Exhibit 99.1
Catalyst Semiconductor Reports 3rd Quarter Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--March 1, 2007--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 reported financial results for
its third quarter ended January 31, 2007.
For the third quarter ended January 31, 2007, Catalyst had net
income of $111,000, or $0.01 per diluted share, on net revenues of
$16.4 million. This compares with net income of $864,000, or $0.05 per
diluted share, on net revenues of $14.4 million in the third quarter
ended January 31, 2006. For the second quarter ended October 31, 2006,
Catalyst reported net income of $176,000, or $0.01 per share, on net
revenues of $16.3 million.
Net revenues from analog/mixed signal products were $1.3 million,
or 8.0% of net revenues, in the third quarter ended January 31, 2007,
compared to $1.1 million, or 7.8% of net revenues, in the third
quarter ended January 31, 2006 and $1.3 million, or 7.9% of net
revenues, in the second quarter ended October 31, 2006.
Gross margin for the third quarter ended January 31, 2007 was
35.6%, compared with 43.1% for the third quarter ended January 31,
2006 and 35.5% for the second quarter ended October 31, 2006.
Contributing to the decreased gross margin from the prior year quarter
is the phasing out of the leaded parts in inventory as the industry
transitions to green parts.
Research & Development expense was $1.9 million for the third
quarter ended January 31, 2007, constant with $1.9 million each for
the quarters ended January 31, 2006 and October 31, 2006. Research &
Development expenses included stock option related compensation
expense of $215,000 and $176,000 for the third and second quarters of
2007, respectively, with no such charge a year ago.
Sales, General and Administrative expense was $4.0 million for the
third quarter ended January 31, 2007, compared to $3.3 million and
$3.8 million for the quarters ended January 31, 2006 and October 31,
2006, respectively. The increase from the year ago quarter is
principally attributable to compensation expense of $326,000
associated with stock option grants to sales, marketing and
administrative personnel while the second quarter included
compensation expense for options of $340,000.
Total stock option related compensation expense was $557,000 for
the third quarter ended January 31, 2007 as compared to $528,000 in
the second quarter ended October 31, 2006. The increase is primarily
due to the compensation expense associated with the restricted stock
units granted this quarter. This is a new cost in Catalyst's statement
of operations in fiscal 2007, which is a result of the adoption of
FAS123R effective at the beginning of this fiscal year.
Catalyst recorded a tax provision of $161,000, or 59.2% of income
before taxes during the quarter ended January 31, 2007. This compares
to tax provisions of $539,000 and $171,000 in the quarters ended
January 31, 2006 and October 31, 2006, respectively.
As of January 31, 2007, Catalyst had cash, cash equivalents and
short-term investments of $25.8 million as compared to $29.1 million
as of April 30, 2006. The decrease of $3.3 million was primarily due
to stock repurchases of $889,000 and $1.9 million for refurbishment of
Catalyst's headquarters facility located in Santa Clara, California,
to which Catalyst relocated in August of 2006.
Management Comments
"We are encouraged by the increased sales volume from the year ago
quarter, largely attributable to our ongoing transition to .35 micron
products, which we expect to have a positive effect on future margins.
Other important developments during the quarter included an increase
in unit volume shipments to a record high of 130 million units, a 10%
increase in our contract manufacturing business, a key new design win
and significantly increased design-in activity from our growing family
of mixed signal products," said Gelu Voicu, president and chief
executive officer.
"During the third quarter, our new Quad-Mode(TM) LED driver
product line began to gather momentum. Customers are expressing strong
interest for the benefits that Quad-Mode offers them in extending
battery life in a wide variety of systems ranging from cell phones to
GPS. Industry endorsements are currently in process as well. Our
CAT3636 Quad-Mode(TM) LED driver is a finalist in the prestigious EDN
Innovation Awards in the category of 'Analog IC of the Year'. The same
device also was named the 'Most Innovative LED Driver' by the highly
regarded AnalogZONE website. These drivers incorporate our patent
pending charge pump architecture and are a good illustration of our
on-going transition from second-source analog products to higher
performance, value-add, differentiated solutions," Voicu added.
Investor Conference Call
Catalyst will conduct a conference call regarding the third fiscal
quarter results beginning at 2:00 p.m. (Pacific Time) today. The call
will be available to all investors and media via Catalyst's website at
www.catsemi.com, or by dialing (800) 817-4887 (domestic).
International callers may dial (913) 981-4913. A replay of the call
will be aired from approximately 5:00 p.m. today until midnight
(Pacific Time) on March 8, 2007 at Catalyst's website or by dialing
(888) 203-1112 (domestic) or (719) 457-0820 (international), entering
conference ID number 2043727 and following operator instructions.
About Catalyst Semiconductor
Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in
Santa Clara, California. Catalyst is a leading supplier of high
performance analog/mixed-signal solutions and nonvolatile memory
products used in automotive, aircraft, telecommunications,
computation, industrial and consumer markets. Catalyst designs and
markets a broad range of analog/mixed-signal products such as LED
Drivers, DC-DC Converters, GPI/O Expanders, Digitally Programmable
Potentiometers (DPP(TM)), Microcontroller Supervisory circuits and
other analog/mixed-signal products. Programmable products include
Serial and Parallel EEPROMs with I2C, SPI and Microwire interfaces, as
well as NVRAM and low density Flash Memories. Typical applications
include LCD displays, digital cameras, cell phones, automotive
instrumentation, modems, wireless LANs, network cards, DIMM modules,
digital satellite box receivers, set-top boxes and Internet routers.
Catalyst's Quality Management System is ISO 9001:2000 certified. For
additional information about Catalyst Semiconductor, visit our website
at www.catsemi.com.
Forward-Looking Statements
This earnings release contains forward-looking statements,
including statements regarding increased product margins attributable
to Catalyst's ongoing transition to .35 micron products and market
acceptance in connection with the release of the Quad Mode(TM) LED
drivers. These risks and uncertainties, which could cause Catalyst's
results to differ materially from the forward-looking statements and
include, without limitation: increased competition in the markets for
Catalyst's products leading to decreased average selling prices;
declining growth of the markets for Catalyst's products; declining
market acceptance and demand for Catalyst's products; potential
errors, latent defects, design flaws or other problems with any of
Catalyst's 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 Catalyst's financial
targets and/or meet backlog requirements; timing, future development,
cost and market acceptance of Catalyst's new products; increased
regulatory requirements and costs of compliance; difficulties in
implementation of a supply chain management system or failures in, or
problems resulting from, Catalyst's newly-implemented enterprise
resource management system; 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)
January 31, 2007 April 30, 2006
---------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,608 $ 7,730
Short-term investments 18,152 21,409
Accounts receivable, net 11,073 9,502
Inventories 12,788 14,262
Other assets 3,154 3,255
---------------- --------------
Total current assets 52,775 56,158
Property and equipment, net 11,572 9,408
Deferred tax assets 4,759 4,759
Other assets 60 95
---------------- --------------
Total assets $ 69,166 $ 70,420
================ ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,078 $ 7,596
Accrued expenses 2,543 3,002
Deferred gross profit on shipments
to distributors 2,048 2,292
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Total current liabilities 10,669 12,890
Total stockholders' equity 58,497 57,530
---------------- --------------
Total liabilities and stockholders'
equity $ 69,166 $ 70,420
================ ==============
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
----------------------- -----------------------
January 31, January 31, January 31, January 31,
2007 2006 2007 2006
----------------------- -----------------------
Net revenues $ 16,417 $ 14,423 $ 47,952 $ 46,030
Cost of revenues 10,576 8,208 31,420 27,659
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Gross profit 5,841 6,215 16,532 18,371
Operating expenses:
Research and
development 1,915 1,891 5,741 5,692
Selling, general
and administration 3,987 3,283 11,747 9,999
----------- ----------- ----------- -----------
Income (loss) from
operations (61) 1,041 (956) 2,680
Interest income, net 333 362 977 841
----------- ----------- ----------- -----------
Income before income
taxes 272 1,403 21 3,521
Income tax provision
(benefit) 161 539 (7) 1,235
----------- ----------- ----------- -----------
Net income $ 111 $ 864 $ 28 $ 2,286
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Net income per share:
Basic $ 0.01 $ 0.05 $ 0.00 $ 0.14
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Diluted $ 0.01 $ 0.05 $ 0.00 $ 0.13
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Weighted average
common shares:
Basic 16,359 16,739 16,331 16,770
=========== =========== =========== ===========
Diluted 17,200 18,090 17,246 18,174
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CONTACT: Catalyst Semiconductor, Inc.
Rosa Vasquez, 408-542-1051 (Investor Relations)
rosa.vasquez@catsemi.com
Facsimile: 408-542-1405