Barrack, Rodos & Bacine is investigating potential claims against the board of directors of Silicon Storage Technology Inc. On November 13, 2009, Silicon Storage announced that they had signed a definitive agreement with Technology Resource Holdings, Inc. to acquire all outstanding shares for $2.10 per share in cash. This is only a 13% premium to the previous day's closing price of the shares and values the company at $201 million. Shares have traded above $2.10 per share as recently as October 29, 2009, and have traded higher than the offer price since the acquisition announcement was made public. The investigation concerns possible breaches of fiduciary duty and other violations of state law related to the acquisition proposal made between Prophet Equity LP and the board of directors of Silicon Storage.

Silicon Storage Technology Inc. announced that on November 12, 2009, Bryant R. Riley resigned effective immediately from the board of directors and the Compensation, Nominating and Corporate Governance, and Strategic Committees of the board of directors. As a member of both the board of directors and Strategic Committee, Mr. Riley voted against the approval of the merger agreement.

Silicon Storage Technology Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's net revenues were $71.3 million compared with $58.1 million in the second quarter of 2009 and with $92.4 million in the third quarter of 2008. Income from operations for the quarter 2009 was $1.5 million compared with a loss from operations of $7.5 million in the second quarter of 2009 and with income from operations of $4.1 million in the third quarter of 2008. Net income for the quarter was $3.1 million, or $0.03 per diluted share. By comparison, the company recorded a net loss of $6.4 million, or $0.07 per diluted share in the second quarter of 2009. For the third quarter of 2008, the company reported net income of $4.9 million, or $0.05 per diluted share. Income before provision for income taxes and pro rata share of loss from equity investments was $4.9 million compared with $6.4 million for the same period a year ago. For the nine months, the company's net loss was $12.6 million or $0.13 per diluted share on the total net revenues of $179.5 million compared to net loss of $3.2 million or $0.03 per diluted share on the total net revenues of $257.2 million for the same period a year ago. Loss from operations was $12.3 million compared with $6.4 million for the same period a year ago. Loss before benefit from income taxes and pro rata share of loss from equity investments was $8.3 million compared with $2.2 million for the same period a year ago. For the fourth quarter of 2009, the company expects revenues to be between $67 million and $72 million. Net income per share is expected to be between $0.00 and $0.03.