UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: March 24, 1998
QUALITY SEMICONDUCTOR, INC.
(Exact name of registrant as specified in its charter)
California 2-23128 77-0199189
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
851 Martin Avenue
Santa Clara, CA 95050
(Address of principal executive offices) (including Zip code)
(408) 450-8000
(Registrant's telephone number, including area code)
Exhibit Index on page 3
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Exhibit 99.2 Quality Semiconductor, Inc. Press Release dated
March 19, 1998
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QUALITY SEMICONDUCTOR, INC.
CURRENT REPORT ON FORM 8-K
EXHIBIT INDEX
Exhibit No. Exhibit
99.2 Quality Semiconductor, Inc. Press Release dated March 19, 1998
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Exhibit 99.2
For more information contact:
Rick Bottomley
Acting Chief Financial Officer
Quality Semiconductor, Inc.
(408) 450-8000
Morgen-Walke Associates, Inc.
Doug Sherk, Carolyn Bass, Jim Byers
(415) 296-7383
Josh Passman, Vince Daniels
(212) 850-5600
FOR IMMEDIATE RELEASE
QUALITY SEMICONDUCTOR, INC. PROVIDES SECOND QUARTER OUTLOOK
SANTA CLARA, CA -- (March 19, 1998) -- Quality Semiconductor, Inc., today
announced that, based on current expectations, it estimates revenue for the
second quarter ending March 29, 1998 to be down approximately 10 percent to 15
percent from its first quarter's revenue of $18.5 million. Despite the
sequential quarterly decline in revenues, however, the Company anticipates that
year-over-year revenue growth will exceed 20 percent.
The Company believes that the revenue shortfall is due to a weaker demand for
the Company's networking products and is primarily attributable to a
traditionally slow quarter for networking systems' suppliers, intense
competition, and a slowing of demand in the Far East, particularly in Korea and
Japan.
As a result of the lower than anticipated revenue, the Company currently expects
to report a pre-tax loss of approximately $1.3 million to $1.6 million for the
second fiscal quarter.
These statements about estimated results are preliminary and based on currently
available information as well as management's assumptions. The Company will
announce its results for the second quarter on April 22, 1998, after the close
of the market.
R. Paul Gupta, President and Chief Executive Officer, stated, "We are
disappointed with our anticipated performance in the second quarter. On the
positive side, we have strengthened our product development efforts, especially
in networking, with the addition of several key people. For example, Dr. David
Sear, our new Executive Vice President and Chief Operating Officer, recently
joined us in January 1998 with over 10 years of networking experience. Dr. Sear
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has made significant progress in providing us with a long-term strategic vision
by preparing an 18-month road map for our networking products, which we have
already begun to execute. In addition, we expect that market acceptance of our
new clock management products will enable the Company to increase revenue in
this product area." Mr. Gupta continued, "Even though our results of late have
been disappointing, we believe that we are taking the necessary steps to develop
new products that will enable Quality Semiconductor to provide revenue growth
and profitability in the future."
Various matters set forth in this press release, such as statements relating to
(i) the Company's anticipated second fiscal quarter financial results; (ii) the
Company's continued acceptance of its networking product line; and (iii) the
Company's ability to provide revenue growth and profitability in the future are
forward-looking statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those in
such forward-looking statements. These risks and uncertainties include, without
limitation, competitive pressures, including pricing and competitors' new
products, the Company's ability to timely introduce new products, trends in the
semiconductor industry, and the Company's ability to obtain design wins.
Additional factors that may affect the Company's business are described in
detail in the Company's filings with the Securities and Exchange Commission.
Quality Semiconductor, Inc. designs, develops and markets high-performance logic
and networking semiconductor products. The company targets systems manufacturers
principally in the networking, personal computer and workstation markets. The
company's logic products include the 3.3-volt and 5-volt QSFCT families of
high-speed, low-noise interface logic devices, the QuickSwitch family of
high-speed, low-resistance bus switches, a family of low-skew clock management
products, a family of analog switch devices, and new JTAG products designed to
allow board-level testing of complex products. QSI's networking products include
two Fast Ethernet CMOS transceivers that provide high integration solutions for
the adapter, repeater, switch and card bus markets.
For more information contact:
Investor Relations
Quality Semiconductor, Inc.
(408) 450-8000
Morgen-Walke Associates, Inc.
Doug Sherk, Suzanne Craig, Chris Del Carlo
(415) 296-7383
Vince Daniels, Josh Passman
(212) 850-5600
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SIGNATURES
Pursuant to requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
QUALITY SEMICONDUCTOR, INC.
Date: March 24, 1998 By: /s/ Richard A. Bottomley
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Richard A. Bottomley
Acting Chief Financial Officer
