Exhibit 99.1
Alliance Semiconductor Reports Financial Results for the First
Fiscal Quarter Ended June 25, 2005
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 4, 2005--Alliance
Semiconductor Corporation (Nasdaq:ALSC) today reported financial
results for the first quarter of fiscal year 2006 ended June 25, 2005.
First Quarter Highlights
-- Increased Analog and Mixed Signal revenue by 49 percent
sequentially, driven by increased demand in the high growth
LCD display market
-- Released 15 new Analog and Mixed Signal products in General
Purpose EMI reduction (3), High Performance Clocks (2) and
System Monitors (10)
-- Sampled high-end Low Voltage Zero Delay Buffers and Fan Out
Buffers
-- Introduced EMI compliant Pulse Width Modulator (PWM)
Controller
The Company reported revenues of $5.9 million, compared to $5.6
million in the previous quarter and $7.1 million in the first quarter
of fiscal year 2005. Revenue from the Analog and Mixed Signal and
System Solutions business units represented approximately 64 percent
of total revenue, compared to 59 percent in the previous quarter and
39 percent in the first quarter of fiscal 2005.
Net loss for the first quarter of fiscal 2006 was $10.9 million,
or ($0.31) per share, compared to a net loss of $23.2 million, or
($0.65) per share, in the previous quarter and a net loss of $6.6
million, or ($0.19) per share, in the first quarter of fiscal year
2005.
Operating expenses in the first quarter of fiscal 2006 were $8.3
million, compared to $9.5 million in the previous quarter and $8.0
million for the first quarter of fiscal year 2005.
Gross profit in the first quarter of fiscal 2006 was $0.6 million
compared to gross loss of ($0.2) million in the previous quarter and
gross loss of ($0.4) million in the first quarter of fiscal 2005.
"We are confident in the long-term prospects of the Company and
believe the Analog and Mixed Signal business unit will be a strong
growth driver moving forward, particularly in the high growth LCD
market where we have been designed into the products of the largest
players such as Samsung and LG," said N.D. Reddy, Alliance Chairman,
President, CEO and interim CFO. "Our System Solutions business is
still in its early stage of growth, however we continue to sample new
connectivity and controller products to several key OEM customers. As
newly introduced products move through their life cycle from customer
evaluation to full production, we expect revenue growth from this
business unit in the coming quarters. Overall, we remain focused on
increasing market penetration with our current product portfolio and
introducing next-generation solutions."
Business Summary
During the quarter, Alliance announced the expansion of its Analog
and Mixed Signal product portfolio with the availability of its newest
families of high-performance Zero Delay Buffers (ZDB's) and Non-Zero
Delay Buffers (NZDB's). This family of products significantly expands
the current Analog and Mixed Signal product portfolio and provides
entry into the high-end clock market meeting the needs of various data
communications, networking, telecommunications, industrial and
consumer systems.
The Company also announced the availability of its newest family
of Pulse Width Modulator (PWM) Controllers with Integrated
Electro-Magnetic Interference (EMI) Reduction Technology for Low Noise
Switched Mode Power Supply (SMPS) Converter and Inverter applications.
This family of PWM controllers is designed to replace the popular
series of "184X/384X" PWM controllers in a wide range of SMPS
applications, but with the unique additional advantage of a built-in
EMI reduction engine. This additional EMI reduction capability has
been achieved by implementing Alliance Semiconductor's proprietary
Spread Spectrum Modulation technology.
Additionally, based on the success of its first generation CPU
supervisory products, Alliance announced the availability of its
second generation product family in tiny footprint SC70 packaging. The
new product family is available in a wide range of reset voltage and
reset timing combinations that spawn 10 distinct products with 217
voltages and reset timing combinations per product. These products are
tailored to address a wide range of applications in the wireline and
wireless telecom, computer, consumer, industrial and medical markets,
while the CPU supervisors address the application needs of new,
smaller and more power efficient electronics, which will be introduced
over the next few years.
Recently, the Company announced that its Board of Directors
terminated Jeff Parsons, the former Vice President, Finance and
Administration, and Chief Financial Officer. The Board appointed N.
Damodar Reddy, the Chairman, President and Chief Executive Officer, as
the interim Chief Financial Officer until a permanent CFO is hired.
First Quarter 2006 Financial Results Web Cast and Conference Call
The Company will host a live Web cast and conference call to
discuss the first quarter of fiscal year 2006 financial results
beginning at 5:00 p.m. Eastern Time on Thursday, August 4, 2005.
Investors and other interested parties may participate in the call by
dialing (800) 884-5695 at least fifteen minutes prior to the call and
enter pass code 45365230 or listen to the live Web cast by visiting
the investor relations section of Alliance's Web site at www.alsc.com.
A replay of the call will be available for 48 hours beginning at 7:00
p.m. Eastern Time and can be accessed by dialing (888) 286-8010 with
the pass code 75966125.
About Alliance
Alliance Semiconductor Corporation (Nasdaq:ALSC) is powering
applications 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, California
with design centers in Bangalore and Hyderabad, India. The company is
publicly traded on NASDAQ with ticker symbol ALSC. Additional
information is available on the Alliance Web site at 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 and products. 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
possibility of additional deficiencies in the Company's internal
controls over financial reporting; 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 23, 2005 with the Securities and
Exchange Commission, which is available through the Company's home
page at http://www.alsc.com. These forward-looking statements speak
only as of the date of this press release; they are based on
management's estimates, projections and assumptions as of the date
hereof and include the assumptions that underlie such statements. 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
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended
June 30,
----------------------
2005 2004
---------- -----------
Net revenue $5,911 $7,136
Cost of revenue 5,288 7,559
---------- -----------
Gross profit (loss) 623 (423)
Operating expense:
Research and development 4,777 4,740
Selling, general and administrative 3,506 3,263
---------- -----------
Total operating expense 8,283 8,003
---------- -----------
Loss from operations (7,660) (8,426)
Gain on investments 2,041 3,470
Equity in loss of investees (4,455) (3,641)
Other expense, net (159) (339)
---------- -----------
Loss before income taxes and minority
interest in consolidated subsidiaries (10,233) (8,936)
Provision (benefit) for income tax 689 (2,261)
---------- -----------
Loss before minority interest in consolidated
subsidiaries (10,922)
(6,675)
Minority interest in consolidated
subsidiaries 37 44
---------- -----------
Net loss $(10,885) $(6,631)
========== ===========
Net loss per share:
Basic and diluted $(0.31) $(0.19)
========== ===========
Weighted average number of common shares:
Basic and diluted 35,568 35,262
========== ===========
ALLIANCE SEMICONDUCTOR CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, March 31,
2005 2005
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $2,143 $2,397
Short-term investments 92,745 82,444
Accounts receivable, net 2,510 1,677
Inventory 6,907 7,320
Related party receivables 344 344
Other current assets 5,344 5,830
--------- ---------
Total current assets 109,993 100,012
Property and equipment, net 3,898 4,316
Investment in Tower Semiconductor (excluding
short-term portion) 7,957 8,780
Alliance Ventures and other investments 23,594 24,865
Deferred Tax assets 23,183 19,736
Other assets 530 542
Intangible assets 851 1,290
--------- ---------
Total assets $170,006 $159,541
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,271 $5,275
Accrued liabilities 2,022 1,768
Income tax payable 34,945 34,855
Deferred income tax 23,183 19,736
--------- ---------
Total current liabilities 66,421 61,634
--------- ---------
Other liabilities 11 45
--------- ---------
Total liabilities 66,432 61,679
--------- ---------
Commitments and contingencies
Minority interest in subsidiary companies 404 441
--------- ---------
Stockholders' equity:
Common stock 438 438
Additional paid-in capital 201,551 201,551
Treasury stock (68,524) (68,524)
Accumulated deficit (54,597) (43,712)
Accumulated other comprehensive income 24,302 7,668
--------- ---------
Total stockholders' equity 103,170 97,421
--------- ---------
Total liabilities and stockholders' equity $170,006 $159,541
========= =========
CONTACT: Alliance Semiconductor Corporation
N.D. Reddy, 408-855-4900
or
Shelton Investor Relations
Investor Contact
Lynette Stein, 972-239-5119 Ext. 115
lstein@sheltongroup.com