Catalyst Semiconductor, Inc. Announces Second Quarter Results.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--Dec. 21, 1998--Catalyst Semiconductor, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CATS) today announced its financial results for the second quarter ended Oct. 31, 1998. Revenues for the second quarter were $8.1 million, an increase of 11% from revenues of $7.3 million in the preceding quarter and down 21% compared with revenues of $10.2 million in the same quarter of the previous fiscal year. The quarter ended with a net loss of $0.4 million or $0.03 per share, compared with a net loss of $0.6 million, or $0.06 per share in the previous quarter and a net loss of $1.9 million or $0.24 per share in the second quarter a year ago. During the quarter, the company has successfully continued to restructure its existing debt. The company has used $5.75 million of restricted cash and $1.25 million borrowed from Coast Credit to pay $7.0 million of secured debt owed to Oki OKI Okinawa OKI Open Knowledge Initiative (Massachusetts Institute of Technology) OKI Ohio-Kentucky-Indiana (also KOI) Electric. The company has also reached a settlement regarding payments of royalties due for Flash and 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. product sales and is in the process of negotiating settlements for some of the remaining debt. The company completed the additional $1.0 million equity investment by Elex NV which was previously announced. As of the end of October October: see month. the company had $2.7 million of cash. The book to bill ratio for the second fiscal quarter was 0.93. Bookings have continued at a lower than expected level in the current quarter, with an increased percentage of turns (orders that are for delivery in the same quarter). Radu Vanco Vanco plc is a British telecommunications company. It is a Virtual Network Operator, owning no network infrastructure itself, but providing management services and reselling network from other telecommunications suppliers. , 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, "Of particular concern at this time is the relatively lower level of bookings and our increased reliance on turns business. As a result, the company is operating with a lower 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. , which creates very low visibility and makes our operation more difficult. We do not foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. a return to profitability in the near future if the current market conditions continue." The company has taken steps to strengthen its sales and business development activity by naming Marc Cremer, formerly vice president of Sales, as vice president of Strategic Business Development and naming Irv Kovalik as vice president of Sales and Frank Reynolds “Frank Reynolds” redirects here. For other uses, see Frank Reynolds (disambiguation). Frank Reynolds (born East Chicago, Indiana, November 29, 1923; died July 20, 1983), was a well known American television journalist for ABC. as vice president of Distribution Sales. Kovalik comes most recently from Alliance Semiconductor where he was director of Strategic Customer Accounts. He is returning to Catalyst where he served as vice president of Sales from 1992 to 1995. Before joining Catalyst, Reynolds was the director of Distribution Sales at Xicor Inc. since 1997. "We are pleased to welcome Irv and Frank to Catalyst," said Vanco. "They bring in a substantial amount of the experience we need to strengthen our sales activity. Marc and myself will team up to create more opportunities, find more business partners and create an IP business for the Company. We have done too little in this direction in the past." "The Company has also made progress by recently introducing a number of new products, including higher density serial 256K EEPROM and 512K parallel EEPROM products and an extended page size 256K EEPROM. In addition, the Company has also introduced two new product families: a family of 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. combining Reset Control and Watchdog Timer A clock circuit that keeps counting from a set number down to zero. If the event it is monitoring occurs before it reaches zero, it resets to the starting number and starts counting down again. functions with embedded Inserted into. See embedded system. EEPROM memory and non-volatile trimming features and a family of programmable 8 bit D/A D/A See: Documents Against Acceptance and non-volatile Solid State Digital Potentiometer products." "These new product families reflect our commitment to transform Catalyst into a value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. product company, by leveraging our Flash and EEPROM non-volatile memory Refers to memory chips that hold their content without power being applied. It may refer to chips that are not changeable, such as ROMs and PROMs, or to chips that can be rewritten many times such as flash memory. technology to service micro-controller and mixed signal applications. We rely on these new products to increase revenue and profit margin in the future. Making this transition is not going to be easy given our financial situation. We are currently exploring a variety of options to get this accomplished," 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. Factors which could cause actual results to differ from expectations include the following: volatility in supply and demand affecting revenues and market prices, 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, 1998. Catalyst Semiconductor, Inc., headquartered in Sunnyvale, designs and markets a broad range of non-volatile semiconductor memory products, including Serial EEPROMs, Parallel EEPROMs, Flash Memories, Mixed Signal and Micro-controller Supervisory circuits. Catalyst's Quality Management System has been certified See certification. 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)
Oct. 31, April 30,
1998 1998
ASSETS
Current assets:
Cash $ 2,773 $ 534
Restricted cash 0 5,750
Accounts receivable, net 4,805 4,726
Inventories 2,861 4,194
Other Assets 994 815
Total current assets 11,393 16,019
Property and equipment, net 2,181 2,834
------------ -----------
$13,574 $18,853
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,387 $13,400
Line of credit 3,175 3,225
Accrued expenses 3,530 3,650
Deferred gross profit on
shipments to distributors 1,104 475
Current portion of long-term debt
and capital leases 1,439 1,471
Total current liabilities 15,635 22,221
Long-term debt and capital lease
obligations 435 501
Total liabilities 16,070 22,722
Total stockholders' equity (2,496) (3,869)
------------ -----------
$13,574 $18,853
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
Oct. 31, 1998 Oct. 31, 1997 Oct. 31, 1998 Oct. 31, 1997
Net revenue $8,126 $10,175 $15,431 $19,723
Cost of
revenues 5,776 9,021 10,841 16,194
Gross Profit 2,350 1,154 4,590 3,529
Research &
development 583 1,048 1,150 2,228
Selling, general
and
administration 1,921 1,851 4,017 3,643
Operating
income (154) (1,745) (577) (2,342)
Net interest
income (expense),
net (266) (203) (488) (388)
Income before
income taxes (420) (1,948) (1,065) (2,730)
Income tax
provision -- -- -- --
Net income ($420) ($1,948) ($1,065) ($2,730)
Net income
per share ($0.03) ($0.24) ($0.08) ($0.34)
Shares used in
per share
calculation 13,948 8,204 13,948 8,106
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion