Exhibit 99.1
[LOGO OF INTEGRATED SILICON SOLUTION, INC. (R)]
FOR IMMEDIATE RELEASE
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ISSI ANNOUNCES SECOND QUARTER FISCAL YEAR 2006 RESULTS
Santa Clara, Calif.--April 25, 2006--Integrated Silicon Solution, Inc.
(Nasdaq: ISSI) today reported its financial results for the second fiscal
quarter ended March 31, 2006.
Revenue in the second fiscal quarter ending March 31, 2006 was $53.2
million, compared with $51.1 million in the December 2005 quarter and $35.7
million in the March 2005 quarter. The reported net loss for the March 2006
quarter of ($3.7) million or ($0.10) per diluted share includes a $5.8 million
inventory write-down, a $1.56 million charge for FAS 123R stock option expense,
a $0.3 million charge for a write-down of in-process technology as a result of
acquiring additional shares of ICSI, and a $2.7 million gain related to the sale
of investments and assets. These results compare with a net loss for the March
2005 quarter of $13.8 million or ($0.38) per share on a diluted share basis
which included an inventory write-down of $1.3 million, a charge of $1.1 million
against the Company's facility lease, and a charge of $9.3 million for the
equity interest in ICSI in Taiwan prior to our acquisition.
"Revenue grew 4% in the March 2006 quarter from the previous quarter
and 49% over the same period last year." said Jimmy Lee, ISSI's Chairman and
CEO. "The year to year revenue growth shows the benefit of our ICSI acquisition.
Additionally, we exited the Bluetooth and Flash Controller markets which will
reduce our total expenses, but resulted in an inventory write-down. We remain
optimistic about our ability to grow in niche market segments such as automotive
markets and DRAM die business which we expect will help to enhance our gross
margins."
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.
Conference Call
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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
719-457-2617 by 1:20 p.m. Pacific time. The call will be webcast from ISSI's
website at www.issi.com.
-more-
ISSI Release
April 25, 2006
Page 2
Safe Harbor Statement
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The statements in this press release regarding exiting markets,
reducing our total expenses, and being optimistic about our ability to grow in
niche markets and our expectations regarding enhanced gross margins are
forward-looking statements that are subject to risks. Our actual results may
differ materially from current expectations due to many factors, including
supply and demand conditions in the market place, unexpected reductions in
average selling prices, our ability to sell our products for the die business
and automotive applications and the pricing and gross margins achieved on such
sales, our ability to retain the revenue and customers of ICSI, our ability to
control or reduce operating expenses, 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 April 25, 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 10Q for the quarter ended December 31,
2005.
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Consolidated Statement of Operations and Consolidated Balance Sheet to follow.
CONTACT:
Scott Howarth
Vice-President & CFO
Investor Relations
(408) 969-4686
ir@issi.com
INTEGRATED SILICON SOLUTION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
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2006 2005 2006 2005
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Net sales $ 53,245 $ 35,674 $ 104,338 $ 66,249
Cost of sales 47,607 31,148 91,317 67,499
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Gross profit (loss) 5,638 4,526 13,021 (1,250)
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Operating expenses:
Research and development 5,547 4,636 11,173 9,726
Selling, general and administrative 7,239 5,388 13,717 9,609
In-process technolgy 324 435 499 435
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Total operating expenses 13,110 10,459 25,389 19,770
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Operating loss (7,472) (5,933) (12,368) (21,020)
Interest and other income (expense), net 1,696 820 2,745 1,426
Gain on sale of other investments 2,187 535 2,187 2,905
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Loss before income taxes, minority
interest and equity in net loss of
affiliated companies (3,589) (4,578) (7,436) (16,689)
Provision for income taxes 51 16 113 17
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Loss before minority interest
and equity in net loss of
affiliated companies (3,640) (4,594) (7,549) (16,706)
Minority interest in net loss of
consolidated subsidiary 226 91 650 186
Equity in net loss of affiliated
companies (253) (9,328) (476) (10,642)
---------- ---------- ---------- ----------
Net loss $ (3,667) $ (13,831) $ (7,375) $ (27,162)
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Basic and diluted net loss per share $ (0.10) $ (0.38) $ (0.20) $ (0.75)
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Shares used in per share calculation 37,371 36,460 37,306 36,346
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INTEGRATED SILICON SOLUTION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, September 30,
2006 2005
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(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $ 26,196 $ 27,484
Restricted cash - 301
Short-term investments 84,145 96,427
Accounts receivable, net 30,020 28,508
Inventories 64,657 60,468
Other current assets 5,421 3,594
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Total current assets 210,439 216,782
Investments - 9,182
Property, equipment, and leasehold improvements, net 21,837 21,725
Goodwill 25,054 20,232
Purchased intangible assets, net 5,646 6,142
Other assets 9,404 10,053
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Total assets $ 272,380 $ 284,116
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 9,704 $ 6,628
Accounts payable 35,798 35,705
Accrued compensation and benefits 2,676 2,467
Accrued expenses 8,211 8,029
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Total current liabilities 56,389 52,829
Other long-term liabilities 1,725 1,793
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Total liabilities 58,114 54,622
Minority interest 919 6,566
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 344,341 340,567
Accumulated deficit (139,110) (131,735)
Unearned compensation - (17)
Accumulated comprehensive income 8,112 14,109
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Total stockholders' equity 213,347 222,928
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Total liabilities and stockholders' equity $ 272,380 $ 284,116
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(1) Derived from audited financial statements.