Exhibit 99.1
Alliance Semiconductor Reports Financial Results for the
Second Fiscal Quarter Ended September 30, 2004
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 21, 2004--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the second fiscal quarter of 2005 ended September 30,
2004.
Second Quarter Highlights
-- Increased Analog and Mixed Signal revenues by 9% on a
sequential basis
-- Introduced 30 new products into the Analog and Mixed Signal
market
-- Completed rollout of DDR1 products
-- Expanded the Zero Delay Buffer offering to over 150 devices
-- Analog and Mixed Signal business unit achieved 24 design wins
during the quarter
-- Initial design win for our JTAG controller products
-- Introduced a family of Dual-Port memory products
-- Earned an additional 15 design wins for Synchronous SRAM
family
The Company reported revenues of $5.5 million, compared to $7.1
million in the previous quarter and $5.6 million for the second fiscal
quarter of 2004. Revenue from the non-memory business units
represented approximately 52% of total revenue, compared to 39% in the
previous quarter.
Net loss for the second quarter was $10.1 million or ($0.29) per
share, compared to a net loss of $6.6 million or ($0.19) per share for
the previous quarter, and a net loss of $4.5 million or ($0.13) per
share for the second fiscal quarter of 2004.
Operating expenses for the quarter were $8.4 million, compared to
$8.0 million in the previous quarter and $11.0 million for the second
quarter of fiscal 2004.
Alliance CEO and President Dan Reddy said, "While our 2005 second
quarter results were disappointing, due in large part to a lower level
of turns in our SRAM business than we had previously forecasted, we
are encouraged by the performance of our Analog and Mixed Signal
Business unit, which grew 9 percent sequentially in the face of
challenging market conditions. In addition, our Systems Solutions
business unit continued to generate design wins with new products,
setting the stage for renewed revenue growth in the next year. We
remain committed to transitioning the focus of our business to our
highly differentiated Analog and Mixed Signal products and System
Solutions offerings as we continue to execute our long term plan
towards diversification and growth."
Business Summary
During the quarter, Alliance announced the availability of its
9-Mb synchronous dual-port family of devices. The Alliance 9-Mb
synchronous devices operate at 200MHz making them suitable for
high-performance designs that require shared memory devices such as
wireless base stations, network switches and routers, as well as other
networking, storage and RAID applications. These devices represent the
first member of a growing family of dual-port memory from Alliance.
Alliance also announced the availability of its el-EMI-nator(TM)
Series of Clock Synthesis solutions, which allows designers to select
from a wide series of configurations, while reducing electromagnetic
interference (EMI) at the clock source. Alliance's el-EMI-nator Series
currently consists of 12 devices with frequency ranges from 6 - 50MHz,
and a variety of frequency deviations and modulation rates. Designed
specifically for very low power applications where battery life and
physical space requirements are indeed an issue, these devices
typically consume as little as 8 microamps in standby mode, and
typically less than 4mA operating. In addition to the very low power
consumption, the family is available in the absolute smallest
footprint in the industry today using 6-lead TSOT23 packages with a
maximum of 1.0mm height, fitting the very small footprint requirements
for applications like MP3 players, PDAs, and other hand held devices
and products.
Additionally, the Company announced the availability of its
ASM5P230X and ASM5P23S0X family of zero delay buffers (ZDB). The
devices enable designers to more effectively plan and optimize clock
timing and clock tree distribution in networking, embedded,
industrial, instrumentation, ATE and consumer PC systems. Alliance's
zero delay buffers are designed specifically for managing the
distribution of a wide range of clock frequencies. The devices'
variable delay provides system designers with complete flexibility in
system timing and planning. Additionally, they enable operation and
verification by allowing zero delay adjustment (ZDA) for system
functionality and performance under various spread spectrum clock
(SSC) and non-SSC schemes.
Also in the quarter, Alliance announced that it continues to be a
leader in the industry in offering environmentally safe and lead-free
compliant products across its entire product portfolio. Alliance has
developed a strategy to ensure the production of environmentally
friendly products. The company is fully committed to supporting the
reduction of hazardous substances (RoHS) and is fully committed to
comply with its requirements. Alliance is working diligently to deploy
the various phases of this plan, including the implementation of a
lead-free plating process and lead-free solder balls, as well as the
utilization of green materials that are consistent with the company's
external assembly subcontractors.
Lastly, the Company announced that it has successfully attained
ISO 9001:2000 certification. This certification recognizes that the
company continues to operate to a world class Quality Management
System (QMS). In order to achieve this certification, Alliance's QMS
underwent and passed a rigorous and comprehensive audit by SGS Systems
and Services, which concluded that Alliance was in conformance to the
standard in all criteria, and had, or was in the process of
implementing industry leading "best practices" in all areas of the
company.
Second Quarter 2005 Financial Results Web Cast and Conference Call
Alliance President and Chief Executive Officer Dan Reddy and Chief
Financial Officer Ron Shelton will host a conference call to discuss
the company's earnings and operations at 5:00 p.m. Eastern Time.
Investors and other interested parties are invited to participate in
the call by dialing 866-800-8651 and entering the pass code 13945518
at least 10 minutes prior to the start of the call. Additionally,
investors may also take advantage of a live audio web cast of the call
available through 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 website at:
http://www.alsc.com.
Forward Looking Statements
Except for historical information, the above statements of this
press release are forward-looking statements, including, for example,
statements relating to Alliance's revenue outlook and the performance
of its business units. Forward looking statements 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; cancellation of orders in the Company's backlog and
the risk factors listed in the Company's Form 10-K filed on June 10,
2004 and Form 10-Q filed on August 5, 2004 which have been filed with
the Securities and Exchange Commission, and which are 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
(unaudited) (unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
----------------------- ----------------------
2004 2003 2004 2003
----------- --------- --------- ---------
Net revenues $5,535 $5,561 $12,671 $10,635
Cost of revenues 8,476 4,218 16,036 7,463
----------- --------- --------- ---------
Gross profit (loss) (2,941) 1,343 (3,365) 3,172
----------- --------- --------- ---------
Operating expenses:
Research and development 5,116 6,472 9,856 13,071
Selling, general and
administrative 3,268 4,479 6,531 8,471
----------- --------- --------- ---------
Total operating expenses 8,384 10,951 16,387 21,542
----------- --------- --------- ---------
Loss from operations (11,325) (9,608) (19,752) (18,370)
Gain (loss) on investments 1,861 4,725 5,249 5,071
Writedown of marketable
securities and venture
investments 0 (555) 0 (958)
Loss in investees accounted
for under the equity
method (3,817) (4,539) (7,458) (10,036)
Other expense, net (1,063) (2,028) (1,320) (2,939)
----------- --------- --------- ---------
Loss before income taxes
and minority interest
in consolidated
subsidiaries (14,344) (12,005) (23,281) (27,232)
Provision (benefit) for
income taxes (4,158) (7,372) (6,418) (9,090)
----------- --------- --------- ---------
Income (loss) before
minority interest in
consolidated
subsidiaries (10,186) (4,633) (16,863) (18,142)
Minority interest in
consolidated
subsidiaries 39 93 83 571
----------- --------- --------- ---------
Net income (loss) ($10,147) ($4,540) ($16,780) ($17,571)
=========== ========= ========= =========
Net income (loss) per
share:
Basic ($0.29) ($0.13) ($0.47) ($0.50)
=========== ========= ========= =========
Diluted ($0.29) ($0.13) ($0.47) ($0.50)
=========== ========= ========= =========
Weighted average number
of common shares:
Basic 35,353 35,033 35,339 35,011
=========== ========= ========= =========
Diluted 35,353 35,033 35,339 35,011
=========== ========= ========= =========
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September March
2004 2004
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $2,889 $6,107
Short term investments 104,489 159,778
Accounts receivable, net 2,325 4,081
Inventory 11,423 11,609
Related Party receivable 329 264
Other current assets 2,147 2,847
------------- -------------
Total current assets 123,602 184,686
Property and equipment, net 5,135 6,161
Investment in Tower Semiconductor Corporation 21,208 21,208
(excluding short term portion)
Alliance Ventures LP and other
investments 33,413 36,082
Other non-current assets 10,557 12,665
------------- -------------
Total assets $193,915 $260,802
============= =============
LIABILIITES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $10,765 $12,287
Income taxes payable 31,026 33,766
Deferred income taxes 18,018 38,921
Short term borrowings and current portion
of long term obligations 15 33
------------- -------------
Total current liabilities 59,824 85,007
Long term liabilities:
Long term obligations 208 241
------------- -------------
Total liabilities 60,032 85,248
------------- -------------
Minority interest in consolidated
subsidiaries 718 832
------------- -------------
Stockholders' equity:
Common stock 437 435
Additional paid-in capital 132,801 132,146
Retained earnings (10,682) 6,099
Accumulated other comprehensive income 10,609 36,042
------------- -------------
Total stockholders' equity 133,165 174,722
------------- -------------
$193,915 $260,802
============= =============
CONTACT: Alliance Semiconductor Corporation
Ron Shelton, 408-855-4958
rshelton@alsc.com
or
Shelton Investor Relations
Investor Contact
Barry Sievert, 972-239-5119 Ext 134
bsievert@sheltongroup.com