476) ($19,411) ($106,048)
========= ========= ========= ==========
Net income (loss) per share:
Basic $0.14 ($0.72) ($0.55) ($2.85)
========= ========= ========= ==========
Diluted $0.13 ($0.72) ($0.55) ($2.85)
========= ========= ========= ==========
Weighted average number of
common shares:
Basic 35,208 35,480 35,093 37,160
========= ========= ========= ==========
Diluted 35,897 35,480 35,093 37,160
========= ========= ========= ==========
CONTACT: Alliance Semiconductor Corporation, Santa Clara
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Shelton Investor Relations
Investor Contact
Stephanie Elwood, 972-239-5119 Ext 115
selwood@sheltongroup.com