Chips and Technologies Inc. Posts Third Quarter Increases; Operating Income Surges 77% on 34% Revenues Boost; Portable PC Graphics and Video Market Leader Also Posts Nine Month Gains; Abetted by Sale of AMD Shares, Net Income for Third Quarter More Than Quadruples.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 16, 1996--Chips and 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 $36.5 million and net income of $9.8 million, or $0.45 per share, for its third fiscal quarter ended March 31, 1996. 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 a leading supplier of highly integrated semiconductor and software solutions which provide graphics, video and other capabilities to portable and desktop computers. Revenues for the quarter ended March 31, 1996, increased 34% from $27.2 million in the quarter ended a year ago, and decreased 4.6% from $38.3 million in the second fiscal quarter ended Dec. 31, 1995. Net income for the quarter ended March 31, 1996, increased 364% compared to $2.1 million, or $0.11 per share, posted in the year-ago quarter, and increased 75% from $5.6 million, or $0.26 per share, reported in the prior quarter. The above earnings results are inclusive of inclusive of prep. Taking into consideration or account; including. a $5.6 million, or $0.26 per share, gain from the sale of shares in the third quarter of fiscal 1996 of Advanced Micro Devices Inc. AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. merged in January with NexGen, Inc., a microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. design firm in which Chips and Technologies held shares. Excluding this item, earnings per share for the quarter were $0.19. Revenues for the first nine months of fiscal 1996 of $112.0 million were 58% above the $70.9 million posted in the year-ago period. Net income of $19.8 million, or $0.91 per share, for the first nine months of fiscal 1996 was 246% above the $5.7 million, or $0.31 per share, in the first nine months of fiscal 1995. Fiscal 1996 nine month earnings include $0.26 per share from the sale of AMD shares and $0.04 per share from the sale of land. Fiscal 1995 nine month earnings include $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. Earnings per share excluding these unusual items are $0.61 for the first nine months of fiscal 1996 compared to $0.24 for the same period of fiscal 1995. Gross margins for the quarter ended March 31, 1996, were 39.6% compared to 38.1% in the quarter ended a year ago and 39.1% in the quarter ended Dec. 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 $10.4 million, compared to $8.1 million in the quarter ended March 31, 1995, and $10.0 million in the quarter ended Dec. 31, 1995. Operating expenses as a percent of sales were 28.5%, compared to 29.7% in the quarter ended a year ago and compared to 26.2% in the quarter ended Dec. 31, 1995. "We are pleased that Chips and Technologies' business held steady during a period when PC OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and inventory adjustments and slower than anticipated market growth rate created turbulent times for many semiconductor suppliers," stated Jim Stafford James Wayne "Jim" Stafford (b. 16 January 1944, Eloise, Florida) is an American comedian and musician, who was prominent in the 1970s. Stafford had semi-novelty hits with the songs "Spiders and Snakes", "Swamp Witch", "Wildwood Weed", the controversial "My Girl, Bill", and "Turn , Chips' 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. . "We have steered through this dynamic period by sustaining extremely close relations with our customer base, by excellent management of our own inventories, and by making long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic investments in appropriate levels of capacity." "New opportunities look bright," Stafford said. "Our recently-announced partnership with Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corporation to provide integrated 2D, 3D and video graphics controllers for the desktop, portable PC and emerging Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the markets establishes Chips as a major player in the explosive real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. 3D graphics and multimedia arenas." Coupled with Chips' PC compatibility and systems expertise, he added, "being aligned with Lockheed Martin, the leader in real-time 3D technology, intellectual property and content, will lead to a new generation of highly-optimized, yet cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , PC-tailored solutions based on proven hardware and software architectures." -0-
Chips and Technologies Inc.
Unaudited Condensed Consolidated Statement of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
(In thousands except 1996 1995 1996 1995
per share amounts)
Net sales $36,514 $27,231 $111,992 $70,881 Cost of sales 22,057 16,866 68,216 44,019 Gross margin 14,457 10,365 43,776 26,862 Operating expenses Research and development 4,822 3,216 14,538 9,510 Selling, general and administrative 5,589 4,866 15,707 12,798 Restructuring recovery -- -- -- (1,429) Total operating expenses 10,411 8,082 30,245 20,879 Income from operations 4,046 2,283 13,531 5,983 Interest income and other, net 6,827 60 8,492 304 Income before taxes 10,873 2,343 22,023 6,287 Provision for income taxes 1,087 234 2,202 551 Net income $9,786 $2,109 $19,821 $5,736 Net income per share $ 0.45 $ 0.11 $ 0.91 $ 0.31 Shares used in per share calculation 21,671 20,290 21,905 18,719
Chips and Technologies Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands March 31, 1996 June 30, 1995 except share amounts) Assets Current assets: Cash and cash equivalents $23,853 $22,385 Short-term investments 27,719 23,644 Accounts receivable, net of allowance for doubtful accounts of $1,197 and $1,032, respectively 9,469 14,696 Inventory 10,774 11,667 Prepaid and other assets 902 2,549 Total current assets 72,717 74,941 Property and equipment, net 11,041 10,550 Other assets 14,220 276 Total assets $97,978 $85,767 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,212 $ 8,072 Current portion of capitalized lease obligations 1,480 689 Other accrued liabilities 8,220 9,585 Total current liabilities 18,912 18,346 Long-term capitalized lease obligations, less current portion 1,307 849 Notes payable -- 876 Total liabilities 20,219 20,071 Stockholders' equity: Common stock, 20,472,000 and 19,744,000 shares issued and outstanding 205 197 Capital in excess of par value 77,023 73,016 Notes receivable from officer (79) (107) Unrealized gain on investments 4,466 16,267 Retained deficit (3,856) (23,677) Total stockholders' equity 77,759 65,696 Total liabilities and stockholders' equity $97,978 $85,767 CONTACT: Chips and Technologies Inc., San Jose Tim Christoffersen, 408/434-0600 |
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