Alliance Semiconductor Reports Financial Results for the Fiscal Fourth Quarter and Fiscal Year Ended March 31, 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)--April 29, 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 fiscal fourth quarter and fiscal year ended March 31, 2003.
Fiscal Year 2003 Highlights
-- Successfully diversified company into three main business
units: mixed signal, system solutions and memory
-- Non-memory business units represented 25% of revenue for the
fiscal year and 40% of revenue in fiscal fourth quarter.
-- Repurchased over 6 million shares of Alliance common stock in
fiscal year 2003
-- Introduced 40 new products in our Mixed Signal business unit,
including 2 new general purpose EMI reduction IC's in the
switching power supply market that were featured as products
of the month in "Power Electronics Magazine"
-- Added 23 new design wins in the System Solutions business unit
-- Acquired Chip Engines, Inc., a leading fabless supplier of
silicon solutions for next generation Metropolitan Area
Network (MAN) platforms
-- Expanded product portfolio with wide range of synchronous
SRAMs, now qualified with over 50 customers
Fourth Quarter Results The Company reported revenues of $5.1 million, as compared to the $5.1 million reported in the third quarter of fiscal 2003 and the $3.0 million for the same quarter in the previous year. The revenue attributable to the non-memory business units sequentially grew 36% and represented approximately 39% of the Company's total revenue compared to 28% in the previous quarter. This increase signifies the growing demand for the company's product offerings, and Alliance's continued commitment to diversifying its revenue channels. The net loss for the fourth quarter was $25.5 million, or ($0.72) per share, compared to a net loss of $43.6 million, or ($1.21) per share for the previous quarter, and the $18.3 million or ($0.44) per share reported in the fourth quarter 2002. 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 $12.1 million, an increase from the $10.3 million reported in the third quarter of fiscal 2003. The increase in operating expenses for the fiscal fourth quarter was primarily due to costs associated with the Chip Engine acquisition and the ramp-up in product development of our mixed signal business unit, which resulted in the introduction of 9 new products in the fourth quarter. Fiscal 2003 Results For fiscal year 2003, the Company reported revenues of $18.5 million, a decrease from the $26.5 million reported in fiscal 2002. The net loss for fiscal year 2003 is $106.0 million or ($2.85) per share, compared to a net loss of $240.7 million, or ($5.86) per share reported in 2002. "The Company continues to accomplish key objectives in our pursuit of an accelerated path towards break-even and profitability. One of these objectives was to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. the company into three main business units, and I am pleased to report this was our first year as a diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a . In the March quarter, we achieved sequential revenue growth in our non-memory business units that accounted for approximately 40% of our overall revenue, and introduced 9 new products in the 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. . Mr. Reddy concluded by stating, "Increased activity from customers and broadened sales channels into higher growth markets have allowed us to better position ourselves within new markets, including the notebook and LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. display markets. Until overall market conditions improve, we are taking internal measures to manage costs by reducing expenses and overhead to allow us to further invest in research and development, thereby broadening our product portfolio." Business Outlook Alliance President and Chief Executive Officer, N.D. Reddy, and Chief Financial Officer, Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Shelton Shelton, city (1990 pop. 35,418), Fairfield co., SW Conn., on the Housatonic River opposite Derby; settled 1697, set off from Stratford 1789, inc. as a city 1915. Metal products, furniture, and electronic equipment are among the city's manufactures. will update the business outlook and give guidance for fiscal first quarter 2004 during the earnings conference call at 2:00 PT on April 29, 2003. Fiscal Year and Fourth Quarter 2003 Financial Results Web cast/Conference Call The Alliance management team will host a live web cast and conference call to discuss the fourth quarter and fiscal year 2003 financial results beginning at 2:00 P.M. PT on Tuesday Tuesday: see week. , April 29, 2003. Investors and other interested parties may participate in the call by dialing 800-937-4589 at least fifteen minutes prior to the call and enter pass code 21140261 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 In electronics, the term low-power means one of two things about a device:
(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 high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. chip-to-chip interconnects based on HyperTransport technology and mixed signal products for Electromagnetic Interference See EMI. (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. ) 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. Alliance was founded in 1985. Additional Company information can be found on its home page: http://www.alsc.com. Forward Looking Statements Except for historical information, the above statements of this press release are 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. 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; 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 30, 2002, 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)
March March
2003 2002
------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $8,642 $31,574
Short term investments 148,711 466,986
Accounts receivable, net 2,058 2,891
Inventory 2,862 19,636
Other current assets 5,154 12,913
--------------- --------------
Total current assets 167,427 534,000
Property and equipment, net 8,205 8,214
Investment in United
Microelectronics Corp. 0 43,750
(excluding short term portion)
Investment in Tower
Semiconductor Corporation 15,822 16,278
(excluding short term portion)
Alliance Ventures LP and other
investments 38,319 72,575
Other non-current assets 15,408 7,753
--------------- --------------
Total assets $245,181 $682,570
=============== ==============
Current liabilities:
Accounts payable $4,298 $2,893
Accrued liabilities 5,053 6,178
Income taxes payable 4,520 22,087
Deferred income taxes 23,840 107,495
Short term borrowings and current
portion of long term obligations 46,009 71,556
--------------- --------------
Total current
liabilities 83,720 210,209
Long term liabilities:
Long term obligations 1,326 4,808
Deferred income taxes 0 12,827
--------------- --------------
Total liabilities 85,046 227,844
--------------- --------------
Minority interest in
consolidated subsidiaries 915 3,471
--------------- --------------
Stockholders' equity:
Common stock 432 430
Additional paid-in capital 131,175 168,770
Retained earnings 25,510 131,558
Accumulated other
comprehensive income 2,103 150,497
--------------- --------------
Total stockholders' equity 159,220 451,255
--------------- --------------
$245,181 $682,570
=============== ==============
ALLIANCE SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) (unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------- ----------------------
2003 2002 2003 2002
--------- --------- ---------- ----------
Net revenues $5,065 $3,021 $18,522 $26,547
Cost of revenues 3,858 23,117 39,744 73,966
--------- --------- ---------- ----------
Gross profit (loss) 1,207 (20,096) (21,222) (47,419)
--------- --------- ---------- ----------
Operating expenses:
Research and
development 7,598 4,114 24,543 11,341
Selling, general and
administrative 4,543 8,373 18,066 20,377
--------- --------- ---------- ----------
Total operating expenses 12,141 12,487 42,609 31,718
--------- --------- ---------- ----------
Income (loss) from
operations (10,934) (32,583) (63,831) (79,137)
Gain (loss) on investments (257) 14,382 14,143 4,777
Writedown of marketable
securities
and venture investments (1,526) 0 (55,792) (296,846)
Other income (expense),
net (50) (3,704) (4,406) (5,287)
--------- --------- ---------- ----------
Income (loss) before income
taxes, equity in income
(loss) of investees, and
effect of accounting
change (12,767) (21,905) (109,886) (376,493)
Provision (benefit) for
income taxes 10,448 (5,606) (11,303) (142,701)
--------- --------- ---------- ----------
Income (loss) before minority
interest in consolidated
subsidiaries, equity in
income (loss) ofinvestees,
and effect of accounting
change (23,215) (16,299) (98,583) (233,792)
Minority interest in
consolidated subsidiaries 405 533 3,322 533
Equity in income (loss) of
investees (2,666) (2,505) (10,787) (9,512)
Cumulative effect of change
in accounting princple 0 0 0 2,055
--------- --------- ---------- ----------
Net income (loss) ($25,476) ($18,271) ($106,048) ($240,716)
========= ========= ========== ==========
Net income (loss) per
share:
Basic ($0.72) ($0.44) ($2.85) ($5.86)
========= ========= ========== ==========
Diluted ($0.72) ($0.44) ($2.85) ($5.86)
========= ========= ========== ==========
Weighted average number of
common shares:
Basic 35,480 41,321 37,160 41,078
========= ========= ========== ==========
Diluted 35,480 41,321 37,160 41,078
========= ========= ========== ==========
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