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SST Reports Fourth Quarter and Fiscal 2009 Financial Results
News Release
For More Information Contact:
Leslie Green
Green Communications Consulting, LLC
(650) 312-9060
SUNNYVALE, Calif., Feb. 4, 2010 -- SST (Silicon Storage Technology, Inc.) (NASDAQ: SSTI), a leader in flash memory technology, today announced results for the fourth quarter and fiscal year 2009.
Net revenues for the fourth quarter of 2009 were $72.9 million compared with $71.3 million in the third quarter of 2009 and compared with $58.4 million in the fourth quarter of 2008. Product revenues for the fourth quarter of 2009 were $60.3 million, compared with $61.8 million in the third quarter of 2009 and with $46.3 million in the fourth quarter of 2008. Revenues from technology licensing for the fourth quarter of 2009 were $12.5 million, compared with $9.5 million in the third quarter of 2009 and with $12.1 million in the fourth quarter of 2008.
Income from operations for the fourth quarter of 2009 was $3.0 million, which compares with income from operations of $1.5 million in the third quarter of 2009 and with a loss from operations of $10.8 million in the fourth quarter of 2008.
Net income for the fourth quarter of 2009 was $2.4 million, or $0.02 per share, based on approximately 95.9 million diluted shares. By comparison, the company recorded net income of $3.1 million, or $0.03 per share based on approximately 95.9 million shares in the third quarter of 2009. For the fourth quarter of 2008, SST reported a net loss of $36.6 million, or $0.38 per share based on approximately 95.5 million diluted shares.
SST finished the fourth quarter of 2009 with $142.5 million in cash, cash equivalents, short-term investments, and long-term marketable debt securities, down approximately $1.3 million from $143.8 million at Sept. 30, 2009.
Fiscal 2009 Financial Results
Net revenues for the year ended Dec. 31, 2009 were $252.3 million compared with $315.5 million for the year ended Dec. 31, 2008. Total gross margin for 2009 was 29.8 percent compared with 30.8 percent in 2008. Product gross margins for 2009 were 16.7 percent compared with 18.2 percent in 2008. Operating expenses for the year ended Dec. 31, 2009 were $84.5 million compared with $114.4 million in 2008. Net loss for the year ended Dec. 31, 2009 was $10.2 million, or a loss of $0.11 per share based on 95.8 million diluted shares outstanding. This compares with a net loss of $39.8 million, or a loss of $0.40 per diluted share based on 100.0 million diluted shares outstanding for the year ended Dec. 31, 2008.
About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST's non-memory products include NAND controller-based products, smart card ICs and modules, flash microcontrollers and radio frequency ICs and modules. Further information on SST can be found on the company's Web site at http://www.sst.com.
For more information about SST and the company's comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to literature@sst.com or through SST's Web site at http://www.sst.com. SST's head office is located at 1020 Kifer Road, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036.
The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. All other trademarks or registered trademarks are the property of their respective holders.
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-- FINANCIAL TABLES TO FOLLOW --
Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
--------------- --------------
2008 2009 2008 2009
---- ---- ---- ----
Net revenues:
Product revenues $46,293 $60,343 $266,865 $212,662
Technology
licensing 12,059 12,519 48,670 39,665
------ ------ ------ ------
Total net
revenues 58,352 72,862 315,535 252,327
Cost of revenues 41,756 49,188 218,304 177,087
------ ------ ------- -------
Gross profit 16,596 23,674 97,231 75,240
------ ------ ------ ------
Operating expenses:
Research and
development 13,860 9,913 58,955 43,160
Sales and
marketing 5,491 5,071 26,605 20,344
General and
administrative 5,496 5,658 26,331 20,706
Other 2,514 - 2,514 329
----- --- ----- ---
Total operating
expenses 27,361 20,642 114,405 84,539
------ ------ ------- ------
Income (loss) from
operations (10,765) 3,032 (17,174) (9,299)
Gain on sale of equity
investments - 731 - 1,811
Impairment of equity
investments (21,598) - (21,832) (485)
Other income, net 581 227 4,978 3,708
--- --- ----- -----
Income (loss) before
provision for (benefit
from) income taxes
and pro rata share of
loss from equity
investments (31,782) 3,990 (34,028) (4,265)
Provision for (benefit
from) income taxes 1,740 1,321 (3,358) 4,692
----- ----- ------ -----
Income (loss) before
pro rata share of
loss from equity
investments (33,522) 2,669 (30,670) (8,957)
Pro rata share of loss
from equity
investments 3,105 309 9,145 1,280
----- --- ----- -----
Net income (loss) $(36,627) $2,360 $(39,815) $(10,237)
======== ====== ======== ========
Net income (loss) per
share - basic $(0.38) $0.02 $(0.40) $(0.11)
====== ===== ====== ======
Shares used in per share
calculation - basic 95,495 95,854 100,019 95,790
====== ====== ======= ======
Net income (loss) per
share - diluted $(0.38) $0.02 $(0.40) $(0.11)
====== ===== ====== ======
Shares used in per share
calculation - diluted 95,495 95,870 100,019 95,790
====== ====== ======= ======
Silicon Storage Technology, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
December 31,
2008 2009
---- ----
ASSETS
Current assets:
Cash and cash equivalents $50,880 $92,299
Short-term investments 48,997 30,613
Trade accounts receivable, net 20,117 37,660
Inventories 54,159 36,881
Other current assets 4,153 5,317
----- -----
Total current assets 178,306 202,770
Long-term marketable debt securities 31,848 19,609
Long-term marketable equity investments 18,196 40,619
Equity investments, others 24,619 32,156
Property and equipment, net 18,913 12,051
Goodwill and intangible assets, net 14,794 12,882
Other assets 1,807 4,520
----- -----
Total assets $288,483 $324,607
======== ========
LIABILITIES
Current liabilities:
Trade accounts payable $19,146 $28,238
Accrued expenses and other liabilities 14,200 12,215
Deferred revenue 3,841 13,970
----- ------
Total current liabilities 37,187 54,423
Other liabilities 8,082 10,057
----- ------
Total liabilities 45,269 64,480
------ ------
SHAREHOLDERS' EQUITY
Common stock 412,312 415,267
Accumulated other comprehensive income 14,308 38,503
Accumulated deficit (183,406) (193,643)
-------- --------
Total shareholders' equity 243,214 260,127
------- -------
Total liabilities and shareholders'
equity $288,483 $324,607
======== ========
Silicon Storage Technology, Inc. and Subsidiaries
Supplemental Data
Percentage of
Gross Product Change in
Revenue Revenue
------------- -------
4Q08 to 3Q09 to
4Q08 3Q09 4Q09 4Q09 4Q09
---- ---- ---- ---- ----
Product Revenue
By Ship-To Location
North America 8% 4% 6% 2% 54%
Total International 92% 96% 94% 37% (3%)
Europe 7% 4% 5% (13%) 18%
Japan 13% 12% 11% 12% (12%)
Korea 8% 7% 7% 21% 0%
China and Taiwan 54% 64% 60% (26%) 16%
Other Far East 10% 9% 11% 54% 21%
Product Revenue by Application
Digital Consumer 26% 24% 22% 7% (10%)
Internet Computing 24% 24% 29% 65% 19%
Networking 11% 16% 15% 80% (6%)
Wireless
Communications 39% 36% 34% 12% (9%)
Total 100% 100% 100% 34% (1%)
Licensing Revenue as a
% of Total Revenue 21% 13% 17% 5% 33%
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