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) June 15, 1999
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 First Quarter 1999 Interim Report, dated May 17, 1999,
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]
FIRST
QUARTER 1999
INTERIM REPORT
[END OF OUTSIDE COVER]
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To Our Shareholders:
This report covers the quarter ended March 31, 1999. 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
$1,368,637 for the first quarter of 1999 down from the $1,539,331 recorded for
the first quarter 1998. The product sales were from the Company's 4 kilobit, 16
kilobit, 64 kilobit and 256 kilobit nvSRAM product families. The decrease was
due primarily to a decrease in sales from the Company's high end industrial and
military products and a decrease of product demand in the European market.
The Company saw a decrease of approximately 7% in gross margins in the first
quarter 1999 as compared to the first quarter 1998. This decrease in gross
margin was due primarily to a decrease in product sales from the high end
industrial and military products.
Total other operating expenses saw no material change in the first quarter 1999
as compared to the first quarter 1998. Research and Development saw an
approximate $13,000 increase which was primarily due to costs incurred for
future product development. Administration saw a decrease of approximately
$9,000 which was due to a headcount decrease. Sales and Marketing saw an
approximate decrease of $5,000. This decrease was primarily the net effect of an
increase in headcount and a decrease in advertising.
The Company recorded a net loss of $68,387 in the first quarter of 1999 as
compared to a net income of $125,021 for the first quarter of 1998. The decrease
was due to decreased product sales and gross margins.
May 17, 1999
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The Company's ability to restore profitability will depend primarily on its
ability to continue reducing manufacturing costs and increase net product sales
by increasing the availability of existing products, by the introduction of new
products and by expanding its customer base. In the first quarter 1999, the
Company introduced its Real Time Clock technology which combines its nvSRAM's
with a miniature capacitor- powered oscillator/counter that eliminates the need
for a back-up battery when system power is lost. The Company is currently
deciding which new or derivative product it will develop next.
The following Statements of Operations compare the three months ended March 31,
1999 with the three months ended March 31, 1998. The Balance Sheet is shown as
of March 31, 1999 and December 31, 1998.
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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March 31, December 31,
1999 1998
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ASSETS
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<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,744,916 $ 2,149,820
Certificate of deposit, restricted 351,888 100,000
Accounts receivable - trade, net 905,276 744,754
Inventory, net 949,765 915,905
Prepaid expenses and other 42,364 47,703
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Total current assets 3,994,209 3,958,182
EQUIPMENT AND FURNITURE, net 189,567 221,119
OTHER ASSETS 57,818 60,616
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TOTAL ASSETS $ 4,241,594 $ 4,239,917
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LIABILITIES AND SHAREHOLDER'S EQUITY
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CURRENT LIABILITIES:
Accounts payable: $ 286,348 $ 251,015
Accrued expenses 219,023 232,837
Accrued wages 221,475 222,948
Accrued vacation payable 86,495 70,743
Payable to ZMD 130,153 130,153
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Total current Liabilities 943,494 907,696
CONVERTIBLE DEBENTURES 1,500,000 1,500,000
COMMITMENTS AND CONTINGENCIES
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, 28,955,226 and 28,745,226 shares
issued and outstanding at March 31, 1999 and
December 31, 1998, respectively 289,552 287,452
Additional paid-in capital 29,793,041 29,760,875
Accumulated deficit (28,284,493) (28,216,106)
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Shareholder's equity 1,798,100 1,832,221
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TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 4,241,594 $ 4,239,917
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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
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FOR THE QUARTERS ENDED
MARCH 31,
1999 1998
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<S> <C> <C>
NET SALES $ 1,368,637 $ 1,539,331
Cost of sales 819,396 809,211
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GROSS MARGIN 549,241 730,120
OPERATING EXPENSES:
Design, research and development 312,926 299,400
Administrative 106,348 115,162
Marketing 187,743 192,564
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Total operating expenses 607,017 607,126
INCOME (LOSS) FROM OPERATIONS: (57,776) 122,994
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OTHER INCOME (EXPENSE)
Interest income (expense), net (10,019) 14,417
Other income (expense), net (592) (2,030)
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Total other income (expense) (10,611) 12,387
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NET INCOME (LOSS) BEFORE TAXES (68,387) 135,381
Provision for income taxes - 10,360
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NET INCOME (LOSS) $ (68,387) $ 125,021
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BASIC AND DILUTED EPS $ 0.00 $ 0.00
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BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 28,828,448 28,695,916
EFFECTIVE OF DILUTIVE OPTIONS - 2,142,302
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DILUTIVE SHARE OUTSTANDING 28,828,448 30,838,218
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Directors and Officers
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Mr.Douglas Mitchell Mr. Harold Blomquist, Director
CEO, Director
Dr. Klaus Wiemer, Director Mr. Robert Keeley, Director
Mr. John Heightley, Director
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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
June 15, 1999 By: /s/Douglas Mitchell
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DOUGLAS MITCHELL
Chief Executive Officer,
President and Chief Financial
Officer (acting)
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