Fourth Fiscal Quarter and Recent Highlights:
- Reported total revenue of $78.4 million, compared to $77.8 million in the third fiscal quarter of 2013 and $72.5 million in the fourth fiscal quarter of 2012;
- Automotive revenue increased 9.3% sequentially;
- GAAP net income was $0.15 per diluted share and non-GAAP net income was $0.20 per diluted share;
- Generated $11.6 million in cash flow from operations and cash and short-term investments grew to $141.6 million; and
- Announced higher density Flash product line covering SPI and Parallel flash targeted at automotive, industrial, consumer, computing, and communication markets.
Fiscal Year 2013 Highlights:
- Fiscal 2013 revenue grew to $307.6 million, an increase of 15.6% compared to fiscal 2012;
- Automotive revenue increased 28.2% compared to fiscal 2012;
- GAAP net income was $17.5 million, or $0.59 per diluted share, and non-GAAP net income was $24.2 million, or $0.81 per diluted share;
- Realized aggregate gains of $12.0 million on sales of a portion of the Company's shares of Nanya Technology Corporation ("Nanya"); and
- Generated $33.5 million in cash flow from operations during the fiscal year.
"Fiscal 2013 reflected a strong year of growth for ISSI, driven primarily by our automotive business, which represented almost half of our total revenue," said Scott Howarth, ISSI's President and CEO. "Our automotive success reflects both increased market share and significant growth in electronic content per vehicle. ISSI's design win momentum in applications such as infotainment, satellite radio, Bluetooth, safety camera systems, displays and telematics have been the key to our success in this market. We believe we are also well positioned with more advanced DDR3 products to support even higher performance solutions in vehicles in the coming years.
"For the year, our consumer end market revenue increased due to the addition of flash products, and industrial, medical and military ("IMM") revenue increased slightly in spite of continued weakness in Europe. We significantly expanded our product portfolio, design activity and customer base in IMM in fiscal 2013 and believe we are well positioned for future volume increases. Communications sales declined year-over-year as a result of the weak macro environment and continued delays in infrastructure investments by carriers. However, we significantly increased our addressable market with new QUAD SRAM and RLDRAM® solutions, which we expect to be key contributors to our anticipated growth in fiscal 2014. Also notable during the year, we won a competitive design bid for next generation memory with Cisco Systems, Inc. significantly expanding our relationship with this important customer, and expect this design to begin ramping in 2015. As evidenced by our results this year, our focus on expanding our product portfolio, broadening customer relationships and being recognized as a key strategic supplier of specialty memory solutions continued to serve us well."
Fourth Fiscal Quarter 2013 Results
Revenue in the fourth fiscal quarter ended September 30, 2013 was $78.4 million, compared to $77.8 million in the third quarter of 2013 and an increase of 8.1% from the $72.5 million in the fourth fiscal quarter of 2012. Revenue in the fourth fiscal quarter of 2013 consisted of $69.9 million of SRAM and DRAM revenue, $6.4 million of NOR flash revenue, and $2.1 million of analog revenue. SRAM and DRAM revenue increased 3.6% from the June 2013 quarter and 1.2% from the September 2012 quarter.
GAAP gross margin in the fourth fiscal quarter was 33.1%, compared to 33.5% in the June 2013 quarter, and 25.3% in the September 2012 quarter. Non-GAAP gross margin was 33.3%, compared to 33.7% in the June 2013 quarter.
During the fourth fiscal quarter, the Company continued to sell a portion of the Nanya shares it purchased in September 2012, realizing a gain of $2.9 million. The remaining tradable Nanya shares are classified as short-term investments since the Company intends to sell such shares within one year.
GAAP income tax expense in the fourth fiscal quarter was $2.7 million, compared to $5.2 million in the June 2013 quarter and $1.1 million in the September 2012 quarter.
GAAP net income in the fourth fiscal quarter of 2013 was $4.7 million, or $0.15 per diluted share, compared to GAAP net income of $7.1 million, or $0.24 per diluted share, in the June 2013 quarter and GAAP net loss of $13.2 million, or $0.48 per share, in the September 2012 quarter.
Non-GAAP net income in the September 2013 quarter was $6.1 million, or $0.20 per diluted share, compared to $6.7 million, or $0.23 per diluted share, in the June 2013 quarter and $6.9 million, or $0.24 per diluted share, in the September 2012 quarter.
Our non-GAAP results exclude stock based compensation, amortization of intangibles related to acquisitions, other acquisition related charges, asset impairment charges, gains on the sales of investments, impairment of investment, and non-cash tax expense. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
Fiscal 2013 Results:
Revenue for the fiscal year ended September 30, 2013 was $307.6 million, an increase of 15.6% from revenue of $266.0 million in fiscal 2012. DRAM and SRAM revenue in fiscal 2013 was $269.3 million, an increase of 5.3% from fiscal 2012. GAAP gross margin in fiscal 2013 was 33.0%, compared with 31.2% in fiscal 2012.
GAAP net income in fiscal 2013 was $17.5 million, or $0.59 per share, compared to a GAAP net loss in fiscal 2012 of $2.7 million , or $0.10 per diluted share. Non-GAAP net income in fiscal 2013 was $24.2 million , or $0.81 per diluted share. This compares to non-GAAP net income of $25.8 million , or $0.89 per diluted share, in fiscal 2012.