SIDT reports first quarter results and corporate reorganization plan.HOUSTON--(BUSINESS WIRE)--May 17, 1996--SI Diamond Technology Inc. (Nasdaq: SIDT SIDT Solomon Islands Development Trust SIDT Store Interrupt Descriptor Table SIDT Support Initiatives in Development Trust (India) ) today reported its first quarter results and the adoption of a corporate reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. in order to reduce expenses and streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. operations. For the first quarter, SIDT reported revenues of $848,367, a 278 percent increase from the $224,527 in revenues during the 1995 first quarter. The net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $5,170,551, or 48 cents a share, compared to a net loss from continuing operations of $1,651,493, or 21 cents a share, for the 1995 first quarter. SIDT's total net loss including discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. was $6,170,051, or 57 cents a share, compared to a net loss of $1,932,026, or 25 cents a share, for the same period a year-ago. There were 10,859,724 weighted average shares outstanding for the quarter compared to 7,681,707 weighted average shares outstanding for the 1995 first quarter. The increase in shares outstanding was due to the various equity offerings the company completed during 1995. "Revenues nearly quadrupled during the quarter compared to the same period a year-ago, the majority of which, $581,000, came from contract research," Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. K. Schmidt, SI Diamond's Diamond's was a department store based in Phoenix, Arizona. It opened in 1897 as The Boston Store and was renamed Diamond's in 1947 in honor of the store's 50th anniversary. chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated. "This resulted primarily from increased Diamond Field Emission Display (hardware) field emission display - (FED) A type of flat panel display in which field emitting cathodes bombard a phosphor coating causing it to emit light. A field emission display is similar to a cathode ray tube but only a few millimeters thick. (DFED DFED Computer Forensics and Electronic Discovery ) development related to the $2,625,000 National Institute of Science and Technology The National Institute of Science and Technology (abbrv NIST) is an engineering college in Pallur Hills Orissa, 12 km from the city of Berhampur. It was started in 1996 by a few NRIs, some of whom belonged to Orissa. contract which began in the 1995 third quarter. "Currently the company has a contract research backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2,139,000, compared to a backlog of $1,539,000 at the end of the first quarter a year-ago," Dr. Schmidt said. "The increase in the net loss is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to four items, two of which are the result of the company's reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. ; a $850,000 loss on impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. held for sale and a $999,500 loss on discontinued operations. Additionally, increases in SG&A and research and development contributed to the net loss for the quarter," continued Dr. Schmidt. "The expenses associated with the reorganization are from the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of SIDT Coatings Inc. and the probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of our Diamond Tech One facility. "SI Diamond plans to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. the SIDT Coatings operations as soon as possible in order to concentrate corporate funds on the DFED program. Additionally, certain operations at the Diamond Tech One subsidiary will be reduced significantly and at least a major part of its assets will likely be sold," Dr. Schmidt said. "To date, SIDT has been the largest user of Diamond Tech One's specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. services for the advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. of several processes supporting DFED development. Management believes these processes are now sufficiently well defined that they can be obtained from commercial vendors in larger quantities at lower costs. "As part of our corporate reorganization the company plans to reduce the number of employees by approximately 50 percent, not including those associated with Diamond Tech One or SIDT Coatings," Dr. Schmidt said. "This is being done in order to streamline operations and reduce the company's SG&A expenditures. "Also, during the quarter the company was able to successfully close an $11.9 million equity offering. We believe that this funding should be sufficient to bring the company up to our "super-pilot" stage of development of our Diamond Field Emission EMISSION, med. jur. The act by which any matter whatever is thrown from the body; thus it is usual to say, emission of urine, emission of semen, &c. 2. Lamp (DFEL), at which time the company may need additional financing," Dr. Schmidt said. "Management is confident that these moves will greatly improve the allocation of resources allocation of resources Apportionment of productive assets among different uses. The issue of resource allocation arises as societies seek to balance limited resources (capital, labour, land) against the various and often unlimited wants of their members. and sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target of our focus on both the DFED and Diamond Field Emission Lamp (DFEL) programs. SI Diamond's high luminance The amount of brightness, measured in lumens, that is given off by a pixel or area on a screen. For example, dark red and bright red would have the same chrominance, but a different luminance. lamp technology (DFEL) is being received with much enthusiasm and management anticipates having production samples available by the end of 1996 with commercial revenues to follow in 1997," Dr. Schmidt concluded. Houston-based SI Diamond is an innovative developer of thin-film diamond technology with potential for a variety of applications including flat panel displays A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time and high luminance lamps. Through its Plasmatron subsidiary, the company also develops and installs industrial coating An industrial coating is a paint or coating defined by its protective, rather than its aesthetic properties, although it can provide both. The most common use of industrial coatings is for corrosion control of steel or concrete. systems. SI Diamond trades on Nasdaq under the symbol "SIDT." -0-
SI DIAMOND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
1996 1995
_____________ ____________
ASSETS
Current assets:
Cash and cash equivalents $ 5,095,026 $ 293,593
Accounts receivable, trade 442,888 151,422
Stock subscriptions
receivable -- 9,583,750
Notes receivable 400,000 400,000
Costs and estimated
earnings in excess of billings
on uncompleted contracts 528,844 300,485
Prepaid expenses and other assets 110,273 43,238
_____________ ____________
Total current assets 6,577,031 10,772,488
Property, plant and equipment,
net 1,590,631 1,476,241
Intangible assets, net 477,537 500,079
Net assets of discontinued
operations and net
assets available for sale 1,642,920 2,542,704
Other assets, net 126,844 17,394
_____________ ____________
Total assets $ 10,414,963 $ 15,308,906
_____________ ____________
_____________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,722,341 $ 430,048
Notes payable 32,054 271,853
Accrued liabilities 380,977 1,864,095
Billings in excess of costs
and estimated earnings
on uncompleted contracts 35,385 49,891
_____________ ____________
Total current
liabilities 2,170,757 2,615,887
Notes payable, long term 82,611 86,687
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $1.00
par value, 2,000,000 shares
authorized;
Series A Convertible Preferred,
100 shares issued and
outstanding at March 31, 1996
and December 31, 1995
($100,000 aggregate liquidation
preference) 100 100
Series E convertible preferred,
1,190 shares issued and
outstanding at March 31, 1996
(11,900,000 aggregate
liquidation preference) 1,190 --
Common Stock, 120,000,000
shares authorized, $.001 par
value, 10,862,889 shares issued
and outstanding at March 31, 1996:
10,858,899 shares issued and
outstanding at December 31, 1995 10,863 10,859
Additional paid - in capital 45,311,064 34,681,872
Preferred stock subscribed
but unissued 8,905,072
Accumulated deficit (37,161,622) (30,991,571)
_____________ ____________
Total stockholders' equity 8,161,595 12,606,332
_____________ ____________
Total liabilities and
stockholders' equity $ 10,414,963 $ 15,308,906
_____________ ____________
_____________ ____________
SI DIAMOND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended
March 31,
_________________________________
1996 1995
_____________ ____________
Revenues $ 848,367 $ 224,527
_____________ ____________
Cost of sales 1,052,114 141,648
Selling, general and
administrative expenses 2,203,592 664,173
Stock compensation 16,986 9,793
Research & development 2,127,425 1,124,779
Loss on impairment of net assets
held for sale 850,000 --
_____________ ____________
Operating costs and expenses 6,250,117 1,940,393
_____________ ____________
Other income, net 231,199 64,373
_____________ ____________
Loss from continuing operations $ (5,170,551) $ (1,651,493)
_____________ ____________
Discontinued operations:
Loss from discontinued operations (649,500) (280,533)
Provisions for loss on disposition
discontinued operations (350,000) --
_____________ ____________
Total losses on discontinued
operations (999,500) (280,533)
_____________ ____________
Net loss $ (6,170,051) $ (1,932,026)
_____________ ____________
_____________ ____________
Net loss per share from
continuing operations $ (0.48) $ (0.21)
Net loss per share from
discontinued operations $ (0.09) $ (0.04)
_____________ ____________
Net loss per share $ (0.57) $ (0.25)
_____________ ____________
_____________ ____________
Average shares outstanding 10,859,724 7,681,707
_____________ ____________
_____________ ____________
SRI DIAMOND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
_________________________________
1996 1995
_____________ ____________
Cash flows from operating
activities:
Continuing operations:
Net loss from continuing
operations $ (5,170,551) $ (1,651,493)
Adjustments to reconcile net
loss to net cash required by
operating activities:
Non-cash compensation of
employees and consultants upon
issuance of common stock -- 9,793
Depreciation and amortization
expense 83,610 112,536
Revaluation of stock warrants 450,000 --
Loss on impairment of net assets 850,000 --
Changes in assets and liabilities:
Accounts receivable, trade (291,466) 755,213
Costs and estimated earnings in
excess of billings on
uncompleted contracts/projects (228,359) (43,394)
Prepaid expenses (67,035) (4,538)
Accounts payable and accrued
liabilities (190,825) 11,262
Billings in excess of cost and
estimated earnings on
uncompleted contracts (14,506) (130,481)
Net assets available for sale (260,263) --
_____________ ____________
Total adjustments 331,156 710,391
_____________ ____________
Net cash required by
continuing operations (4,839,395) (941,102)
_____________ ____________
Discontinued operations:
Net loss from discontinued
operations (999,500) (280,533)
Reserves for discontinued
operations 505,000 --
Increase in net assets of
discontinued operations (194,953) --
_____________ ____________
Net cash required by
discontinued operations (689,453) (280,533)
_____________ ____________
Net cash required by operations (5,528,848) (1,221,635)
_____________ ____________
Cash flows from investing
activities:
Capital expenditures (175,458) --
Expenditures for intangibles and
other assets (109,450) (991,822)
_____________ ____________
Net cash required by investing
activities (284,908) (991,822)
_____________ ____________
Cash flows from financing
activities:
Repayment of notes payable (243,875) --
Proceeds of stock issuance, net
of costs 10,859,064 4,902,247
_____________ ____________
Net cash provided by financing
activities 10,615,189 4,902,247
_____________ ____________
Net increase in cash and cash
equivalents 4,801,433 2,688,790
Cash and cash equivalents,
beginning of year 293,593 1,687,104
_____________ ____________
Cash and cash equivalents, end
of period $ 5,095,026 $ 4,375,894
_____________ ____________
_____________ ____________
CONTACT: SI Diamond Tech Trey Fecteau, 713/529-9040 or The Investor Relations Investor relations The process by which the corporation communicates with its investors. Co. Tom Laughran/Christine Harmon Harmon is a surname, and may refer to:
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion