Exhibit 99.1
ISSI ANNOUNCES FIRST QUARTER FISCAL YEAR 2006 RESULTS
SANTA CLARA, Calif., Jan. 30 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the
first fiscal quarter ended December 31, 2005.
Revenue in the first fiscal quarter ending December 31, 2005 was $51.1
million, compared with $61.5 million in the September 2005 quarter and $30.6
million in the December 2004 quarter. The reported net loss of ($3.7) million or
($0.10) per diluted share includes a $3.6 million inventory write-down, a $1.0
million charge for FAS 123R stock option expense, and a $0.2 million charge for
a write-down of in-process technology as a result of acquiring additional shares
of ICSI. These results compare with a net loss for the December 2004 quarter of
$13.3 million or ($0.37) per share on a diluted share basis which included an
inventory write-down of $9.6 million or ($0.26) per share.
"We did see a drop in our DRAM average selling prices during the December
quarter," said Jimmy Lee, ISSI's Chairman and CEO. "This hurt the revenue line.
However, December 2005 quarterly revenue was 67% greater than December 2004
quarterly revenue as a result of our acquisition of ICSI. We are very pleased
with how the acquisition is going and believe we are well-positioned for the
future."
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 how the acquisition of ICSI
is going and being well-positioned for the future 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 additional shares 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 January 30, 2006 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 10K for the year ended September 30,
2005.
Consolidated Statement of Operations and Consolidated Balance Sheet to
follow.
Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended
December 31,
---------------------------
2005 2004
------------ ------------
Net sales $ 51,093 $ 30,575
Cost of sales 43,710 36,351
Gross profit (loss) 7,383 (5,776)
Operating expenses:
Research and development 5,626 5,090
Selling, general and administrative 6,478 4,221
Acquired in-process technology charge 175 --
Total operating expenses 12,279 9,311
Operating loss (4,896) (15,087)
Interest and other income (expense), net 1,049 606
Gain on sale of investments -- 2,370
Loss before income taxes, minority interest and equity
in net loss of affiliated companies (3,847) (12,111)
Provision for income taxes 62 1
Loss before minority interest and equity in net loss
of affiliated companies (3,909) (12,112)
Minority interest in net loss of consolidated subsidiary 424 95
Equity in net loss of affiliated companies (223) (1,314)
Net loss $ (3,708) $ (13,331)
Basic and diluted net loss per share $ (0.10) $ (0.37)
Shares used in per share calculation 37,240 36,231
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
December 31, September 30,
2005 2005
(unaudited) (1)
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 32,627 $ 27,484
Restricted cash 152 301
Short-term investments 77,346 96,427
Accounts receivable, net 28,686 28,508
Inventories 69,120 60,468
Other current assets 4,701 3,594
Total current assets 212,632 216,782
Investments 7,093 9,182
Property, equipment, and leasehold improvements,
net 22,031 21,725
Goodwill 21,561 20,232
Purchased intangible assets, net 6,194 6,142
Other assets 9,382 10,053
Total assets $ 278,893 $ 284,116
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 12,328 $ 6,628
Accounts payable 37,702 35,705
Accrued compensation and benefits 3,302 2,467
Accrued expenses 8,429 8,029
Total current liabilities 61,761 52,829
Other long-term liabilities 1,777 1,793
Total liabilities 63,538 54,622
Minority interest 4,811 6,566
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 341,933 340,567
Accumulated deficit (135,443) (131,735)
Unearned compensation (14) (17)
Accumulated comprehensive income 4,064 14,109
Total stockholders' equity 210,544 222,928
Total liabilities and stockholders' equity $ 278,893 $ 284,116
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solution, Inc.
-0- 01/30/2006
/CONTACT: Gary Fischer, Acting CFO of Integrated Silicon Solution, Inc.,
+1-408-969-4612 or ir@issi.com/
/Web site: http://www.issi.com /