<PAGE>
EXHIBIT 99
SEMX CORPORATION
NASDAQ TICKER SEMX
Companies that cannot change will not be able to compete, but those that can
will be successful.
Gilbert D. Raker
Chairman
SEMX Corporation
<PAGE>
July 26, 2000
Deloitte & Touche
Fast 50
Two World Financial Center
New York, NY 10281
Mr. Gilbert Raker
Chairman, President & CEO
SEMX Corporation
1 Labriola Court
Armonk, NY 10504-1336
Dear Mr. Raker:
Congratulations! We are pleased to inform you that SEMX Corporation is one
of the 50 fastest growing technology companies in New York. As the host of
the 2000 New York Technology Fast 50, Deloitte & Touche, along with the
other sponsors of the Technology Fast 50, will recognize you and your
company at an awards event. In addition, you will be profiled in a special
insert in the Journal News and USA Today (NY Metro-Region). Your company
has also been nominated for consideration in the Technology Fast 500, which
honors the 500 fastest growing U.S. technology companies.
The Technology Fast 50 awards event will be held on Thursday, September 20,
2000, at 5:30 PM, at the Altman Building in Manhattan. Four complimentary
seats will be reserved for your company.
Again, congratulations from all of us to you and SEMX Corporation. If you
have any questions, please call Kimberly Hopkins at 212-436-3063 or e-mail
[email protected]. We look forward to seeing you September 20,2000.
Sincerely,
Barbara Horvath
Partner in Charge of Fast 50 Program
<PAGE>
BACKGROUND AND MARKETPLACE
SEMX Corporation is the leading domestic producer of heat dissipation materials
for microelectronic assemblers. The Company is gaining recognition for continued
success in meeting the needs of its target market -D Broadband Communications
Infrastructure. Producers of fiber optic devices, Internet backbone servers,
point-to-point radios and wireless base stations are particularly interested in
the thermal management and interconnect products of the Materials Group. In
addition, it has recently acquired ceramic packaging and electroless gold
plating capabilities, to enable the complete manufacture of metalized ceramic
packages and is in the process of integrating them into Polese Company. When
completed, this provides the opportunity to compete in a market segment which is
considerably larger than any which the Company has previously participated.
Furthermore, SEMX designs and produces metal preforms, fine wire, packaging
material components, seal frames, and gold ribbon. Applications for its products
are heat dispersion for powerful RISC processors: components for web servers,
routers and switches, as well as precision bridges and preforms used in wireless
communication devices and other materials used to support high bandwidth
applications. Many of the company's products are also sold to the automotive and
medical industries.
Through its Services Group, SEMX operates an international silicon wafer
polishing and reclaiming service. Reclaimed wafers are used in the evaluation
and testing of equipment and processes in semiconductor fabrication.
The Company's customers include Texas Instruments, Motorola, Ericsson, IBM,
Kyocera America, National Semiconductor, Hewlett Packard, Analog Devices,
Lucent, Visteon, Delphi Automotive Systems, SDL Inc., ST Electronics, Triton
Network Systems, Nortel Networks, Cardiac Pacemakers, Medtronics/Micro-Rel,
Egide, and Wafernet. The focus of the Company has evolved in the past few years
from a supplier of simple component-level products to a partner in the
development of critical assembled devices, enabled by recent acquisitions. This
vertical integration increased the Company's available market from $75-100
million to as much as $500 million today, forecasted to approach $1 billion
within the next year or two.
The current transformation that the Company is undergoing was initialized by
several sizable players in the communication industry. As the Company becomes a
more fully-service provider of packages and assembled products, management hopes
that Wall Street will value it at higher PE ratios than it has earned as a small
Micro-Cap. (Please refer to the following valuation chart of SEMX):
<PAGE>
RELATED INDUSTRY COMPARISONS
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Price Basic Market LTM P/E LTM
Ticker 06/30/00 Shares Cap EPS Ratio Sales
------ -------- ------ --- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Ametek AME 17.50 32.0 687 1.98 10.8 924.8
Brush Wellman, Inc. BW 15.63 16.3 357 0.43 50.9 432.2
CTS Corp. CTS 45.00 27.7 1,473 2.59 20.5 571.6
Egide * 345.00 .7 255 2.56 134.8 25.1
Kulicke and Soffa Ind., Inc. KLIC 29.69 48.7 903 1.51 12.29 517.6
Kyocera KYO 171.81 189.1 32,095 2.47 68.72 7,499.7
WJ Communications, Inc. WJCI 30.00** 54.4 2,232 NM NM 82.4
* Traded on PSE (France) exchange under Symbol No. 7237. Currency estimated in Eurodollars.
** Price as of close on IPO date 08/18/00.
--------------------------------------------------------------------------------------------------------------------------------
SEMX CORP. SEMX 6.88 6.2 33 0.56 9.5 62.0
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
For more detailed information on the Company's subsidiaries, analytical
coverage, management and selected financial information, please see the
following pages.
<PAGE>
BROADBAND COMMUNICATIONS INFRASTRUCTURE PYRAMID
Content Providers: Excite
AOL
Yahoo
Service Providers: AT&T Cable Services
PSINet
Cable & Wireless
Scientific Atlanta
Hughes Network Systems
System Integrators: Alcatel
Lucent Technologies
Nokia
Motorola
Ericsson
Nortel Networks
System Manufacturers: IBM
Triton
JDS Uniphase
Hewlett Packard
Cisco Systems
Sun
Harris
Devices, Subsystems: Broadcom
SDL
RF Micro-Devices
Conexant
ST Electronics
M/A Com
Anadigics
Agilent Technologies
Texas Instruments
Device, Circuit Enclosures: NTK
Olin Aegis
SEMX
Kyocera
Egide
Materials, Components: Kulicke @ Soffa Industries, Inc.
The Berguist Company
SEMX
Brush Wellman Engineering Materials
AAVID
<PAGE>
EXECUTIVE OPERATING MANAGEMENT
GILBERT D. RAKER - Chairman, President and Chief Executive Officer, has
successfully led SEMX from a single facility, privately held business to a
publicly held corporation with a worldwide presence. Prior to his taking the
helm as CEO of SEMX in 1990, he was a Managing Director of Ditri Associates,
Inc. (DAI), a buyout firm, which he joined in 1987.
Prior to joining DAI, he was Executive Vice President of CPC Holdings/Kenmare
Capital Corporation, another leveraged buyout concern, where he negotiated and
structured acquisitions, and oversaw financial management and controlled the
portfolio of operating businesses. Prior to that time he was Director and
Executive Vice President, Chief Operation and Chief Financial Officer of
Combustion Equipment Associates, a New York Stock Exchange listed manufacturing
company, where he had significant responsibility for the reorganization of the
company in a Chapter 11 proceeding. Mr. Raker also served as Vice President of
Finance for Barber Oil Corporation, a New York Stock Exchange listed energy and
natural resource company, Director of Venture Capital activities for Capital
Management Corporation and a consultant for Touche Ross & Co.
He received a BA degree in Chemistry and Mathematics from Eastern Baptist
College in 1965 and a MBA degree in Production Management from Syracuse
University and has completed all course work for a Ph.D. in Finance at Syracuse
University. He is a member of Beta Gamma Sigma.
FRANK POLESE - Vice Chairman of SEMX since January 1996 and a Director of the
Company since July 1993. Mr. Polese also served as President of SEMX between
January, 1994 and December 1995. Mr. Polese has served since August 1991 as
President of Polese Company, Inc., a California corporation that was acquired by
SEMX on May 27, 1993, prior to which Mr. Polese was its sole shareholder. Prior
to founding Polese Company, he was a Manufacturers' Representative specializing
in materials and manufactured products incorporated into microelectronics
packages for the electronics industry. Frank Polese was recently appointed
President of the Materials Group, which consist of Polese Company San Diego, CA
and Semiconductor Packaging Materials Company, Armonk, NY.
RICHARD BROWN - President, American Silicon Products, Inc., joined ASP in 1995
bringing over 20 years of financial experience to the company. He last served as
CFO of a venture capitol firm and held a variety of positions including Director
of Risk and Asset Management, Director of Corporate Cost and Asset Accounting,
and Manager of Corporate Financial Analysis and Budgets during a 16-year career
with Kendall Company.
CHARLES COCHRAN - President, Semiconductor Packaging Materials Co., Inc. since
June 2000. He initially joined SEMX Corporation in 1995 as the Vice President of
Sales and Marketing for Polese Company where he was instrumental in tripling the
Company's monthly sales revenue within his first year. After serving five years
as an officer in the U.S. Marine Corps, he began a career in 1970 in the
expanding Silicon Valley as a staff engineer at Hewlett Packard; he subsequently
transitioned into Sales and Marketing management for a total of eleven years at
HP. Mr. Cochran's combination of sales and engineering expertise in the computer
and semiconductor industries continued during the 1980Os when he was involved
with several digital signal processing (DSP) and semi conductor related
businesses. He holds as BS degree in Mechanical Engineering from Purdue
University.
<PAGE>
Research Coverage of SEMX Corporation
Rodman & Renshaw, Inc.
Barry Bryant
Telephone: 212-356-0506
1250 Broadway
14th Floor
New York, NY 10001
Nymble Investor
David Miller
www.nymbleinvestor.com
8315 Lake City Way, N.E.
PMB-171
Seattle, WA 98115
LSGI Advisors, Inc.
Joe Dancy
Telephone: 972-780-1805
1007 Beaver Creek Drive
Duncanville, TX 75137
Nate's Notes
Nate Pile
Telephone: 707-433-7903
PO Box 667
Healdsburg, CA 95448
*All of the above during the last three years either own stock, make a market in
SEMX or have participated in a financing for the Company.
<PAGE>
THERMAL MANAGEMENT PRODUCTS
The dramatic growth in Wireless and Internet infrastructure build out continues
to drive worldwide demand for higher performance and increased bandwidth. As a
result, there are ever increasing requirements for Polese's thermal management
materials and products. Our patented products are key components for the device
and system manufacturers supporting the current industry expansion. Polese's
customer focus and close ties with industry leaders have resulted in design wins
with major manufacturers of cellular base stations, fiber optic and laser diode
assemblies, wireless point-to-point communication systems and Internet servers
and routers.
Polese's state-of-the-art manufacturing facility offers a complete solution for
the design, development, fabrication, plating and assembly required to support
the proprietary designs of our customers. Complete in-house control of all
processes provides the customer with the highest quality in the industry from
prototyping through high volume manufacturing.
Polese's products and services include thermal management materials and
assembled ceramic products utilizing Tungsten Copper, Moly Copper, Aluminum
Silicon Carbide (AlSiC), Silver and Carbon based composites, as well as
additional advanced materials currently under development. By adding solder,
braze assembly and multilayer ceramic technology to the strong base of thermal
management materials and electronic grade plating, Polese is unique in its
ability to provide cost effective value added assemblies. This not only
simplifies the supply chain, but offers the customer more flexibility and
interaction in the design and manufacture of their product.
Markets
-------
Additional value-added products emerging from our core materials technology
include assemblies for high power wireless point-to-point and
point-to-multipoint radio systems, laser diode mounts and fiber optic
assemblies. The Company has established strategic partnerships with major
players in each of these markets which are allowing Polese to share in the
expansion of the worldwide communications infrastructure.
Radio frequency (RF) power transistors make up a key component in wireless base
stations. To meet the increasing cost and performance demands, LDMOS technology
was invented to ultimately replace bipolar devices, which require costly and
potentially toxic beryllium oxide (BeO) substrates. As a result, Polese's
thermal management materials become the critical component in packaging such
devices, and a new growth opportunity for Polese assembled products. LDMOS
packaging opportunities represent one of several value-added services Polese
introduced during 1999 which will continue to expand in 2000. Recent investments
in next generation ("Wideband") mobile wireless spectrum have begun to
accelerate the need for high volume, cost effective infrastructure. Radio
frequency (RF) power transistors make up a key component in wireless base
stations. LDMOS technology was invented in the early 90's to provide lower cost,
higher performance devices, making Polese's thermal management materials the
critical packaging component. The Company continues to work closely with the
leaders in the industry to develop and produce high volume, cost effective
products.
Today, our customers in the broadband Wireless and Internet market must react
more quickly than ever before as "time to market" and strong global competition
force them to find suppliers that are strategic partners. Polese's commitment
<PAGE>
has always been to exceed our customer's expectations and to react quickly
whenever asked. This commitment has allowed Polese to develop a strategic
relationship with its customers and has allowed us to expand with the market and
continue our industry leadership and profitable growth.
MICROELECTRONIC PACKAGING MATERIALS
Semiconductor Packaging Materials (SPM) is a diverse manufacturer of specialty
metal products used in the assembly of microelectronic packages. SPM's products
are currently divided into three groups: bonding wire and ribbon, metal
stampings and tape on reel packaging.
SPM produces various types of bonding wire and ribbon made from gold, aluminum,
aluminum/silicon, solder, copper, nickel and other materials. These products are
manufactured to tight specifications giving the customer optimal results in
their applications. Bonding wire and ribbon are used to conduct or regulate
current between a semiconductor chip and the external circuitry.
SPM's recent global expansion has enhanced its customer base, with two offshore
facilities, located in Casablanca, Morocco and Penang, Malaysia, that are
primarily focused on rapid expansion in the wire area. The expectations are that
additional products will be produced in the near future at these facilities.
The Moroccan facility has contracted with one of its major customers to support
their growth as a local supplier. In addition, using Morocco as a base makes SPM
very competitive and attractive to the European market. Heavy aluminum wire and,
very shortly, gold wire will be supplied from this facility.
Asia is the key area for worldwide wire bonding. There is a high demand for this
type of wire used throughout the region. Our Malaysian facility has targeted the
China market for aluminum/silicon wire. The potential for additional wire growth
for heavy aluminum and gold wire is also very strong throughout Asia.
Precision metal stampings and strip are used in a wide range of applications
including soldering, interconnects, heat sinking, die attach and wire bond pads,
all used in various microelectronic packages. SPM manufactures stampings in a
variety of materials to meet our customers' needs. Materials range from solders
(both precious and non-precious) to braze alloys to clad materials. SPM's
in-house cladding operation gives us the capability to control quality, pricing
and turnaround time. Along with an extensive tool list and on-site tooling
capability, SPM is a strong presence in the stamping industry.
Our tape on reel product line is focused on supporting pick and place equipment
for surface mount assembly operations. The primary product being taped are wire
bond pads we produce for the automotive industry. In addition to taping our own
stamped parts, SPM has successfully solicited taping work from other companies,
including metal stampers, makers of ceramic substrates, connector manufacturers
and various other industries.
SPM's very exacting packaging of these parts, including orientation and
difficult placement, have made tape on reel packaging a key growth area for the
company. We have also expanded into packaging preforms into waffle pack. SPM has
the ability to package a large range of sizes including very small and very thin
parts that are then used on automated assembly lines.
<PAGE>
Our latest quality achievement has been QS9000 certification, which supports our
strong involvement with the automotive industry. SPM services such companies as
General Motors (Delphi Electronics), Visteon (Ford), and Motorola AIEG among
others. SPM is a truly global supplier with a well-earned reputation for
delivering quality products at reasonable prices.
WAFER RECLAIM SERVICES
The Services Group, which is cyclical, primarily reclaims silicon test wafers
worldwide for the semiconductor industry. In a market that management believes
is poised for a cyclical upturn, ASP is well positioned to deliver quality
reclaimed silicon test wafers for evaluating and testing equipment, as well as
process monitoring during chip fabrication. ASP operates facilities in North
America, Europe and Asia with a workforce of more than 200 highly dedicated and
trained professionals.
In particular, the Asian market is moving faster than any other region in the
world to add capacity, increase capital spending and grab worldwide market
share, according to SEMI. At the heart of this bullish outlook, ASP's majority
owned Singapore facility, International Semiconductor Products Co., has been
operating at breakneck speed to deliver silicon wafers at cost-effective prices
to companies such as Chartered Semiconductor (CSM) and Winbond.
ASP and its sister companies in Europe and Singapore continually update their
facilities and equipment to participate as major players in the industry.
Upgrading clean rooms to Class 1 and Class 10 levels and expanding the deionized
water systems in the European facility are only part of 2000's capital
investment strategy. Although all ASP locations are ISO 9002 certified, plans
are also underway to achieve QS9000 certification in its U.S. facility by mid
2001. This will provide a distinct advantage for much of ASP's customer base
that is involved with the automotive industry.
In addition to providing reclaim services to the semiconductor industry, ASP has
also begun to provide "one-stop shopping" to many of its customers who require
film deposition services following the reclaim process. This additional service
is outsourced to sub-contractors by ASP, thereby providing more value-add
services to its customer base.
<PAGE>
SEMX Corporation, through its Materials Group, manufactures specialty materials
and value added assemblies for microelectronic assemblers. It specializes in
thermal management and interconnect products for the communications industry,
i.e., wireless, Internet infrastructure and fiber optic companies. Through its
Services Group, SEMX reclaims silicon test wafers for the semiconductor
industry. Most of the Company's facilities are ISO 9000 certified and hold many
industry quality awards. Products and services are provided on a worldwide
basis. MANAGEMENT BELIEVES THAT THE COMPANY IS UNDERVALUED IN THE MARKET BECAUSE
IT IS GOING THROUGH A TRANSFORMATION TO POSITION IT FOR FUTURE GROWTH.
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
FY 1998* FY 1999* 1999* 2000 % CHANGE
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SALES:
------------------------------------------------------------------------------------------------------------
Materials Group $29.5 $44.6 $20.6 $24.7 19.9%
------------------------------------------------------------------------------------------------------------
Services Group 18.4 16.8 8.2 9.4 14.6
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TOTAL $47.9 $61.4 $28.8 $34.1 18.4%
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------------------------------------------------------------------------------------------------------------
DEBT/EQUITY $2.24 $0.88 $0.99 $0.78
(PER DOLLAR)
------------------------------------------------------------------------------------------------------------
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BOOK VALUE PER COMMON SHARE $3.98 $5.09 $5.00 $5.14
------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------
CLOSING STOCK PRICE 2 7/8 7 7/16 3 1/8 6 7/8
------------------------------------------------------------------------------------------------------------
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SALES/MARKET CAP: $3.79 $1.41 $1.64 $0.80
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</TABLE>
* Excludes sales from its connector business which was sold in February 1999.
Statements in this Corporate Fact Sheet & Profile that are not historical facts,
are forward-looking statements that involve risks and uncertainties. These
statements may include but are not limited to those relating to the company's
outsourcing growth strategy. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in the
forward-looking statements in this release, see the Risk Factors section in the
company's 10-K for the year ended December 31, 1999 filed with the Securities
and Exchange Commission
<PAGE>
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
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REVENUE: 1995 1996 1997 1998 1999
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Materials Group $ 19,923 $ 33,140 $ 48,029 $ 47,524 $ 46,666
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Services Group 8,141 12,887 23,047 18,379 16,858
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TOTAL $ 28,064 $ 46,027 $ 71,076 $ 65,903 $ 63,524
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GROSS PROFIT:
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Materials Group $ 5,982 $ 9,588 $ 14,844 $ 9,542 $ 17,318
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Services Group 4,401 5,722 5,533 3,236 3,888
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TOTAL $ 10,383 $ 15,310 $ 20,377 $ 12,778 $ 21,206
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NET INCOME (LOSS) $ 2,526 $ 3,805 $ 3,793 $ (11,958) $ 7,383
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EARNINGS (LOSS) PER COMMON SHARE:
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Basic $ .53 $ .64 $ .62 $ (1.98) $ 1.22
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Diluted $ .50 $ .62 $ .61 $ (1.98) $ 1.19
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Book Value per common share $ 4.72 $ 5.34 $ 5.87 $ 3.98 $ 5.09
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STOCK PRICE:
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High 14 1/4 17 7/8 14 1/2 9 1/2 8
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Low 5 3/4 7 1/4 7 2 1/16 1 3/8
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WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES:
-------------------------------------------------------------------------------------------------------------------------------
Basic 4,784 5,968 6.070 6,054 6,047
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Diluted 5,064 6,170 6,232 6,054 6,223
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</TABLE>
Consulting For Strategic Growth, Ltd.
Stanley Wunderlich
Chairman
Telephone (800) 625-2236
Mobile (516) 729-3714 .
Fax (516) 625-4523
[email protected]
INVESTOR RELATIONS CONTACT:
Richard P. Graves
MANAGER INVESTOR RELATIONS
Phone: (914) 273-5500
www.semx.com
