Exhibit 99.1
Catalyst Semiconductor Reports 4th Quarter and Fiscal Year Results with
Seventh Consecutive Profitable Year
SUNNYVALE, Calif.--(BUSINESS WIRE)--June 9, 2005--Catalyst
Semiconductor, Inc. (NASDAQ:CATS), a developer and marketer of
programmable and analog/mixed signal products used in
telecommunications, networking systems, computation, automotive,
industrial and consumer markets, today announced financial results for
its fiscal fourth quarter and year ended April 30, 2005.
For the quarter ended April 30, 2005, Catalyst reported net income
of $516,000, or $0.03 per diluted share, on net revenue of $16.3
million. This compares with net income of $5.6 million, or $0.29 per
diluted share, on net revenue of $16.8 million in the quarter ended
April 30, 2004. In the quarter ended January 31, 2005, Catalyst
reported net income of $107,000, or $0.01 per diluted share, on net
revenue of $13.7 million.
Net revenue for the quarter ended April 30, 2005 were $16.3
million, which represented a 3% decrease from net revenue in the
quarter ended April 30, 2004 and a 19% increase from net revenue of
$13.7 million in the quarter ended January 31, 2005. Net revenue in
the most recent quarter benefited by approximately $1.0 million from
the termination of price adjustment and stock rotation rights of
certain small regional resellers who had not historically used those
rights resulting in recognition of revenue and gross margin for the
inventories held by such resellers. Additionally, the increase in net
revenue from the previous quarter was primarily attributable to an
increase in unit volume for the company's products. Net revenue from
the company's new family of analog/mixed signal products were
approximately $0.9 million, or 5.5% of revenues, in the quarter ended
April 30, 2005, as compared to $490,000, or 2.9% of revenues, in the
quarter ended April 30, 2004 and $727,000, or 5.3% of revenues, in the
quarter ended January 31, 2005.
Gross margin for the quarter ended April 30, 2005 was 37.9%,
compared to 49.0% for the quarter ended April 30, 2004 and 38.4% for
the quarter ended January 31, 2005. The decrease was primarily caused
by a combination of competitive market conditions and higher cost
inventories of silicon raw materials used in manufacturing products.
Research and development expenses of $1.9 million for the quarter
ended April 30, 2005 were stable as compared to $2.0 million and $1.9
million for the quarters ended April 30, 2004 and January 31, 2005,
respectively. Sales, general and administrative expenses were $3.8
million for the quarter ended April 30, 2005, an increase of $845,000,
or 29%, from the quarter ended April 30, 2004 and an increase of
$420,000, or 12%, from the quarter ended January 31, 2005. The
increase from the quarter ended April 30, 2004 was principally
attributable to an increase of $737,000 in consulting and outside
accountant expenses due to efforts to document internal control
systems in anticipation of the application of Section 404 of the
Sarbanes-Oxley Act of 2002. The company anticipates that such
compliance-related expenses will decrease after the first quarter of
the new fiscal year.
Catalyst recorded an income tax provision of $218,000, or 30% of
income before income taxes, during the quarter ended April 30, 2005.
This compares to an income tax benefit of $2.2 million in the quarter
ended April 30, 2004 and an income tax provision of $50,000, or 32% of
income before taxes in the quarter ended January 31, 2005.
Cash and Share Repurchases
As of April 30, 2005, Catalyst had cash, cash equivalents and
short-term investments of $33.8 million, a decrease of $4.7 million
compared to the previous quarter. The decrease was primarily due to
the company's repurchase of 945,776 shares of the company's stock for
an average purchase price of $4.81 per share. The company's cumulative
stock repurchases under its open market repurchase program has now
reached the limit currently authorized by Catalyst's board of
directors of 3.5 million shares at an average price of $3.91, or $13.7
million in the aggregate.
Management Comments and Outlook
"Our fourth quarter financial results reflect a nice recovery and
reversal of the soft industry trends we saw in the second and third
fiscal quarters. In the fourth quarter, we had rebounds in bookings,
revenues, units shipped and, for the first time, we shipped more than
$1 million worth of mixed signal products. The end result enabled
Catalyst to record its seventh consecutive year and 14th consecutive
quarter of profitability," said Gelu Voicu, Catalyst's president and
chief executive officer.
Looking ahead, Voicu said "We continue to carefully monitor our
product mix and inventories for our memory products, while working to
accelerate the introduction of new mixed signal products. So, with the
fourth quarter's momentum carrying over thus far into the first
quarter, we believe we are starting fiscal 2006 off on a positive
note."
Investor Conference Call
Catalyst will conduct a conference call regarding the fourth
fiscal quarter results beginning at 2:00 p.m. (Pacific Time) today.
The call will be available to all investors and media via the
company's Web site www.catalyst-semiconductor.com, at
www.fulldisclosure.com, or by dialing 877-754-9851 (domestic only).
International callers can dial 706-643-1107. A replay of the call
will be aired from approximately 4:00 p.m. today until midnight
(Eastern) on June 16, 2005 at the company's Web site or by dialing
800-642-1687 (domestic) or 706-645-9291 (international), entering
reservation number 6327564 and following operator instructions.
About Catalyst Semiconductor
Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in
Sunnyvale, California. The Company designs and markets a broad range
of programmable products including Serial and Parallel EEPROMs with
I2C, SPI and Microwire interfaces, Flash Memories, NVRAM, Digitally
Programmable Potentiometers, Microcontroller Supervisory circuits and
other programmable Analog/Mixed Signal products. Catalyst products are
used in telecommunications, networking systems, computation,
automotive, industrial and consumer markets. Typical applications
include optical networks, modems, wireless LANs, network cards, PC
BIOS, DIMM modules, cellular telephones, digital satellite box
receivers, set-top boxes and Internet routers. Catalyst's Quality
Management System is ISO 9001 certified. For additional information
about Catalyst Semiconductor, visit our web site at
www.catalyst-semiconductor.com.
Forward-Looking Statements
Certain statements in this press release, including statements
regarding declining expenses relating to regulatory compliance,
changes in the mix and inventories of memory products, introduction of
new mixed signal products, and financial results for the first fiscal
quarter of 2006, are forward-looking statements that are subject to
risks and uncertainties. These risks and uncertainties could cause
Catalyst's results to differ materially from the forward-looking
statements and include, without limitation: revisions to the
preliminary unaudited financial results which may occur during the
preparation of financial statements and disclosures and the
preparation of the Company's Annual Report on Form 10-K; declining
market demand for Catalyst's new products; increased competition in
the markets for Catalyst's new products; potential errors, latent
defects, design flaws or other problems with Catalyst's new products;
volatility in supply and demand for Catalyst's products which would
adversely affect revenues and market prices; price and availability of
foundry services, assembly and test subcontract capacity which are
required to meet demand for Catalyst's new products; timing, future
development, and cost of Catalyst's new products; unanticipated costs
of regulatory compliance; system failures or other defects in the
enterprise resource planning system implemented in connection with
efforts to comply with the requirements of the Sarbanes-Oxley Act; and
the other risks detailed from time to time in Catalyst's Securities
and Exchange Commission filings and reports, including, but not
limited to, Catalyst's annual report filed on form 10-K and quarterly
reports filed on form 10-Q. Catalyst disclaims any obligation to
update information contained in any forward-looking statement.
CATALYST SEMICONDUCTOR, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, 2005 April 30, 2004
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $10,978 $17,245
Short-term investments 22,815 16,564
Accounts receivable, net 9,966 12,547
Inventories 11,455 6,960
Deferred tax assets 4,188 5,024
Other assets 875 875
--------------- --------------
Total current assets 60,277 59,215
Property and equipment, net 5,582 3,334
Deferred tax assets 4,128 4,098
Other assets 74 218
--------------- --------------
Total assets $70,061 $66,865
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,069 $ 5,016
Accrued expenses 4,245 3,782
Deferred gross profit on shipments to
distributors 1,879 4,079
--------------- --------------
Total current liabilities 12,193 12,877
Total stockholders' equity 57,868 53,988
--------------- --------------
Total liabilities and stockholders'
equity $70,061 $66,865
=============== ==============
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
--------------------- --------------------
April 30, April 30, April 30, April 30,
2005 2004 2005 2004
--------------------- --------------------
Net revenue $ 16,325 $ 16,838 $ 62,320 $63,538
Cost of revenues 10,140 8,580 35,852 37,375
----------- --------- ---------- ---------
Gross profit 6,185 8,258 26,468 26,163
Research and development 1,895 1,996 7,910 7,130
Selling, general and
administrative 3,783 2,938 13,696 11,453
----------- --------- ---------- ---------
Operating income 507 3,324 4,862 7,580
Net interest income 227 97 732 379
----------- --------- ---------- ---------
Income before income taxes 734 3,421 5,594 7,959
Income tax provision
(benefit) 218 (2,179) 1,773 (1,408)
----------- --------- ---------- ---------
Net income $ 516 $ 5,600 $ 3,821 $ 9,367
=========== ========= ========== =========
Net income per share:
Basic $ 0.03 $ 0.33 $ 0.22 $ 0.57
=========== ========= ========== =========
Diluted $ 0.03 $ 0.29 $ 0.20 $ 0.48
=========== ========= ========== =========
Weighted average common
shares:
Basic 17,104 16,806 17,507 16,567
=========== ========= ========== =========
Diluted 18,767 19,593 19,485 19,411
=========== ========= ========== =========
CONTACT: Catalyst Semiconductor, Inc.
Joan Vargas, 408-542-1051 (Investor Relations)
joan.vargas@catsemi.com