SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 14, 2003
Simtek Corporation
(Exact name of registrant as specified in its charter)
Colorado 0-19027 84-1057605
----------------- ------------ -------------------
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
4250 Buckingham Dr. #100
Colorado Springs, CO 80907
(Address and zip code of principal executive offices)
(719) 531-9444
(Registrant's telephone number, including area code)
Item 5: Other Information and Required FD Disclosure
----------------------------------------------------
Simtek Corporation released the following press release dated November 13, 2003,
titled "Simtek Announces Third Quarter Financial Results":
SIMTEK REPORTS THIRD QUARTER FINANCIAL RESULTS
COLORADO SPRINGS, Colorado - November 13, 2003 -- Simtek Corporation (OTCBB:
SRAM), a global provider of advanced nonvolatile semiconductor memory products,
today reported financial results for its third quarter and nine-month period
ended September 30, 2003.
Net revenue for the third quarter increased 9% to $3.4 million from $3.1 million
in the same quarter a year ago. The Company reported a net loss of $513,000, or
1 cent per share, for the quarter versus a net loss of $43,000, or less than 1
cent per share, in the third quarter of 2002. On a sequential basis, net loss
was reduced by 43% from the second quarter loss of $895,000. This improvement
was attributable to lower manufacturing costs resulting from better product
yields and a shift in mix to higher value industrial and military grade
products. Gross margins in the third quarter improved nearly four points to
32.7% compared with 28.8% in the second quarter. In addition, total operating
expenses, benefitting from a reduction in design, research and development
costs, declined to $1.6 million in the third quarter from $1.8 million the
second quarter.
For the nine-month period net revenue was $10.8 million, up from $10.7 million
in the comparable period a year ago. Net loss through nine months increased to
$2.0 million, or 4 cents per share, versus $710,000, or 1 cent per share, for
the same period of 2002.
At September 30, Simtek had $2.1 million in cash, cash equivalents and
restricted cash. That balance was augmented on November 7 when the Company
closed a $1.5 million equity financing designed to strengthen the balance sheet
in preparation for meeting anticipated demand for its new 1 Mbit nvSRAM family
of products.
"As projected, Simtek achieved significant improvements in product margins and
operating expenses in the third quarter, although revenue was sequentially
flat," said Douglas Mitchell, president and CEO. "Our operating results continue
to show modest improvements in unit demand from major customers despite
continued sluggishness in the overall semiconductor market. With ongoing
programs to improve our product costs and operating efficiencies, we expect
current product lines to show bottom line improvements over the next two
quarters.
"Our 0.25 micron 1 Mbit nvSRAM product development has now transitioned to the
customer sampling phase, resulting in 54 potential customers currently
evaluating and designing with parts in hand," Mitchell continued. "Feedback
during this process has been very good, with programs on schedule to start
ramping into production. We remain very optimistic that this new product family,
along with its derivative value-added-memory members, will increase our served
market dramatically and result in new, growing revenue streams beginning in
2004."
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SUMMARY STATEMENT OF OPERATIONS
Three Months Ended Sep 30, Nine Months Ended Sep 30,
----------------------------- ----------------------------
2003 2002 2003 2002
---- ---- ---- ----
unaudited unaudited unaudited unaudited
NET SALES............................................... $ 3,422,039 $ 3,146,887 $10,777,139 $10,670,620
Cost of sales...................................... 2,303,117 1,620,408 7,223,644 6,237,559
--------------------------------------------------------------------
GROSS MARGIN............................................ 1,118,922 1,526,479 3,553,495 4,433,061
OPERATING EXPENSES:
Design, research and development................... 985,755 980,108 3,468,898 3,250,226
Administrative..................................... 216,749 188,304 692,647 581,700
Marketing.......................................... 380,105 353,000 1,200,432 1,258,517
--------------------------------------------------------------------
Total Operating Expenses......................... 1,582,609 1,521,412 5,361,977 5,090,443
NET LOSS FROM OPERATIONS................................ (463,687) 5,067 (1,808,482) (657,382)
---------------------------------------------------------------------
OTHER INCOME (EXPENSE).................................. (49,455) (47,913) (158,048) (52,832)
---------------------------------------------------------------------
NET LOSS BEFORE TAXES................................... (513,142) (42,846) (1,966,530) (710,214)
Provision for income taxes...................... - - - -
--------------------------------------------------------------------
NET LOSS .............................................. $ (513,142) $ (42,846) $(1,966,530) $ (710,214)
====================================================================
BASIC AND DILUTED EPS................................... $ (.01) $ * $ (.04) $ (.01)
====================================================================
DILUTIVE SHARES OUTSTANDING............................. 54,648,069 54,203,686 54,510,142 54,114,625
SUMMARY BALANCE SHEET
ASSETS September 30, 2003 December 31, 2002
------- ------------------- -----------------
CURRENT ASSETS: unaudited
Cash and cash equivalents............................................... $ 1,769,200 $ 3,127,732
Certificate of deposit, restricted...................................... 300,000 300,000
Accounts receivable - trade, net........................................ 1,637,304 2,309,965
Inventory, net ......................................................... 1,752,275 1,608,242
Prepaid expenses and other.............................................. 130,776 239,507
--------------------------------
Total current assets................................................ 5,589,555 7,585,446
EQUIPMENT AND FURNITURE, net............................................... 930,277 725,888
DEFERRED FINANCING COSTS................................................... 95,429 107,877
OTHER ASSETS............................................................... 64,545 87,839
--------------------------------
TOTAL ASSETS............................................................... $ 6,679,806 $ 8,507,050
================================
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable ....................................................... $ 697,596 $ 1,087,947
Accrued expenses, wages, vacation....................................... 648,441 495,923
Debentures.............................................................. 3,000,000 -
Line of Credit.......................................................... 250,000 -
Deferred Revenue........................................................ - 40,500
Obligation under capital leases......................................... 152,668 132,485
--------------------------------
Total current liabilities........................................... 4,748,705 1,756,855
NOTES PAYABLE.............................................................. 5,000 10,000
DEBENTURES................................................................. - 3,000,000
OBLIGATION UNDER CAPITAL LEASES............................................ 78,245 76,512
--------------------------------
Total liabilities................................................... 4,831,950 4,843,367
SHAREHOLDER'S EQUITY....................................................... 1,847,856 3,663,683
--------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................................ $ 6,679,806 $ 8,507,050
================================
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Simtek Corporation produces fast, re-programmable, nonvolatile semiconductor
memory products. Information on Simtek products can be obtained from its web
site: www.simtek.com; email: info@simtek.com; by calling (719) 531-9444; or fax
(719) 531-9481. The company is headquartered in Colorado Springs, Colorado, with
international sales and marketing channels. Simtek is listed under the symbol
SRAM on the OTC Electronic Bulletin Board.
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 the
Company'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; expectations
of the business environment in which Simtek operates; current and anticipated
increased demand for our products; the level and timing of orders that we
receive and that we can deliver in a specified period; levels of inventories at
our distributors and other customers; inventory mix and timing of customer
orders; the success of cost-reduction efforts; our timely introduction and the
market acceptance of new technologies and products; maintaining or improving our
level of product shipments; our ability to obtain any required financing in a
timely manner; and factors not directly related to Simtek, such as competitive
pressures on pricing, market conditions in general, competition, technological
progression, product obsolescence, and the changing needs of potential customers
and the semiconductor industry in general; and current political conditions and
negative trends in the global economy.
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-KSB and subsequent filings. You can obtain copies
of Simtek's Forms 10-KSB, 10-QSB, 8-K, and any other documents at no charge at
the SEC's website (www.sec.gov) or from commercial document retrieval services.
The financial information in this press release and the attached financials are
unaudited and have been prepared from the books and records of the company with
the omission of certain information and disclosures normally included in
financial statements. Please refer to Simtek's filings on Forms 10-KSB and
10-QSB and other filings with the SEC for complete information.
Contact:
Simtek Corporation
719-531-9444
info@simtek.com
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SIMTEK CORPORATION
November 14, 2003 By: /s/Douglas Mitchell
--------------------------------------------
Douglas Mitchell
Chief Executive Officer, President and
Chief Financial Officer (acting)
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