SST: Fiscal 4Q09 Financial Results

in US$ millions)	4Q08	4Q09	FY08	FY09
Revenues	58.4	72.9	315.5	252.3
Growth		25%		-20%
Net income (loss)	(36.6)	2.4	(39.8)	(10.2)

Silicon Storage Technology, Inc. announced results for the fourth quarter and fiscal year 2009.

Net revenues for the fourth quarter of 2009 were $72.9 million compared with $71.3 million in the third quarter of 2009 and compared with $58.4 million in the fourth quarter of 2008. Product revenues for the fourth quarter of 2009 were $60.3 million, compared with $61.8 million in the third quarter of 2009 and with $46.3 million in the fourth quarter of 2008. Revenues from technology licensing for the fourth quarter of 2009 were $12.5 million, compared with $9.5 million in the third quarter of 2009 and with $12.1 million in the fourth quarter of 2008.

Income from operations for the fourth quarter of 2009 was $3.0 million, which compares with income from operations of $1.5 million in the third quarter of 2009 and with a loss from operations of $10.8 million in the fourth quarter of 2008.

Net income for the fourth quarter of 2009 was $2.4 million, or $0.02 per share, based on approximately 95.9 million diluted shares. By comparison, the company recorded net income of $3.1 million, or $0.03 per share based on approximately 95.9 million shares in the third quarter of 2009. For the fourth quarter of 2008, SST reported a net loss of $36.6 million, or $0.38 per share based on approximately 95.5 million diluted shares.

SST finished the fourth quarter of 2009 with $142.5 million in cash, cash equivalents, short-term investments, and long-term marketable debt securities, down approximately $1.3 million from $143.8 million at Sept. 30, 2009.

Fiscal 2009 Financial Results
Net revenues for the year ended Dec. 31, 2009 were $252.3 million compared with $315.5 million for the year ended Dec. 31, 2008. Total gross margin for 2009 was 29.8 percent compared with 30.8 percent in 2008. Product gross margins for 2009 were 16.7 percent compared with 18.2 percent in 2008. Operating expenses for the year ended Dec. 31, 2009 were $84.5 million compared with $114.4 million in 2008. Net loss for the year ended Dec. 31, 2009 was $10.2 million, or a loss of $0.11 per share based on 95.8 million diluted shares outstanding. This compares with a net loss of $39.8 million, or a loss of $0.40 per diluted share based on 100.0 million diluted shares outstanding for the year ended Dec. 31, 2008.