SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15 (d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) December 23, 1996
SIMTEK CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 0-19027 84-1057605
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
1465 Kelly Johnson Boulevard
Colorado Springs, Colorado 80920
(719) 531-9444
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Item 5: Other Information:
The following sets forth the Registrant's Third Quarter 1996 Interim
Report which has been mailed to its shareholders:
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December 5, 1996
To Our Shareholders:
This report covers the third quarter and the first nine months of 1996.
Shareholders who desire further disclosure information may request the following
reports from the Securities and Exchange Commission or from Simtek Corporation:
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
In the third quarter 1996, the Company continued to see an increase in its 0.8
micron product availability from Zentrum Mikroelektronik Dresden GmbH ("ZMD").
The sales of the 0.8 micron product accounted for approximately 50% of the
Company's revenue in the third quarter 1996. This increase in product
availability along with shipments of the Company's 1.2 micron product, obtained
from Chartered Semiconductor Manufacturing Plc. of Singapore ("CSM"), accounted
for the Company having a positive gross margin of $614,111 in the third quarter
1996 and a positive gross margin of $1,315,309 for the nine months ended
September 30, 1996 as compared to negative gross margins of $108,180 for the
third quarter of 1995 and $315,399 for the nine months ended September 30, 1995.
Management of the Company believes that if product availability continues from
ZMD and the current yields on the 1.2 micron process at CSM continue, the
Company will continue to operate at a positive gross margin.
Simtek recorded a net profit of $50,438 based on product sales in the third
quarter of 1996. This net profit compared to a net loss of $690,733 for the same
period in 1995. The profit generated was the result of a continued increase in
customer acceptance, product availability, better gross margins and decreased
operating expenses.
The increase in customer acceptance and product availability accounted for a
313% increase in net products sales for the third quarter 1996 as compared to
the same period in 1995. The increase in net product sales for the nine month
period was 173% as compared with the same period in 1995. The product revenue of
$3,519,718 for the first nine months of 1996 was approximately 70% greater than
the total product revenue for all of 1995.
Better cost controls and decreased headcount enabled Simtek to decrease its
operating expenses by 22% in the first nine months of 1996 over the same period
in 1995.
In the third quarter 1996, the Company received no monies from ZMD under the
Cooperation Agreement it entered into in September 1995. ZMD has the right to
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convert all financing paid in 1996 into shares of Simtek's Common Stock, at the
average share price of the quarter that the monies were paid. However, ZMD's
total equity may not exceed 30% without approval of Simtek's Board of Directors.
The Company's ability to maintain profitability will depend primarily on its
ability to continue reducing manufacturing costs and increase net product sales
by increasing the availability of existing products and by the introduction of
new products. The Company believes that the Cooperation Agreement entered into
with ZMD in September 1995 has now enabled the Company to begin selling its 64
kilobit nvSRAM products based on 0.8 micron technology and that it will continue
to in the future. The Company also believes that the joint task force created
with ZMD will expedite the introduction and production of its 256 kilobit nvSRAM
products based on 0.8 micron technology.
However, the Company may require additional capital in the first quarter 1997 to
fund production and marketing of its 0.8 micron 256 kilobit nvSRAM products and
the development of other new products. The Company does not have any commitments
for such additional capital as of the date of this report.
The following Statements of Operations compare the three months and nine months
ended September 30, 1996 with September 30, 1995 and the Balance Sheets compare
September 30, 1996 with December 31, 1995.
In closing, we are pleased with the progress that Simtek has continued to make
during the third quarter 1996 in all areas of the Company's operations. We at
Simtek appreciate your continued support.
Sincerely,
/s/ Richard L. Petritz
RICHARD L. PETRITZ
Chairman and CEO
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Balance Sheets
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September 30, December 31,
1996 1995
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ASSETS
Current Assets:
Cash ................................. $ 480,569 $ 311,872
Accounts receivable - trade, net ..... 669,319 210,047
Accounts receivable - other .......... 32,878 11,072
Inventory, net ....................... 399,959 228,251
Prepaid expenses and other assets .... 24,030 19,289
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Total Current Assets ............ 1,606,755 780,531
Equipment and furniture, net ............. 240,649 344,676
Total Assets .................... $1,847,404 $1,125,207
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable ..................... $ 620,930 $ 277,277
Accrued expenses ..................... 278,005 153,593
Accrued wages ........................ 206,475 161,475
Accrued vacation payable ............. 80,213 78,956
Exchangeable notes ................... 378,551 --
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Total Current Liabilities ....... 1,564,174 671,301
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity:
Preferred stock, $1.00 par
value, 2,000,000 shares
authorized and none
issued and outstanding
at September 30, 1996
and December 31, 1995 ................ -- --
Common stock, $.01 par
value, 40,000,000 shares
authorized, 26,988,311 and
26,978,311 shares issued
and outstanding at September 30,
1996 and December 31, 1995 ........... 269,883 269,783
Additional paid-in capital ............... 29,497,514 29,496,144
Accumulated deficit ...................... (29,484,167) (29,312,021)
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Shareholders' equity ..................... 283,230 453,906
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Total Liabilities and
Shareholders' Equity .......... $ 1,847,404 $ 1,125,207
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OTC Electronic Bulletin Board Registrar and Transfer Agent
Continental Stock Transfer and Trust Company
System Symbol: 2 Broadway
SRAM New York, NY 10004
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<TABLE>
<CAPTION>
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Statement of Operations
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Three Months Ended September 30, Nine Months Ended September 30,
1996 1995 1996 1995
-------------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commission Income ............................... $ 1,810 $ 0 $ 8,556 $ 0
Product sales, net .............................. 1,550,000 375,150 3,519,718 1,301,433
------------ ------------ ------------ ------------
Total Income ................................ 1,551,810 375,150 3,528,274 1,301,433
Cost of product sales ........................... 935,889 483,330 2,204,409 1,616,832
------------ ------------ ------------ ------------
Gross Margin ................................ 614,111 (108,180) 1,315,309 (315,399)
Operating Expenses
Design, research and development ............ 251,364 324,560 726,238 1,067,052
Administrative .............................. 160,491 128,434 364,026 450,404
Marketing ................................... 156,519 133,429 420,723 416,667
------------ ------------ ------------ ------------
Total operating expenses .................. 568,374 586,423 1,510,987 1,934,123
------------ ------------ ------------ ------------
Profit (loss) from operations ............. 47,547 (694,603) (187,122) (2,249,522)
Other Income (Expense):
Royalty income .............................. 0 0 0 600,000
Interest income ............................. 5,232 4,038 11,756 21,491
Other income (expense), net ................. (2,341) (168) 3,220 5,941
------------ ------------ ------------ ------------
Total other income (expense) .............. 2,891 3,870 14,976 627,432
------------ ------------ ------------ ------------
Net profit (loss) ............................... $ 50,438 $ (690,733) $ (172,146) $ (1,622,090)
============ ============ ============ ============
Net loss per common share ....................... $ * $ (0.03) $ (0.01) $ (0.08)
============ ============ ============ ============
Weighed average number
of shares outstanding ....................... 26,980,464 21,396,468 26,980,464 21,396,468
============ ============ ============ ============
* Less than one cent per share
</TABLE>
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Directors and Officers
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Dr. Richard L. Petritz Dr. Kurt Garbrecht, Director
Chairman of the Board & CEO Zentrum Mikroelektronik Dresden GmbH
Mr. Sheldon A. Taylor, Director Dr. Klaus Wiemer, Director
Dr. Robert Keeley, Director Mr. Detlef Golla, Director
University of Colorado, Colorado Springs Zentrum Mikroelektronik Dresden GmbH
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Home Page: E-Mail
http://www.csn.net/simtek [email protected]
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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 and hereunto duly authorized.
SIMTEK CORPORATION
/s/ Richard L. Petritz
December 23, 1996 By:___________________________________
RICHARD L. PETRITZ
Chief Execuitve Officer and Chief
Financial Officer (acting)
