Exhibit 99.1
ISSI ANNOUNCES THIRD QUARTER FISCAL YEAR 2005 RESULTS
SANTA CLARA, Calif., July 26 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the
third fiscal quarter ended June 30, 2005.
Revenue in the third fiscal quarter ending June 30, 2005 was $53.7 million,
compared with $35.7 million in the March 2005 quarter and $58.1 million in the
June 2004 quarter. Revenue in the June 2005 quarter includes two months of
revenue from Integrated Circuit Solution, Inc. ("ICSI"). The reported net loss
includes a $1.5 million, or ($0.04) per share, charge to write off in-process
R&D related to the purchase accounting and valuation of the ICSI acquisition.
The GAAP loss for the June 2005 quarter, with this charge, is ($4.6) million or
($0.12) per diluted share. These results compare with a net profit for the June
2004 quarter of $5.6 million or $0.15 per share on a diluted share basis.
"We assumed effective control of ICSI and as a result began consolidating
their numbers with ISSI's numbers as of May 1, 2005," said Jimmy Lee, ISSI's
Chairman and CEO. "The improved revenue for the Company illustrates one of the
benefits of the acquisition. We have combined our Taiwan operations and moved
our ISSI employees into the ICSI-owned building. We are pleased with the
progress to date."
ISSI's Statement of Operations for the quarter ending June 30, 2005
consolidate the results of ISSI and ICSI. As of June 30, 2005 ISSI owned
approximately 61% of ICSI's outstanding shares and, therefore, reversed
approximately 39% of the ICSI net loss for May and June 2005 in the line
"Minority Interest in Net Loss of Consolidated Subsidiary." ISSI plans to
complete the acquisition of substantially all of the remaining outstanding
shares of ICSI in August 2005.
The $1.5 million charge to write off in-process R&D relates to the purchase
accounting and valuation of the ICSI acquisition. The Company anticipates an
additional charge of approximately $1.8 million during the September 2005
quarter as a result of acquiring substantially all of the remaining outstanding
shares of ICSI.
The purchase accounting and valuation of the ICSI acquisition is preliminary
and is subject to further review by the Company, its advisors, and its auditors.
The valuation numbers could be changed as a result of further review.
About the Company
ISSI is a fabless semiconductor company that designs and markets high
performance integrated circuits for the following key markets: (i) digital
consumer electronics, (ii) networking, (iii) mobile communications and (iv)
automotive electronics. The Company's primary products are high speed and low
power SRAM and low and medium density DRAM. The Company also designs and markets
EEPROM, wireless chipsets, SmartCards and is developing selected non- memory
products focused on its key markets. ISSI is headquartered in Silicon Valley
with worldwide offices in China, Europe, Hong Kong, India, Korea and Taiwan.
Visit our web site at www.issi.com.
Conference Call
A conference call will be held today at 1:30 p.m. Pacific time to discuss
this release. To access ISSI's conference call via telephone, dial 719-457-2680
by 1:20 p.m. Pacific time. The call will be webcast from ISSI's website at
www.issi.com.
Safe Harbor Statement
The statements in this press release regarding the acquisition of ICSI, the
benefits of the acquisition, and progress to date are forward-looking statements
that are subject to risks. Our actual results may differ materially from current
expectations due to many factors, including our ability to retain the revenue
and customers of ICSI, our ability to effectively transfer work assignments from
the U.S. to Asia, our ability to reduce operating expenses, de-stabilizing
supply and demand conditions in the market place, reductions in average selling
prices, changes in manufacturing yields, order cancellations, order
rescheduling, product warranty claims, competition, the level and value of
inventory held by OEM customers, or other factors. Furthermore, the purchase
accounting and valuation information in this release regarding the acquisition
of ICSI are preliminary and are subject to further review by the Company, its
advisors, and its auditors. The valuation numbers could be changed as a result
of further review.
Stockholders of ISSI are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date such statements are
made. ISSI does not undertake any obligation to publicly update any
forward-looking statements to reflect events, circumstances, or new information
after this July 26, 2005 press release, or to reflect the occurrence of
unanticipated events. Further information that could affect the Company's
results is detailed in ISSI's periodic filings with the Securities and Exchange
Commission, including its report on Form 10Q for the quarter ended March 30,
2005.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------- -------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net sales $ 53,722 $ 58,129 $ 119,971 $ 149,888
Cost of sales 46,422 44,290 113,921 115,212
Gross profit 7,300 13,839 6,050 34,676
Operating expenses:
Research and development 5,063 5,615 14,789 15,736
Selling, general and administrative 6,059 4,379 15,668 12,232
In-process technology 1,480 -- 1,915 --
Total operating expenses 12,602 9,994 32,372 27,968
Operating income (loss) (5,302) 3,845 (26,322) 6,708
Other income (expense), net 917 138 2,343 1,130
Gain on sale of other investments 500 -- 3,405 8,740
Income (loss) before income taxes,
minority interest and equity in net
(income) loss of affiliated
companies (3,885) 3,983 (20,574) 16,578
Provision for income taxes 9 119 26 497
Income (loss) before minority interest
and equity in net income (loss) of
affiliated companies (3,894) 3,864 (20,600) 16,081
Minority interest in net loss of
consolidated subsidiary 445 -- 631 --
Equity in net income (loss) of
affiliated companies (1,134) 1,775 (11,776) 2,965
Net income (loss) $ (4,583) $ 5,639 $ (31,745) $ 19,046
Basic net income (loss) per share $ (0.12) $ 0.16 $ (0.87) $ 0.58
Shares used in basic per share
calculation 36,830 35,717 36,507 32,572
Diluted net income (loss) per share $ (0.12) $ 0.15 $ (0.87) $ 0.53
Shares used in diluted per share
calculation 36,830 38,399 36,507 35,628
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, Sept. 30,
2005 2004
(unaudited) (1)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 45,986 $ 17,015
Restricted cash 316 1,500
Short-term investments 55,232 120,450
Accounts receivable 28,520 26,733
Inventories 63,522 44,718
Other current assets 9,293 1,541
Total current assets 202,869 211,957
Property, equipment, and leasehold
improvements, net 19,457 5,622
Other assets 90,959 83,285
Total assets $ 313,285 $ 300,864
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 10,811 $ --
Accounts payable 34,490 30,493
Accrued compensation and benefits 2,146 2,431
Accrued expenses 8,858 4,903
Current portion of convertible
bonds payable 1,312 --
Total current liabilities 57,617 37,827
Other long-term liabilities 1,850 --
Total liabilities 59,467 37,827
Minority interest 15,115 --
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 338,635 336,524
Accumulated deficit (125,588) (93,843)
Unearned compensation (20) (218)
Accumulated comprehensive income 25,672 20,570
Total stockholders' equity 238,703 263,037
Total liabilities and stockholders' equity $ 313,285 $ 300,864
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solutions, Inc.
-0- 07/26/2005
/CONTACT: Gary L. Fischer, President & COO, Investor Relations of
Integrated Silicon Solutions, Inc., +1-408-969-4612, or ir@issi.com/
/Web site: http://www.issi.com /