8-K

UNITED STATES
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): January 26, 2005

Silicon Storage Technology, Inc.
(Exact name of registrant as specified in its charter)

Commission file number 0-26944

 

California	77-0225590
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)

1171 Sonora Court
Sunnyvale, California    94086
(Address of principal executive offices including zip code)

(408) 735-9110
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.   Other Events.

On January 26, 2005, Silicon Storage Technology, Inc. ("SST") issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2004. The financial results are attached as Exhibit 99.1 and are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(c)   Exhibits

Exhibit 99.1    Financial results for the fourth quarter and fiscal year ended December 31, 2004 of SST.

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 therunto duly authorized.

Silicon Storage Technology, Inc.

  By:  /s/ Jack K. Lai

Jack K. Lai

Vice President Finance & Administration,
Chief Financial Officer and Secretary

Dated: January 27, 2005

EXHIBIT INDEX

Exhibit Number	Description
99.1	Financial Results for the fourth quarter and fiscal year ended December 31, 2004 of SST.

EX-99.1

Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)

                                                                                              
                                                      Three Month Ended        Year Ended
                                                         December 31,          December 31,
                                                    --------------------  --------------------
                                                      2003       2004       2003       2004
                                                    ---------  ---------  ---------  ---------
                                                         (unaudited)           (unaudited)      
Net revenues:
     Product revenues............................. $  82,351  $  96,530    256,529  $ 404,731
     Technology licensing.........................    12,866      7,534     38,512     44,467
                                                    ---------  ---------  ---------  ---------
          Total net revenues......................    95,217    104,064    295,041    449,198
Cost of revenues..................................    62,747    103,461    218,775    322,093
                                                    ---------  ---------  ---------  ---------
Gross profit......................................    32,470        603     76,266    127,105
                                                    ---------  ---------  ---------  ---------
Operating expenses:
     Research and development.....................    10,334     11,474     43,144     48,630
     Sales and marketing..........................     5,840      6,845     22,272     28,306
     General and administrative...................     4,110      5,455     14,398     18,292
     Other non-recurring charges....................   1,371      4,159     37,849      5,638
                                                    ---------  ---------  ---------  ---------
          Total operating expenses................    21,655     27,933    117,663    100,866
                                                    ---------  ---------  ---------  ---------
Income (loss) from operations.....................    10,815    (27,330)   (41,397)    26,239
Interest and other income.........................       420        319      2,784      1,711
Interest expense..................................       (29)       (21)      (138)      (206)
Minority interest.................................        --        133         --         91
                                                    ---------  ---------  ---------  ---------
Income (loss) before provision for
    income taxes..................................    11,206    (26,899)   (38,751)    27,835
Provision for income taxes........................     2,101         26     26,416      3,906
                                                    ---------  ---------  ---------  ---------
Net income (loss)................................. $   9,105  $ (26,925)   (65,167) $  23,929
                                                    =========  =========  =========  =========

Net income (loss) per share - basic .............. $    0.10  $   (0.28)     (0.69) $    0.25
                                                    =========  =========  =========  =========

Shares used in per share calculation - basic .....    95,232     96,223     94,723     95,756
                                                    =========  =========  =========  =========

Net income (loss) per share - diluted ............ $    0.09  $   (0.28)     (0.69) $    0.24
                                                    =========  =========  =========  =========

Shares used in per share calculation - diluted....   100,000     96,223     94,723     99,143
                                                    =========  =========  =========  =========

Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)

                                                                                   
                                                         December 31,  December 31,
                                                             2003          2004
                                                         ------------  ------------
                                                                (unaudited)
                        ASSETS                                                     
Current assets:
    Cash, cash equivalents and short-term investments.. $    185,194  $    103,388
    Trade accounts receivable, net.....................       55,330        58,179
    Inventories........................................       46,120       156,618
    Other current assets...............................       13,232        16,049
                                                         ------------  ------------
         Total current assets..........................      299,876       334,234

Equipment, furniture and fixtures, net.................       11,325        16,620
Long-term marketable securities........................       24,969        23,699
Other assets...........................................       60,191       112,178
Goodwill...............................................           --        15,600
                                                         ------------  ------------
         Total assets.................................. $    396,361  $    502,331
                                                         ============  ============
                                                                                   
                      LIABILITIES                                                  
Current liabilities:
    Notes payable, current portion..................... $        393  $        705
    Trade accounts payable.............................       47,507        88,489
    Accrued expenses and other current liabilities.....       11,911        31,259
    Deferred revenue...................................        3,630         2,388
                                                         ------------  ------------
         Total current liabilities.....................       63,441       122,841
Other liabilities......................................        1,423         1,307
Minority interest......................................           --         2,199
                                                         ------------  ------------
         Total liabilities.............................       64,864       126,347
                                                         ------------  ------------
                                                                                   
                 SHAREHOLDERS' EQUITY                                              
Common stock...........................................      345,384       358,605
Accumulated other comprehensive income.................        9,178        16,515
Retained earnings(Accumulated deficit).................      (23,065)          864
                                                         ------------  ------------
         Total shareholders' equity....................      331,497       375,984
                                                         ------------  ------------
         Total liabilities and shareholders' equity.... $    396,361  $    502,331
                                                         ============  ============