SUNNYVALE,
Calif., Oct. 23, 2007 -- SST (Silicon Storage Technology, Inc.) (NASDAQ:
SSTI), a
leader in flash memory technology, today announced revenue results for the
third
quarter ended Sept. 30, 2007.
Net
revenues for the third quarter of 2007 were $107.5 million, compared with
$99.3
million in the second quarter of 2007 and $116.0 million in the third quarter
of
2006. Product revenues for the third quarter of 2007 were $97.8
million, compared with $90.3 million in the second quarter of 2007 and
with
$107.5 million in the third quarter of 2006. Revenues from technology
licensing for the third quarter of 2007 were $9.7 million compared with
$9.0
million in the second quarter of 2007 and with $8.5 million in the third
quarter
of 2006.
SST
finished the third quarter 2007 with $160.2 million in cash, cash equivalents
and short-term investments, a decrease of $7.0 million from the prior
quarter.
At
this
time, the chairman of the audit committee of SST’s Board of Directors has
substantially completed a review of the company’s historical stock option
practices and related accounting matters with the assistance of independent
legal counsel and outside accounting experts. As this review continues,
SST does
not expect to be in a position to announce additional financial results
for the
third quarter ended Sept. 30, 2007 until the company has completed the
previously announced restatement of its historical financial statements.
SST
currently expects to file all of its delinquent periodic reports with the
Securities and Exchange Commission by the end of 2007. However,
various things could occur that could cause the company to miss that
expectation. Please see the company’s current reports on Form
8-K filed with the Securities and Exchange Commission on March 15, 2007
and July
24, 2007 for further information about the review.
Management
Qualitative Comments
“Over
the
past two years, our technology introduction and product development activities
have been in full swing,” said Bing Yeh, president and CEO. “This work has
resulted in our introduction of the FlashMate technology and several innovative,
higher ASP non-commodity products, such as NANDrive, All-in-OneMemory and
MelodyWing wireless audio products. I am very proud of the results
achieved by our engineering and operations teams. The design-in cycle for
these
products with major accounts will be at least 12 months, therefore we expect
to
see their impact to our revenue in mid-2008. We believe that this
progress, coupled with positive market conditions and an expansion
of low-density NOR flash applications, will create numerous growth
opportunities for us in the years ahead.”
Fourth
Quarter 2007 Preliminary Revenue Outlook
In
the
fourth quarter, SST expects to report revenues of between $100 million
and $108
million, assuming that continuing levels of stability occur in the U.S. and
international economies.
Conference
Call Dial-in Information
SST
will
hold a conference call to discuss its financial results today at 1:30 p.m.
PST. Those wishing to participate in the conference should dial (800)
230-1059, international participants please dial (612) 332-0530, using the
password “SST” at approximately 1:20 p.m. PT. A replay of the call will be
available for one week by dialing (800) 475-6701, international participants
dial (320) 365-3844, using the access code 891555. A webcast replay of the
conference call will be available until the next earnings conference call
on the
company’s web site at http://www.sst.com/events.
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, flash microcontroller and radio
frequency ICs and modules. Further information on SST can be found on the
company's Web site at http://www.sst.com.
Forward-Looking
Statements
Except
for the historical information contained herein, this news release contains
forward-looking statements regarding the effect of the restatement on SST’s
historical financial statements and the timing of the filing of restated
and
delinquent financial statements. Important factors that could cause
actual results to differ materially include: the conclusions of SST’s management
and the conclusions of the independent registered public accounting firm
based
on the results of its reviews; the time needed by SST’s independent registered
public accounting firm to complete its audit, review and other procedures
relating to the financial statements and delayed SEC reports and whether
that
firm will agree with the presentation of financial statements prepared by
SST;
additional expenses that may be recorded; the amount of the tax benefit and
recording of the tax effect, This news release also contains
forward-looking statements regarding memory and non-memory market conditions,
SST’s future financial performance, the launch, design cycle and performance
of
new products, SST’s licensing business, SST’s ability to diversify its business,
the transition of SST’s products to smaller geometrics, and SST’s ability to
bring new products to market, all of which involve risks and
uncertainties. These risks may include timely development, acceptance
and pricing of new products, the terms, conditions and revenue recognition
issues associated with licensees’ royalty payments, the impact of competitive
products and pricing, and general economic conditions as they affect SST’s
customers, as well as other risks detailed from time to time in the
SST’s SEC reports, including the Annual Report on Form 10-K for the year
ended December 31, 2005
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 1171 Sonora
Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax:
408/735-9036.