Integrated Silicon Solution Inc. F3Q09 (Qtr End 07/28/09) Earnings Call Transcript

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2009-07-28 18:24:25.0

Tags: China, Growth, Call Transcript, Earnings, Integrated Silicon Solution Inc., 3G, Consumer Electronics, Cellular Phones, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Edwin Mok - Needham & Company.

Edwin Mok - Needham & Company

Thanks for taking my question. The first one is regarding end markets. You mentioned that China is strong but there are some chatters that they might be slowing down in terms ordering and sales. I was wondering if you can comment on that and also since you are guiding full growth, in the coming quarter what are the end markets describing the growth?

Scott Howarth

Good question. I think if we look backward, they were two specific areas that we definitely saw our growth driven by China, the 3G build out, I think, has been quite strong for most of the major telecommunication carriers and also with their stimulus plan we have seen a lot of growth in consumer electronics areas.

Now, the consumer electronics growth, we see that continuing and some of the particular strength there as we see LCD TVs, net book area and some of the cell phone markets still are doing quite well and we are participating in some of those markets.

The information we have got from customers is the 3G build out has slowed down this quarter and had expected to resume somewhere in next quarter but I do not have any specific timeframe yet but we have seen that slowing down a little bit.

In the growth, I mean across the markets, we are starting to see pickup even automotive which I think probably hit the lowest point of all of our end markets. We are starting to see some pickup there. As you know, in the US, many of the major manufacturers, GM as well as Chrysler had extended shutdowns. Now that their shutdowns are over, we are starting to see new ordering through some of the different suppliers that we ship to.

The automotive market in China continues to do well so we are supporting through some of our customers a variety of different applications in automotive. Networking is another that seems to be still doing quite well as well as telecommunications. So that is where we are seeing the growth. I would say industrial probably is the weaker of the end markets right now.

Edwin Mok - Needham & Company

Great. Thanks. That was very helpful overview. And then a question on just a housekeeping question, right. So, your interest and other income actually came in slightly negative or given your cash you have on your balance sheet, I would expect you have some interest income? Can you explain why?

 

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