Simtek Corp (SMTK)

[jonesieatl]

Simtek Mid-Third Quarter Update

Raises Q306 Revenue Guidance to $7.5 to $8.0 Million; Issues Guidance for Fourth Quarter Revenue of $9.0 to $9.3 Million; Guides First Six Months of 2007 Top Line to be Between $20 and $24 Million

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BusinessWire
09:21 a.m. 09/05/2006


COLORADO SPRINGS, Colo., Sep 05, 2006 (BUSINESS WIRE) -- Simtek Corporation (SRAM), the world's leading supplier of nonvolatile static random access memory (nvSRAM) integrated circuits announced today that it has revised upward its product revenue guidance for the third quarter to be in the range of $7.5 million to $8.0 million, up from the previous guidance of $7.2 million to $7.5 million.

The Company is experiencing stronger than anticipated design wins and new orders that are expected to be in the range of $10.5 million to $11.5 million for the third quarter. Backlog entering the fourth quarter and scheduled for delivery in the fourth quarter, is expected to be in excess of $7 million, the largest in the Company's history. The recent production programs the company has signed with Sun Microsystems and other Tier 1 storage companies are showing strength in the storage market and are driving higher volume growth of Simtek's 1 megabit device. The Company expects these programs to ramp into higher-volume production beginning in the fourth quarter of 2006.

Simtek currently expects product revenue for the fourth quarter of 2006 to be in the range of $9.0 million to $9.3 million. Total revenue for 2006 is expected to be in the range of $28 million to $30 million. Projected product revenue for the first six months of 2007 is anticipated to be between $20 million and $24 million which, if achieved, will show growth in excess of 80% over the comparable period of 2006, which was $11.2M.

Harold A. Blomquist, President and CEO stated, "We are very pleased with the progress we have made with the continued turnaround of the Company. While we are pleased with the solid results and significant progress we have achieved, we remain focused on continuing this momentum and believe we have put in place a strong team and the right infrastructure to enable the company to sustain long-term growth and operating profitability."

About Simtek Corporation

Simtek Corporation designs and markets high-speed, re-programmable, nonvolatile semiconductor memory products, for use in a variety of systems including RAID servers, high performance workstations, GPS navigational systems, robotics, copiers and printers, and networking and broadcast equipment. Information on Simtek products can be obtained from its web site: www.simtek.com; email: [e-mail]. The company is headquartered in Colorado Springs, Colorado.