SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: FEBRUARY 28, 2008
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PSi TECHNOLOGIES HOLDINGS, INC.
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By:
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/s/ Arthur J. Young, Jr.
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Arthur J. Young, Jr.
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President and Chief Executive Officer
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PSi Technologies Holdings, Inc.
Fourth Quarter 2007 Results
PSi TECHNOLOGIES REPORTS FOURTH QUARTER 2007 RESULTS
Manila, Philippines February 28, 2008 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 fourth quarter ended December 31, 2007:
Fourth Quarter
Financial Results
The fourth quarter revenue totaled $23.5 million, an increase of 4.3% as compared to $22.5 million in the previous quarter, and a
decline of 5.6% as compared to the same quarter in 2006. The increase in sales over third quarter was largely driven by a steady increase in our standard package for high power, medium current and fast-switching power devices.
The top five customers for the fourth quarter of 2007 (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 increased from $21.3 million in the third quarter of 2007 to $ 22.7 million in the fourth quarter. The increase is
attributable to raw materials and the strong Philippine Peso. The higher cost of raw materials in the fourth quarter was largely driven by the increase in copper, gold and oil-based materials, and an increase in sales volume of packages with a
higher raw materials component. As a result, gross profit was $0.8 million in the fourth quarter, down from $1.2 million during the third quarter.
Operating expenses were higher by 8.8% in the fourth quarter of 2007, amounting to $2.6 million compared to $2.4 million in the previous quarter. Fourth quarter operating expenses included $0.2 million of employee separation/restructuring
costs and a $0.3 million provision for disputed purchase orders. Net Other Expenses for the fourth quarter increased to $1.5 million from $0.9 million during the third quarter, due to the continued appreciation of the Philippine peso.
Net loss increased to $3.3 million for the fourth quarter from $2.1 million in the third quarter.
2007 Full Year Financial Results
Revenues were $93.3 million in 2007, representing an increase of 4.0% over revenues
of $89.7 million excluding revenue from discontinued operations for the same period last year.
In 2007, the continued appreciation of the Philippine
currency against the U.S. dollar and an overall increase in the prices of raw materials, such as copper, gold and oil based materials had negatively affected our gross profit. The Philippine peso, on the average, has appreciated by 18.8%. Copper
prices have increased by an average of 33%, from $5.3/kg in 2006 to $7.05/kg in 2007. These
PSi Technologies Holdings, Inc.
Fourth Quarter 2007 Results
external factors weighed on the Companys financial operations during 2007. The cost reduction initiatives and productivity improvement programs
implemented during the year has partly reduced the negative financial impact of these external factors.
In 2007, gross profit increased to $4.1 million, a
10.8% increase over gross profit of $3.7 million in 2006. The operating expenses decreased to $9.3 million in 2007 from $10.6 million in 2006 due to managements focus on efficiency and on driving cost reductions. The foreign exchange loss partly
offset the efficiency gains, resulting in an improved net loss of $9.97 million in 2007, down from $11.6 million in 2006.
Balance Sheet Highlights
Cash and cash equivalents totaled $5.9 million as of December 31, 2007, compared to $3.3 million as of December 31, 2006. The increase in cash is
largely attributable to improved collections and reduced inventories.
New acquisitions in property, plant and equipment totaled $3.3 million in 2007.
These expenditures are mostly related to the purchase of machineries and equipment to improve capacity and support ramp up for new products.
Total current
liabilities decreased by $4.4 million, from $37.8 million as of December 31, 2006 to $33.4 million as of December 31, 2007, mainly due to payment of trade and capital liabilities.
Non-current liabilities account includes the carrying amount of $6.8 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, During the fourth quarter, we were faced with the challenges related to product mix changes and the continuing appreciation of the Philippine Peso. Given these challenges, we continue to
enhance our focus on productivity and cost reduction measures, in anticipation of a seasonally flat market during the first quarter. We have seen and identified areas of growth in our company that we are actively pursuing. Specifically, these are in
the power management segment of our QFN and Single Gauge DPAK family of packages. We have done strategic hiring, such as our new VP of Marketing and Sales based in the United States, as well as our new Taiwan marketing organization to support the
new areas of growth. Our initiatives have shown very positive developments though we continue to be cautiously optimistic given the current worldwide market situation.
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 Companys web site at
www.psitechnologies.com
or call:
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At PSi Technologies Holdings, Inc.:
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At Financial Relations Board:
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Larry Cajucom
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Lasse Glassen
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(63 2) 838 4489
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(213) 486 6546
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lvcajucomjr@psitechnologies.com.ph
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lglassen@frbir.com
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PSi Technologies Holdings, Inc.
Fourth Quarter 2007 Results
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 PSis 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 PSis 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.
Fourth Quarter 2007 Results
PSi Technologies Holdings, Inc.
Unaudited Income Statement
(In US Dollars)
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For the Three Months Ended
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Years Ended December 31
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31-Dec-07
Unaudited
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30-Sep-07
Unaudited
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31-Dec-06
Unaudited
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31-Dec-07
Unaudited
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31-Dec-06
Audited
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REVENUES
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$
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23,460,578
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$
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22,502,430
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$
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24,859,222
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$
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93,317,313
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$
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89,736,608
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COST OF SALES
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22,674,157
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21,335,464
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23,274,897
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89,230,232
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86,048,216
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GROSS PROFIT (LOSS)
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786,422
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1,166,966
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1,584,325
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4,087,081
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3,688,392
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OPERATING EXPENSES
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Research and development
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374,991
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308,405
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303,891
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1,209,451
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1,150,922
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Stock compensation cost
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44,943
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44,943
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26,227
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148,339
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159,013
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Administrative expenses
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1,951,780
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1,787,967
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1,629,519
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7,044,262
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6,780,572
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Special charges
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4,394
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1,884,289
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Marketing expenses
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200,582
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223,628
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165,444
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878,723
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669,424
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Total Operating Expenses
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2,572,295
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2,364,943
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2,125,081
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9,285,169
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10,644,220
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LOSS FROM CONTINUING OPERATIONS
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(1,785,874
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)
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(1,197,977
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(540,756
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)
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(5,198,088
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)
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(6,955,828
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)
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Interest and bank charges-net
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(221,217
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(262,954
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)
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(258,093
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(1,073,497
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(1,021,763
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Foreign exchange gains(losses)-net
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(665,472
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(123,317
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(235,797
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)
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(1,394,569
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)
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(530,334
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Lease income
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41,370
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41,370
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28,920
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165,480
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134,650
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Exchangeable Note interest and financing charges
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(657,283
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)
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(638,130
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)
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(634,615
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(2,525,321
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(2,336,003
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Gain (loss) on disposal of property and equipment
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8,811
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38,478
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(7,066
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)
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Income on refund from Manila Electric Company (Meralco)
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91,188
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Miscellaneous
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34,508
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57,355
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(321,852
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)
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110,445
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Net Other Expense
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(1,459,283
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(925,676
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(1,421,437
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)
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(4,678,984
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)
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(3,669,328
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LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX
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(3,245,157
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)
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(2,123,653
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(1,962,193
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)
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(9,877,072
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)
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(10,625,156
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)
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PROVISION FOR INCOME TAX
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16,969
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191,033
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NET LOSS FROM CONTINUING OPERATIONS
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(3,245,157
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)
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(2,123,653
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)
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(1,979,162
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)
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(9,877,072
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)
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(10,816,189
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)
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NET LOSS FROM DISCONTINUED OPERATIONS
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66,000
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23,904
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42,442
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|
89,904
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|
|
|
784,861
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NET LOSS
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$
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(3,311,157
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)
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$
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(2,147,557
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)
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$
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(2,021,604
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)
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$
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(9,966,976
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)
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$
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(11,601,050
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)
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No. of Shares Outstanding
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13,289,525
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13,289,525
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13,289,525
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|
|
13,289,525
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13,289,525
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EPS- based on Outstanding Shares
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(0.25
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)
|
|
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(0.16
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)
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|
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(0.15
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)
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(0.75
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)
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(0.87
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)
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PSi Technologies Holdings, Inc.
Fourth Quarter 2007 Results
PSi Technologies Holdings, Inc.
Unaudited Consolidated Balance Sheet
(In US Dollars)
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31-Dec-07
Unaudited
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31-Dec-06
Audited
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ASSETS
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Current Assets
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Cash
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$
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5,861,426
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$
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3,270,042
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Restricted Cash
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102,969
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Accounts receivable-net
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12,263,943
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|
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14,643,596
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Inventories-net
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|
4,823,987
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|
|
|
5,901,366
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Other current assets-net
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777,141
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|
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482,629
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|
|
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Total Current Assets
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|
23,726,497
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|
|
24,400,602
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Noncurrent Assets
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Property, plant and equipment-net
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26,380,350
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36,099,471
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Other noncurrent assets-net
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|
970,568
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|
|
|
1,277,391
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|
|
|
|
|
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Total Noncurrent Assets
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|
27,350,918
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|
|
|
37,376,862
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|
|
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|
|
|
|
|
$
|
51,077,415
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|
|
$
|
61,777,464
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|
|
|
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LIABILITIES AND STOCKHOLDERS EQUITY
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|
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Current Liabilities
|
|
|
|
|
|
|
|
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Accounts payable and accrued expenses
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|
$
|
22,407,087
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|
|
$
|
24,604,664
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Accounts payable CAPEX
|
|
|
427,200
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|
|
|
2,509,204
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Loans Payable
|
|
|
10,020,000
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|
|
|
10,524,743
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Advance from customer
|
|
|
466,503
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|
|
|
|
|
Trust receipts payable
|
|
|
52,520
|
|
|
|
39,998
|
|
Income tax payable
|
|
|
|
|
|
|
114,773
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
33,373,310
|
|
|
|
37,793,382
|
|
|
|
|
|
|
|
|
|
|
Noncurrent Liabilities
|
|
|
|
|
|
|
|
|
Exchangeable Note
|
|
|
6,843,695
|
|
|
|
4,541,506
|
|
Accrued retirement benefit cost
|
|
|
4,081,877
|
|
|
|
3,092,841
|
|
|
|
|
|
|
|
|
|
|
Total Noncurrent Liabilities
|
|
|
10,925,572
|
|
|
|
7,634,347
|
|
|
|
|
|
|
|
|
|
|
Stockholders Equity
|
|
|
|
|
|
|
|
|
Capital stock-Philippine peso 1-2/3 par value Authorized-37,058,100 shares Issued and outstanding-13,289,525 shares
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|
|
590,818
|
|
|
|
590,818
|
|
Additional paid-in capital
|
|
|
79,692,925
|
|
|
|
79,544,586
|
|
Other comprehensive loss
|
|
|
(1,807,801
|
)
|
|
|
(2,055,236
|
)
|
Deficit
|
|
|
(71,697,409
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)
|
|
|
(61,730,433
|
)
|
|
|
|
|
|
|
|
|
|
Total Stockholders Equity
|
|
|
6,778,533
|
|
|
|
16,349,735
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
51,077,415
|
|
|
$
|
61,777,464
|
|
|
|
|
|
|
|
|
|
|
PSi Technologies Holdings, Inc.
Fourth Quarter 2007 Results
PSi Technologies Holdings, Inc
Unaudited Consolidated Statement of Cash Flows
(In US Dollars)
|
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|
|
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|
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For the Year Ended
December 31, 2007
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net loss
|
|
$
|
(9,966,976
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)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
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|
|
|
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Depreciation
|
|
|
12,991,099
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Interest on exchangeable notes converted to principal
|
|
|
1,331,689
|
|
Stock compensation costs
|
|
|
148,339
|
|
Amortization of debt issuance costs and discount
|
|
|
990,338
|
|
Accretion of interest receivable from sale of land, building and improvements
|
|
|
(30,281
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)
|
Accretion of interest receivable from Manila Electric Company
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|
|
(32,594
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)
|
Unrealized foreign exchange losses
|
|
|
955,930
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|
Provision for pension expense
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|
|
605,974
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Provision for inventory losses
|
|
|
4,395
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|
Provision for doubtful accounts
|
|
|
10,843
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|
Changes in operating assets and liabilities:
|
|
|
|
|
Decrease (increase) in:
|
|
|
|
|
Trade and other receivables
|
|
|
1,479,164
|
|
Inventories
|
|
|
1,041,310
|
|
Other current assets
|
|
|
(244,776
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)
|
Decrease in trade and other payables
|
|
|
(5,297,362
|
)
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
3,987,092
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Acquisitions of property and equipment
|
|
|
(2,872,803
|
)
|
Decrease (increase) in other noncurrent assets
|
|
|
350,584
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(2,522,219
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Net proceeds from (payments of) trust receipts payable
|
|
|
12,522
|
|
Net proceeds from (payments of) loans payable
|
|
|
(504,743
|
)
|
Advance from customer
|
|
|
1,500,000
|
|
Decrease in restricted cash
|
|
|
102,969
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
1,110,748
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
|
15,763
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH
|
|
|
2,591,384
|
|
CASH, BEGINNING OF PERIOD
|
|
|
3,270,042
|
|
|
|
|
|
|
CASH, END OF PERIOD
|
|
$
|
5,861,426
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION ON NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
Property and equipment acquired on account under accounts payable
|
|
$
|
427,200
|
|