EX-99.1 3 e15287ex99_1.txt PRESS RELEASE Exhibit 99.1 ISSI Announces Third Quarter Fiscal Year 2003 Results SANTA CLARA, Calif., July 24 /PRNewswire-FirstCall/ -- Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today reported financial results for the third fiscal quarter ended June 30, 2003. Revenues in the third quarter of fiscal 2003 were $24.3 million, compared with $18.5 million in the third quarter of the prior year and $22.3 million in the quarter ended March 31, 2003. The Company reported a net loss for the June 2003 quarter of ($5.9) million or ($0.21) per diluted share, compared with a net loss of ($7.0) million or ($0.25) per diluted share in the March 2003 quarter, and a net loss of ($24.9) million or ($0.91) per diluted share in the June 2002 quarter. The June quarter net loss included a net charge on investments of approximately ($0.9) million. The Company ended the June 30, 2003 quarter with cash and short-term investments of $59.5 million. "Revenue growth accelerated in the June quarter. We grew revenue 9 percent sequentially in June, after growing 6 percent sequentially in the March quarter," said Jimmy Lee, ISSI's Chairman and CEO. "The recent June quarter revenue shows a 31 percent growth over the June 2002 quarter and we are pleased with these trends." "We are pleased with the results of our expense reduction efforts," said Gary Fischer, ISSI's President and COO. "While the top line grew 31 percent over the June 2002 quarter, our expenses dropped by 30 percent from that same quarter." Company Information ISSI is a technology leader in high performance memory semiconductors. The company designs, develops and markets memory products used in consumer electronics, networking, Internet infrastructure, telecommunications, wireless products, handheld devices, computer peripherals, and automotive electronics. ISSI's products incorporate state-of-the-art circuit design and advanced process technology. The company's high speed and low power SRAM, low to medium density DRAM, MCP (combining Flash and SRAM/PSRAM/DRAM), family of EEPROMs, and Bluetooth(TM) wireless chipsets (in development), enable designers to meet the demanding connectivity, portability, and bandwidth requirements of today's high tech products. ISSI is headquartered in Silicon Valley with worldwide offices in China, Europe, Hong Kong, Taiwan and Korea. Visit our web site at www.issi.com. Safe Harbor Statement Certain statements in this news release, including statements regarding revenue growth trends and our expenses efforts may be considered forward- looking statements and are subject to risks and uncertainties. Actual results may differ materially from current expectations due to many factors, including adverse changes in market conditions, inability to effectively reduce or manage expenses, inability to add new products or diversify product lines, order cancellations, order rescheduling, decreasing demand, reduction in average selling prices for the Company's products and a resultant decrease in the Company's gross profit margin, product warranty claims, competition, inability to secure wafers or manufacturing capacity, the level and value of inventory held by OEM customers or the Company, 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, 2002 and its most recent Quarterly Report on Form 10Q for the quarter ended March 31, 2003. 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, 2003 2002 2003 2002 Net sales $24,285 $18,532 $67,635 $50,261 Cost of sales 20,271 31,563 61,503 57,597 Gross profit (loss) 4,014 (13,031) 6,132 (7,336) Operating Expenses: Research and development 5,584 8,016 18,523 21,815 Selling, general and administrative 3,039 4,213 10,095 12,181 In-process technology charge -- -- -- 4,689 Total operating expenses 8,623 12,229 28,618 38,685 Operating loss (4,609) (25,260) (22,486) (46,021) Other income (expense), net (716) 853 (546) 2,218 Loss before minority interest and equity in net income (loss) of affiliated companies (5,325) (24,407) (23,032) (43,803) Provision (benefit) for income taxes -- 3 -- (3,220) Loss before minority interest and equity in net loss of affiliated companies (5,325) (24,410) (23,032) (40,583) Minority interest in net (income) loss of consolidated subsidiary -- (6) 17 18 Equity in net loss of affiliated companies (615) (511) (2,584) (4,946) Net loss $(5,940) $(24,927) $(25,599) $(45,511) Basic and diluted net loss per share $(0.21) $(0.91) $(0.92) $(1.69) Shares used in per share calculation 27,774 27,309 27,682 26,954 Integrated Silicon Solution, Inc. Condensed Consolidated Balance Sheets (In thousands) June 30, September 30, 2003 2002 (unaudited) (1) ASSETS Current assets: Cash and cash equivalents $11,295 $11,622 Short-term investments 48,200 67,200 Accounts receivable 11,845 8,391 Inventories 13,253 17,665 Other current assets 3,310 3,448 Total current assets 87,903 108,326 Property, equipment, and leasehold improvements, net 8,100 10,673 Other assets 59,714 65,677 Total assets $155,717 $184,676 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $16,554 $21,776 Accrued compensation and benefits 3,247 3,394 Accrued expenses 4,732 3,830 Current portion of long-term obligations 30 158 Total current liabilities 24,563 29,158 Minority interest 78 95 Stockholders' equity: Common stock 3 3 Additional paid-in capital 231,638 231,032 Accumulated deficit (94,850) (69,251) Unearned compensation (288) (778) Accumulated comprehensive loss (5,427) (5,583) Total stockholders' equity 131,076 155,423 Total liabilities and stockholders' equity $155,717 $184,676 (1) Derived from audited financial statements. SOURCE Integrated Silicon Solution, Inc. -0- 07/24/2003 /CONTACT: Suzanne Weaver, Investor Relations, +1-408-588-0800, or Gary Fischer, President & COO, +1-408-969-4612, both of Integrated Silicon Solution, Inc., ir@issi.com/ /Web site: http://www.issi.com / (ISSI) CO: Integrated Silicon Solution, Inc. ST: California IN: CPR SEM HRD SU: ERN