Chips & Technologies Reports Earnings for Fourth Fiscal Quarter and 1995 Fiscal Year.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 24, 1995--Chips & Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHPS CHPS Collaborative for High Performance Schools CHPS Certified in Healthcare Privacy and Security CHPS Center for Health Policy Studies (healthcare consulting firm with offices in New York, Maryland, and Illinois) CHPS Combat Hybrid Power System ) today reported sales of $33.9 million and net income of $0.18 per share, for its fourth fiscal quarter ended June June: see month. 30, 1995. Sales for the 1995 fiscal year were $104.7 million, and net income was $0.47 per share. Chips and Technologies Chips and Technologies (C&T) was the first fabless semiconductor company, a model developed by its founder Gordon Campbell. Its first product was an EGA IBM compatible graphics chip. This was followed by chipsets for PC motherboards and other computer graphics chips. Inc. is the industry leader in portable computer display controller and accelerator accelerator: see particle accelerator. (1) A key combination such as Alt-G or Ctrl-Shift H that is used to activate a task. (2) An incubator that expects to develop the company considerably faster than normal. See incubator. semiconductor products, and is a supplier of core logic and other peripheral Any input, output or storage device connected externally or internally to the computer's CPU, such as a monitor, keyboard, printer, disk, tape, graphics tablet, scanner, joy stick, paddle or mouse. solutions for personal computers. Revenues for the quarter ended June 30, 1995 increased 120% from $15.4 million in the quarter ended a year ago, and increased 24% from $27.2 million in the quarter ended March 31, 1995. The results for the quarter ended June 30, 1995, compare with net income of $0.09 per share for the quarter ended June 30, 1994, and with net income of $0.11 per share, an increase of 64% over the quarter ended March 31, 1995. The Fiscal 1995 results compare with revenues of $73.4 million and net income of $0.16 per share, for the 1994 fiscal year. Fiscal 1995 net income includes $0.07 per share of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). credits taken in the first two fiscal quarters. Fiscal 1994 net income included a $0.13 per share credit against previously provided taxes and a $0.02 per share restructuring credit. Gross margins for the quarter ended June 30, 1995 were 38.4%, compared to 31.6% in the quarter ended a year ago and 38.1% in the quarter ended March 31, 1995. 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. were $9.2 million, compared with $5.8 million in the quarter ended June 30, 1994, and $8.1 million in the quarter ended March 31, 1995. Cash and short term investments increased to $46 million from $23 million at the end of fiscal 1994, and stockholder equity increased to $66 million from $26 million at the previous year end. These increases include $16 million representing the market value at June 30, 1995 of Nexgen common stock held by the company, which had been carried at zero value prior to Nexgen's initial public offering. James Stafford James Francis Cardinal Stafford (born July 26, 1932 in Baltimore, Maryland) is an American prelate and the Major Penitentiary of the Roman Catholic Church, one of the highest ranking members of the Roman Curia from the United States and the second American to serve as Major , 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. , stated, "Our growth continues to be driven by our leadership in the portable graphics display controller market. The August cover story in PC Magazine leaves no doubt who the market considers the portable graphics supplier of choice. The portables using our 65545 were estimated to have a 30% graphics performance improvement over the average of the nearest competitor. Chips and Technologies' graphics chips were in 49 of the 80 machines surveyed, including all 4 top rated, full featured notebooks. "Based on our experience and history as a core logic and graphics supplier," Stafford Stafford, city (1991 pop. 60,915) and district, Staffordshire, W central England, on the Sow River, above its junction with the Trent. Stafford's chief industry is the manufacture of electrical goods; other products are concrete, shoes and shoe-repairing machinery, continued, "we believe our highly integrated Unified Architecture approach addressing the paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. to shared memory (1) Using part of main memory to support a low-cost display circuit that does not have its own memory. See shared video memory. (2) The common memory in a symmetric multiprocessing system that is available to all CPUs. See SMP. 1. in the consumer market will position Chips and Technologies to emerge as a recognized leader in the desktop market as well." About Chips and Technologies Inc. Chips and Technologies Inc. (NASDAQ:CHPS) supplies advanced semiconductor devices to the worldwide personal computer industry. The company pioneered the concept of implementing discrete system A discrete system or discrete-time system, as opposed to a continuous-time system, is one in which the signals are sampled periodically. It is usually used to connote an analog sampled system, rather than a digital sampled system, which uses quantized values. functions in highly integrated chipsets. CHIPS' products are found in a wide range of systems from compact portables to high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" desktop computers. -0-
CHIPS AND TECHNOLOGIES INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
June 30, June 30,
(in thousands except 1995 1994 1995 1994
per share amounts)
Net sales $33,850 $15,393 $104,731 $73,444 Cost of sales and other manufacturing expenses 20,856 10,522 64,875 46,964 Gross margin 12,994 4,871 39,856 26,480 Operating expenses Research and development 3,834 2,588 13,344 11,793 Selling, general and administrative 5,395 3,254 18,193 16,136 Restructuring recovery -- -- (1,429) (372) Total operating expenses 9,229 5,842 30,108 27,557 Income (loss) from operations 3,765 (971) 9,748 (1,077) Interest income and other, net 293 308 597 1,735 Income (loss) before taxes 4,058 (663) 10,345 658 Benefit (provision) for income taxes (406) 2,188 (957) 2,056 Net income $3,652 $1,525 $9,388 $2,714 Net income per share Primary $ 0.18 $ 0.09 $ 0.50 $ 0.16 Fully diluted $ 0.18 $ 0.09 $ 0.47 $ 0.16 Shares used in per share calculation Primary 20,187 16,977 18,802 16,623 Fully diluted 20,614 16,977 20,182 16,623
CHIPS AND TECHNOLOGIES INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands June 30, 1995 June 30, 1994 except share amounts)
Assets
Current assets
Cash and cash equivalents $22,385 $17,372
Short-term investments 23,644 5,171
Accounts receivable, net of
allowance for doubtful accounts
of $1,032 and $1,269, respectively 14,696 8,437(a)
Inventory 11,667 5,845
Prepaid and other assets 2,549 3,100
Total current assets 74,941 39,925
Property and equipment, net 10,550 10,325
Other assets 276 1,050
------ ------
$85,767 $51,300
Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 8,072 $ 7,081 Current portion of capitalized lease obligations 689 571 Other accrued liabilities 9,585 6,850(a) Accrued restructuring costs -- 1,542 Total current liabilities 18,346 16,044 Long-term capitalized lease obligations, less current portion 849 100 Notes payable 876 919 Convertible debentures -- 7,910 Total liabilities 20,071 24,973
Stockholders' equity:
Convertible preferred stock, 0 and 123,000
shares issued and outstanding -- 1
Common stock, 19,744,000 and 16,881,000
shares issued and outstanding 197 169
Capital in excess of par value 73,016 59,222
Notes receivable from officer (107) --
Unrealized gain on investments 16,267 --
Retained deficit (23,677) (33,065)
Total stockholders' equity 65,696 26,327
------ ------
$85,767 $51,300-0-
Note a: Account balance has been reclassified due to changing the presentation of certain distributor revenue reserves. CONTACT: Chips & Technologies Tim Christoffersen, 408/434-0600 |
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