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): October 30, 1996
California Micro Devices Corporation
---------------------------------------------------
(Exact name of registrant as specified in its charter)
California 33-399-77 94-2672609
-------------- --------------- -----------
State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
215 Topaz Street, Milpitas, CA 95035-5430
------------------------------ -----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408)263-3214
-------------
Not Applicable
- - -------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On October 30, 1996, the Company reported the release of certain
information regarding the Company's history, products, and future plans as
attached hereto.
<PAGE>
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: November 20, 1996
CALIFORNIA MICRO DEVICES CORPORATION
By:
/S/ JOHN E. TREWIN
John E. Trewin
Vice President and Chief Financial Officer
[logo California Micro Devices Corporation]
California Micro Devices Corporation
[picture micro chips]
Wade Meyercord, Chairman
Jeff Kalb, President & CEO
John Trewin, CFO
[logo California Micro Devices Corporation]
California Micro Devices Corporation
"This discussion contains forward-looking statements regarding future product
and market directions. Actual results may differ materially. Please refer
to various documents (e.g., 10K, 10Q) filed by the Company with the SEC that
identify risk factors that may influence actual future results."
<PAGE>
[logo California Micro Devices Corporation]
California Micro Devices Corporation
[picture micro chips]
Leading The Industry
Into A New
Generation of Passive Solutions
[logo California Micro Devices Corporation]
California Micro Devices Corporation
Company background
Looking forward
[picture Milpitas, CA facility] [picture Tempe, AZ facility]
<PAGE>
CMD HISTORY
[graph - time line of the Company]
[1980 - Venture funding as CMD
early 1980's - Thin Film Base Technology Development
1985 - 1990 IPO; Purchase Tempe Facility
1990 - 1995 First Commercial Volume; Hitachi Alliance
pre 1995 to present - 7 Advanced Thin Film Patents Filed/Granted
Thin Film Product Mix: 1980 - early 1990's: All Military/Aerospace Chips;
ramp down early 1990's to majority of Commercial.]
[logo California Micro Devices Corporation]
California Micro Devices Corporation
CMD PRODUCTS
Thin Film
Integrated Passive Solutions
Termination
Filtering
[picture - bus and chip]
[picture - micro chips]
Specialty Semiconductor
Telecom
General purpose
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
USES OF CMD PRODUCTS
Q1FY97
[graph]
PC & Peripherals - 27%
Portable Comm. - 20%
Work Stations - 16%
Fixed Comm - 13%
Networking - 6%
Instruments - 6%
Auto - 3%
Military - 3%
Medical - 3%
Other - 3%
[logo California Micro Devices Corporation]
California Micro Devices Corporation
CMD MAJOR CUSTOMERS
3COM
Acer
Apple Computer
A.T. & T.
Cardiac Pacemakers
Cisco Systems
Dell Computer
D.E.C.
DSC Communications
Ericsson
Hewlett-Packard
Hyundai
I.B.M.
Intergraph
Lucent (A.T. & T.)
Motorola
N.E.C.
Nortel
Siemens
Silicon Graphics
Sun Microsystems
Texas Instruments
Twinhead
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
STRATEGY FOR SHAREHOLDER VALUE
Build a high growth and profitability company by creating/ exploiting the
market for Integrated Passive Solutions
[logo California Micro Devices Corporation]
California Micro Devices Corporation
LOOKING FORWARD
Positioned for rapid growth
[picture - micro chips]
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
KEY MESSAGES
Integrated Passives
Solution to growing industry requirements
CMD
Leading the industry surge
Turned around and positioned for growth
Our Customers
Want plug and work solutions
[logo California Micro Devices Corporation]
California Micro Devices Corporation
[logo California Micro Devices Corporation]
California Micro Devices Corporation
INDUSTRY TREND
<PAGE>
INDUSTRY TREND
Higher Frequencies
[graph]
Clock Frequency vs. PC Generation
Clock Frequency (MHz) 0 - 200
Architecture Clock Frequency
Focus Focus
----------
----------------
200 X X
o Initial Clock Frequency
X Highest Clock Frequency
150
O
100 X
50 O
O
XO
X
0 ------------------------------
P A 3 4 P P
C T 8 8 E E
6 6 N N
T T
I .
U P
M R
O
PC Class
[logo California Micro Devices Corporation]
California Micro Devices Corporation
INDUSTRY TREND
Smaller Size - Denser Packaging
[picture]
Mainframe --- Desktop --- Laptop --- PDA
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
INDUSTRY TREND
Declining Costs - Integration
Passive Cost vs. Integration Level
[graph]
$1.80 Assumes: 32 Components
$1.60 0.5 cent per component
$1.40 3.1 cents per insertion
$1.20 0.9 cents per via for bussed structure
$1.00 Traditional
$0.80 ---------------------
$0.60 Discretes
$0.40
$0.20 ---- CMD-------------
$0.00 -------------------------------------
1 2 4 8 16 32
[logo California Micro Devices Corporation]
California Micro Devices Corporation
INDUSTRY TREND
Faster Time to Market
Impact of "Happenings" on Profit
[graph]
3.5% (Loss) 22%(Loss) 35%(loss)
100 ---xxxxx----------------------------------------------------
xxxxx
80 xxxxx
60 xxxxx
40
20
0 -----------------------------------------------------------
On Time/Cost 50% Product Cost 6 Months Late
Product Development Too High to Market
Source: McKinsey and Co.
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
INDUSTRY TRENDS
CMD's Response - P/Active Circuits
Higher Frequency / Performance
New technologies / P/Active circuits
Smaller Size
QSOP
Declining Costs
Passive and peripheral function integration
Faster Time to Market (Solutions, Not Components)
Application Specific Passive Networks (ASPN's)
[logo California Micro Devices Corporation]
California Micro Devices Corporation
CORPORATE TURNAROUND
Strategic Integration
R & D P/Active (TM)
Staffing
MIS/Financial Systems
Offshore Operations
Sales/Marketing
U.S. Operational Productivity
Recommended for ISO-9000
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
CORPORATE ORGANIZATION
[organization chart]
Chairman of the Board - Wade Meyercord
CEO/President - Jeff Kalb
VP Marketing - Nick Bacile
VP Sales Bob Filiault
General Corporate Counsel - Scott Hover-Smoot
VP & CFO - John Trewin
VP, Operations - Ari Schifrin
VP Engineering - John Jorgensen
VP HML Business Development - Zia Malik
H.R. Manager - Zareen Mohta
[logo California Micro Devices Corporation]
California Micro Devices Corporation
MARKETING STRATEGY
Focus Technology on Customer / Needs
Markets
PC, Workstations, Mobile Telecom, Networks
Customers
Top 40
Products
Terminations, Filters, Peripheral Integration
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
PRODUCTS
Strategic - P/Active
EMI / RFI Filters
LCD panel display in notebooks
Serial port / parallel port [picture bus and chip]
Keyboard / mouse interfaces
Communication systems
Terminations
Clock terminations Series, Parallel, AC,
Bus terminations Schottky Diode,
Application Specific
Peripheral Integration
Passives
Passives + active [picture - micro chips]
Actives
[logo California Micro Devices Corporation]
California Micro Devices Corporation
P/ACTIVE ATTRIBUTES
Application Specific
High Frequency Operation
High Precision Performance
ESD Protection - 2 KV or Higher
Integrated Thin Film Passive + Active Components
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
CMD STRENGTHS
TECHNOLOGY
Thin film
Thin film with CMOS/BICMOS
P/Active (TM) technologies
Patents
PRODUCTS
R/RC networks
RC with mixed signal
Semiconductors
MANAGEMENT
Strong business experience
Extensive semiconductor background
SALES & MARKETING
Who's who customer base
Worldwide manufacturing representatives
Large distributors
PHYSCIAL ASSETS
Large wafter fabrication
Capacity opportunities
FINANCE
Balance sheet
HITACHI PARTNER
R & D relationship
Future alternative source
[logo California Micro Devices Corporation]
California Micro Devices Corporation
POSITIONING THE COMPETITION
Primary competition still the traditional methods
Many thin film announcements
Potential competitors copying CMD
Thin film competition going after resistors first
KOA-Speer most active
Sampling RC's
CMD one / two generations ahead
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
FINANCIAL HIGHLIGHTS
Net Sales
[graph Fiscal Years 91 96 in Thousands]
$55,000
$50,000
$45,000
$40,000 X
$35,000
X
$30,000 X
$25,000
X X
$20,000 X
$15,000
$10,000
$ 5,000 -----------------------------------------------------------
'91 '92 '93 '94 '95 '96 '97 '98 '99 2000
*1995 - annualized from nine months data ending 3/31/95
[logo California Micro Devices Corporation]
California Micro Devices Corporation
FINANCIAL HIGHLIGHTS
Research and Development
[graph fiscal years 91 - 96 in Thousands]
$4,000
$3,500 X X
X
$3,000 X
X
$2,500 X
$2,000
$1,500
$1,000
$ 500
$ 0 ---------------------------------------------------------
'91 '92 '93 '94 '95 '96 '97 '98 '99 2000
*1995 - annualized from nine months data ending 3/31/95
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
R & D HIGHLIGHTS
Over the last 15 years, CMD spent more than $35 million in R & D
[logo California Micro Devices Corporation]
California Micro Devices Corporation
SALES & DISTRIBUTION CENTERS
35 reps and 71 distribution centers in North America
19 distributors in 13 European countries
1 distributor in South Africa
13 distributions in 12 Asian-Pacific countries
1 distributor in Australia
Mexico as distributor for Latin American countries
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
RESULTS FOR FY96/FY97
Operating Profit
[graph quarterly profits Mar 95 - Sep 96 $'s in Millions)]
1.2
1 D E
0.8 C
0.6 B
0.4 F
0.2 G
0 ---------------------------------------
-0.2 A
-0.4
(A-Mar 95; B-Jun 95; C-Sep 95; D-Dec 95; E-Mar 96; F-Jun 96; G-Sep 96)
[logo California Micro Devices Corporation]
California Micro Devices Corporation
SUMMARY BALANCE SHEET
September 30, 1996 - Unaudited
<TABLE>
Actual Proforma Actual Proforma
<S> <C> <C> <S> <C> <C>
ASSETS ($ thousands) LIABILITIES & EQUITY ($ thousands)
Cash $16,341 $ 9,341 Payables $ 2,804 $ 2,804
Receivables 3,700 3,700 Accruals 3,644 3,644
Inventories 8,079 8,079 Deferred margin 748 748
Other assets 752 752 Current debt 583 583
------- ------- ------- ------
Current assets 28,872 21,872 Current liabilities 7,779 7,779
Fixed assets 12,878 12,878 Long-term debt 7,654 7,654
Restricted cash
& other 1,427 3,427 Equity 27,744 22,744
------- ------- ------- -------
Total assets $43,177 $38,177 Total liabilities
& equity $43,177 $38,177
======= ======= ======= =======
Current ratio 3.7 2.8 Equity to debt 3.4 2.8
DSO 42 Inventory turns 2.5
Shares outstanding 10,908 10,017
</TABLE>
NOTE: Proforma numbers assume that the new tentative settlement was
finalized and funded as of September 30, 1996. Actual numbers are
based on the settlement expensed and funded in fiscal year 1995.
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
PRESENT CHALLENGES
Industry Environment
Book-to-bill < 1:1
Visibility almost non-existent
Design-Win Challenge
Longer Sell in Large Companies
Multiple constituencies - multiple agendas
Management - Company stability
Procurement - Price / supply
Engineer - Technology
Operation - Ease of manufacturing, total cost
[logo California Micro Devices Corporation]
California Micro Devices Corporation
SUMMARY
The Right Solution,
At The Right Place,
At The Right Time!
[logo California Micro Devices Corporation]
California Micro Devices Corporation
<PAGE>
[logo California Micro Devices Corporation]
California Micro Devices Corporation
The Industry Leader
In
Thin Film Passive Solutions
