ISSI Announces First Fiscal Quarter 2014 Results

About the Company
ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) automotive, (ii) communications, (iii) industrial, medical, and military, and (iv) digital consumer. The Company's primary products are high speed and low power SRAM and low and medium density DRAM. The Company also designs and markets NOR flash products and high performance analog and mixed signal integrated circuits. ISSI is headquartered in Silicon Valley with worldwide offices in Taiwan, Japan, Singapore, China, Europe, Hong Kong, India, and Korea. Visit our web site at http://www.issi.com/.

Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning expanded customer base, which is increasingly relying on ISSI for both new and legacy products, expanding our pipeline of design wins as we capitalize on the growing semiconductor content in cars, increasing shipment volumes in the coming quarters, driving further growth in our new products, intending to sell more Nanya shares within one year and our outlook for the March 2014 quarter with respect to revenue, SRAM and DRAM revenue, NOR flash revenue, analog revenue, gross margin, operating expenses, expecting additional gains on sales of Nanya shares, and GAAP and Non-GAAP net income per share are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include supply and demand conditions in the market place (especially in the automotive market), unexpected reductions in average selling prices for our products, our ability to sell our products in our key markets (including automotive and IMM) and the pricing and gross margins achieved on such sales, our ability to control or reduce operating expenses, our ability to obtain a sufficient supply of wafers, wafer pricing, our ability to maintain sufficient inventory of products to satisfy customer orders, our ability to realize the expected benefits of our acquisitions including maintaining relationships with key customers, vendors and employees, changes in manufacturing yields, order cancellations, order rescheduling, product warranty claims, competition, the level and value of inventory held by OEM customers or other risks listed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended September 30, 2013. In addition, the financial information in this press release is unaudited and subject to any adjustments that may be made in connection with the year-end audit. The Company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

Integrated Silicon Solution, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)

	Three Months Ended		Three Months Ended
	December 31,		September 30,
	2013	2012		2013


Net sales	$ 79,123	$ 76,399		$ 78,392
Cost of sales	53,594	51,908		52,458
Gross profit	25,529	24,491		25,934

Operating expenses:
Research and development	10,558	10,023		9,925
Selling, general and administrative	11,434	11,089		11,316
Total operating expenses	21,992	21,112		21,241

Operating income	3,537	3,379		4,693
Interest and other income (expense), net	431	268		(183)
Gain on sale of investments	3,121	-		2,878

Income before income taxes	7,089	3,647		7,388
Provision for income taxes	1,643	1,159		2,658

Consolidated net income	5,446	2,488		4,730

Net (income) loss attributable to
noncontrolling interests	(11)	11		(32)

Net income attributable to ISSI	$ 5,435	$ 2,499		$ 4,698

Basic net income per share	$ 0.19	$ 0.09		$ 0.16
Shares used in basic per share calculation	29,318	27,696		28,928

Diluted net income per share	$ 0.18	$ 0.09		$ 0.15
Shares used in diluted per share calculation	30,717	29,106		30,372


Reconciliation of GAAP to Non-GAAP Financial Measures

Operating income:
GAAP operating income	$ 3,537	$ 3,379		$ 4,693
Adjustments:
Chingis acquisition related inventory write up	-	492		-
Chingis intangible asset amortization	347	339		347
Stock-based compensation expense	1,491	1,440		1,568
Total adjustments	1,838	2,271		1,915
Non-GAAP operating income	$ 5,375	$ 5,650		$ 6,608

Provision for income taxes:
On a GAAP basis	$ 1,643	$ 1,159		$ 2,658
Adjustments:
Non-cash tax expense	203	490		1,335
Tax impact of gains on sale of investments	1,092	-		1,052
Total adjustments	1,295	490		2,387
Non-GAAP provision for income taxes	$ 348	$ 669		$ 271

Net income attributable to ISSI:
On a GAAP basis	$ 5,435	$ 2,499		$ 4,698
Adjustments:
Chingis acquisition related inventory write up	-	492		-
Chingis intangible asset amortization	347	339		347
Stock-based compensation expense	1,491	1,440		1,568
Gain on sales of investment	(3,121)	-		(2,878)
Non-cash tax expense	203	490		1,335
Tax impact of gains on sale of investments	1,092	-		1,052
Total adjustments	12	2,761		1,424
Non-GAAP net income	$ 5,447	$ 5,260		$ 6,122

Non-GAAP net income per share:
Basic	$ 0.19	$ 0.19		$ 0.21
Diluted	$ 0.18	$ 0.18		$ 0.20



Integrated Silicon Solution, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

	December 31,	September 30,
	2013	2013
	(unaudited)	(1)
ASSETS
Current assets:
Cash and cash equivalents	$ 123,399	$ 119,997
Short-term investments	13,366	21,558
Accounts receivable, net	47,487	46,088
Inventories	76,287	68,469
Other current assets	18,390	16,928

Total current assets	278,929	273,040
Property and equipment, net	50,977	46,504
Purchased intangible assets, net	6,217	6,626
Goodwill	9,178	9,178
Other assets	25,991	26,521
Total assets	$ 371,292	$ 361,869

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 54,832	$ 50,229
Accrued compensation and benefits	8,284	8,072
Accrued expenses	8,265	7,357
Current portion of long-term debt	195	195

Total current liabilities	71,576	65,853

Long-term debt	4,485	4,534
Other long-term liabilities	6,859	8,712

Total liabilities	82,920	79,099

Commitments and contingencies

Stockholders' equity:
Common stock	3	3
Additional paid-in capital	348,132	343,947
Accumulated deficit	(67,063)	(72,498)
Accumulated other comprehensive income	5,266	9,121

Total ISSI stockholders' equity	286,338	280,573

Noncontrolling interest	2,034	2,197

Total stockholders' equity	288,372	282,770
Total liabilities and stockholders' equity	$ 371,292	$ 361,869


(1) Derived from audited financial statements.

« Previous Page 1 | 2 | 3 Next Page »