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 VALLEY FORGE, Pa., Aug. 3 /PRNewswire/ -- Integrated Circuit Systems, Inc. (NASDAQ: ICST) announced today that revenues for the fourth quarter of fiscal 1993 were $19.5 million as compared to $13.4 million in the fourth quarter of fiscal 1992.
 Net income for the fourth quarter was $3.2 million, or $.31 per share as compared to $2.0 million, or $.22 per share in the previous year's fourth quarter.
 For the fiscal year ended June 30, revenues were $74.9 million, more than double the $35.5 million for fiscal 1992. Net income for fiscal year 1993 was $11.3 million, or $1.15 per share, as compared to net income of $4.5 million, or $.48 per share, for the previous fiscal year.
 Shares outstanding are higher in the fourth quarter of fiscal 1993 due to the issuance of 1 million shares in the company's secondary stock offering completed Feb. 23. The results are subject to completion of the year-end audit and do not include the impact of the acquisition of Turtle Beach Systems, which closed on July 30.
 "Our 1993 revenue increase over fiscal 1992 was 111 percent due primarily to revenues from our frequency timing generator (FTG) products in video and motherboard/systems," commented Edward Arnold, president and CEO. "We believe the fundamentals of our business are strong and our present growth opportunities exciting. However, we are clearly in a product transition cycle on the video FTG products, which we believe will continue through the first quarter of fiscal 1994, as revenues from these mature products drop due to expected increased competition. As we have stated before, we anticipate that this expected decline in revenue will be offset during 1994 by increased sales of motherboard/systems and higher margin FTG products and PC multimedia products. Although we entered the seasonably slow summer period with a backlog at June 30 of approximately $17 million, we have experienced a significant increase in order activity in July.
 "Our expectations for our multimedia products, including the ICS2002 Business Audio sound product, are high and we anticipate that our newly acquired Turtle Beach subsidiary will provide revenue growth and positive earnings contributions in fiscal 1994," continued Arnold. "Our other FTG products, including workstation and motherboard/system products, continue to show revenue increases and we are now in volume production with our GENDAC(TM) product. We look for these product areas to be significant revenue contributors in fiscal 1994.
 "Gross profit margin for the fourth quarter was approximately 53 percent, which represents an increase from prior periods due primarily to expanded use of lower cost Far East suppliers. We are also taking steps to improve our profitability by initiating a significant cost reduction program that will result in the consolidation of substantially all manufacturing and other support operations, currently in two locations, into our Valley Forge facility," concluded Arnold.
 Integrated Circuit Systems, Inc. is a fabless semiconductor company specializing in the design and marketing of mixed signal integrated circuits. Headquartered in Valley Forge, Pa., with operations in San Jose, Calif., the company is a leading supplier of frequency timing generator products for graphics and systems applications in personal computers and workstations. It also supplies products for power management and multimedia sound and video application.
 Condensed Consolidated Balance Sheets(a)
 (in thousands)
 Current Assets: 6/30/93 6/30/92
 Cash and cash equivalents $15,290 $ 6,129
 Short-term investments 2,330 ---
 Accounts receivable, net 12,599 8,442
 Inventory 7,774 4,056
 Other current assets 3,323 880
 Total current assets 41,316 19,507
 Property and equipment, net 10,215 4,428
 Long-term investments 2,975 ---
 Other assets 263 76
 Total assets $54,769 $24,011
 Current liabilities:
 Current portion of long-term
 obligations and note payable $ 439 $ 1,610
 Accounts payable 3,712 3,620
 Accrued salaries and bonus 956 987
 Accrued expenses and other
 current liabilities 2,211 836
 Income taxes payable 991 539
 Total current liabilities 8,309 7,592
 Long-term debt, and other 3,299 1,117
 Deferred income taxes 446 142
 Total liabilities 12,054 8,851
 Shareholders' equity:
 Preferred stock, authorized 5,000 shares;
 none issued --- ---
 Common stock, no par value, authorized
 50,000 shares; issued and oustanding
 10,190 and 8,847 shares for
 June 30, 1993 and 1992, respectively 25,487 8,734
 Retained earnings 17,228 6,426
 Total shareholders' equity 42,715 15,160
 Total liabilities and shareholders'
 equity $54,769 $24,011
 (a) All numbers have been restated to include the acquisition of Avasem Corporation, acquired on Nov. 30, 1992 on a pooling-of-interests basis.
 Consolidated Statement of Operations(a)
 (in thousands)
 3 mos. ended Year ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Standard products $15,304 $ 9,396 $57,648 $22,890
 Custom ASIC products 4,211 3,987 17,259 12,632
 Total revenues 19,515 13,383 74,907 35,522
 Costs and expenses:
 Cost of sales 9,175 6,479 36,526 18,050
 Research and development
 expense 1,784 1,585 6,668 4,629
 Sales and marketing exp. 1,606 1,021 5,857 3,208
 General and admin. exp. 1,751 1,680 6,649 3,380
 Acquisition costs --- --- 1,285 ---
 Operating income 5,199 2,618 17,922 6,255
 Interest and other income (185) (60) (592) (339)
 Interest expense 75 64 308 284
 Income before inc. taxes 5,309 2,614 18,206 6,310
 Income taxes 2,088 565 6,931 1,850
 Net income $ 3,221 $ 2,049 $11,275 $ 4,460
 Net income per share(b) $ .31 $ .22 $ 1.15 $ .48
 Primary 10,545 9,300 9,838 9,225
 Fully diluted 10,545 9,312 9,838 9,264
 (a) All numbers have been restated to include results of Avasem Corporation, acquired on Nov. 30, 1992 and accounted for as a pooling- of-interests.
 (b) Per share numbers and shares outstanding are adjusted for the three-for-two stock split which occurred on Dec. 31. 1992.
 -0- 8/3/93
 /CONTACT: Edward Arnold or Keith Schneck of Integrated Circuit Systems, 215-630-5300/

CO: Integrated Circuit Systems, Inc. ST: Pennsylvania, California IN: CPR SU: ERN

BR -- NYON1 -- 8633 08/03/93 06:32 EDT
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Publication:PR Newswire
Date:Aug 3, 1993

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