Exhibit 99.1
[LOGO OF INTEGRATED SILICON SOLUTION, INC.]
FOR IMMEDIATE RELEASE
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ISSI ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2005 RESULTS
Santa Clara, Calif.--November 3, 2005--Integrated Silicon Solution, Inc.
(Nasdaq: ISSI) today reported its financial results for the fourth fiscal
quarter and year ended September 30, 2005.
Revenue in the fourth quarter was $61.5 million, compared with $31.1
million in the prior year period. The Company reported a GAAP net loss for the
fourth quarter of ($6.3) million or ($0.17) per diluted share, compared with a
net loss of ($15.6) million or ($0.43) per diluted share, in the prior year
period. The fourth quarter GAAP net loss includes a charge for impairment on
investments of ($4.9) million, charges related to the purchase accounting for
the acquisition of Integrated Circuit Solution, Inc. (ICSI) of ($1.1) million, a
charge to allowance for doubtful accounts for amounts due primarily from Delphi
Electronics in regards to their bankruptcy filing totaling ($0.9) million and a
gain on the sale of investments of $1.6 million. The total impact of these items
was to increase the net loss by ($5.3M) or ($0.14) per diluted share.
For the fiscal year ended September 30, 2005, revenue totaled $181.4
million compared to $181.0 million for fiscal year 2004. The net loss for the
year ended September 30, 2005 totaled ($38.1) million or ($1.04) per diluted
share compared to a net profit of $3.5 million or $0.10 per diluted share in
fiscal year 2004.
"As a result of our acquisition of ICSI, we began consolidating their
financial results with ours as of May 1, 2005. The net effect is that our first
full quarter of consolidating ICSI - the September 2005 quarter - has revenue
increasing 97% over the quarter ending September 2004," said Jimmy Lee, Chairman
and CEO. "We have strengthened our operating capabilities and we believe we are
now well positioned to compete in the low and medium density DRAM market and the
full range of the SRAM market. We have also made good progress in non-memory
product lines."
The statement of operations for the quarter ended September 30, 2005
currently includes an estimated charge for impairment of investments of $4.9
million. The Company is still analyzing the impairment of its investments and
has engaged a qualified valuation analyst to assist in this assessment. The
investment impairment is the Company's best estimate and may be subject to
adjustment as the Company finalizes its valuation assessment. The Company
expects to complete its assessment prior to filing its Form 10-K for the year
ended September 30, 2005.
Conference Call
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ISSI will host a conference call today, November 3, 2005, beginning at
1:30 p.m. Pacific time. To access the call, dial 719-457-2619. The call will be
simulcast over the Internet at www.com/call. The webcast will be available for
replay until November 28, 2005.
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ISSI Release
November 3, 2005
Page Two
About the Company
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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, 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.
Safe Harbor Statement
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Certain statements in this news release may be considered
forward-looking statements, including statements related to strengthened
operating capabilities, being well positioned to compete in the DRAM and SRAM
markets, the estimated charge for impairment of investments, and our belief that
we are making good progress in non-memory product lines. Such statements are
subject to risks and uncertainties. Actual results may differ materially from
current expectations due to many factors, including completion of the fiscal
2005 year-end audit, completion of the analysis of impairments on investments, a
reduction in average selling prices for the Company's products and a resultant
decrease in the Company's gross profit margin, changes in demand for the
Company's products or the products in which the Company's products are used,
changes in market conditions, inability to expand revenue, inability to
effectively reduce expenses, inability to add new products or diversify product
lines, order cancellations, and order rescheduling, product warranty claims,
competition, the level and value of inventory held by OEM customers or the
Company, the Company's ability to secure manufacturing capacity from its
foundries, or other factors. Further information that could affect the Company's
results is detailed in ISSI's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10K for the fiscal year ended
September 30, 2004 and its most recent Quarterly Report on Form 10Q for the
quarter ended June 30, 2005.
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Consolidated Statements of Operations and Consolidated Balance Sheet to follow.
CONTACT:
Gary Fischer
President & CFO
(408) 969-4612
ir@issi.com
INTEGRATED SILICON SOLUTION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Year Ended
September 30, September 30,
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2005 2004 2005 2004
---------- ---------- ---------- ----------
Net sales $ 61,467 $ 31,124 $ 181,438 $ 181,012
Cost of sales 51,772 39,103 165,693 154,315
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Gross profit (loss) 9,695 (7,979) 15,745 26,697
---------- ---------- ---------- ----------
Operating expenses:
Research and development 4,551 5,302 19,340 20,838
Selling, general and administrative 7,640 3,971 23,308 16,403
In-process technology 849 - 2,764 -
---------- ---------- ---------- ----------
Total operating expenses 13,040 9,273 45,412 37,241
---------- ---------- ---------- ----------
Operating loss (3,345) (17,252) (29,667) (10,544)
Other income (expense), net (4,891) 108 (2,548) 1,238
Gain on sale of investments 1,597 2,134 5,002 10,874
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Income (loss) before income taxes, minority
interest and equity in net (income) loss of
affiliated companies (6,639) (15,010) (27,213) 1,568
Provision (benefit) for income taxes (293) (9) (267) 488
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Income (loss) before minority interest
and equity in net income (loss) of
affiliated companies (6,346) (15,001) (26,946) 1,080
Minority interest in net loss of
consolidated subsidiaries 136 - 767 -
Equity in net income (loss) of
affiliated companies (137) (560) (11,913) 2,405
---------- ---------- ---------- ----------
Net income (loss) $ (6,347) $ (15,561) $ (38,092) $ 3,485
========== ========== ========== ==========
Basic net income (loss) per share $ (0.17) $ (0.43) $ (1.04) $ 0.10
========== ========== ========== ==========
Shares used in basic per share calculation 37,038 36,061 36,663 33,444
========== ========== ========== ==========
Diluted net income (loss) per share $ (0.17) $ (0.43) $ (1.04) $ 0.10
========== ========== ========== ==========
Shares used in diluted per share calculation 37,038 36,061 36,663 36,121
========== ========== ========== ==========
INTEGRATED SILICON SOLUTION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
September 30, 2005
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Net sales $ 61,467
Cost of sales 51,772 Includes charge of $273K for ICSI purchase accounting
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Gross profit (loss) 9,695
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Operating expenses:
Research and development 4,551 Includes charge of $882K to allowance for doubtful accounts
Selling, general and administrative 7,640 for amounts due primarily from Delphi Electronics
In-process technology 849 Write-off of in-process technology from purchase accounting
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Total operating expenses 13,040
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Operating loss (3,345)
Other income (expense), net (4,891) Includes $4,856K charge for the impairment of investments
Gain on sale of investments 1,597 Gain on the sale of investments
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Income (loss) before income taxes, minority
interest and equity in net (income)
loss of affiliated companies (6,639)
Provision (benefit) for income taxes (293)
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Income (loss) before minority interest
and equity in net income (loss) of
affiliated companies (6,346)
Minority interest in net loss of
consolidated subsidiaries 136
Equity in net income (loss) of
affiliated companies (137)
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Net income (loss) $ (6,347)
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Basic and diluted net loss per share $ (0.17)
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Shares used in per share calculation 37,038
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INTEGRATED SILICON SOLUTION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, September 30,
2005 2004
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(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $ 27,484 $ 17,015
Restricted cash 1,500 301
Short-term investments 96,427 120,450
Accounts receivable, net 27,508 26,733
Inventories 60,468 44,718
Other current assets 3,594 1,541
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Total current assets 215,782 211,957
Property, equipment, and leasehold improvements, net 21,725 5,622
Other assets 45,409 83,285
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Total assets $ 282,916 $ 300,864
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 6,628 $ -
Accounts payable 35,705 30,493
Accrued compensation and benefits 2,467 2,431
Accrued expenses 7,029 4,903
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Total current liabilities 51,829 37,827
Other long-term liabilities 1,793 -
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Total liabilities 53,622 37,827
Minority interest 6,566 -
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 340,567 336,524
Accumulated deficit (131,935) (93,843)
Unearned compensation (17) (218)
Accumulated comprehensive income 14,109 20,570
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Total stockholders' equity 222,728 263,037
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Total liabilities and stockholders' equity $ 282,916 $ 300,864
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(1) Derived from audited financial statements.