8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2003

Integrated Silicon Solution, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-23084	77-0199971
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2231 Lawson Lane, Santa Clara, California	95054
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (408) 588-0800

(Former name or former address, if changed since last report)

TABLE OF CONTENTS

	Item 7. Financial Statements and Exhibits.
	Item 9. Regulation FD Disclosure.
SIGNATURES
INDEX TO EXHIBITS
EXHIBIT 99.1

Item 7. Financial Statements and Exhibits.

(c)	Exhibits.
99.1	Press Release dated April 24, 2003.

Item 9. Regulation FD Disclosure.

     The press release filed as an exhibit to this report is being furnished under Item 12 (Furnishing of Earnings Releases) as contemplated by SEC Release Nos. 33-8176 and 33-8216.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 24, 2003	INTEGRATED SILICON SOLUTION, INC.
	/s/ GARY L. FISCHER Gary L. Fischer President, Chief Operating Officer and Chief Financial Officer

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INDEX TO EXHIBITS

Exhibit
Number	Description of Document
99.1	Press Release dated April 24, 2003.

EX-99.1 3 f89500exv99w1.htm EXHIBIT 99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

ISSI ANNOUNCES SECOND QUARTER FISCAL YEAR 2003 RESULTS
Improved Financial Performance

     Santa Clara, Calif.—April 24, 2003—Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today reported financial results for the second fiscal quarter ended March 31, 2003.

     Revenues in the second quarter of fiscal 2003 were $22.3 million, compared with $16.6 million in the second quarter of the prior year and $21.0 million in the quarter ended December 31, 2002. The Company reported a net loss for the March 2003 quarter of ($7.0) million or ($0.25) per diluted share, compared with a net loss of ($12.7) million or ($0.46) per diluted share in the December 2002 quarter, and a net loss of ($10.6) million or ($0.39) per diluted share in the March 2002 quarter. The Company ended the March 31, 2003 quarter with cash and short term investments of $66.7 million.

     “Revenue in the recent March quarter shows a 34% growth over March 2002, and 6% over the recent December quarter,” said Jimmy Lee, ISSI’s Chairman and CEO. “We are hopeful that these trends will continue. The strongest market segment for ISSI is currently consumer electronics, a market segment that we targeted after the last up-cycle. Consumer electronics represented about 50% of our revenue in the March 2003 quarter, mostly in Asia.”

     During the March 2003 quarter, the Company took additional steps to cut expenses, including a reduction in force of 15% of the worldwide employee base. Operating expenses dropped from $10.5 million in the December 2002 quarter to $9.5 million in the March 2003 quarter.

     “We will continue to seek ways to reduce our operating expenses,” said Gary Fischer, ISSI’s President and COO. “Our expenses for the quarter ending in June 2002 totaled $12.2 million. The March 2003 quarter reflects a 22% reduction in expenses from June 2002, so we feel we are definitely making good progress.”

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

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ISSI Release
April 24, 2003
Page Two

advanced process technology. The company’s high speed and low power SRAM, low to medium density DRAM, MCP (combining Flash and SRAM/PSRAM), family of EEPROMs, Parallel Search Processors (CAM), and BlueTooth™ 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 continuing, strength in consumer electronics, continuing to reduce operating expenses and progress towards expense reduction 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 December 31, 2002.

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Consolidated Statement of Operations and Consolidated Balance Sheets to follow.

CONTACTS
Suzanne Weaver
Investor Relations
(408) 588-0800
ir@issi.com
Gary Fischer
President & COO
(408) 969-4612
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,
			2003			2002			2003			2002
Net sales			$	22,312		$	16,638		$	43,350		$	31,729
Cost of sales				18,972			13,634			41,232			26,034
Gross profit				3,340			3,004			2,118			5,695
Operating expenses:
	Research and development			6,134			7,161			12,939			13,799
	Selling, general and administrative			3,398			4,303			7,056			7,968
	In-process technology charge			—			4,689			—			4,689
		Total operating expenses		9,532			16,153			19,995			26,456
Operating loss				(6,192	)		(13,149	)		(17,877	)		(20,761	)
Other income (expense), net				152			794			170			1,330
Gain on sale of other investments				—			—			—			35
Loss before income taxes, minority interest and equity in net loss of affiliated companies				(6,040	)		(12,355	)		(17,707	)		(19,396	)
Benefit for income taxes				—			(3,223	)		—			(3,223	)
Loss before minority interest and equity in net loss of affiliated companies				(6,040	)		(9,132	)		(17,707	)		(16,173	)
Minority interest in net loss of consolidated subsidiary				—			15			17			24
Equity in net loss of affiliated companies				(930	)		(1,529	)		(1,969	)		(4,435	)
Net loss			$	(6,970	)	$	(10,646	)	$	(19,659	)	$	(20,584	)
Basic and diluted net loss per share			$	(0.25	)	$	(0.39	)	$	(0.71	)	$	(0.77	)
Shares used in per share calculation				27,708			26,954			27,637			26,776

Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

				March 31,			September 30,
				2003			2002
				(unaudited)			(1)
			ASSETS
Current assets:
	Cash and cash equivalents			$	13,518		$	11,622
	Short-term investments				53,200			67,200
	Accounts receivable				9,578			8,391
	Inventories				11,059			17,665
	Other current assets				3,014			3,448
Total current assets					90,369			108,326
Property, equipment, and leasehold improvements, net					9,074			10,673
Other assets					63,364			65,677
Total assets				$	162,807		$	184,676
		LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable			$	17,720		$	21,776
	Accrued compensation and benefits				3,188			3,394
	Accrued expenses				5,306			3,830
	Current portion of long-term obligations				74			158
Total current liabilities					26,288			29,158
Minority interest					78			95
Stockholders’ equity:
	Common stock				3			3
	Additional paid-in capital				231,675			231,032
	Accumulated deficit				(88,910	)		(69,251	)
	Unearned compensation				(689	)		(778	)
	Accumulated comprehensive loss				(5,638	)		(5,583	)
Total stockholders’ equity					136,441			155,423
Total liabilities and stockholders’ equity				$	162,807		$	184,676

(1) Derived from audited financial statements.

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