U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): July 24, 1996
California Micro Devices Corporation
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(Exact name of registrant as specified in its charter)
California 33-399-77 94-2672609
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State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
215 Topaz Street, Milpitas, CA 95035-5430
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408)263-3214
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 7. Financial Statements and Exhibits
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On July 24, 1996, California Micro Devices Corporation (the
"Company") released certain information regarding the Company's first
quarter 1997 financials attached hereto.
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SIGNATURES
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.
Dated: August 2, 1996 CALIFORNIA MICRO DEVICES CORPORATION
By:
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Scott Hover-Smoot
Secretary and General Counsel
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NEWS RELEASE
[California Micro Devices Corporation logo]
California Micro Devices
Contacts: Jeffrey Kalb, President and CEO
(408) 934-3106
John Trewin, Vice President and CFO
(408) 934-3103
Roberta Silverstein, Press and Media
(408) 934-3141
For Immediate Release
CALIFORNIA MICRO DEVICES FIRST FISCAL QUARTER
SHOWS INCREASED SALES, REDUCED PROFITS
Milpitas, CA, July 24, 1996 -- California Micro Devices Corporation
(NASDAQ NMS: CAMD) (CMD), headquartered here, today reported net income
of $332,000, or $0.03 per share, on revenues of $9.6 million, for the
quarter ended June 30, 1996, the first quarter of its fiscal year 1997.
This compares with net income of $517,000, or $0.05 per share, on
revenues of $8.6 million, for the quarter ended June 30, 1995. Average
share and share equivalents outstanding increased to 11,020,000 from
9,792,000 at June 30, 1995, including 1,500,000 shares held in trust in
connection with the proposed, but not approved, February 1995 preliminary
settlement of shareholder class action lawsuits.
According to Jeffrey Kalb, CMD's president and chief executive officer,
"Although the Company showed approximately 11% year over year revenue
growth, revenues were down approximately 12.5% from the previous quarter
due to the challenging market situation which is impacting most of the
components industry. Margins have dropped approximately 10 points
compared to a year ago, primarily due to a significant change in product
mix. We have already taken steps to reduce costs and improve margins,
including a company-wide shutdown during the first week of July.
Additional cost reductions are in progress. However, it will take a
shift back in product mix and/or a combination of revenue increases and
cost reductions to reach last year's margin levels. The Company is
working towards this end."
As Kalb noted, "While we are controlling costs, we are not neglecting our
future. We invested $987,000 in R&D this quarter compared to $866,000 a
year ago, emphasizing our confidence in the future of the business. This
increased investment was more than offset by reduced administrative
expenses. Although legal costs continue to be very high, we have
significantly reduced the unusual consultant, audit and other costs that
increased expenses last year."
Mr. Kalb also pointed to the strength of the Company's balance sheet.
"We have $19 million in cash. While this is down $3.2 million from the
beginning of the fiscal year, the change reflects investments in
facilities and equipment, as well as reductions in debt, which combined
totaled $3.0 million during the quarter. Our receivables continue to be
in line with published industry norms. Inventories increased at the
beginning of the quarter as sales momentum decreased, but have been held
flat since then."
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The Company also offered some forward looking guidance with regard to the
course of its business. Forward looking statements involve a number of
risks and uncertainties including, but not limited to, product demand,
pricing, market acceptance, risk of dependence on third party suppliers,
intellectual property rights and litigation, risks in product and
technology development and other risk factors detailed in CMD's
Securities and Exchange Commission filings.
The Company noted that its book-to-bill ratio for the June quarter was
0.73, compared to 0.98 in the previous quarter ended March 31, 1996.
"Along with the rest of the semiconductor and related industries, we have
seen many customers requiring much shorter lead times." Kalb said. "They
are reducing their inventories, and giving us significantly shorter lead
times than this time a year ago, greatly impacting the book-to-bill.
Fortunately, we had already taken steps during the last year to reduce
our manufacturing lead times by over one third, and are continuing to
seek further improvements. This, together with slightly more inventory,
should put us in a good position to respond to customer demands."
"However," continued Kalb, "with shorter lead times and the resulting
lower backlogs, the future becomes more difficult to predict. Based on
what we can see now, revenues for the second quarter could be flat or up
slightly over the first quarter. CMD is reacting to the changing
environment, but slow to moderate growth will keep pressure on margins
and profits. We are taking steps which should improve those margins and
we will continue to control operating expenses tightly. We also have
aggressive new design activity centered around CMD's thin film passive
products, semiconductor peripheral integration programs, and particularly
our new P/Active[JT1](TM) family of products. All these efforts should lead
to improved growth opportunities when the Company and industry emerge
from this transition period."
Headquartered in Milpitas, California, California Micro Devices (CMD)
designs, manufactures and markets integrated thin-film, silicon-based
termination and filtering passive components and active electronic
circuitry. CMD's products target the requirements of computer,
networking and communication-based customers for smaller, densely
integrated devices that operate at higher frequencies with superior
performance and functionality.
Statements contained herein which are not historical facts are forward
looking statements. The forward-looking statements in this release are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Due to the risk factors discussed herein,
the Company's future actual results could differ materially from those
discussed above.
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CALIFORNIA MICRO DEVICES CORPORATION
Balance Sheets
(Amounts in thousands)
(Unaudited)
June 30, March 31,
1996 1996
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ASSETS:
Current assets:
Cash and short-term securities $18,946 $22,150
Accounts receivable, less allowance for
doubtful accounts of $909 and $960 4,558 4,500
Inventories 7,515 6,940
Prepaid expenses and other assets 462 585
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Total current assets 31,481 34,175
Property, plant & equipment, net 11,564 9,314
Restricted cash 1,144 905
Other long term assets 450 534
Total assets $44,639 $44,928
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LIABILITIES & SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $3,091 $2,832
Accrued salaries and benefits 1,032 1,250
Other accrued liabilities 3,355 4,279
Deferred margin on shipments to distributors 1,027 1,039
Current maturities of long-term debt and
capital lease obligations 855 1,282
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Total current liabilities 9,360 10,682
Long-term debt, less current maturities 7,490 7,490
Capital lease obligations, less current
maturites 226 299
Deferred income - 107
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Total liabilities 17,076 18,578
Shareholders' equity:
Common stock - no par value; authorized
25,000,000; issued and outstanding
10,497,593 shares 56,378 55,442
Retained earnings (28,815) (29,092)
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Total shareholders' equity 27,563 26,350
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Total liabilities and shareholders' equity $44,639 $44,928
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CALIFORNIA MICRO DEVICES CORPORATION
Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
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1996 1995
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Revenues:
Net product sales $9,295 $8,344
Technology related revenues 300 303
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Total revenues 9,595 8,647
Cost and expenses:
Cost of sales 6,224 4,753
Research and development 987 866
Selling, marketing and administrative 2,152 2,474
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Total costs and expenses 9,363 8,093
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Operating income 232 554
Other (income) expense, net (100) 37
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Income before income taxes 332 517
Income taxes (benefit) - -
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Net income $ 332 $ 517
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Net income per share $0.03 $0.05
Weighted average common shares
and share equivalents outstanding 11,020 9,782
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