Integrated Circuit Systems, Inc. Announces Fiscal 2005 Third Quarter Results

Business Wire, April 28, 2005

NORRISTOWN, Pa. -- Integrated Circuit Systems, Inc. (NASDAQ:ICST) today announced financial results for the third quarter of fiscal 2005, ending on April 2, 2005.

($ millions, except EPS)       Q3FY    Q3FY     Y-Y     Q2FY     Q-Q
                               2005    2004    Growth   2005   Growth
                              ------- ------- -------- ------- -------
Revenue                        $58.1   $67.8    -14.3%  $60.6   - 4.1%
Gross Margin                   $34.3   $41.0    -16.3%  $35.4   - 3.1%
Operating Income               $13.7   $21.5    -36.3%  $15.3   -10.5%
Net Income                     $13.0   $18.5    -29.7%  $14.0   - 7.1%
Diluted EPS                    $0.18   $0.26    -30.8%  $0.20   -10.0%



Revenues                Q3FY2005  Q3FY2004            Q2FY2005
                          % of      % of      Y-Y      % of      Q-Q
                         Revenue   Revenue   Growth   Revenue   Growth
                        --------- --------- -------- --------- -------
PC                         46%       42%      - 5%      48%      -8%
Digital Consumer           17%       13%        5%      16%      -1%
Communications             32%       37%      -25%      30%       4%
Military                    5%        8%      -46%       6%     -22%

Revenues for the quarter were $58.1 million, down 4% from the previous quarter due to seasonal decline in the PC markets. Even though revenues were down for the quarter, gross margin expanded to 59.0% of revenue from 58.3% last quarter.

Operating expenses grew mostly from continued investment in research and development during the quarter. Net income was $13.0 million or $0.18 per share.

The company ended the quarter with a cash and investment balance of $207 million, up $9 million from the quarter before. In addition, during the quarter, the days sales improved as the Accounts Receivable declined. Inventory balances declined $2.4 million as inventory turns increased to 4.4 times. The company repurchased 390,500 treasury shares for $7.4 million.

Hock Tan, President and CEO, stated, "The seasonal bottom in PCs and Digital Consumer occurred during the March quarter despite a modest recovery in our Communications business. We have seen encouraging uptrends in all our end markets as we move into our final fiscal quarter ending June."

Third Quarter Fiscal 2005 Conference Call

ICS will host a conference call to discuss the earnings results for the third quarter of fiscal year 2005 at 9:30 AM eastern time April 28, 2005. The company will also discuss its strategic direction and market conditions. Interested parties are invited to listen to the conference call by dialing (877) 405-3430, or (706) 634-6397 for international callers; the conference ID is 4355831. The call will also be broadcast via the internet and can be accessed from ICS' corporate website at www.icst.com.

About ICS

Integrated Circuit Systems, Inc. is a leader in the design, development and marketing of silicon timing devices for communications, networking, computing and digital multimedia applications. The Company is headquartered in Norristown, PA, with key facilities in San Jose, CA; Tempe, AZ; Worcester, MA and Singapore.

Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties related to competitive factors, technological developments and market demand. Further information on these and other potential factors that could affect the Company's financial results can be found in the Company's Form 10-K filed on September 16, 2004.