Simtek Reports First Quarter 2006 Financial Results.COLORADO SPRINGS Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo. -- Simtek Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : SRAM See static RAM. SRAM - static random-access memory ) --Company Records $4.7 Million in Revenue, Book-To-Bill Above 1.5 --Q2 Revenue Guidance in the Range of $5.5 Million - $6.0 Million --Projects First Profitable Quarter will be Q3 2006 Excluding non-Cash Charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. --Year 2006 Revenue Guidance Raised to $23 Million to $27 Million Simtek Corporation (OTC Bulletin Board: SRAM), the inventor, pioneer, and world's leading supplier of nonvolatile static random access memory Static random access memory (SRAM) is a type of semiconductor memory. The word "static" indicates that the memory retains its contents as long as power remains applied, unlike dynamic RAM (DRAM) that needs to be periodically refreshed (nevertheless, SRAM should not be confused with (nvSRAM) integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. , today announced its financial results for the first quarter ended March 31, 2006. Other Company Highlights: --Achieved record revenue and orders that exceeded the expected growth of the consolidated business --Proceeding smoothly with the integration of ZMD's nvSRAM business into Simtek Europe and Simtek US/Asia --Booked new orders in excess of $7 million in the quarter, resulting in significant backlog growth --Improved relationship with Chartered Semiconductor including additional capacity and credit terms Credit Terms The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period. --Expanded a joint business and product relationship with Cypress that was initiated in May 2005 --Initiated qualification of 0.25-micron 256-kilobit device with real-time clock A real-time clock (RTC) is a computer clock (most often in the form of an integrated circuit) that keeps track of the current time. Although the term often refers to the devices in personal computers, servers and embedded systems, RTCs are present in almost any electronic --Strengthened management with the additions of a vice president of operations and full-time chief financial officer Consolidated revenue for the first quarter of 2006 is $4.7 million compared to $2.8 million in the fourth quarter of 2005, an increase of 70 percent, reflecting the effects of adding the nvSRAM business that was acquired from ZMD ZMD Zentrum Mikroelektronik Dresden (German chip manufacturer) ZMD Zentralstelle für Maschinelle Dokumentation ZMD Zentrum für Kunst und Medientechnologie (Center for Art and Media Technology) , as well as increasing demand. Net loss for the first quarter of 2006 was $1.9 million, or $0.01 per share, compared to a net loss of $1.8 million, or $0.02 per share, in the fourth quarter of 2005. Net loss in the first quarter includes non-cash charges of $448,000 for amortization of the non-compete agreement with ZMD, and $118,000 for expenses related to employee stock options, plus "first-time" operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $226,000 for Simtek's European subsidiary, Simtek GmbH. Excluding the non-cash charges the pro-forma net loss for the quarter was less than $1.4 million. There were no comparable charges in the fourth quarter of 2005 for these three first-quarter charges. As of March 31, 2006, the Company had an unrestricted cash balance of $2.8 million and a total cash balance of $5.1 million. In future financial reports, Simtek will present consolidated results for the worldwide company. Pro-forma consolidated revenue for the two separate "pre-acquisition" entities in 2005 was just over $17 million. Consolidated revenue guidance for 2006 is being raised from $20 million to $25 million and is now projected to be in the range of $23 million to $27 million, an increase of between 35 percent and 50 percent year-over-year. Approximately $1.25 million in first quarter revenue can be loosely attributed to former ZMD business. $3.5 million came from Simtek's baseline business. Growth in Simtek's baseline business was from $2.8 million in the fourth quarter to $3.5 million in the first quarter or 25%. Simtek projects revenue for the second quarter of 2006 to be in the range of $5.5 to $6.0 million, and expects to see a substantial reduction in operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the second quarter from increased unit volume, higher average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. , and continued cost reductions. For the third and fourth quarters, the Company expects to be profitable, excluding the non-cash charges discussed above. Chartered Semiconductor is planning to increase wafer production in support of Simtek's consolidated worldwide demand for 0.8-micron products. Chartered and Dongbu Electronics are prepared to respond to increased orders for Simtek products based on potential new demand created by Cypress as part of the joint business development relationship with Simtek. "Simtek is excited about the expansion of our engagement with Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). and appreciate their willingness to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. $4
million in non-refundable royalties," said Harold A. Blomquist,
president 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. of Simtek. "We are pleased to have them help
Simtek accelerate and broaden new product introductions by investing
their own engineering resources alongside ours. We continue to
strengthen our management and engineering teams. Chris McComb joined us
during the quarter as vice president of operations and is already
helping to establish better manufacturing practices to support growth. I
am pleased to report that Brian Alleman, who has been working as CFO See Chief Financial Officer. for
Simtek on a part-time basis since last June, has agreed to join the
company full time. Our engineering and customer support team in Europe
is fully up and running. I am excited about where the company is going.
We are positioned well for the future."The company announced that production qualification is underway for all three derivative devices from the 0.25-micron 1 megabit nvSRAM family including the 1 megabit device with real-time clock, the 256-kilobit device, and the 256-kilobit device with real-time clock. Full qualification is projected to be completed on all three products in the second quarter. Following is reconciliation* of the Pro-forma financial measures to the most comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measures:
Unaudited Three Months Three Months
(Amounts in thousands, except per share Ended March Ended December
amounts) 31, 2006 31, 2005
Loss from Continuing Operations as
reported $ (1,936) $ (1,849)
Adjusted-GAAP items:
Amortization of Non-compete Agreement 448 -
Costs associated with employee stock
options 119 -
-----------------------------
Pro-forma Loss from Continuing
Operations $ (1,369) $ (1,849)
=============================
Per Share Data:
Loss from Continuing Operations as
reported $ (0.01) $ (0.02)
Amortization of Non-compete Agreement $ - $ -
Costs associated with employee stock
options $ - $ -
-----------------------------
Pro-forma Loss Per Share from Continuing
Operations $ (0.01) $ (0.02)
=============================
* pursuant to the requirements of Regulation G. Simtek reports net income or loss in accordance with GAAP and additionally uses pro-forma financial measures which are adjusted from the most directly comparable GAAP financial measures to exclude charges related to unusual or non-recurring expenses the Company may incur from time to time, in order to provide additional comparative information between periods. Management believes that these pro-forma measures are important to investor understanding of the Company's disclosures regarding past, current and future operating results. As of March 31, 2006 there were 146,920,843 shares outstanding. On a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis the share count at the end of the first quarter of 2006 was 200,645,543. Simtek anticipates holding its 2006 Annual Shareholders' Meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. in late June. Further information will be announced separately.
Simtek Corporation
Condensed Consolidated Statement of Income
Amounts in Thousands
Unaudited
Three Months Ended
March 31, Dec. 31,
2006 2005
Revenue $ 4,747 $ 2,794
Cost of sales 3,473 2,100
---------------------------
Gross profit 1,274 694
Engineering, selling and administrative
expenses 3,189 2,517
---------------------------
Loss from operations (1,915) (1,823)
Other income (expense), net (21) (26)
---------------------------
Loss from continuing operations before
income taxes (1,936) (1,849)
Provision for income taxes - -
---------------------------
Loss from continuing operations (1,936) (1,849)
Loss from discontinued operations - (2)
---------------------------
Net loss $ (1,936)$ (1,851)
===========================
Net loss per common share $ (0.01)$ (0.02)
===========================
About Simtek Corporation Simtek Corporation designs and markets high-speed, re-programmable, nonvolatile semiconductor memory products, for use in a variety of systems including RAID servers, high performance workstations, GPS navigational systems Noun 1. navigational system - a system that provides information useful in determining the position and course of a ship or aircraft Global Positioning System, GPS - a navigational system involving satellites and computers that can determine the latitude and , robotics robotics, science and technology of general purpose, programmable machine systems. Contrary to the popular fiction image of robots as ambulatory machines of human appearance capable of performing almost any task, most robotic systems are anchored to fixed positions , copiers and printers, and networking and broadcast equipment. Information on Simtek products can be obtained from its web site: www.simtek.com; email: information@simtek.com. The company is headquartered in Colorado Springs, Colorado The City of Colorado Springs is the second most populous city (after Denver) in the state of Colorado and the 48th most populous city in the United States.[4] The city is the county seat of El Paso County. . Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements predicting Simtek's future growth. These forward-looking statements are inherently difficult to predict and involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, projections of future performance including predictions of future profitability and expectations of the business environment in which Simtek operates. For a detailed discussion of these and other risk factors, please refer to Simtek's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and subsequent Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filings. Conference Call Simtek management's investor teleconference will be webcast live at www.companyboardroom.com and at www.simtek.com and will be available thereafter on both websites for replay for 90 days, beginning several hours after the completion of the call. Simtek is introducing a new teleconference webcast with today's call, which will reach a much broader population of parties who are interested in semiconductors and Simtek. How to participate on the teleconference portion of Simtek's first-quarter 2006 results call on April 27, 2006 at 10:00am Eastern Daylight Time: Call 1-800-500-0177 (U.S. toll-free number) or 719-457-2679 (local) and mention ID code: SRAM. The conference call will be webcast live and can be heard at www.fulldisclosure.com on the Company's website: www.simtek.com. |
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