SST revenues for 4Q08 were $58.4 million compared with $92.4 million in 3Q

Silicon Storage Technology reported net revenue of $58.4 million in fourth quarter 2008, a 36.7% decline compared with $92.4 million in the third quarter of 2008 and a decline of 49% comapared to a revenue of $107.4 million in the fourth quarter of 2007. Product revenues for the fourth quarter of 2008 were $46.3 million, compared with $79.8 million in the third quarter of 2008 and with $95.6 million in the fourth quarter of 2007. Revenues from technology licensing for the fourth quarter were $12.1 million, compared to $12.6 million in the third quarter of 2008. Technology licensing revenues in the fourth quarter of 2007 were $11.7 million.

Loss from operations for the fourth quarter was $9.9 million compared with income from operations of $4.1 million in the third quarter of 2008 and a loss from operations of $18.6 million in the fourth quarter of 2007.

"The unprecedented sudden drop in demand of semiconductor products during the fourth quarter resulting from the deepening global financial crisis has caused significant decline in our revenues," said Bing Yeh, president and CEO. "This persistent difficult economic environment necessitated that we accelerate our planned changes to our business and focus in late 2008. We took important steps to reduce our inventory, streamline our organizational structure and cut our expenses by focusing our efforts on our most strategic initiatives with the goal of returning the company to profitability. With these organizational changes, we believe that we can control our expenses while continuing to execute our product and technology roadmap and position SST for growth as the economy recovers."