Integrated Silicon Solution, Inc. (ticker: ISSI, exchange: NASDAQ Global Market (.O))
News Release -
ISSI Announces Completion of Spin-off of Giantec Semiconductor
SAN JOSE, Calif., Jan. 4, 2011 /PRNewswire via COMTEX/ --
Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today announced that it has completed the spin-off of its subsidiary, Giantec Semiconductor, Inc., which focuses on the ASSP business that includes EEPROM and SmartCard products. As part of the spin-off process, Giantec received an additional direct investment of $3.75 million from Shanghai Pudong Science and Technology Co., Ltd and $250,000 from Super Solution Limited, resulting in ISSI's ownership percentage now being less than 50 percent. As such, the revenue and operating results of Giantec will only be included in ISSI's consolidated financial statements through December 30, 2010, the date the new investment transaction closed. Thereafter, ISSI's operating results will reflect its proportional share of Giantec's net income or loss, and ISSI's balance sheet will not include any of Giantec's assets or liabilities. Giantec recorded $6.0 million of revenue in the quarter ended September 30, 2010.
"We are pleased that Giantec has received new investment from Shanghai Pudong Science and Technology and Super Solution Limited. Their investment provides Giantec with additional capital for growth, and we believe further enhances Giantec's position in the Chinese market as a stand-alone company," said Scott Howarth, ISSI's President and CEO. "This transaction also enables ISSI to focus our efforts and resources on further growing our business and penetrating our target markets."
About the Company
ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications, (iv) automotive electronics, and (v) industrial. ISSI is headquartered in Silicon Valley with worldwide offices in Taiwan, Japan, Singapore, China, Europe, Hong Kong, India, and Korea. Visit our web site at http://www.issi.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning Giantec's growth and position in the Chinese market as a stand-alone company and focusing our efforts on further growing our business and penetrating our target markets are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include supply and demand conditions in the market place resulting from unexpected fluctuations in the market, liquidity and credit concerns or other factors, unexpected reductions in average selling prices for our products, our ability to sell our products for key applications and the pricing and gross margins achieved on such sales, our ability to control or reduce operating expenses, changes in manufacturing yields, order cancellations, order rescheduling, product warranty claims, competition, our ability to obtain a sufficient supply of wafers at acceptable prices, the level and value of inventory held by OEM customers, or other risks listed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended September 30, 2010. The Company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
SOURCE Integrated Silicon Solution, Inc.