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 1, 1998
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:
(1) The following Third Quarter 1998 Interim Report to Shareholders, dated
November 12, 1998, has been mailed by the Registrant to its Shareholders:
[OUTSIDE COVER OF REPORT]
Simtek Corporation
1465 Kelly Johnson Blvd. #301
Colorado Springs, CO 80920
[SIMTEK'S LOGO - GRAPHIC OMITTED]
THIRD
QUARTER 1998
INTERIM
REPORT
[END OF OUTSIDE COVER]
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To Our Shareholders:
This report covers the quarter ended September 30, 1998. 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
$1,464,760 for the third quarter of 1998 and $4,806,039 for the nine months
ended September 30, 1998 down from the $1,582,536 recorded for the third quarter
1997 and the $4,884,297 for the nine months ended September 30, 1997. The
product sales were from the Company's 4 kilobit, 16 kilobit, 64 kilobit and 256
kilobit nvSRAM product families. The decreases were due to lower demand for
semiconductor memories, primarily in Japan and other areas in the far east, and
increased price pressures due to unfavorable international currency valuations.
Two distributors and one direct customer of the Company's nvSRAM products
account for approximately 55% of the Company's net sales for the third quarter
1998. Products sold to distributors are re-sold to various end customers.
In the third quarter 1998, the Company purchased wafers built on 1.2 micron
technology from Chartered Semiconductor Manufacturing Plc. of Singapore
("Chartered") to support sales of its high end 64 kilobit industrial and
military devices. The Company also purchased wafers built on 0.8 micron
technology from Chartered. Sales of devices built with both types of wafers
purchased from Chartered accounted for approximately 53% of the Company's
revenue for the third quarter 1998. The balance of the Company's revenue for the
third quarter 1998, was primarily from the sales of commercial 64 kilobit and
256 kilobit finished units purchased from Zentrum Mikroelektronik Dresden GmbH
("ZMD").
Selling, general and administrative expenses saw an increase in the third
quarter of 1998 of approximately $78,000 over the third quarter 1997. Of this
increase, $80,000 was primarily due to costs associated with the installation of
the 64 kilobit and 256 kilobit product based on 0.8 micron technology into
November 12, 1998
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<PAGE>
Chartered. Administration saw an approximate $28,000 decrease which was
primarily due to not incurring costs associated with the shareholders meeting
held in 1997 and the registration statement filed in 1997 to register shares
underlying the warrants. The approximate $26,000 increase in Sales and Marketing
was primarily due to increased advertising.
The Company recorded a net income of $17,383 in the third quarter of 1998 and a
net income of $195,692 for the nine months ended September 30, 1998 as compared
to a net income of $166,079 for the third quarter of 1997 and a net income of
$363,438 for the nine months ended September 30, 1997. The decrease in net
income was primarily due to decreased revenues and increased selling, general
and administrative expenses.
The Company's ability to remain profitable 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. In the third quarter 1998, the Company continued to ship production
orders of all of its nvSRAM product families along with shipping smaller
quantities to customers interested in designing this product into its
applications. The Company is currently deciding which new or derivative product
it will develop next.
In closing, we are pleased with the progress that Simtek has continued to make
during the third quarter 1998 in all areas of the Company's operations. We at
Simtek appreciate your continued support.
Sincerely,
DOUGLAS MITCHELL
President and CEO
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<TABLE>
<CAPTION>
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Balance Sheet
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September 30, December 31,
1998 1997
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ASSETS
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<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,965,823 $ 1,475,599
Certificate of deposit 100,000 -
Accounts receivable - trade, net 1,249,227 921,798
Inventory, net 1,052,973 641,264
Deferred financing fees 11,191 -
Prepaid expenses and other 23,811 17,960
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Total current assets 4,403,025 3,056,621
Equipment and furniture, net 217,377 177,821
Deferred financing fees 63,414 -
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TOTAL ASSETS $ 4,683,816 $ 3,234,442
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LIABILITIES AND SHAREHOLDER'S EQUITY
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CURRENT LIABILITIES:
Accounts payable:
ZMD $ 87,743 $ 716,716
Other 477,568 173,325
Accrued Expenses 327,786 269,592
Accrued Wages 221,475 222,022
Accrued Vacation payable 73,959 62,401
Payable to ZMD 130,153 130,153
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Total current Liabilities 1,318,684 1,574,209
Long term debt 1,500,000 -
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Total Liabilities 2,818,684 1,574,209
SHAREHOLDER'S EQUITY:
Preferred stock, $1.00 par value; 2,000,000 shares
authorized, none issued and outstanding - -
Common stock, $.01 par value; 80,000,000 shares
authorized, 28,745,226 and 28,679,185 shares
issued and outstanding at September 30, 1998
and December 31, 1997, respectively 287,452 286,792
Additional paid-in capital 29,760,875 29,752,328
Accumulated deficit (28,183,195) (28,378,887)
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Shareholder's equity 1,865,132 1,660,233
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TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 4,683,816 $ 3,234,442
=========================================
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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
</TABLE>
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<TABLE>
<CAPTION>
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Statement of Income and Comprehensive Income
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Three Months Ended Sept 30, Nine Months Ended Sept. 30,
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
NET SALES $ 1,464,760 $ 1,582,536 $ 4,806,039 $ 4,884,297
Cost of Sales 843,025 905,393 2,667,625 2,827,961
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GROSS MARGIN 621,735 677,143 2,138,414 2,056,336
SELLING, GENERAL & ADMINISTRATIVE
EXPENSE:
Design, research and development 284,871 204,858 1,000,755 870,899
Administrative 104,923 132,612 329,328 276,036
Sales and marketing 209,112 183,095 610,759 586,759
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Total selling, general and
administrative expenses 598,906 520,565 1,940,842 1,733,694
INCOME FROM OPERATIONS: 22,829 156,578 197,572 322,642
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OTHER INCOME (EXPENSE)
Interest income, net (10,977) 12,667 7,791 39,711
Other income (expense), net 9,296 (1,546) 4,454 2,705
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Total other income (expense) (1,681) 11,121 12,245 42,416
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INCOME BEFORE INCOME TAXES 21,148 167,699 209,817 365,058
Provision for income taxes 3,765 1,620 14,125 1,620
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NET INCOME AND COMPREHENSIVE INCOME $ 17,383 $ 166,079 $ 195,692 $ 363,438
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BASIC AND DILUTED EPS $ 0.0 $ 0.01 $ 0.0 $ 0.01
========================================================
BASIC WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 28,721,138 28,571,328 28,721,138 28,571,328
EFFECT OF DILUTIVE OPTIONS 1,437,267 2,562,737 1,847,911 2,040,690
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DILUTIVE SHARES OUTSTANDING 30,158,405 31,134,065 30,569,049 30,612,018
========================================================
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Directors and Officers
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Mr. Douglas Mitchell Dr. Robert Keeley, Director
CEO, Director University of Colorado, Colorado Springs
Dr. Klaus Wiemer, Director Mr. Harold Blomquist, Director
Mr. John Heightley, Director
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</TABLE>
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
December 1, 1998 By: /s/Douglas Mitchell
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DOUGLAS MITCHELL
Chief Executive Officer
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