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ISD Announces Third Quarter Results
SAN JOSE, Calif., October 10, 1996 . . . ISD (Information Storage Devices, Inc.) (NASDAQ:ISDI) announced today that its net revenue for the third quarter ended September 28, 1996 was $8.2 million. This compares to net revenue of $15.5 million for the third quarter of 1995. The net loss for the period was $5.7 million, or $.59 per share. The loss includes inventory reserves of approximately $1.6 million before taxes and the reversal of tax benefits from prior periods of approximately $1.0 million, which together accounted for approximately $.26 per share of the net loss for the period. Net income for last year's third quarter was $1.7 million, or $.19 per share.
For the nine months ended September 28, 1996, ISD reported a net loss of $7.5 million, or $.76 per share, on net revenue of $31.7 million. This compares to net income of $4.1 million, or $.49 per share, on net revenue of $42.8 million for the first nine months of 1995.
"As we announced on September 17, 1996, third quarter results were adversely affected by significant unanticipated order stretch-outs by a major customer in the communications industry, particularly for applications in cell phone handsets," said David L. Angel, president and chief executive officer. He said that, to a lesser extent, results for the period also reflect anticipated price reductions and continued softness in demand for ISD's ChipCorder® single-chip integrated circuit products for voice recording and playback among consumer-oriented accounts.
Angel said that production of 0.8 micron wafers by the Company's foundry has now been qualified, and production of ChipCorder® products based on this technology has begun. He said that the foundry has stopped shipping 1.2 micron wafers. "ISD's new ISD33000 series, the industry's first 3-volt, single-chip record and playback products with recording times up to four minutes are expected to begin shipping as planned in the fourth quarter," he added.
At September 28, 1996, ISD reported cash and investments of $54.1 million, inventory of $14.0 million, no debt, and shareholders' equity of $70.9 million, or $7.34 per share.
This press release contains forward-looking statements regarding shipment of product. Actual results could differ materially as a result of a number of factors including the following: cyclical nature of the markets and demand for the company's products; fluctuations in manufacturing yields; competitive pricing pressures; the timing of orders; changes in the mix of products sold; changes in the mix of customers; availability and cost of products from the Company's suppliers; the timing of new product announcements; the cyclical nature of the semiconductor industry; the gain or loss of significant customers; economic conditions generally or in various geographic areas; and the risk factors listed from time to time in the Company's SEC reports, including but not limited to its report on Form 10-K for the year ended December 31, 1995 and the Company's 1995 Annual Report.
Information Storage Devices, Inc.
Condensed Statements Of Operations
(in thousands, except per share amounts)
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Three months ended |
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Six months ended |
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9-28-96 |
9-30-95 |
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9-28-96 |
9-30-95 |
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| Net revenues |
$8,153 |
$15,546 |
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$31,671 |
$42,785 |
| Cost of goods sold |
8,219 |
9,238 |
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24,800 |
126,399 |
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| Gross margin |
(66) |
6,308 |
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6,871 |
16,386 |
| Operating Expenses: |
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| Research and development |
2,662 |
1,777 |
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8,650 |
4,660 |
| Selling, general and administrative |
2,620 |
2,173 |
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7,649 |
6,180 |
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| Total operating expenses |
5,282 |
3,950 |
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16,299 |
10,840 |
| Income (loss) from operations |
(5,348) |
2,358 |
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(9,428) |
5,546 |
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------------ |
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------------ |
| Interest and other income, net |
566 |
295 |
|
1,900 |
818 |
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------------ |
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| Income (loss) before income taxes |
(4,782) |
2,653 |
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(7,528) |
6,364 |
| Provision (benefit) for income taxes |
961 |
934 |
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- |
2,232 |
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| Net Income (loss) |
$(5,743) |
$1,719 |
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$(7,528) |
$ 4,132 |
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| Earnings (loss) per share |
$(0.59) |
$0.19 |
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$(0.76) |
$ 0.49 |
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| Shares used in computing earnings (loss) per share |
9,661 |
8,948 |
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9,867 |
8,436 |
Information Storage Devices, Inc.
Condensed Balance Sheet
(in thousands)
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9/28/96 |
12/31/95 |
| Assets |
(unaudited) |
(audited) |
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| Current Assets: |
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| Cash and short-term investments |
$46,734 |
$75,094 |
| Accounts receivable, net |
4,336 |
7,554 |
| Inventories |
13,978 |
9,809 |
| Other current assets |
2,439 |
1,841 |
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| Total Current Assets |
67,487 |
94,298 |
| Property and equipment, net |
5,768 |
5,244 |
| Other assets |
1,779 |
1,355 |
| Long-term investments |
7,384 |
4,533 |
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| Total Assets |
$82,418 |
$ 105,430 |
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| Liabilities and Shareholders' Equity |
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| Current Liabilities: |
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| Current portion of long-term debt |
$ 1,232 |
$ 1,089 |
| Accounts payable and accrued liabilities |
5,932 |
12,096 |
| Deferred revenue |
1,885 |
1,834 |
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| Total Current Liabilities |
9,049 |
15,019 |
| Long-term liabilities |
2,463 |
2,958 |
| Shareholders' Equity |
70,906 |
87,453 |
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| Total Liabilities and shareholders' equity |
$82,418 |
$ 105,430 |
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Note: CompactSPEECH is a trademark of ISD. ChipCorder is a registered trademark of ISD.
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