Exhibit 99.1
ISSI ANNOUNCES THIRD QUARTER FISCAL YEAR 2006 RESULTS
SANTA CLARA, Calif., July 25 /PRNewswire-FirstCall/ -- Integrated Silicon
Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the third
fiscal quarter ended June 30, 2006.
Revenue in the third fiscal quarter ending June 30, 2006 was $54.7 million,
compared with $53.2 million in the March 2006 quarter and $53.7 million in the
June 2005 quarter. The reported net loss for the June 2006 quarter of ($5.4)
million or ($0.15) per diluted share includes a $4.9 million inventory
write-down and a $0.9 million charge for FAS 123R stock option expense. These
results compare with a net loss for the June 2005 quarter of ($4.6) million or
($0.12) per share on a diluted share basis which included a $1.5 million, or
($0.04) per share, charge to write off in-process R&D related to the acquisition
of Integrated Circuit Solution, Inc. (ICSI).
"Revenue grew 3% in the June 2006 quarter from the previous quarter," said
Jimmy Lee, ISSI's Chairman and CEO. "We acquired additional SRAM assets this
quarter to further enhance our SRAM product line. We continue to execute our
strategy to grow niche market segments, and remain optimistic about our
strategic direction to develop sustainable revenue in both the SRAM and DRAM
market segments that meet our margin expectations."
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, 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
1-800-500-0177 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 executing our strategy to
grow niche market segments and remaining optimistic about our strategic
direction to develop sustainable revenue in SRAM and DRAM market segments 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 for our products, 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.
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 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 March 31,
2006.
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 Nine Months Ended
June 30, June 30,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales $ 54,749 $ 53,722 $ 159,087 $ 119,971
Cost of sales 49,295 46,422 140,612 113,921
Gross profit 5,454 7,300 18,475 6,050
Operating expenses:
Research and development 5,533 5,063 16,706 14,789
Selling, general and
administrative 6,458 6,059 20,175 15,668
In-process technology - 1,480 499 1,915
Total operating expenses 11,991 12,602 37,380 32,372
Operating loss (6,537) (5,302) (18,905) (26,322)
Other income (expense), net 1,075 917 3,820 2,343
Gain on sale of other investments 267 500 2,454 3,405
Loss before income taxes, minority
interest and equity in net loss of
affiliated companies (5,195) (3,885) (12,631) (20,574)
Provision for income taxes 51 9 164 26
Loss before minority interest
and equity in net loss of
affiliated companies (5,246) (3,894) (12,795) (20,600)
Minority interest in net loss of
consolidated subsidiary 38 445 688 631
Equity in net loss of
affiliated companies (233) (1,134) (709) (11,776)
Net loss $ (5,441) $ (4,583) $ (12,816) $ (31,745)
Basic and diluted net loss per share $ (0.15) $ (0.12) $ (0.34) $ (0.87)
Shares used in per share calculation 37,488 36,830 37,367 36,507
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, September 30,
2006 2005
(unaudited) (1)
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 37,529 $ 27,484
Restricted cash - 301
Short-term investments 79,639 96,427
Accounts receivable, net 28,245 28,508
Inventories 54,170 60,468
Other current assets 4,354 3,594
Total current assets 203,937 216,782
Investments - 9,182
Property, equipment, and leasehold
improvements, net 21,227 21,725
Goodwill 25,338 20,232
Purchased intangible assets, net 5,876 6,142
Other assets 7,641 10,053
Total assets $ 264,019 $ 284,116
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 8,797 $ 6,628
Accounts payable 33,481 35,705
Accrued compensation and benefits 3,169 2,467
Accrued expenses 8,431 8,029
Total current liabilities 53,878 52,829
Other long-term liabilities 2,105 1,793
Total liabilities 55,983 54,622
Minority interest 694 6,566
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 345,439 340,567
Accumulated deficit (144,551) (131,735)
Unearned compensation - (17)
Accumulated comprehensive income 6,450 14,109
Total stockholders' equity 207,342 222,928
Total liabilities and stockholders'
equity $ 264,019 $ 284,116
(1) Derived from audited financial statements.
SOURCE Integrated Silicon Solution, Inc.
-0- 07/25/2006
/CONTACT: Scott Howarth, Vice-President & CFO, Investor Relations,
+1-408-969-4686, or ir@issi.com/
/FCMN Contact: gfischer@issi.com /
/Web site: http://www.issi.com /