Silicon Storage Posts 4Q Loss

Flash memory company Silicon Storage Technology Inc. on Wednesday posted a fourth-quarter loss due to a soft market and charges related to writing down inventory and an acquisition.

The company posted a quarterly loss of $26.9 million, or 28 cents per share, down from a profit $9.1 million, or 9 cents per share, a year ago. The results are based on 96.2 million shares and 100 million shares for the 2004 and 2003 periods, respectively. During the most recent period the company posted an inventory charge of $20.9 million related to a drop in prices of several products, and a charge of $3.9 million from in-process research and development acquired in its purchase of G-Plus. The quarter also suffered from a soft consumer digital market, the company said.

Revenue rose to $104.1 million from $95.2 million as shipments were up 16 percent. Analysts surveyed by Thomson First Call predicted a loss of 26 cents per share on revenue of $104.4 million.

For the full year, net income rose to $23.9 million, or 24 cents per share, based on 99.1 million shares. This compares with a net loss of $65.2 million, or 69 cents per share, based on 94.7 million shares. Revenue grew to $449.2 million from $295 million.

Analysts had forecast earnings of 25 cents per share on revenue of $449.6 million for the year.

For the current first quarter, SST expects to report a loss per share of 9 cents to 13 cents on revenue of $95 million and $105 million, as it foresees flat licensing fees, lower shipments and a drop in prices of 2 percent to 4 percent. Research and development costs are expected to rise 20 percent.

Analysts currently expect a loss of 3 cents per share, down from the 14-cent profit posted last year.

Silicon Storage Technology shares fell 5 cents to close at $4.30 on the Nasdaq, then rose 9 cents, or 2.1 percent, to $4.39 in aftermarket trading.

Author:  

Email:    

Topic:    

Content:

Related Articles

• Silicon Storage Shares Slump Following 4Q Warning
  22 December 2004