Exhibit 99.1
Alliance Semiconductor Reports Financial Results for the First Fiscal
Quarter Ended June 30, 2004
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 28, 2004--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the first fiscal quarter of 2005 ended June 30, 2004.
First Quarter Highlights
-- Increased overall revenue by 41% year-over-year
-- Increased Analog and Mixed Signal revenues sequentially by 40%
and introduced 36 new products
-- EE Times selected the HyperTransport-to-PCI-X Bridge product
as one of the top 10 Logic and Programmable Logic products
introduced during the first quarter of 2004.
-- Announced the availability of an extensive family of IEEE
1149.1 compliant JTAG devices
-- Achieved initial design win and qualification for its 36Mb
Synchronous SRAM
-- Generated 19 new design wins across all of its business units
-- Announced plans to continue expansion of its India Design
Center with an investment of up to $50 million over the next
five years
The Company reported revenues of $7.1 million, compared to $8.9
million in the previous quarter and $5.1 million for the first quarter
of fiscal 2004. Revenue from the non-memory business units represented
approximately 39% of total revenue in the first quarter, compared to
35% in the previous quarter.
"We are pleased with the number of new product introductions and
design wins achieved during the quarter, particularly within our
Analog and Mixed Signal Business Unit. This business unit achieved
significant revenue growth during the quarter, introduced more than 30
new products, broadened its customer base and continued to address an
increasing number of end market applications. We expect the momentum
created by this business unit to continue and be a strong contributor
to growth in the coming quarters," said N.D. Reddy, Alliance chairman,
president and CEO. "While our memory business experienced a sequential
decrease in revenue during the quarter, due in part to our inability
to meet demand, we are encouraged by the activity across the product
line, including initial qualification opportunities and design win
activity with our industry leading 36Mb synchronous SRAM offering."
Net loss for the first quarter was $6.6 million or ($0.19) per
share, compared to a net income of $4.8 million or $0.13 per share for
the previous quarter, and a net loss of $13.0 million or ($0.37) per
share for the first quarter of fiscal 2004.
During the quarter the Company took a charge of $2.9 million
against its 18Mb synchronous SRAM products. The charge is based on the
Company's current forecast for these products and is reflected in cost
of revenues for the current quarter.
Operating expenses for the quarter were $8.0 million, compared to
$9.1 million in the previous quarter and $10.6 million for the first
quarter of fiscal 2004.
Business Summary
During the quarter, Alliance announced the availability of its
first 13 CPU supervisor product families. Each of the 13 product
families come with multiple package and reset voltage combinations
that spawn 125 distinct products. These products are a low-power and
cost effective alternative to industry standard CPU supervisors,
addressing the 5V, 3.3V and 3V applications in wire-line and wireless
telecom, computer, consumer, industrial and medical markets.
The Company also introduced its extensive family of IEEE 1149.1
compliant JTAG devices. These products provide very efficient
solutions to implement design-for-test (DFT) on the PCB for the
networking, communications, storage, compute and embedded systems.
Alliance's JTAG products allow leading OEM partners to develop highly
integrated IEEE 1149.1 test strategies at the board, system and sub
module levels. The integration of Alliance's JTAG products enable
system engineers to reduce Flash memory and CPLD/FPGA programming
time, while providing higher fault coverage and system diagnostics in
the factory and in the field.
Also in the quarter, Alliance announced that it is planning to
invest up to $50 million in its India Design Center over the next five
years to expand its engineering and deployment services and further
its market expansion. The Company plans to undertake a significant
amount of recruitment in India this year at the Bangalore and
Hyderabad design centers enabling Alliance to double its engineering
staff, from 150 to 300, over the next three years.
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 2005 during the
earnings conference call at 2:00 p.m. PT on July 28, 2004.
First Quarter 2005 Financial Results Webcast/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 Wednesday, July 28, 2004. Investors and
other interested parties may participate in the call by dialing
800-299-8538 at least fifteen minutes prior to the call and enter pass
code 59149180 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 (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 30, 2004, 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)
Three Months Ended
June 30,
-----------------------------
2004 2003
--------------- -------------
Net revenues $7,136 $5,074
Cost of revenues 7,559 3,245
--------------- -------------
Gross profit (loss) (423) 1,829
--------------- -------------
Operating expenses:
Research and development 4,740 6,599
Selling, general and administrative 3,263 3,992
--------------- -------------
Total operating expenses 8,003 10,591
--------------- -------------
Loss from operations (8,426) (8,762)
Gain on investments 3,470 346
Writedown of marketable securities
and venture investments 0 (403)
Loss in investees accounted for under
the equity method (3,641) (5,497)
Other expense, net (339) (911)
--------------- -------------
Loss before income taxes and minority
interest in consolidated subsidiaries (8,936) (15,227)
Benefit for income taxes (2,261) (1,718)
--------------- -------------
Loss before minority interest in
consolidated subsidiaries (6,675) (13,509)
Minority interest in consolidated
subsidiaries 44 478
--------------- -------------
Net loss ($6,631) ($13,031)
=============== =============
Net loss per share:
Basic and diluted ($0.19) ($0.37)
=============== =============
Weighted average number of common
shares:
Basic and diluted 35,262 34,988
=============== =============
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June March
2004 2004
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $2,177 $6,107
Short term investments 127,077 159,778
Accounts receivable, net 3,112 4,081
Inventory 11,705 11,609
Other current assets 1,510 3,111
--------------- --------------
Total current assets 145,581 184,686
Property and equipment, net 5,610 6,161
Investment in Tower Semiconductor
Corporation 21,208 21,208
(excluding short term portion)
Alliance Ventures and other investments 36,495 36,082
Other non-current assets 11,649 12,665
--------------- --------------
Total assets $220,543 $260,802
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,721 $9,406
Accrued liabilities 2,088 2,881
Income taxes payable 32,916 33,766
Deferred income taxes 26,237 38,921
Short term borrowings and current
portion of long term obligations 26 33
--------------- --------------
Total current liabilities 67,988 85,007
Long term liabilities:
Long term obligations 226 241
--------------- --------------
Total liabilities 68,214 85,248
--------------- --------------
Minority interest in consolidated
subsidiaries 774 832
--------------- --------------
Stockholders' equity:
Common stock 435 435
Additional paid-in capital 132,386 132,146
Retained earnings (532) 6,099
Accumulated other comprehensive income 19,266 36,042
--------------- --------------
Total stockholders' equity 151,555 174,722
--------------- --------------
Total liabilities and stockholders'
equity $220,543 $260,802
=============== ==============
CONTACT: Alliance Semiconductor Corporation, Santa Clara
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Investor Contact:
Shelton Investor Relations
Barry Sievert, 972-239-5119 Ext. 134
bsievert@sheltongroup.com