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 19, 1997
SIMTEK CORPORATION
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(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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone, including area code: (719) 531-9444
Not applicable
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Former name or former address, if changed since last report
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Item 5: Other Information
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The following Third Quarter 1997 Interim Report, dated November 20, 1997,
has been mailed by the Registrant to its shareholders:
[OUTSIDE COVER OF REPORT]
Simtek Corporation
1465 Kelly Johnson Blvd. #301
Colorado Springs, CO 80920
[GRAPHIC OMITTED]
THIRD
QUARTER 1997
INTERIM REPORT
[END OF OUTSIDE COVER OF REPORT]
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November 20, 1997
To Our Shareholders:
This report covers the quarter ended September 30, 1997. 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-KSB and Quarterly Reports on Form 10-QSB.
Simtek Corporation ("Simtek" or the "Company") recorded net product sales of
$1,582,536 for the third quarter of 1997 and $4,884,297 for the nine months
ended September 30, 1997 up from the $1,550,000 recorded for the third quarter
1996 and the $3,519,718 for the nine months ended September 30, 1996. The
product sales were from the Company's 4 kilobit, 16 kilobit, 64 kilobit and 256
kilobit nvSRAM product families. One distributor and one direct customer of the
Company's nvSRAM products account for more than 47% of the Company's net sales
for the third quarter 1997.
In the third quarter 1997, the Company increased its gross margins as a percent
of revenue from approximately 40% for the third quarter 1996 to approximately
43% for the third quarter 1997. The Company also saw an increase in its gross
margins as a percent of revenue from approximately 37% for the nine months ended
September 30, 1996 to approximately 42% for the nine months ended September 30,
1997. These increases in gross margin are due to the Company shipping 64 kilobit
commercial product based on 0.8 micron technology as compared to shipping 64
kilobit commercial product based on 1.2 micron technology in the same periods in
1996. The Company continued to ship its high end industrial and military
business from product built on 1.2 micron technology.
Selling, general and administrative expenses saw a decrease for the third
quarter 1997 as compared to the third quarter 1996. This decrease was due
primarily to better cost controls. Selling, general and administrative expenses
saw a dollar increase for the nine months ended September 30, 1997 as compared
to the nine months ended September 30, 1996. However, these expenses decreased
when viewed as a percent of net revenue from 43% for the nine months ended
September 30, 1996 as compared to 35% for the nine months ended September 30,
1997. The dollar increase was due primarily to increased advertising, printing,
sales commissions and basic overhead.
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The Company recorded a net income of $166,079 in the third quarter of 1997 and a
net income of $363,438 for the nine months ended September 30, 1997 as compared
to a net income of $50,438 for the third quarter of 1996 and a net loss of
$172,146 for the nine months ended September 30, 1996. This was because of
increased product sales, increased gross margins and better internal cost
controls.
The Company may require additional capital to fund production and marketing of
its 0.8 micron 256 kilobit nvSRAM 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. However, the Company filed an S-3 Registration Statement, that
became effective on October 14, 1997, to register the shares underlying the
warrants that were shown outstanding as of December 31, 1996 in the Company's
Form-10KSB. This may make possible the raising of capital by the exercising of
some or all of these warrants. Simtek's Board of Directors passed a resolution
on October 24,1997 extending the exercise date of the warrants that were to
expire on October 26, 1997 to May 31, 1998. The terms and conditions of all the
other warrants remain the same.
The following Statements of Operations compare the quarter and nine months ended
September 30, 1997 with the quarter and nine months ended September 30, 1996 and
the Balance Sheets compare September 30, 1997 with
December 31, 1996.
In closing, we are pleased progress that Simtek has continued to make during the
third quarter 1997 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 Sheet
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SEPTEMBER 30, DECEMBER 31,
1997 1996
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ASSETS
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<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,151,137 $ 964,456
Accounts receivable - trade, net 897,935 593,378
Inventory, net 400,424 327,221
Prepaid expenses and other 16,122 25,850
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Total current assets 2,465,618 1,910,905
EQUIPMENT AND FURNITURE, net 209,525 229,008
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TOTAL ASSETS $ 2,675,143 $ 2,139,913
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
Accounts payable:
ZMD $ 384,797 $ 290,957
Other 134,440 212,279
Accrued Expenses 510,191 349,654
Accrued Wages 221,475 222,136
Accrued Vacation payable 59,034 86,444
Payable to ZMD 130,153 130,153
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Total current liabilities 1,440,090 1,291,623
SHAREHOLDER'S EQUITY:
Preferred stock, $1.00 par value; 2,000,000 shares authorized,
none issued and outstanding -- --
Common stock, $.01 par value; 40,000,000 shares authorized,
28,679,185 and 28,506,685 shares issued and outstanding
at September 30, 1997 and December 31, 1996 286,792 285,067
Additional paid-in capital 29,752,328 29,730,728
Accumulated deficit (28,804,067) (29,167,505)
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Total shareholder's equity 1,235,053 848,290
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TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 2,675,143 $ 2,139,913
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OTC Electronic Bulletin Board Registrar and Transfer Agent
System Symbol: Continental Stock Transfer and Trust
SRAM 2 Broadway
New York, NY 10004
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<CAPTION>
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Statement of Operations
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
NET SALES $ 1,582,536 $ 1,550,000 $ 4,884,297 $ 3,519,718
Cost of Sales 905,393 935,889 2,827,961 2,204,409
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GROSS MARGIN 677,143 614,111 2,056,336 1,315,309
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE:
Design, research and development 204,858 251,364 870,899 726,238
Administrative 132,612 160,491 276,036 364,026
Marketing 183,095 156,519 586,759 420,723
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Total selling, general
and administrative expense 520,565 568,374 1,733,694 1,510,987
INCOME (LOSS) FROM OPERATIONS: 156,578 45,737 322,642 (195,678)
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OTHER INCOME (EXPENSE):
Interest income, net 12,667 5,232 39,711 11,756
Other income(expense), net (1,546) (531) 2,705 11,776
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Total other income 11,121 4,701 42,416 23,532
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NET INCOME (LOSS) BEFORE TAXES $ 167,699 $ 50,438 $ 365,058 $ (172,146)
Provisions for income taxes 1,620 -- 1,620 --
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NET INCOME (LOSS) $ 166,079 $ 50,438 $ 363,438 $ (172,146)
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Net income (loss) per common share $ 0.01 $ * $ 0.01 $ (.01)
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Weighted average number of shares outstanding 28,571,328 26,980,464 28,571,328 26,980,464
======================================================
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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
Formfactor
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.simtek.com [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 19, 1997 By:_______________________________________
RICHARD L. PETRITZ
Chief Executive Officer and Chief
Financial Officer (acting)
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