Alliance Semiconductor Reports Financial Results for the First Quarter Ended June 30, 2003.Business Editors/High-Tech Writers SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--July 24, 2003 Alliance Semiconductor Corporation (Nasdaq:ALSC ALSC Association for Library Service to Children ALSC Adirondack Lakes Survey Corporation ALSC Afloat Logistics and Sealift Capability ALSC American Lumber Standards Committee, Inc. ALSC Advanced Logistics Systems Center (AFMC) ) today reported financial results for the first fiscal quarter of 2004 ended June June: see month. 30, 2003. First Quarter Highlights -- Increased System Solutions revenue by 32% sequentially and added 4 new customers and 4 new design wins in the quarter -- Introduced development platform for PMC-Sierra's RM9000(TM) family of integrated processors -- Released a programmable serial dual PLL PLL - phase-locked loop EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC. reduction device and design kit -- Introduced 7 new products in the Mixed Signal business unit and continued to penetrate the notebook market by securing design wins at major notebook suppliers -- Achieved design wins in the mobile applications market providing ultra-low power general purpose EMI reduction devices -- Successfully penetrated the audio market with design wins at OEMs, such as Bantam Bantam Former city and sultanate, Java. It was located at the western end of Java between the Java Sea and the Indian Ocean. In the early 16th century it became a powerful Muslim sultanate, which extended its control over parts of Sumatra and Borneo. , and a leading MP3 chipmaker chip·mak·er n. A manufacturer of electronic and integrated circuit chips. -- Licensed IP related to supervisory devices that the company will introduce in the second half of this calendar year -- Named semiconductor industry veteran David Casey Casey is an Irish surname, and may refer to
President of Worldwide Sales The Company reported revenues of $5.1 million, compared to $5.1 million in the previous quarter and $4.3 million for the first quarter of fiscal 2003. The non-memory business units represented 32% of the Company's total revenue compared to 39% in the previous quarter. The net loss for the first quarter was $13 million, or ($0.37) per share, compared to a net loss of $25.5 million or ($0.72) per share for the previous quarter, and a net loss of $15.3 million or ($0.38) per share in the same quarter last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter were $10.6 million, a decrease from the $12.1 million reported in the fourth quarter of fiscal 2003. Operating expenses for the fourth quarter of fiscal 2003 included a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $1.6 million related to the acquisition of Chip Engines, Inc. "Our results reflect sequential growth in both our System Solutions and Memory business units, which were offset by a decline in sales for our Mixed Signal business unit," said N.D. Reddy, Alliance Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "System Solutions continues to build momentum and has experienced a consistent increase in demand from end customers for the SP1011 in a variety of market segments. Additionally, we have seen an increase in activity and product introductions within the Mixed Signal business unit, however, these opportunities did not translate into revenue during the quarter. Overall, we anticipate that the design wins we are generating with industry leaders will result in an expansion of our revenue base in the second half of fiscal 2004." Mr. Reddy continued, "One of our key objectives in achieving profitability is strengthening our sales efforts, which was accomplished this quarter through the appointment of David Casey as our Vice President of Worldwide Sales. Mr. Casey joined Alliance with more than 19 years of industry experience and a proven track record of growing revenues and leading sales initiatives for world-class organizations. With his appointment, our infrastructure is firmly in place to drive our growth over the coming twelve months." Business Outlook Alliance Chairman, President and Chief Executive Officer, N.D. Reddy, and Chief Financial Officer, Ron Shelton will update the business outlook and give guidance for the second quarter of fiscal 2004 during the earnings conference call at 2:00 PT on July 24, 2003. First Quarter 2004 Financial Results Web cast/Conference Call The Alliance management team will host a live web cast and conference call to discuss the first quarter financial results beginning at 2:00 P.M. (PT) on Thursday, July 24, 2003. Investors and other interested parties may participate in the call by dialing 800-633-8489 at least fifteen minutes prior to the call and enter pass code 21153893 or listen to the live web cast by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Alliance website at www.alsc.com. Company Information: Alliance Semiconductor Corporation is a leading worldwide provider of memory, mixed signal and system solutions for networking, wireless, consumer and computing computing - computer markets. Through these integrated business units, Alliance provides leading OEMs with synchronous Refers to events that are synchronized, or coordinated, in time. For example, the interval between transmitting A and B is the same as between B and C, and completing the current operation before the next one is started are considered synchronous operations. Contrast with asynchronous. and fast asynchronous Refers to events that are not synchronized, or coordinated, in time. The following are considered asynchronous operations. The interval between transmitting A and B is not the same as between B and C. The ability to initiate a transmission at either end. SRAMs and super low-power and pseudo Similar to; made up to appear like something else. See pseudo compiler, pseudo language and pseudonymous. (jargon) pseudo - /soo'doh/ (Usenet) Pseudonym. 1. An electronic-mail or Usenet persona adopted by a human for amusement value or as a means of avoiding negative SRAMs, high-speed chip-to-chip interconnects based on HyperTransport technology and mixed signal products for Electromagnetic Interference See EMI. (EMI) management. Alliance develops and manufactures its products through independent manufacturing foundries using advanced CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. process technologies with line widths as narrow as 0.13-microns. Founded in 1985, Alliance is headquartered in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. . Additional information is available on Alliance's Web site at: http://www.alsc.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Except for historical information, the above statements of this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties include such factors, among others, as further significant price erosion of the Company's products; continued significantly decreased demand and increased competitive environment for the Company's products; the Company's potential status as an Investment Act of 1940 reporting company; obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of the Company's products; continued decline in value of securities that we hold and have a limited ability to sell; further accumulation of excess inventory or price erosion or obsolescence of existing inventory, any of which may result in charges against the Company's earnings; inability to timely ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale production of and deliver new or enhanced products; inability to successfully recruit and retain qualified technical and other personnel; adverse developments in current or future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or administrative proceedings An administrative proceeding is a non-judicial determination of fault or guilt and may include in some cases penalties of various forms. A "Captain's Mast", held by a commanding officer of a warship is one such proceeding. ; further diminution in value diminution in value n. in the event of a breach of contract, the decrease in value of property due to the failure to construct something exactly as specified in the contract. of investments made by Alliance or by Alliance Venture Management, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ; continued cancellation of orders in the Company's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and the risk factors listed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 29, 2003, which has been filed with the Securities and Exchange Commission, and which is available through the Company's home page, www.alsc.com. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or to reflect any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such forward-looking statement is based.
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June March
2003 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $2,916 $8,642
Short term investments 166,145 148,711
Accounts receivable, net 1,748 2,058
Inventory 4,306 2,862
Other current assets 3,693 5,154
--------- ---------
Total current assets 178,808 167,427
Property and equipment, net 7,817 8,205
Investment in Tower Semiconductor Corporation 17,980 15,822
(excluding short term portion)
Alliance Ventures LP and other investments 39,625 38,319
Other non-current assets 14,384 15,408
--------- ---------
Total assets $258,614 $245,181
========= =========
Current liabilities:
Accounts payable $3,635 $4,298
Accrued liabilities 5,437 5,053
Income taxes payable 19,490 4,520
Deferred income taxes 30,379 23,840
Short term borrowings and current portion of
long term obligations 38,984 46,009
--------- ---------
Total current liabilities 97,925 83,720
Long term liabilities:
Long term obligations 1,002 1,326
Deferred income taxes 730 0
--------- ---------
Total liabilities 99,657 85,046
--------- ---------
Minority interest in consolidated subsidiaries 152 915
--------- ---------
Stockholders' equity:
Common stock 432 432
Additional paid-in capital 131,223 131,175
Retained earnings 12,479 25,510
Accumulated other comprehensive income 14,671 2,103
--------- ---------
Total stockholders' equity 158,805 159,220
--------- ---------
$258,614 $245,181
========= =========
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
---------------------
2003 2002
--------- ---------
Net revenues $5,074 $4,299
Cost of revenues 3,245 15,015
--------- ---------
Gross profit (loss) 1,829 (10,716)
--------- ---------
Operating expenses:
Research and development 6,599 4,516
Selling, general and administrative 3,992 4,550
--------- ---------
Total operating expenses 10,591 9,066
--------- ---------
Income (loss) from operations (8,762) (19,782)
Gain (loss) on investments (752) 12,058
Writedown of marketable securities and venture
investments (403) (11,002)
Other income (expense), net (911) (792)
--------- ---------
Income (loss) before income taxes and equity in
income (loss) of investees (10,828) (19,518)
Provision (benefit) for income taxes (178) (6,171)
--------- ---------
Income (loss) before minority interest in
consolidated subsidiaries and equity in income
(loss) of investees (10,650) (13,347)
Minority interest in consolidated subsidiaries 478 528
Equity in income (loss) of investees (2,859) (2,444)
--------- ---------
Net income (loss) ($13,031) ($15,263)
========= =========
Net income (loss) per share:
Basic ($0.37) ($0.38)
========= =========
Diluted ($0.37) ($0.38)
========= =========
Weighted average number of common shares:
Basic 34,988 39,872
========= =========
Diluted 34,988 39,872
========= =========
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