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): October 23, 1996
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)
1465 Kelly Johnson Boulevard
Colorado Springs, Colorado 80920
----------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (719) 531-9444
<PAGE>
Item 5: Other Information:
- ------ -----------------
The following sets forth the registrant's Second Quarter 1996 Interim
Report which has been mailed to its shareholders:
To Our Shareholders: September 29, 1996
This report covers the second quarter and the first six 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.
Simtek recorded its first net profit of $12,122 based on product sales in the
second quarter of 1996. This net profit compared to a net loss of $220,524 for
the same period in 1995. The profit generated was the result of four factors 1)
increased customer acceptance of nvSRAM products, 2) increased yields on 1.2
micron product 3) the first shipment of 0.8 micron units in late June and 4)
better cost controls.
The increases in customer acceptance and yields accounted for a 196% increase in
net products sales for the second quarter 1996 as compared to the same period in
1995. The increase in net product sales for the six month period was 113% as
compared with the same period in 1995. The product revenue of $1,969,718 for the
first six months of 1996 was 97% of the total product revenue for all of 1995.
The Company continued to see an increase in yields on its 1.2 micron process at
Chartered Semiconductors Pte. Ltd. ("Chartered") in the second quarter 1996 and
also began to ship its first 0.8 micron units from Zentrum Mikroelektronik
Dresden GmbH ("ZMD") in late June 1996. This yield increase and the shipment of
0.8 micron product resulted in a lower cost of goods, which in turn led to a
positive gross margin greater than 35% for the six month period. This compared
to a negative gross margin of approximately 22% for the same period in 1995.
Management of the Company believes that if Chartered continues to maintain the
current yields on the 1.2 micron process along with the 0.8 micron product the
Company is currently receiving from ZMD, the Company will continue to operate at
a positive gross margin.
Better cost controls and decreased headcount enabled Simtek to decrease its
operating expenses by 30% in the first six months of 1996 over the same period
in 1995.
In the second quarter 1996, the Company received $169,060 from ZMD under the
Cooperation Agreement it entered into in September 1995. ZMD has the right to
convert all financing paid in 1996 into shares of the Simtek's Common Stock, at
the average share price of the quarter that the monies were paid. However, ZMD's
total equity will not exceed 30% without approval of Simtek's Board of
Directors.
<PAGE>
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.
Management of the Company anticipates that the proceeds from the ZMD Cooperation
Agreement entered into in September 1995 and revenue generated from sales of
products will last through the end of the third quarter of 1996. The Company may
require additional capital in the fourth quarter 1996 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 six months
ended June 30, 1996 with June 30, 1995 and the Balance Sheets compare June 30,
1996 with December 31, 1995.
In closing, we are pleased with the progress that Simtek has continued to make
during the second quarter 1996 in all areas of the Company's operations. We at
Simtek appreciate your continued support.
Sincerely,
RICHARD L. PETRITZ
Chairman and CEO
<PAGE>
- --------------------------------------------------------------------------------
Balance Sheets
- --------------------------------------------------------------------------------
June 30, December 31,
1996 1995
---------- ------------
ASSETS
Current Assets:
Cash............................................ $ 357,890 $ 311,872
Accounts receivable - trade, net................ 455,830 210,047
Accounts receivable - other .................... 31,608 11,072
Inventory, net.................................. 214,761 228,251
Prepaid expenses and other assets .............. 33,864 19,289
----------- -----------
Total Current Assets...................... 1,093,953 780,531
Equipment and furniture, net........................ 267,160 344,676
Total Assets.................................... $ 1,361,113 $ 1,125,207
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable................................ $ 315,257 $ 277,277
Accrued expenses................................ 163,709 153,593
Accrued wages................................... 191,475 161,475
Accrued vacation payable........................ 80,799 78,956
Exchangeable notes.............................. 378,551 -
----------- -----------
Total Current Liabilities...................... 1,129,791 671,301
Research and development liability.................. - -
Prepaid royalty..................................... - -
----------- -----------
Total Liabilities............................... 1,129,791 671,301
Commitments and contingencies - -
Shareholders' Equity:
Preferred stock, $1.00 par value,
2,000,000 shares authorized
and none issued and
outstanding at June 30, 1996
and December 31, 1995............................ - -
Common stock, $.01 par value,
40,000,000 shares authorized
26,978,311 shares issued and
outstanding at June 30, 1996
and December 31, 1995............................ 269,783 269,783
Additional paid-in capital.......................... 29,496,144 29,496,144
Accumulated deficit................................. (29,534,605) (29,312,021)
----------- -----------
Shareholder's equity................................ 231,322 453,906
----------- -----------
Total Liabilities
and Shareholders' Equity........................... $ 1,361,113 $ 1,125,207
=========== ===========
- --------------------------------------------------------------------------------
OTC Electronic Bulletin Board Registrar and Transfer Agent
Continential Stock Transfer and Trust Company
System Symbol: 2 Broadway
SRAM New York, NY 10004
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Statement Of Operations
- ---------------------------------------------------------------------------------------------------------
Three Months ended June 30, Six Months Ended June 30,
1996 1995 1996 1995
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Commission Income.................... $ 2,464 $ 0 $ 6,747 $ 0
Product sales, net................... 1,158,624 391,863 1,969,718 926,283
------------ ------------- ------------- -------------
Total Income.................... 1,161,088 391,863 1,976,465 926,283
Cost of product sales................ 712,707 543,893 1,268,519 1,133,503
------------ ------------- ------------- -------------
Gross Margin .................... 445,917 (152,030) 701,199 (207,220)
Operating Expenses
Design, research................ 227,524 372,275 474,875 742,492
Administrative ................. 78,111 156,917 203,535 321,970
Marketing ...................... 137,838 148,934 264,204 283,238
------------ ------------- ------------- -------------
Total operating expenses... 443,473 678,126 942,614 1,347,700
------------ ------------- ------------- -------------
Profit (loss) from
operations................ 4,908 (830,156) (234,668) (1,554,920)
Other Income (Expense):
Royalty income.................. 0 600,000 0 600,000
Interest income................. 3,124 6,557 6,524 17,453
Interest expense................ 0 0 0 0
Other income (expense), net..... 4,090 3,075 5,560 6,109
----------- ------------- ------------- -------------
Total other income
(expense)................. 7,214 609,632 12,084 623,562
------------ ------------- ------------- -------------
Net profit (loss).................... $ 12,122 $ (220,524) $ (222,584) $ (931,358)
============ ============= ============= =============
Net loss per common share............ $ 0.00 $ (0.01) $ (0.01) $ (0.04)
============ ============= ============= =============
Weighted average number
of shares outstanding............ 26,978,311 21,193,669 26,978,311 21,193,669
============ ============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
Directors and Officers
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
Home Page: E-Mail
http://www.csn.net/simtek [email protected]
<PAGE>
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
October 23, 1996 By:________________________________________
RICHARD L. PETRITZ
Chief Execuitve Officer and Chief
Financial Officer (acting)
