Silicon Storage investor Riley Investment may nominate directors

By Lisa Kerner

Charlotte, N.C., Sept. 13 - Silicon Storage Technology, Inc. investors led by Riley Investment Partners Master Fund, LP believe the company's shares are "significantly undervalued."

Riley believes the sum of the parts of Silicon Storage, including cash of $168 million, equity investments estimated in excess of $100 million, annual licensing revenue of over $35 million, existing NOR flash business and a robust pipeline of non-commodity products, are worth significantly more than the company's current market capitalization of $321 million.

Riley made the assertion in a schedule 13D filing with the Securities and Exchange Commission.

The investor wants to "work assiduously and aggressively with the current management team on behalf of all shareholders," the filing stated. If management and the board do not share Riley's sense of urgency, Riley said it will be forced to "take a more proactive approach, one which will include, among other things, the nomination of new directors."

The reporting persons own 5,062,168 shares, or 4.9%, of the company's outstanding stock.

Silicon Storage, based in Sunnyvale, Calif., provides flash memory semiconductor devices for the digital consumer, networking, wireless communications and internet computing markets.

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