SUNNYVALE, Calif., March 30, 2005 -- SST (Silicon Storage Technology, Inc., NASDAQ: SSTI) announced today that its revenue in the first quarter is expected to be between $84 and $88 million versus previous guidance of $95 to $105 million. Gross margin for the first quarter is expected to be in the range of 15 and 17 percent, versus previous guidance of between 17 and 21 percent. Loss per share is expected to be between $0.11 and $0.15, versus previous guidance of a loss per share between $0.09 and $0.13. The shortfall in revenue is primarily due to lower than expected demand and decreasing average selling prices caused by industry-wide oversupply and the continued heavy competition among all flash suppliers.
SST will announce its first quarter 2005 financial results on Thursday, Apr. 21, 2005. A press release will be transmitted to the news media immediately following the close of the market on April 21st. The company will also hold a conference call to discuss the results at 1:30 p.m. PDT. Those wishing to participate in the conference should dial (800) 230-1951 using the password “SST” at approximately 1:20 p.m. PDT. A replay of the call will be available for two weeks by dialing (800) 475-6701 using the access code 776493. A webcast 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 SuperFlash Technology
SST's SuperFlash technology is a NOR type, split-gate cell architecture which uses a reliable thick-oxide process with fewer manufacturing steps resulting in a low-cost, nonvolatile memory solution with excellent data retention and higher reliability. The split-gate NOR SuperFlash architecture facilitates a simple and flexible design suitable for high performance, high reliability, small or medium sector size, in- or off-system programming and a variety of densities, all in a single CMOS-compatible technology.
About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of nonvolatile memory solutions, based on proprietary, patented SuperFlash technology, for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. SST's product families include various densities of high functionality flash memory components, flash mass storage products and flash microcontrollers. SST also offers its SuperFlash technology for embedded applications through its world-class manufacturing partners and technology licensees including 1st Silicon (Malaysia) Sdn. Bhd., Grace Semiconductor Manufacturing Corporation (Grace), IBM, Motorola, Inc., Nanotech Corporation, National Semiconductor Corporation, NEC Corporation, Oki Electric Industry Co. Ltd., Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp., Shanghai Hua Hong NEC Electronics Co., Ltd., Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), Toshiba Corporation, Vanguard International Semiconductor Corporation and Winbond Electronics Corp. TSMC offers embedded SuperFlash under its trademark Emb-FLASH. Further information on SST can be found on the company's Web site at http://www.sst.com.
Except for the historical information contained herein, this news release contains forward-looking statements regarding flash memory market conditions, the company’s future financial performance, the performance of new products and the company’s ability to bring new products to market that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms and conditions associated with licensees’ royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect the company’s customers, as well as other risks detailed from time to time in the company’s SEC reports, including the Annual Report on Form 10-K for the year ended December 31, 2003 and on Form 10-Q for the quarter ended March 31, June 30 and September 30, 2004.
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 email@example.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.
The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. Emb-FLASH is a trademark of TSMC. All other trademarks or registered trademarks are the property of their respective holders.