SAN JOSE, Calif. Memory-chip maker Integrated Silicon Solution Inc. on Tuesday (Jan. 25) announced that it will reduce its U.S. workforce by some 30 percent by March 31.
ISSI (Santa Clara, Calif.) said it rely more on its Taiwan and China workforce. Separately, the company has reached an agreement to acquire Integrated Circuit Solution Inc. (ICSI) in Taiwan. Currently, ISSI owns 29 percent of ICSI and ISSI's CEO serves on the ICSI board of directors. Under the agreement, ISSI will acquire ICSI for approximately $69 million in cash.
ISSI reported its financial results for the first fiscal quarter ended December 31, 2004. Revenues in the first quarter of fiscal 2005 were $30.6 million, compared with $40.3 million in the first quarter of the prior year and $31.1 million in the quarter ended September 30, 2004.
The company reported a net loss for the first fiscal quarter of 2005 of $13.3 million, or minus $0.37 per diluted share. These results compare with a net profit for the December 2003 quarter of $0.9 million or $0.03 per share on a diluted share basis, and a net loss of $15.6 million, or minus $0.43 per share, on a diluted share basis in the September 2004 quarter.
"Although unit volumes matched our expectations, we experienced pricing pressure throughout the quarter. We believe the market has now begun to stabilize," said Jimmy Lee, ISSI's chairman and CEO, in a statement.