Catalyst Semiconductor, Inc. Announces First Quarter Results, Continued Profitable Operations and Plans to Develop Foundry Capability At Elex NV Texas X-fab.SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 24, 1999--Catalyst Semiconductor, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CATS) today announced its financial results for the quarter ended July 31, 1999. Revenues for the first quarter were $9.2 million, compared with revenues of $8.1 million in the preceding quarter and $7.3 million in the first quarter of the previous fiscal year. The quarter ended with a net profit of $0.9 million or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net profit of $0.9 million, or $0.06 per diluted share in the previous quarter and a net loss of $0.6 million or $(0.06) per diluted share in the first quarter a year ago. First quarter results include the benefit of approximately $0.5 million credit for the sale of inventory which was previously reserved. The Company will receive an additional benefit of $0.8 million under a previously disclosed agreement with a supplier upon completion of the agreed payment plan currently scheduled for December 1, 1999. Radu Vanco, the Company's 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. said, "Our objective is to continue to maintain the right balance between profitable revenue growth and spending. We were able to take advantage of our large 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. carry-forward which has enabled us to pay minimal income taxes on the profit". "Like everybody, we see clear signs that the business picture for semiconductors is improving", continued Vanco. "We attribute this to the growing demand for PC and telecommunications equipment which is fueled by the growth of Internet applications. Our EEPROM (Electrically Erasable Programmable ROM) A rewritable memory chip that holds its content without power. Although EEPROMs spawned flash memory, EEPROMs are byte addressable at the write level, whereas flash chips must erase a block of bytes before rewriting. and Flash products are used in high volume applications like BIOS, DIMM (Dual In-Line Memory Module) A printed circuit board that holds memory chips and plugs into a DIMM socket on the motherboard. See memory module. DIMM - Dual In-Line Memory Module modules, modems, network cards, cellular telephones, digital satellite box receivers, set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. and Internet routers (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. and servers. We are working with our subcontractors to determine how we can respond to the potential for this increased demand. We have started to work in this direction with X-FAB in Lubbock, Texas “Lubbock” redirects here. For other uses, see Lubbock (disambiguation). Lubbock is the 10th-largest city in the state of Texas.[1] Located in the northwestern part of the state—a region known historically as the Llano Estacado , where we are in the process of developing a second foundry capability in addition to the one we currently have at Oki. We hope to have this capability operational early next year. X-FAB, formerly part of Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. , is currently part of Elex NV which is a 40% shareholder of Catalyst. Roland Duchatelet, Elex NV Chairman said, "By introducing X-FAB as a second foundry source, Catalyst will be able to increase its wafer supply and at the same time to gain better control over an important component of their operations". "In addition to the relationship with Oki, which is our premier partner, we now have the opportunity to work together and expand the cooperation with Elex", said Vanco. "Elex has substantial holdings involving both wafer foundry and automotive IC business, with product lines including micro-controllers and integrated sensors. I see a lot of synergy in these relationships". "During the past two quarters we have also made certain additions to the sales organization", continued Vanco. "We have opened new sales offices in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Chicago and Connecticut areas. We have also strengthened our manufacturing representative organization in the Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , mid America and mid Atlantic Mid Atlantic can mean:
"I am very pleased to announce the appointment of Mr. Masuhiro Kitahara as President of Nippon Catalyst KK, our subsidiary in Japan. Mr. Kitahara was previously President of Zilog, Japan. We are not yet leveraging the potential for doing business in Japan. Mr. Kitahara provides the kind of experience and expertise we need to improve our sales in this key region", concluded Vanco. Except for those statements that report the Company's historical results, the statements being made are forward looking statements. Actual results could differ materially from those projected in the 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. . Factors which could cause actual results to differ from expectations include the following: volatility in supply and demand affecting revenues and market prices, availability of silicon foundry See foundry. , assembly and test subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts capacity required to meet financial targets and/or meet backlog requirements, risks associated with bringing up a new foundry, timing and market acceptance of new products, increased expenses associated with new product introductions or process changes, delays in developing or achieving volume production of new products, ability of the Company to maintain its bank credit line, customer and vendor base and delays in and/or inability in raising additional capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading "Certain Factors That May Affect the Company's Future Results of Operations" listed from time to time in Catalyst's SEC reports, including but not limited to the report on 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 year ended April 30, 1999. Catalyst Semiconductor, Inc., headquartered in Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. , designs and markets a broad range of programmable products, including Serial EEPROMs, Parallel EEPROMs, Flash Memories, Mixed Signal and Micro-controller Supervisory circuits Supervisory circuits are semiconductor devices that detect and monitor voltage levels in power supplies, microprocessors, and other systems. They are protection circuits that monitor one or more system parameters. . Catalyst's Quality Management System has been certified to the ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 Standard by SGS SGS Société Générale de Surveillance SGS Symantec Gateway Security (appliance) SGS School of Graduate Studies SGS Subgrid Scale SGS Singapore Government Securities SGS Shell Global Solutions Yarsley International Certification Services, Inc. -0-
CATALYST SEMICONDUCTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, April 30,
1998 1999
-------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 1,408 $ 1,852
Accounts receivable, net 5,616 5,119
Inventories 1,959 1,914
Other Assets 670 742
-------- --------
Total current assets 9,653 9,627
Property and equipment, net 1,940 1,939
-------- --------
$ 11,593 $ 11,566
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,008 $ 6,045
Bank and other short-term debt 2,788 2,942
Accrued expenses 1,731 1,508
Deferred gross profit on shipments to
distributors 1,311 1,061
Current portion of long-term debt and
capital leases 662 1,141
-------- --------
Total current liabilities 11,500 12,697
Long-term debt and capital lease obligations 219 81
-------- --------
Total liabilities 11,719 12,778
Total stockholders' equity (126) (1,212)
-------- --------
$ 11,593 $ 11,566
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
-------- --------
July 31, July 31,
1999 1998
-------- --------
Net revenue $ 9,196 $ 7,305
Cost of revenues 5,376 5,065
-------- --------
Gross profit 3,820 2,240
Research & development 607 567
Selling, general and administration 2,212 2,096
-------- --------
Operating income 1,001 (423)
Net interest income (expense), net (148) (222)
-------- --------
Net income $ 853 ($ 645)
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Net income (loss) per share:
Basic $ 0.06 ($ 0.06)
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Diluted $ 0.05 ($ 0.06)
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Weighted average common shares outstanding:
Basic 13,966 9,942
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Diluted 17,856 9,942
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