SAN JOSE, Calif., Oct. 30, 2007 (PRIME NEWSWIRE) -- Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the fourth fiscal quarter and fiscal year ended September 30, 2007.
Revenue in the fourth fiscal quarter ended September 30, 2007 was $63.3 million, a 5.7% increase over revenue of $59.9 million in the June 2007 quarter and $59.9 million in the September 2006 quarter. Net income for the September 2007 quarter was $3.3 million, or $0.09 per diluted share, with gross margins of 20.2%. Net income includes a $1.1 million charge for FAS 123R stock option expense, a $0.7 million expense for legal fees and estimated settlement for derivative lawsuits, and a $0.6 million gain on sale of investments. These results compare with net income for the September 2006 fourth quarter of $0.1 million, or $0.00 per diluted share, which included a $1.1 million charge for legal and accounting fees for our stock option investigation and a $1.1 million charge for FAS 123R stock option expense.
Operating income for the fourth fiscal quarter ended September 30, 2007 was $1.1 million which included the $1.1 million FAS 123R charge and $0.2 million for legal fees associated with derivative lawsuits. This compares to an operating loss of ($1.3) million for the same quarter in 2006 which included a $1.1 million FAS 123R charge and $1.1 million for legal fees associated with our stock option investigation.
Revenue for the fiscal year ended September 30, 2007 was $245.4 million, an increase of 12.8% from revenue of $217.5 million for fiscal 2006. Net income for fiscal 2007 was $15.4 million, or $0.40 per diluted share, which compares to a loss of ($14.2) million, or ($0.38) per diluted share for fiscal 2006.
The Company's cash, cash equivalents and short-term investments totaled $133.8 million at September 30, 2007, an increase of $7.7 million from June 30, 2007. This increase was primarily due to cash flow from operating results. The Company's inventory at September 30, 2007 totaled $32.1 million, a reduction of $8.4 million from the quarter ended June 30, 2007.
"We saw strength in our market segments during the quarter as demand for our products was strong. We achieved both revenue growth and margin expansion despite another price drop in the mainstream DRAM markets. In an environment characterized by broad price declines we reported our first quarterly operating income in over 3 years," said Jimmy Lee, ISSI's Chairman and CEO. "Over the course of the last year we instituted an orderly process of simplifying and focusing our balance sheet which resulted in a $12 million gain on sale of assets. This process continues. We recently completed a repurchase of 1.2 million shares of our common stock through a Dutch Tender and announced an additional share buyback program of up to $30 million of our common stock. The strategic changes we made over the course of the last two years have had a significant effect on the stability of our business and enabled us to take a more proactive approach to optimize our assets. While we have much work to do, the progress we made in the last 12 months is substantial. We will continue to work diligently to provide value for our customers and shareholders."
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 785-830-1913 by 1:20 p.m. Pacific time. The call will be webcast from ISSI's website at www.issi.com.
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.
The Integrated Silicon Solution, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4163
Forward Looking Statements
This news release contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning our continuing process of simplifying and focusing our balance sheet, stability of our business, more proactive approach to optimize our assets, and providing value for our customers and shareholders are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include supply and demand conditions in the market place, unexpected reductions in average selling prices for our products, our ability to sell our products for key applications and the pricing and gross margins achieved on such sales, 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 risks listed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-Q for the period ended June 30, 2007. In addition, the financial information in this press release is unaudited and subject to any adjustments that may be made in connection with the year end audit. The Company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
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,
------------------- --------------------
2007 2006 2007 2006
------- --------- --------- ---------
Net sales $63,329 $ 59,905 $ 245,395 $ 217,492
Cost of sales 50,567 48,167 196,959 188,386
------- --------- --------- ---------
Gross profit 12,762 11,738 48,436 29,106
------- --------- --------- ---------
Operating
expenses:
Research and
development 4,694 5,043 20,174 21,617
Selling,
general and
administrative 7,016 7,968 32,660 28,328
Acquired
in-process
technology
charge -- -- -- 499
------- --------- --------- ---------
Total operating
expenses 11,710 13,011 52,834 50,444
------- --------- --------- ---------
Operating income
(loss) 1,052 (1,273) (4,398) (21,338)
Interest
and other
income (expense),
net 1,621 1,136 7,993 4,577
Gain on sale of
investments 603 26 12,032 2,480
-------- --------- --------- ---------
Income (loss)
before
income taxes,
minority interest
and equity in
net loss of
affiliated
companies 3,276 (111) 15,627 (14,281)
Provision (benefit)
for income taxes (41) (197) 4 (33)
------- --------- --------- ---------
Income (loss)
before
minority interest
and equity
in net loss
of affiliated
companies 3,317 86 15,623 (14,248)
Minority interest
in net (income)
loss of
consolidated
subsidiary (65) 4 (170) 693
Equity in net
income (loss) of
affiliated
companies -- 22 (92) (687)
-------- --------- --------- ---------
Net income (loss) $ 3,252 $ 112 $ 15,361 $ (14,242)
======= ========= ========= =========
Basic net income
(loss) per share $ 0.09 $ 0.00 $ 0.41 $ (0.38)
======== ========== ========= =========
Shares used
in basic
per share
calculation 37,680 37,577 37,631 37,419
======= ========= ========= =========
Diluted
net income
(loss) per share $ 0.09 $ 0.00 $ 0.40 $ (0.38)
======= ========= ========= =========
Shares used
in diluted
per share
calculation 37,999 37,890 37,975 37,419
======= ========= ========= =========
Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Sept. 30, Sept. 30,
2007 2006
----------- ---------
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $ 53,722 $ 37,318
Short-term investments 80,093 76,015
Accounts receivable, net 37,030 31,906
Inventories 32,056 52,417
Other current assets 6,134 4,799
----------- ---------
Total current assets 209,035 202,455
Property, equipment and leasehold
improvements, net 23,284 21,984
Goodwill 25,338 25,338
Purchased intangible assets, net 3,538 5,391
Other assets 1,520 5,110
----------- ---------
Total assets $ 262,715 $ 260,278
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and notes $ 614 $ 1,632
Accounts payable 36,509 40,123
Accrued compensation and benefits 3,588 2,928
Accrued expenses 6,734 9,665
----------- ---------
Total current liabilities 47,445 54,348
Other long-term liabilities 793 2,048
----------- ---------
Total liabilities 48,238 56,396
----------- ---------
Commitments and contingencies
Minority interest 726 690
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 376,998 379,038
Accumulated deficit (162,668) (178,029)
Accumulated comprehensive income (loss) (583) 2,179
----------- ---------
Total stockholders' equity 213,751 203,192
----------- ---------
Total liabilities and stockholders' equity $ 262,715 $ 260,278
=========== =========
(1) Derived from audited financial statements.