- Product Revenue Increases 66% Year-Over-Year COLORADO SPRINGS,
Colo., April 26 /PRNewswire-FirstCall/ -- Simtek Corporation
(NASDAQ:SMTK), the inventor, pioneer, and world's premier supplier
of nonvolatile static random access memory (nvSRAM) integrated
circuits, today announced its financial results for the first
quarter ended March 31, 2007. First Quarter Highlights -- Product
revenue of $7.9 million, a 66% increase over Q106 -- Gross product
margin increased to 43.6% from 26.8% a year ago -- Ex-item profit
of $321 thousand compared to ex-item loss of $20 thousand in Q106
-- Second quarter revenue guidance of $8.2 - $8.5 million up
sequentially 4% to 8% and up 28% to 33% compared to last year's
second quarter -- Revenue guidance for the year set to exceed $40
million resulting in growth of more than 40% vs. 2006 -- More than
30 new design wins in the first quarter, many from new customers --
Company approved for NASDAQ listing Financial Results Total revenue
for the first quarter of 2007 was $7.9 million, consisting entirely
of product revenue, representing a 66% increase over product
revenue of $4.7 million in Q106. Revenue was reduced due to
inventory returned by a distributor terminated by the Company in
the quarter. The Company reported ex-item net income for the first
quarter of $321 thousand, or $0.02 per share, compared to an
ex-item net loss of $20 thousand, or ($0.00) per share in Q106. The
2006 net loss includes the benefit of the $1.0 million of royalty
revenue received from Cypress Semiconductor. There was no such
revenue in the 2007 period. Ex-item income excludes the effects of
stock options, amortization of acquisition related costs,
contractual milestone payments to Cypress Semiconductor to be paid
from the restricted cash account, and costs associated with the new
strategic business opportunity. On a GAAP basis, the Company
reported a net loss for the 2007 period of $490 thousand or ($.03)
per share compared to a loss of $901 thousand or ($0.06) per share
for the comparable 2006 period. All per share amounts reflect the
effect of the 1 for 10 reverse stock split that was completed on
October 5, 2006. Simtek delivered strong revenue growth in the
first quarter compared to a year ago. Simtek, like many of its
peers, experienced normal seasonality and a slow down in orders
from customers in the RAID-storage market in Q42006 and Q12007
resulting in a dip in sequential revenue. "Simtek has diversified
its customer and industry base to help insulate the Company from
the volatility in the storage industry. During the quarter, we
continued to add new design wins in non-storage market segments and
also added a new distributor in Japan with strong relationships
with non-storage electronic component designers. As a result of
this strategy we were still able to deliver strong revenue growth
in the first quarter," stated Harold Blomquist, Simtek President
and CEO. "We believe this diversification, as well as improving
ordering patterns from our storage customers, will allow us to
deliver strong revenue growth year-over-year. We anticipate
sequential growth in the second quarter and the remainder of the
year as we see the industry gradually rebounding. We are revising
our guidance for the year to take the industry wide slowdown into
account." "Also during the quarter, we completed the design and
verification process for our first fully integrated version of our
4-megabit nvSRAM. We've handed the design off to Cypress for
initial silicon manufacturing. We are working closely with a select
group of beta customers and are seeing high levels of interest in
this new and exciting product. We anticipate having production
ready devices by the end of the year," concluded Mr. Blomquist.
Outlook for 2007 For 2007, Simtek is revising its product revenue
guidance to be in excess of $40 million, an increase of more than
40% year over year, and anticipates that Q207 product revenue will
be in the range of $8.2 to $8.5 million, showing both sequential
growth of 4% to 8% as well as growth between 28% and 33% compared
to the second quarter of 2006. The Company does not expect any
royalty revenue in 2007. Gross margins are projected to increase to
approximately 50% by the end of 2007. Ex-item profit for 2007 is
expected to be in the range of $0.23-$0.29 per share. Ex-Item
Earnings Simtek reports net income or loss in accordance with GAAP
and additionally uses ex-item financial measures which are adjusted
from the most directly comparable GAAP financial measures to
exclude charges related to non-cash, 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 ex-item measures are important to
investor understanding of the Company's disclosures regarding past,
current and future operating results. Following is reconciliation*
of the Ex-item financial measures to the most comparable GAAP
financial measures: Unaudited (Amounts in thousands, except per
share amounts) Three Months Three Months Ended Ended March 31,
March 31, 2007 2006 Net Loss, as reported $(490) $(901)
Adjusted-GAAP items: Expense Related to New Strategic Business 86
-- Contractual Milestone Payments to be Paid from Restricted Cash
-- 314 Amortization of Non-compete Agreement 446 448 Costs
associated with employee stock options 279 119 Ex-item Net Income
(Loss) $321 $(20) Per Share Data: Net Loss, as reported $(0.03)
$(0.06) Adjusted-GAAP items: Expense Related to New Strategic
Business $-- $-- Contractual Milestone Payments to be Paid from
Restricted Cash $-- $0.02 Amortization of Non-compete Agreement
$0.03 $0.03 Costs associated with employee stock options $0.02
$0.01 Ex-item Net Income (Loss) Per Share $0.02 $(0.00) * pursuant
to the requirements of Regulation G. Conference Call Simtek
management will host a conference call at 5:00 p.m. ET (2:00 p.m.
PT) today to discuss these results. The call can be accessed by
dialing 866-250-3615 and giving the company name, "Simtek."
Participants are asked to call the assigned number approximately 10
minutes before the conference call begins. A replay of the
conference call will be available two hours after the call for the
following five business days by dialing 800-405-2236 and entering
the following pass code: 11088197#. Also, the conference call
together with supplemental financial information will be available
over the Internet at http://www.simtek.com/ in the Investor Info
area of the site or by going to http://www.mkr-group.com/. About
Simtek Corporation Simtek Corporation designs and markets
high-speed nonvolatile semiconductor memory products, for use in a
variety of systems including RAID servers, storage arrays, GPS
navigational systems, industrial controllers, robotics, copiers,
avionics, metering, consumer, UPS, and networking and broadcast
equipment. Information on Simtek products can be obtained from its
web site: http://www.simtek.com/; email: . The company is
headquartered in Colorado Springs, Colorado. Forward-Looking
Statements 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,
guidance and projections of future performance including
predictions of future revenue, 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 and subsequent Form 10-Q
and Form 8-K filings. SIMTEK CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (Amounts in thousands, except par value and share
amounts) ASSETS March 31, December 31, 2007 2006 CURRENT ASSETS:
(Unaudited) Cash and cash equivalents $2,876 $4,522 Restricted
investments 1,775 1,775 Accounts receivable - trade, net 4,979
5,537 Inventory, net 8,121 6,596 Prepaid expenses and other current
assets 442 312 Total current assets 18,193 18,742 EQUIPMENT AND
FURNITURE, net 1,394 1,239 DEFERRED FINANCING COSTS AND DEBT
ISSUANCE COSTS 41 54 Goodwill 992 992 NON-COMPETITION AGREEMENT
6,680 7,126 OTHER ASSETS 114 89 TOTAL ASSETS $27,414 $28,242
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts
payable $3,949 $3,771 Accrued expenses 934 939 Accrued vacation
payable 263 229 Accrued wages 45 814 Line of credit 371 681
Debentures, current 480 480 Total current liabilities 6,042 6,914
DEBENTURES, NET OF CURRENT 2,220 2,220 Total liabilities 8,262
9,134 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Preferred
stock, $0.0001 par value; 200,000 shares authorized, none issued --
-- Common stock, $.0001 par value; 30,000,000 shares authorized,
16,227,929 and 16,226,929 shares issued and outstanding at March
31, 2007 and 16,146,679 and 16,145,679 shares issued outstanding at
December 31, 2006 2 2 Additional paid-in capital 67,678 67,173
Treasury stock, at cost; 1,000 shares (1) (1) Accumulated deficit
(48,689) (48,198) Accumulated other comprehensive income:
Cumulative translation adjustment 162 132 Total shareholders'
equity 19,152 19,108 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$27,414 $28,242 SIMTEK CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except
share and per share amounts) For the three months ended March 31,
2007 2006 Revenue Product sales, net $7,867 $4,743 Royalty revenue
-- 1,035 Total Revenue 7,867 5,778 Cost of sales 4,435 3,470 GROSS
PROFIT 3,432 2,308 OPERATING EXPENSES: Research and development
costs 1,613 1,545 Sales and marketing 1,152 944 General and
administrative 1,109 699 Total operating expenses 3,874 3,188 LOSS
FROM OPERATIONS (442) (880) OTHER INCOME (EXPENSE): Interest income
49 40 Interest expense (98) (60) Exchange rate variance 12 -- Other
expense -- (1) Total other expense (37) (21) LOSS BEFORE PROVISION
FOR INCOME TAXES (479) (901) Provision for income taxes (11) -- NET
LOSS $(490) $(901) NET LOSS PER COMMON SHARE: Basic and diluted
$(.03) $(.06) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic and
diluted 16,211,671 14,692,083 DATASOURCE: Simtek Corporation
CONTACT: Brian Alleman, CFO of Simtek Corporation, ; or Marie
Dagresto or Todd Kehrli, both of MKR Group, Inc., +1-323-468-2300,
, for Simtek Corporation Web site: http://www.simtek.com/
Copyright
SmartKem (NASDAQ:SMTK)
Historical Stock Chart
From Jun 2024 to Jul 2024
SmartKem (NASDAQ:SMTK)
Historical Stock Chart
From Jul 2023 to Jul 2024