Silicon Storage’s 10-K will be late as it increases investment impairment
Silicon Storage Technology, the Sunnyvale supplier of NOR flash memory semiconductor devices used in digital devices, said it’s not able to file its annual financial 10-K filing because it’s in the process of increasing the impairment charge it will be taking related to its investment in Grace Semiconductor Manufacturing, a privately held Cayman Islands company.
The company reported Feb. 4 that it would be taking a $5.6 million impairment charge, but since then “additional information” was obtained by the company that will “increas the amount of the impairment charge, making the timely filing of the 10-K impossible. It estimates that it will file the delinquent report by April 15.
The news probably did not please one of the company’s shareholders, Lloyd Miller, who reported owning a 5.9 percent stake in SST in a 13D filing in which he explained that he had acquired 5.6 million, or 5.9 percent, of SST’s shares, paying an average of $2.90 1.08 per share.
His investment has already yielded an impressive paper profit of 70 percent, Based on SST’s closing price Wednesday of $1.84., Miller is sitting on a loss of nearly $6 million.
In his November filing, Miller said he that “believes that it would be in his best interest, and those of other stockholders, to attempt to influence (SST’s) governance and business strategies,” and urged the company, which finished the fourth quarter of 2008 with $131.7 million in cash and equivalents, to pay a $1 special dividend.
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You’re calculations for $1.08 per share are way off. Read the 13D filing again. He’s underwater with this investment, therefore he wants to see changes.
Thanks Fact Checker, you are quite right. Haste makes waste toward the end of the day.
In fact, Miller paid more like $2.90 per share, or $16.3 million for his stake, and more than $3 each for shares he bought in late October and early November.