Chips & Technologies Reports Profit For Third Fiscal Quarter.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)--April 18, 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 $27.2 million and net income of $2.1 million, or $0.11 per share, for its third fiscal quarter ended March 31, 1995. The company posted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $2.3 million for the quarter. This is the company's seventh successive profitable quarter. 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. technology, and is a supplier of core logic and other peripheral solutions for personal computers. Revenues for the quarter ended March 31, 1995 increased 89% from $14.4 million in the quarter ended a year ago, and increased 17% from $23.3 million in the quarter ended December December: see month. 31, 1994. For the nine months ended March 31, 1995, the company reported sales of $71 million compared to sales of $58 million for the nine months of the prior year. Gross margins for the quarter ended March 31, 1995 were 38%, compared to 36% in the quarter ended a year ago and 38% in the quarter ended December 31, 1994. 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 $8.1 million, compared with $6.1 million in the quarter ended March 31, 1994, and $7.5 million, excluding the 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). credit of $1.1 million, in the quarter ended December 31, 1994. Operating income of $2.3 million for the quarter ended March 31, 1995 compared with an 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. of $.9 million for the quarter ended March 31, 1994, and operating income of $1.4 million in the quarter ended December 31, 1994, (excluding the credit). Net income of $2.1 million, or $0.11 per share for the quarter ended March 31, 1995 compared to net income of $147,000, or $0.01 per share for the quarter ended March 31, 1994, and with net income of $1.3 million, or $0.07 per share, (excluding the credit), for the quarter ended December 31, 1994. 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 portable graphics display controllers continue to be the strongest factor in our improved results. Our newer 540/545 products have been widely embraced in the marketplace, capturing design wins with major manufacturers such as DEC, Gateway 2000, Hewlett Hewlett may refer to: People with the surname Hewlett:
NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , Panasonic
"During the quarter, we announced the completion of our transition to our modular TechBlock design methodology based on VHDL (VHSIC Hardware Description Language) A hardware description language (HDL) used to design electronic systems at the component, board and system level. VHDL allows models to be developed at a very high level of abstraction. , a high level description language. All new products are being created in this architecture, which we believe will improve our products' time to market. We have also implemented a cross-functional team In business, a cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. approach to product development. We are involving key customers and representatives of various functional areas of the company in every step of product development, from definition to final testing. We expect our product teams to positively impact time to market, product quality, and market acceptance. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , both the new design methodology and the cross-functional team approach align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. us more closely with our mission to provide unique, customer-driven, high quality products to the personal computer industry." 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 desktop computers.
Chips and Technologies, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
(In thousands except per 1995 1994 1995 1994
share amounts) ------ ------ ------ ------
Net Sales $27,231 $14,442 $70,881 $58,051
Cost of sales and other
manufacturing expenses 16,866 9,269 44,019 36,442
------- ------- ------- -------
Gross margin 10,365 5,173 26,862 21,609
Operating expenses
Research and development 3,216 2,598 9,510 9,205
Marketing and selling 3,754 2,596 9,489 8,627
General and administrative 1,112 1,260 3,309 4,255
Restructuring recovery 0 (372) (1,429) (372)
------- ------- ------- -------
Total operating expenses 8,082 6,082 20,879 21,715
Income (loss) from operations 2,283 (909) 5,983 (106)
Interest income and other, net 60 1,072 304 1,427
------- ------- ------- -------
Income before taxes 2,343 163 6,287 1,321
Provision for income taxes (234) (16) (551) (132)
------- ------- ------- -------
Net Income $2,109 $147 $5,736 $1,189
======= ======= ======= =======
Net income per share
Primary $0.11 $0.01 $0.32 $0.07
====== ======= ======= =======
Fully diluted $0.11 $0.01 $0.31 $0.07
======= ======= ======= =======
Shares used in per share
calculation
Primary 18,902 17,492 18,215 16,720
======= ======= ======= =======
Fully diluted 20,290 17,492 18,719 16,721
======= ======= ======= =======
Chips and Technologies, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands March 31, 1995 June 30, 1994
except share amounts) -------------- -------------
(UNAUDITED)
Assets
Current assets:
Cash and cash equivalents $22,064 $17,372
Short-term investments 4,969 5,171
Accounts receivable, net of allowance
for doubtful accounts of $1,009 and
$1,269, respectively 11,046 8,437(a)
Inventory 10,344 5,845
Prepaid and other assets 2,775 3,100
-------- --------
Total current assets 51,198 39,925
Property and equipment, net 10,352 10,325
Other assets 710 1,050
-------- --------
$62,260 $51,300
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 8,470 $ 7,081
Current portion of capitalized
lease obligations 730 571
Other accrued liabilities 8,523 6,850(a)
Accrued restructuring costs --- 1,542
-------- --------
Total current liabilities $17,723 $16,044
Long-term capitalized lease
obligations, less current portion 984 100
Noncurrent notes payable 882 919
Convertible debentures 7,910 7,910
-------- ---------
Total liabilities 27,499 24,973
-------- ---------
Stockholders' equity:
Convertible preferred stock, 58,000
and 123,000 shares issued and outstanding 1 1
Common stock, 17,564,000 and 16,881,000
shares issued and outstanding 175 169
Capital in excess of par value 62,019 59,222
Notes receivable from officer (105) ---
Retained deficit (27,329) (33,065)
-------- --------
Total stockholders' equity 34,761 26,327
-------- --------
$62,260 $51,300
======== ========(a) Account balance has been reclassified due to changing the presentation of certain distributor revenue reserves.
CONTACT: Chips & Technologies Inc., San Jose Tim Christoffersen or Anne McCormac, 408/434-0600 |
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