Catalyst Semiconductor Reports 2nd Fiscal Quarter Results.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 21, 2002 Catalyst Semiconductor, Inc. (Nasdaq:CATS), a developer and marketer of programmable products used in telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , networking systems, computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. , automotive, industrial and consumer markets, announced today the results for its second fiscal quarter. For the second fiscal quarter ended October 31, 2002, Catalyst reported net income of $843,000, 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, on revenues of $12.0 million. This compares with a net loss of $977,000, or ($0.05) per diluted share, on revenues of $9.2 million in the second fiscal quarter last year and net income of $1.2 million, or $0.06 per diluted share, on revenues of $12.5 million in the previous quarter. As of October 31, 2002, Catalyst had cash and cash equivalents of $28.1 million, an increase of $1.3 million compared to the previous quarter. During the second fiscal quarter, the Company repurchased 290,400 shares of its common stock at prices ranging from $2.03 to $2.76 per share for a total of $706,000 as part of its open market repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program. To date, the Company has paid a total of $2,024,000 for an aggregate of 816,600 shares under the open market repurchase program. Additionally, 1.5 million shares were repurchased for $4.7 million in a private transaction in fiscal 2002. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased during the quarter by $380,000 to $36.1 million, or $2.16 book value per share outstanding at the end of the quarter, as a combined result of the net income and additions from stock purchases of $243,000 less the cost of stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . The Company's stockholders' equity does not include approximately $7.1 million or $0.42 book value per share outstanding of tax related credits resulting from excess stock option deductions which will be recorded in stockholders' equity upon the future utilization of tax benefit carryforwards and the realization of other deferred tax assets. The Company indicated it continues to see competitive pressures on product prices and weak overall demand in the markets served. During the second quarter, the Company continued to depend upon substantial turns business (bookings scheduled to ship within the same quarter), and continued to operate with a relatively reduced backlog. Catalyst has also taken steps to establish a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. in Romania to perform product development and engineering services. This new operation will replace the previous supplier of such services, Essex com SRL 1. SRL - Bharat Jayaraman. ["Towards a Broader Basis for Logic Programming", B. Jayaraman, TR CS Dept, SUNY Buffalo, 1990]. 2. SRL - Schema Representation language. 3. SRL - Structured Robot Language. C. Blume & W. Jacob, U Karlsruhe. , and should allow Catalyst to increase the number and effectiveness of the engineers located there. The Company believes that the lower cost and other advantages of establishing the Romanian design center will assist in continuing efforts to develop new and improved products while keeping R&D expenses under control. Six-Month Results For the first six months of fiscal 2003, Catalyst reported net income of $2.0 million, or $0.11 per diluted share, on revenues of $24.5 million. This compares with a net loss of $606,000, or $0.03 per diluted share, on revenues of $19.7 million, for the first six months of fiscal 2002. Investor Conference Call The Company will conduct a conference call on the second fiscal quarter results beginning at 2:00 p.m. (Pacific Time) today. The call will be available to all investors and media via the Company's web site www.catalyst-semiconductor.com, at www.companyboardroom.com, or by dialing 800/391-0107 (domestic only). A replay of the call will be aired from approximately 4:00 p.m. today until 4:00 p.m. (Pacific) on December 6th at the company's Web site or by dialing 800/633-8284, entering reservation number 21035100 and following operator instructions. About Catalyst Semiconductor Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in Sunnyvale, Calif. The Company is a developer and marketer of programmable products used in telecommunications, networking systems, computation, automotive, industrial and consumer markets. The Company designs and markets a broad range of programmable products including Flash Memories, Parallel and Serial EEPROMs with I2C I2C Inter-Integrated Circuit I2C Intelligent Interface Controller I2C Intelligent Controller , SPI (1) (Stateful Packet Inspection) See stateful inspection. (2) (Service Provider Interface) The programming interface for developing Windows drivers under WOSA. and Microwire interfaces, NVRAMs, Digitally Programmable Potentiometers, Microcontroller A single chip that contains the processor (the CPU), non-volatile memory for the program (ROM or flash), volatile memory for input and output (RAM), a clock and an I/O control unit. 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. and other programmable Mixed Signal products. Typical applications for the Company's products include optical networks, modems, wireless LANs A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area , network cards, PC BIOS See 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, 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. . Catalyst's Quality Management System is 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 certified See certification. . Additional information about Catalyst Semiconductor is available on the Company's web site at www.catalyst-semiconductor.com. Except for those statements that report the Company's historical results, the statements being made 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. . Actual results could differ materially from those projected in the forward-looking statements due to risks and uncertainties including, but not limited to, continued competitive pressure on our product prices, weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. demand for our products, the cost associated
with forming and operating our new Romanian subsidiary, the results we
are able to achieve through such subsidiary and the success of our
efforts to develop new products. 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-KA 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, 2002 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended July 31, 2002.
TABLES TO FOLLOW
CATALYST SEMICONDUCTOR, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Oct. 31, 2002 April 30, 2002
------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $28,061 $26,295
Accounts receivable, net 7,727 8,929
Inventories 8,895 8,749
Other assets 1,303 1,537
------------- --------------
Total current assets 45,986 45,510
Property and equipment, net 2,765 2,414
------------- --------------
$48,751 $47,924
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,131 $ 5,113
Accrued expenses 3,487 2,481
Deferred gross profit on
shipments to distributors 1,768 1,702
------------- --------------
Total liabilities 9,386 9,296
Tax related credits 3,262 3,262
Total stockholders' equity 36,103 35,366
------------- --------------
$48,751 $47,924
============= ==============
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
------------------- -------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2002 2001 2002 2001
-------- -------- -------- --------
Net revenue $ 12,047 $ 9,166 $ 24,504 $ 19,682
Cost of revenues 7,074 6,507 14,093 12,985
-------- -------- -------- --------
Gross profit 4,973 2,659 10,411 6,697
Research and development 1,194 985 2,484 2,050
Selling, general and
administration 2,523 2,850 4,882 5,667
-------- -------- -------- --------
Operating income (loss) 1,256 (1,176) 3,045 (1,020)
Net interest income 88 199 154 463
-------- -------- -------- --------
Income (loss) before
taxes 1,344 (977) 3,199 (557)
Income tax provision 501 -- 1,196 49
-------- -------- -------- --------
Net income (loss) $ 843 $ (977) $ 2,003 $ (606)
======== ======== ======== ========
Net income (loss) per
share:
Basic $ 0.05 $ (0.05) $ 0.12 $ (0.03)
======== ======== ======== ========
Diluted $ 0.05 $ (0.05) $ 0.11 $ (0.03)
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 16,739 17,815 16,833 17,735
======== ======== ======== ========
Diluted 18,342 17,815 18,650 17,735
======== ======== ======== ========
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