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) February 24, 2000
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 press release announcing financial results for 1999, dated February
20, 2000 was released by the Registrant:
Editor Contact:
Douglas Mitchell, Simtek Corp.
Phone: (719) 531-9444
Fax: (719) 531-9481
Email: [email protected]
Web Site: www.simtek.com
FOR IMMEDIATE RELEASE
SIMTEK ANNOUNCES FINANCIAL RESULTS
FOR 1999
COLORADO SPRINGS, Colorado - February 20, 2000 -- Simtek Corporation,
provider of the world's fastest re-programmable nonvolatile semiconductor
memories, announced financial results for the fourth quarter and year ending
December 31, 1999.
The company posted its first ever $2 million quarter and record annual
revenue of $7 million for 1999. Fourth quarter revenue of $2,052,734 showed 49%
growth over the same period in 1998. Total 1999 revenue of $6,992,338 compared
with $6,180,550 for 1998.
Income from operations grew substantially from a fourth quarter loss in
1998 of $151,993 to a profit of $264,302 in the fourth quarter of 1999.
Operations income for the year grew from $31,454 in 1998 to $172,112 in 1999.
Net income grew from a loss of $32,911 for the fourth quarter of 1998 to a
net profit of $278,798 for the fourth quarter of 1999. Net income was $162,781
for 1998 and $132,255 for 1999. Net income includes approximately $135,000
debenture interest expenses during 1999.
Simtek is entering the new year with almost three times the customer orders
on backlog that it had at the beginning of 1999 and new order placements remain
strong. Simtek is benefitting from the overall strength of the electronics
industry but has also had additional success during 1999 establishing business
in new applications targeted at supplying mass storage systems to corporate
computer networks and Internet service providers. Fortune 500 companies that are
manufacturing this equipment prototyped systems in 1999 and are beginning volume
production in 2000. This new business is incremental to Simtek's historic
revenue base which has recovered from the recession in Japan and Korea that
reduced Simtek's income in the second half of 1998 and the first quarter of
1999.
During 1999 Simtek introduced a family of Real Time Clock products targeted
at applications requiring very robust data protection while providing
time-of-day information to the system. The Company also introduced a family of
AutoStorePlusa nonvolatile static RAMs which include an embedded capacitor.
These parts are designed as direct plug-in replacements for battery-backed RAMs
supplied by competitors Dallas Semiconductor (NYSE: DS) and STMicroelectronics
(NYSE: STM).
Simtek supports a wide range of customers on an international basis. 47% of
1999 sales were in North America, while 17% were in Europe and 36% were in the
far east. Sales in the far east were up from 17% of total sales in 1998,
reflecting a strong recovery in Japanese manufacturing. The Company expects to
see stronger growth in Europe during 2000 as a percentage of the total business.
Individual unit shipments are dominated by 64Kbit and 256Kbit commercial
product sales. 64Kbit unit sales grew 80% from 1998 to 1999 while 256Kbit unit
sales grew 32%. Total unit shipments of 64Kbit parts far exceeded 256Kbit unit
shipments in 1999. This strongly indicates that the 64Kbit family of products is
still in its prime life cycle, while the 256Kbit products are early in their
growth curve. The Company expects 256Kbit unit shipments to closely approach
64Kbit unit shipments by year-end.
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Real-Time Clock modules and chip-sets did not make a significant
contibution to shipments in 1999 during the product introduction phase, but are
beginning early production shipments in the first half of 2000. The Company has
also initiated a design project for an improved single-chip (monolithic)
Real-Time Clock scheduled for sampling before year-end. This will provide a
lower cost upgrade path for the chip-set user.
"During the second half of 1998 business suffered dramatically with the
economic recession in the far east, slowing Simtek's business in that period and
carrying into the first quarter of 1999," stated Douglas Mitchell, Simtek's
president and CEO. "During March and April of 1999 our business really started
to rebound, to the point that we had to significantly accelerate production
loading to meet demand. It took a few months to equilibrate production to
demand, but we're there now and our business remains stronger than at any point
in Simtek's history. With this renewed market position and momentum we will be
able to more aggressively market and develop our products and technology. This
year we also plan to use our current strength to pursue new strategic
relationships within the industry."
<TABLE>
<CAPTION>
FINANCIAL RESULTS
Three Months ended Dec 31 Year ended Dec 31
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Net Sales $2,052,734 $1,374,511 $6,992,388 $6,180,550
Cost of Goods Sold 1,172,781 810,236 4,328,744 3,477,861
Gross Margin 879,953 564,275 2,663,644 2,702,689
Total Operating Expenses 615,651 716,268 2,491,532 2,671,235
Income from Operations 264,302 (151,993) 172,112 31,454
Other Income (Expense) 14,496 119,082 (39,857) 131,327
Net Income and Comprehensive 278,798 (32,911) 132,255 162,781
Income
Basic and diluted Earnings per Share 0.01 0.00 0.00 0.01
Dilutive Shares Outstanding 29,708,689 29,270,314 29,852,960 30,250,334
</TABLE>
Simtek Corporation develops, produces and markets the world's fastest re-
programmable nonvolatile semiconductor memories. "Nonvolatile" refers to the
product's ability to retain data stored in memory when electrical power is
removed from the device. Information on Simtek products can be obtained from its
web page: www.simtek.com; email: [email protected]; by calling (719) 531-9444; or
fax (719) 531- 9481. The company is headquartered in Colorado Springs, Colorado,
with international sales and marketing channels. Simtek is listed under the
symbol SRAM on the OTC Electronic Bulletin Board.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements predicting the
availability of new products during 2000 and statements by Mr. Mitchell
predicting the Company's future growth. Such statements involve risks and
uncertainties, and actual results could differ materially from the results
anticipated in such forward-looking statements as a result of a number of
factors, including, but not limited to, the risk of delays in the availability
of new products due to technological, market or financial factors including the
availability of necessary working capital, or the other factors described in the
Company's most recent Form 10-KSB and Form 10-QSB filed with the Securities and
Exchange Commission.
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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
February 24, 2000 By: /s/Douglas Mitchell
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DOUGLAS MITCHELL
Chief Executive Officer,
President and Chief Financial
Officer (acting)
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