PSi Technologies Reports First Quarter 2008 Results
Fri May 23, 4:01 PMMANILA, Philippines, May 23 /PRNewswire-FirstCall/ -- PSi Technologies Holdings, Inc., (Nasdaq: PSIT), a leading independent provider of assembly and test services for the power semiconductor market, today announced financial results for the first quarter ended March 31, 2008:
First Quarter Financial Results
The first quarter revenue totaled $21.5 million, a decrease of 8.5% compared to $23.5 million in the fourth quarter of 2007, and a decline of 13.0% as compared to the same quarter in 2007. The decrease in sales over the first quarter of 2008 was primarily due to the downturn in customer orders of power packages for high power, medium current and fast-switching devices. These are commonly used for home appliances, office and industrial equipment, and personal and consumer electronic applications.
The top five customers for the first quarter of 2008 (in alphabetical order) were Infineon Technologies, NXP Semiconductors, ON Semiconductors, Power Integrations, and ST Microelectronics. The products assembled and tested for these customers are used in various end user applications, such as automotive systems, consumer electronics, communications equipment, industrial applications, home appliances and PC motherboards.
The cost of sales decreased to $21.1 million in the first quarter of 2008 from $22.7 million in the fourth quarter of 2007. The decrease was largely driven by lower sales volume, savings through effective manpower alignment, savings in machineries and equipment related expenses, reduction in power consumption and cost per kilowatt and other factory overhead savings.
Gross profit for the first quarter of 2008 decreased to $0.4 million compared to $0.8 million during the fourth quarter of 2007, primarily due to lower sales volume in the latest period.
Operating expenses in the first quarter of 2008 of $2.5 million were lower by 2.3% as compared to the fourth quarter of 2007. This is mainly due to savings in the cost of materials for research and development, marketing-related expenses and employee benefit costs.
Net loss decreased to $3.2 million for the first quarter of 2008 from $3.3 in the fourth quarter of 2007 largely due to lower foreign exchange losses.
Balance Sheet Highlights
Cash and cash equivalents totaled $4.6 million as of March 31, 2008, compared to $5.9 million as of December 31, 2007. The decrease in cash is largely attributable to lower sales during the first quarter of 2008 compared to the fourth quarter of 2007.
The increase in other current assets, from $0.8 million last December 31, 2007 to $1.1 million in the first quarter of 2008 is primarily due to pre-payments related to lease and insurance.
New acquisitions in property, plant and equipment totaled $1.2 million during the first quarter of 2008. These expenditures are mostly related to equipment retooling and refurbishment to improve quality and efficiency.
Total current liabilities increased by $0.8 million, from $33.4 million as of December 31, 2007 to $34.2 million as of March 31, 2008, mainly due to increase in trade and capital liabilities.
Non-current liabilities account includes the carrying amount of $7.1 million Exchangeable Notes issued in July 2003 and June 2005, net of discount representing the embedded conversion feature of the Note.
Business Outlook
Arthur J. Young, Jr., Chairman and CEO said, "The first quarter of 2008 was a very challenging period as inventory adjustments and weaknesses in demand from some of our key customers drove down our overall business. On the positive side, we have started the quarter with a healthier loading plan and continue to see month-to-month improvements. Moreover, we have positive developments in our new power management package portfolio, such as our QFN and Single Gauge DPAK. Our recent successful qualifications for Four Taiwan-based companies indicate that we are on the right track towards customer base diversity and better package mix. Although we are enthusiastic and optimistic with regards to the improving business environment, we remain cautious and focused on improving our customer base and enhancing our margins."
George A. Shaw, Chief Operating Officer said, "For the first quarter of 2008, several customers started the new year with caution that led to lower production volumes. However, during the first quarter, we completed the qualification phase of the Single Gauge DPAK for several new customers and initiated development programs for new customers for custom power packages, with expected production in the third and fourth quarters of 2008. With regards to our existing packages, our continuous improvement activities led to new low-cost versions for our volume runners. We are also continuing our focus on the Quality First initiative, and as a result, both of our factories continue to show improvement in operating metrics. We started the second quarter with much better loading, and we are seeing an improved market situation as compared to the first quarter."
About PSi Technologies
PSi Technologies is a focused independent semiconductor assembly and test service provider to the power semiconductor market. The Company provides comprehensive package design, assembly and test services for power semiconductors used in telecommunications and networking systems, computers and computer peripherals, consumer electronics, electronic office equipment, automotive systems and industrial products. Their customers include most of the major power semiconductor manufacturers in the world such as Infineon Technologies, ON Semiconductor, Philips Semiconductor, and ST Microelectronics. For more information, visit the Company's web site at http://www.psitechnologies.com or call:
At PSi Technologies Holdings, Inc.:
Larry Cajucom
(63 2) 838 4489
lvcajucomjr@psitechnologies.com.ph
At Financial Relations Board:
Lasse Glassen
(213) 486 6546
lglassen@financialrelationsboard.com
This press release contains forward-looking statements that involve risks and uncertainties. Actual results and outcomes may differ materially. Factors that might cause a difference include, but are not limited to, those relating to the pace of development and market acceptance of PSi's products and the power semiconductor market generally, commercialization and technological delays or difficulties, the impact of competitive products and technologies, competitive pricing pressures, manufacturing risks, the possibility of our products infringing patents and other intellectual property of third parties, product defects, costs of product development, manufacturing and government regulation, risks inherent in emerging markets, including but not limited to, currency volatility and depreciation, restricted access to financing and political and social unrest and the possibility that the initiatives described herein may not produce the intended results. PSi undertakes no responsibility to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect PSi's financial results is included in the documents PSi files from time to time with the Securities and Exchange Commission.
-Financial Tables Follow-
PSi Technologies Holdings, Inc.
Unaudited Income Statement
(In US Dollars)
For the Three Months Ended
31-Mar-08 31-Dec-07 31-Mar-07
Unaudited Unaudited Unaudited
REVENUES $21,458,501 $23,460,578 $24,678,665
COST OF SALES 21,104,906 22,674,157 23,365,970
GROSS PROFIT 353,595 786,422 1,312,695
OPERATING EXPENSES
Research and development 330,709 374,991 251,799
Administrative expenses 1,986,388 1,996,723 1,677,232
Marketing expenses 196,380 200,582 229,475
Total Operating Expenses 2,513,477 2,572,296 2,158,506
LOSS FROM CONTINUING OPERATIONS (2,159,882) (1,785,874) (845,811)
Interest and bank charges-net (235,157) (221,217) (252,664)
Foreign exchange
gains(losses)-net (153,964) (665,472) (133,033)
Lease income 41,370 41,370 41,370
Exchangeable Note interest
and financing charges (716,049) (657,283) (616,929)
Gain on disposal of assets 3,900 8,811 -
Miscellaneous 19,258 34,508 12,263
Net Other Expense (1,040,642) (1,459,283) (948,993)
NET LOSS FROM CONTINUING
OPERATIONS (3,200,524) (3,245,157) (1,794,804)
NET LOSS FROM DISCONTINUED
OPERATIONS - 66,000 0
NET LOSS $(3,200,524) $(3,311,157) $(1,794,804)
No. of Shares Outstanding 13,289,525 13,289,525 13,289,525
EPS- based on Outstanding
Shares (0.24) (0.25) (0.14)
PSi Technologies Holdings, Inc.
Unaudited Consolidated Balance Sheet
(In US Dollars)
31-Mar-08 31-Dec-07
Unaudited Unaudited
ASSETS
Current Assets
Cash $4,568,700 $5,861,426
Accounts receivable-net 12,098,019 12,263,943
Inventories-net 5,270,129 4,823,987
Other current assets-net 1,106,145 777,141
Total Current Assets 23,042,993 23,726,497
Noncurrent Assets
Property, plant and equipment-net 24,718,654 26,380,350
Other noncurrent assets-net 1,007,367 970,568
Total Noncurrent Assets 25,726,021 27,350,918
$48,769,014 $51,077,415
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
expenses $23,476,811 $22,407,087
Accounts payable CAPEX 734,979 427,200
Loans Payable 9,980,000 10,020,000
Advance from customer - 466,503
Trust receipts payable - 52,520
Total Current Liabilities 34,191,790 33,373,310
Noncurrent Liabilities
Exchangeable Note 7,126,917 6,843,695
Accrued retirement benefit cost 3,870,446 4,081,877
Total Noncurrent Liabilities 10,997,363 10,925,572
Stockholders' Equity
Capital stock-Philippine peso 1-2/3
par value
Authorized-37,058, shares
Issued and outstanding-13,289,525 shares 590,818 590,818
Additional paid-in capital 79,694,777 79,692,925
Other comprehensive loss (1,807,801) (1,807,801)
Deficit (74,897,933) (71,697,409)
Total Stockholders' Equity 3,579,861 6,778,533
$48,769,014 $51,077,415
PSi Technologies Holdings, Inc.
Unaudited Consolidated Statement of
Cash Flows
(In US Dollars)
For the Three Months
Ended March 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(3,200,524)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation 2,898,325
Stock compensation costs 1,853
Amortization of debt issuance costs
and discount 289,065
Unrealized foreign exchange losses (16,149)
Provision for pension expense 98,427
Loss on disposal of assets 70,362
Changes in operating assets and
liabilities:
Decrease (increase) in:
Trade and other receivables (306,055)
Inventories (510,786)
Other current assets (330,988)
Decrease in trade and other payables 365,058
Net cash provided by (used in)
operating activities (641,412)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property and
equipment (507,369)
Decrease (increase) in other
noncurrent assets (48,661)
Net cash used in investing activities (556,030)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments of) trust
receipts payable (52,520)
Net proceeds from (payments of) loans
payable (40,000)
Net cash provided by financing
activities (92,520)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH (2,764)
NET INCREASE (DECREASE) IN CASH (1,292,726)
CASH, BEGINNING OF PERIOD 5,861,426
CASH, END OF PERIOD $4,568,700
SUPPLEMENTAL INFORMATION ON NONCASH
INVESTING AND FINANCING ACTIVITIES
Property and equipment acquired on
account under accounts payable $734,979
SOURCE PSi Technologies
350.77 (3.70%)
