Alliance Semiconductor Reports Financial Results for the First Quarter Ended July 3, 1999; Revenues Up 174% and Net Income of $53.4 Million.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 22, 1999-- 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 revenues for the first quarter ended July 3, 1999, of $17.7 million, up 174% from the year-ago quarter and up 28% from the prior quarter's revenue of $13.9 million. Net income for the first quarter was $53.4 million resulting in $1.27 per share (diluted), compared to a net loss of $(14.7) million, or $(0.36) per share on revenues of $10.1 million during the same quarter last year. Net income for the first quarter ended July 3, 1999 includes a net profit of $1.5 million, or $0.04 per share attributable to recognition of the Company's share of net income from its joint venture ownership in United Semiconductor Corporation (USC An abbreviation for U.S. Code. ), based on approximately 15.10% ownership. For the second fiscal quarter ending September 30, 1999, the Company expects to report net income from its investment in USC of approximately $4.0 million, based on its ownership of 14.76%. Net income for the first quarter also includes an unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $51.6 million, or $1.22 per share (diluted), related to the transfer of its shares in Maverick Networks to Broadcom Corporation (Nasdaq:BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ), as a result of the merger of such companies which was completed May 31, 1999. The total unrealized, after tax gain on, Alliance's investment in Broadcom Corporation at the end of the first quarter was approximately $64.8 million, which includes a $51.6 million gain reported at the closing of the merger during the first quarter. The Company is no longer restricted from selling its approximately 485,000 shares of Broadcom stock (Nasdaq: BRCM). Alliance 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. , President & Chairman, N.D. Reddy said, "We are disappointed that we did not take advantage of strong SRAM See static RAM. SRAM - static random-access memory and DRAM demand during last quarter due to the delay in availability of some higher speed grades of both SRAM and DRAM products. Because of this, the Company missed additional revenue opportunities of approximately $3 to $4 million and would have achieved strong positive operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. instead of a $0.7 million operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. ." N.D. Reddy also said, "The current booking activity remains strong as we continue to expand our customer base with key OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and accounts in non-PC market segments. Last quarter, the overall average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. for DRAMs and SRAMs increased. We expect to see sequential growth in both revenues and operating income during the September second quarter." SRAM and DRAM sales for the quarter accounted for approximately 43% and 54% of revenues respectively. The current sales order The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. backlog for this quarter's shipments is approximately $10 million as of July 21, 1999. The $14.3 million inventory increase during the quarter was due to early production in anticipation of higher wafer prices in Taiwan as well as higher anticipated sales during the first and second quarters. Inventories are expected to decline during the second quarter. New Products On June 28, 1999, the Company announced the first product of an Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. Routing Processor (IPRP IPRP International Preliminary Report on Patentability (patent application) IPRP Information Policy Research Program IPRP Integrated Pyrolysis Regenerated Plant (Terni, Italy) ) family which leverages the Company's logic and embedded memory technology to enable hardware accelerated wire speed routing of IP packets, and offers the first silicon solution that lets internet router (1) A router in the Internet that forwards IP packets between local, regional and national providers. Same as "IP router." (2) (InterNet Router) Macintosh software from Apple that internetworks different access methods (LocalTalk, EtherTalk, TokenTalk, etc. OEMs forward data packets at up to OC 192 speeds (9.6 Gbits/sec) in next generation multi-gigabit and terabit routers. This product is currently being sampled with a number of OEMs. During the second quarter, the Company will introduce a number of higher density SRAM and DRAM products based on 0.25 micron and 0.18 micron technology Micron Technology ("Micron") NYSE: MU is a multinational company based in Boise, Idaho, USA, best known for producing many forms of semiconductor devices. This includes DRAM, SDRAM, flash memory, and CMOS image sensing chips. which should enable the Company to enhance revenues in future periods. New Investments The Company currently plans to invest approximately $7 million during the second quarter in a number of start-up companies whose focus is in the emerging networking and internet market segments and where the Company can leverage it's core competencies in memory and technology. UMC UMC United Methodist Church UMC United Microelectronics Corporation UMC University Medical Center UMC United Microelectronics Corp (Republic of China) UMC University of Missouri-Columbia Merger On June 14, 1999, United Microelectronics Corporation UMC (United Microelectronics Corporation) was founded as Taiwan's first semiconductor company in 1980 as a spin-off of the government-sponsored institute ITRI. Today, UMC is best known for its merchant foundry business, manufacturing integrated circuits wafers for fabless (UMC) announced plans to merge four semiconductor wafer foundry units, two joint venture units in which Alliance has investments, United Semiconductor Corporation (USC) and United Silicon Incorporated (USIC USIC University Science Instrumentation Centre USIC United States Intelligence Community USIC United States interdiction coordinator (US DoD) ), into UMC, a Taiwanese public company. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the proposed terms of the merger, Alliance will receive approximately 283.3 million shares of UMC. The estimated value of Alliances' potential ownership in UMC is approximately $585 million based on the closing market price for UMC shares as of July 20, 1999. The merger is subject to shareholder and government approval and is expected to close before the end of the calendar year. According to Taiwanese law and regulations, 50% of the 283.3 million UMC shares Alliance expects to receive will be subject to a six-month "lock-up" or no trade period. Of the remaining 50%, or 141.6 million shares, approximately 28.3 million shares will become eligible for sale two years from the closing date of the transaction, and an additional 28.3 million shares will become eligible for sale every six months thereafter. Company Information Alliance Semiconductor Corporation is a leading worldwide supplier of high performance memory and memory intensive logic products. Alliance's product lines include Static Random Access Memory Static random access memory (SRAM) is a type of semiconductor memory. The word "static" indicates that the memory retains its contents as long as power remains applied, unlike dynamic RAM (DRAM) that needs to be periodically refreshed (nevertheless, SRAM should not be confused with (SRAM), Dynamic random Access Memory Dynamic random access memory (DRAM) is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit. Since real capacitors leak charge, the information eventually fades unless the capacitor charge is refreshed periodically. (DRAM), Flash memory and embedded memory and logic products. Alliance designs, develops and markets its products to the desktop and portable computing, networking, telecommunication, instrumentation, and consumer markets. Alliance manufactures its products through independent and joint venture manufacturing facilities, 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 0.25 microns. Alliance was founded in 1985 with headquarter head·quar·ter v. head·quar·tered, head·quar·ter·ing, head·quar·ters Usage Problem v.tr. To provide with headquarters: in San Jose. Additional Company information can be found on our home page: http://www.alsc.com. Forward Looking Statements Except for historical information, the above statements of this press release (including, without limitation, expressions of expectation, belief, anticipation, or estimation of the Company or its management) 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 the potential for price erosion of the Company's products; decreased demand or increased competitive environment for the Company's products; including without limitation, changes in the status of the SRAM, DRAM, Flash, networking and embedded memory and logic markets and the demand for the Company's SRAM, DRAM, Flash, networking and embedded memory and logic products; inability of the Company to obtain necessary capacity, timely delivery or acceptable yields from the entities that provide wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. , wafer sort, assembly and/or test services to the Company; increases in prices such entities charge the Company for wafer fabrication, wafer sort, assembly and/or test services; 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; 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 SRAM or DRAM products; inability to successfully develop and introduce Flash or networking and embedded memory and logic products; inability to successfully recruit and retain qualified technical and other personnel; adverse effects of the recent financial and economic crisis in Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ; year 2000 issues with respect to the Company, its suppliers, and its customers; 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, including; the on-going anti-dumping investigation concerning importation of DRAMs from Taiwan as well as liquidation of antidumping an·ti·dump·ing adj. Intended to discourage importation and sale of foreign-made goods at prices substantially below domestic prices for the same items. duties imposed on the Company's importation of Taiwan-manufactured SRAMs; changes in stock price of Broadcom and UMC and failure of the UMC merger; and the risk factors listed under Item 1: Business and Item 7: Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations 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 April 3, 1999, which has been filed with the Securities and Exchange Commission and which is available through the Company's home page, http://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 or to reflect any change in events, conditions or circumstances on which any such forward-looking statement is based, in whole or in part. -0-
ALLIANCE SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
1999 1998
---- ----
Net revenues $ 17,711 $ 10,150
Cost of revenues 12,470 27,491
-------- --------
Gross profit (loss) 5,241 (17,341)
Operating expenses:
Research and development 3,206 4,216
Selling, general and administrative 2,745 4,011
-------- --------
Total operating expenses 5,951 8,227
Loss from operations (710) (25,568)
Gain on marketable securities 51,606 --
Other income, net 121 15,740
-------- --------
Income (loss) before income taxes
and equity in income of USC 51,017 (9,828)
Expense (benefit) for income taxes (819) 8,397
Income (loss) before equity in
income of USC 51,836 (18,225)
Equity in income of USC 1,532 3,546
Net income (loss) $ 53,368 ($14,679)
======== ========
Net income (loss) per share:
Basic $ 1.28 ($ 0.36)
Diluted $ 1.27 ($ 0.36)
Weighted average number of
common shares:
Basic 41,608 40,963
Diluted 42,149 40,963
ALLIANCE SEMICONDUCTOR CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, March 31,
1999 1999
----------- ----------
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,709 $ 11,394
Marketable securities 73,854 --
Accounts receivable, net 11,234 8,943
Inventory 27,210 12,927
Other current assets 3,441 3,524
--------- ---------
Total current assets 124,448 36,788
Property and equipment, net 9,133 9,943
Investment in Chartered
Semiconductor 51,596 51,596
Investment in United
Semiconductor Corp. 83,195 77,310
Investment in United Silicon, Inc. 16,799 16,799
Other assets 2,150 1,121
--------- ---------
$ 287,321 $ 193,557
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 22,780 $ 8,046
Accrued liabilities 4,965 4,736
Deferred income taxes 6,128 589
Current portion of
long term obligations 1,016 1,315
--------- ---------
Total current liabilities 34,889 14,686
Long term liabilities:
Long term obligations 481 578
Deferred income taxes 14,723 14,723
--------- ---------
Total liabilities 50,093 29,987
--------- ---------
Stockholders' equity
Common stock 416 416
Additional paid-in capital 187,726 185,025
Retained earnings 49,864 (3,505)
Accumulated other comprehensive loss (778) (18,366)
--------- ---------
Total stockholders' equity 237,228 163,570
--------- ---------
$ 287,321 $ 193,557
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion