Semiconductor Maker Sees Earnings Shrink

Despite record revenues in the fourth quarter and a $1.7-million tax credit, Silicon Systems Inc.’s annual net income for the fiscal year ended Sept. 27 shrunk to $87,000 from $3 million in the last fiscal year. Annual revenues rose 22% to $66.8 million from $54.6 million last year.

The Tustin semiconductor maker posted a $1.8-million net income for the fourth quarter, nearly six times the $338,000 it earned in last year’s final quarter. The recent quarter’s net earnings included a $1-million tax credit. Quarterly revenues grew 37% to a record $19.7 million from $14.4 million in the fourth quarter last year.

“We are gratified that the company has been able to increase sales in fiscal year 1986 to a profitable level,” said Carmelo J. Santoro, chairman and chief executive. “This has been the second year of a terribly deep and extended recession for the semiconductor industry, and times have been difficult.”

The cyclical nature of the business means that Silicon Systems probably will have lower revenues in the current quarter, compared to the last quarter, he said. But the company will continue its cost control measures, he said.