News Article
ISSI Announces First Quarter Results
Integrated Silicon Solution, Inc. has reported its financial results for the first fiscal quarter ended December 31, 2011.
Fiscal First Quarter Results and Recent Highlights:
- Reported total revenue of $66.2 million;
- Achieved record quarterly revenue of $44.3 million in specialty DRAM;
- Increased automotive market revenue 44 percent and industrial, medical and military market revenue 60 percent over the same quarter last year, and achieved record quarterly revenue in both markets;
- Achieved GAAP net income of $3.8 million, or $0.13 per diluted share, and non-GAAP net income of $6.3 million, or $0.22per diluted share; and
- Generated $7.6 million in cash flow from operations during the quarter, ending the quarter with $102.2 million in cash and investments.
Revenue in the first fiscal quarter ended December 31, 2011 was $66.2 million, a 7.3 percent decrease from $71.3 million in the September 2011 quarter and a slight increase over the $66.1 million in the December 2010 quarter. Gross margin for the first quarter of fiscal 2012 was 33.5 percent, compared to 33.4 percent in the September 2011 quarter and 34.0 percent in the December 2010 quarter.
GAAP net income in the first quarter of fiscal 2012 was $3.8 million, or $0.13 per diluted share, compared to GAAP net income of $34.9 million, including a $28.1 million deferred tax asset valuation benefit, or $1.23 per diluted share, for the September 2011 quarter and $7.2 million, or $0.26 per diluted share, in the December 2010 quarter.
First quarter 2012 non-GAAP net income was $6.3 million, or $0.22 per diluted share, which excludes $1.2 million in stock-based compensation expense, $0.4 million in amortization of intangibles related to the acquisition of Si En, and $0.9 million in non-cash income tax expense from the utilization of net deferred tax assets. This compares to $8.2 million, or $0.29 per diluted share, for the September 2011 quarter and $8.3 million, or $0.30 per diluted share, in the December 2010 quarter. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
"During the quarter, we were pleased with the performance of our memory products, highlighted by record sales in specialty DRAM, despite softer demand in consumer and communications end markets. We believe these results reflect the success of our high quality specialty memory business particularly in automotive which grew significantly this quarter," said Scott Howarth, ISSI's President and CEO. "Our design win momentum remains strong in the automotive, communications, and industrial, medical and military markets. We continue to execute our product strategy and believe we are well positioned with our new memory product introductions to continue expanding our opportunities across all of our target markets."
"In regards to our analog products, revenue in the December quarter was adversely impacted by declining sales of feature cell phones in the China market. There is an ongoing transition in demand from feature phones to smartphones, which we expect will affect this segment of our business in the short-term. We are working to gain further design wins in the smartphone market, broaden our analog market opportunity outside of China and design additional analog and mixed signal products that will expand our addressable market in the future," said Mr. Howarth.
"Looking forward, we expect to see normal seasonality with revenue being flat to down slightly, and this quarter to be the low point for the year much as we saw in 2011. While we remain cautious about the macro uncertainty in the near term, we expect that our design win traction across all of our products, our new product offerings, and our strong customer relationships position ISSI for continued revenue growth in 2012."
March Quarter Outlook
ISSI expects total revenue for the March quarter to range between $62.0 and $66.0 million, consisting of SRAM and DRAM revenue of between $60.0 million and $63.0 million and analog revenue of between $2.0 million and $3.0 million. Gross margin for the March quarter is expected to range between 33 percent and 35 percent. Operating expenses are expected to be between $16.5 million and $17.0 million. The Company expects that its GAAP effective income tax rate in the March quarter will be approximately 30 percent. GAAP net income is expected to be between $0.12 and $0.16 per diluted share, and non-GAAP net income, which excludes non-cash tax expense related to the utilization of net deferred tax assets, stock-based compensation, and the amortization of intangibles related to the acquisition of Si En, is expected to range between $0.22 and $0.26 per diluted share.
