Alliance Semiconductor Releases Financial Statements for the Fiscal Year Ending March 31, 2013

The company’s current assets have increased $17.6 million during the period. This increase is the result of a market developing for the AMBAC pfd shares which are the primary asset of the company.

Alliance has sold 24.4% of the units of AMBAC pfd shares that it held at the end of the prior fiscal year. Two hundred and sixty units were sold prior to the end of FY13 and 320 units were sold subsequent to the end of the fiscal year. The total proceeds of the sales were $4.7 million with $1.7 million received before the year end.

The company’s strategy continues to be to maximize and monetize the securities which it holds and executed strategies to efficiently return cash to it’s shareholders.
Alliance plans to continue its participation in the lawsuit against AMBAC Assurance Corporation alleging that AMBAC Assurance wrongfully converted the original securities purchased by ALSC into AMBAC preferred shares. Alliance may from time to time continue to sell AMBAC securities if market conditions are favorable.

A secondary asset of the company is its $____ million of net operating loss carry-forwards for federal and state taxes. Alliance is in the process of completing a 382 study to understand the status of its net operating losses (NOLs). Under the Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more five-percent shareholders within a three-year period. When a change of ownership is triggered, the NOLs may be impaired. In order to continue to protect this NOL asset, Alliance is requesting that all of its investors directly contact the company’s investor relations department prior to allowing their ownership interest to approach a five percent level. All shareholders holding five per cent or greater should also notify the company before purchasing additional shares.