Simtek Reports Record Revenue for Third Quarter of 2006
--------------------------------------------------------------------------------
PRNewswire
08:30 a.m. 10/26/2006
* Record Revenue for Third Quarter and First Nine Months of 2006
COLORADO SPRINGS, Colo., Oct 26, 2006 /PRNewswire-FirstCall via COMTEX/ -- Simtek Corporation (SMTE), the inventor, pioneer, and world's premier supplier of nonvolatile static random access memory (nvSRAM) integrated circuits, today announced its financial results for the third quarter and nine months ended September 30, 2006.
Key Highlights * Product revenue of $8.3 million for Q3 2006, a 242% increase over Q3 2005 and 28% over Q2 2006 * Product revenue of $19.4 million for the first nine months of 2006, a 156% increase over the same period in 2005 * Booking of new orders in the third quarter were a record $11.0 million, with a book-to-bill ratio of 1.33 * Record total revenue of $21.0 million for the first nine months of 2006, a 176% increase over 2005 * Ex-item (non-GAAP) net profit of $335,000, or $0.02 per share, for Q3 2006 versus a loss from continuing operations of $1.7 million or $(0.24) per share for Q2 2005. * Gross product margin increased to 40% for Q3 2006 from 25% a year ago and 29% for Q2 2006 * Cash balance as of September 30, 2006 was $5.4 million, including $1.8 million restricted cash * 1 megabit units shipped in Q3 2006 increased 114% from Q2 2006 Financial Results
Total revenue, consisting entirely of product sales, was $8.3 million for Q3 2006, a 242% increase over $2.4 million of product sales in Q3 2005, and a 28% increase over Q2 2006 product sales of $6.4 million. The Company reported a net loss for Q3 2006 of $0.2 million, or $(0.02) per share, compared to a net loss from continuing operations of $1.7 million, or $(0.24) per share, for Q3 2005. Excluding the effects of stock options and amortization of acquisition related costs, the Company generated an ex-item (non-GAAP) net profit of $335,000, or $0.02 per share, for Q3 2006. There were no such charges in the 2005 period.
Total revenue for the first nine months of 2006 was a record $21.0 million, including royalty revenue of $1.5 million, a 176% increase over the first nine months of 2005. Product revenue for the first nine months of 2006 was $19.4 million, a 156% increase over the $7.6 million for the first nine months of 2005. The Company reported a net loss for the nine months ended September 30, 2006 of $2.6 million, or a loss of $(0.18) per share, compared to a net loss from continuing operations of $5.6 million, or a loss of $(0.84) per share, for the same period in 2005. Excluding the effects of stock options and amortization of acquisition related costs, the ex-item (non-GAAP) net loss was $852,000, or $(0.06) per share, for the first nine months of 2006. There were no such charges in the 2005 period. All per share amounts reflect the effect of the 1 for 10 reverse stock split that was completed on October 5, 2006.
"I am pleased with the strong financial results for the third quarter and for the first nine months of 2006," said Harold Blomquist, President and Chief Executive Officer of Simtek. "During the first nine months we focused on improving gross margins, raising revenue, and increasing production capacity to support surging customer demand, especially for our 1 megabit family. During the quarter and the first nine months of 2006, we added several significant new customers and made progress on many aspects of operational effectiveness," continued Blomquist. "Our engineering team, in close collaboration with Cypress is nearing completion of the 4 megabit design and process development. We remain optimistic about our prospects for the remainder of 2006 and beyond as we continue to execute on our game plan to strengthen our position in the nonvolatile semiconductor memory marketplace. I am also pleased that the market has reacted so well to our recently completed reverse stock split and reincorporation in the State of Delaware. We believe that we are well positioned to complete in the fourth quarter of 2006 Simtek's application to one of the major national stock exchanges for listing," Blomquist concluded.
Outlook for the Fourth Quarter 2006 and First Half of 2007
Simtek currently estimates that product revenue for Q4 2006 will be in the range of $9.0 million to $9.3 million with total revenue between $9.2 million and $9.8 million due to the final installment of prepaid royalties from Cypress. Total revenue for 2006 is expected to be approximately $31 million. The Company's order backlog, scheduled for delivery in the fourth quarter, was $7.0 million at September 30, 2006 and represents a higher percentage of guided revenue than in any previous quarter. The Company expects bookings in Q4 2006 to be approximately $12 million, continuing the strong trend experienced throughout 2006. The book-to-bill ratio is expected to remain strong at nearly 1.3. Gross margin is projected to improve by 200 to 400 basis points from the third quarter to the fourth quarter of 2006, and the Company anticipates posting a net profit for the Q4 2006. On an ex-item basis the Company anticipates achieving a modest profit for the entire year 2006. The Company also reaffirmed its revenue guidance for 1H 2007 of between $20 and $24 million.
