EX-99.1 3 e16594ex99_1.txt PRESS RELEASE Exhibit 99.1 ISSI Announces First Quarter Fiscal Year 2004 Results SANTA CLARA, Calif., Jan. 12 /PRNewswire-FirstCall/ -- Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today reported its financial results for the first fiscal quarter ended December 31, 2003. Revenues in the first quarter of fiscal 2004 were $40.3 million, compared with $21.0 million in the first quarter of the prior year and $30.0 million in the quarter ended September 30, 2003. The Company reported a net profit for the December 2003 quarter of $0.9 million or $0.03 per share on a diluted share basis, compared to a net loss for the December 2002 quarter of ($12.7) million or ($0.46) per share, and a net loss of ($2.5) million or ($0.09) per share on a diluted share basis in the September 2003 quarter. The Company ended the December 31, 2003 quarter with cash and short term investments of $63.3 million, an increase of $4.9 million over the September 2003 quarter. "We saw accelerated revenue growth in the December 2003 quarter and we are pleased to cross over to quarterly profitability," said Jimmy Lee, ISSI's Chairman and CEO. 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, Pseudo SRAM and multi-chip packages 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. Safe Harbor Statement Certain statements in this news release, including statements regarding accelerated revenue growth and profitability, are forward-looking statements and are subject to risks and uncertainties. Actual results may differ materially from current expectations due to many factors, including the Company's inability to secure wafers or manufacturing capacity, deteriorating market conditions, the Company's inability to effectively reduce expenses, the Company's inability to add new products or diversify product lines, manufacturing yields, 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, 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, 2003. Consolidated Statement of Operations and Consolidated Balance Sheets to follow. Integrated Silicon Solution, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended December 31, 2003 2002 Net sales $40,255 $21,038 Cost of sales 31,303 22,260 Gross profit (loss) 8,952 (1,222) Operating Expenses: Research and development 4,540 6,805 Selling, general and administrative 3,891 3,658 Total operating expenses 8,431 10,463 Operating income (loss) 521 (11,685) Other income (expense), net 96 18 Income (loss) before income taxes, minority interest and equity in net loss of affiliated companies 617 (11,667) Provision for income taxes 12 -- Income (loss) before minority interest and equity in net loss of affiliated companies 605 (11,667) Minority interest in net loss of consolidated subsidiary -- 17 Equity in net income (loss) of affiliated companies 290 (1,039) Net income (loss) $895 $(12,689) Basic net income (loss) per share $0.03 $(0.46) Shares used in basic per share calculation 28,649 27,565 Diluted net income (loss) per share $0.03 $(0.46) Shares used in diluted per share calculation 31,935 27,565 Integrated Silicon Solution, Inc. Condensed Consolidated Balance Sheets (In thousands) December 31, September 30, 2003 2003 (unaudited) (1) ASSETS Current assets: Cash and cash equivalents $24,748 $19,992 Short-term investments 38,550 38,450 Accounts receivable 13,302 12,152 Inventories 18,487 16,638 Other current assets 1,275 1,712 Total current assets 96,362 88,944 Property, equipment, and leasehold improvements, net 5,578 6,295 Other assets 63,061 62,860 Total assets $165,001 $158,099 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $20,377 $17,230 Accrued compensation and benefits 3,534 3,406 Accrued expenses 5,142 5,436 Total current liabilities 29,053 26,072 Minority interest 78 78 Stockholders' equity: Common stock 3 3 Additional paid-in capital 237,038 233,957 Accumulated deficit (96,433) (97,328) Unearned compensation (249) (268) Accumulated comprehensive loss (4,489) (4,415) Total stockholders' equity 135,870 131,949 Total liabilities and stockholders' equity $165,001 $158,099 (1) Derived from audited financial statements. SOURCE Integrated Silicon Solution, Inc. -0- 01/12/2004 /CONTACT: Suzanne Weaver, Investor Relations, +1-408-969-4774, or ir@issi.com, or Gary L. Fischer, President & COO, +1-408-969-4612, or ir@issi.com, both of ISSI/ /Web site: http://www.issi.com / (ISSI) CO: Integrated Silicon Solution, Inc. ST: California IN: CPR SEM ECP HRD SU: ERN