U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 30, 1996 California Micro Devices Corporation --------------------------------------------------- (Exact name of registrant as specified in its charter) California 33-399-77 94-2672609 -------------- --------------- ----------- State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 215 Topaz Street, Milpitas, CA 95035-5430 ------------------------------ ----------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408)263-3214 ------------- Not Applicable - - ------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events On October 30, 1996, the Company reported the release of certain information regarding the Company's history, products, and future plans as attached hereto. SIGNATURES 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 hereunto duly authorized. Dated: November 20, 1996 CALIFORNIA MICRO DEVICES CORPORATION By: /S/ JOHN E. TREWIN John E. Trewin Vice President and Chief Financial Officer [logo California Micro Devices Corporation] California Micro Devices Corporation [picture micro chips] Wade Meyercord, Chairman Jeff Kalb, President & CEO John Trewin, CFO [logo California Micro Devices Corporation] California Micro Devices Corporation "This discussion contains forward-looking statements regarding future product and market directions. Actual results may differ materially. Please refer to various documents (e.g., 10K, 10Q) filed by the Company with the SEC that identify risk factors that may influence actual future results." [logo California Micro Devices Corporation] California Micro Devices Corporation [picture micro chips] Leading The Industry Into A New Generation of Passive Solutions [logo California Micro Devices Corporation] California Micro Devices Corporation Company background Looking forward [picture Milpitas, CA facility] [picture Tempe, AZ facility] CMD HISTORY [graph - time line of the Company] [1980 - Venture funding as CMD early 1980's - Thin Film Base Technology Development 1985 - 1990 IPO; Purchase Tempe Facility 1990 - 1995 First Commercial Volume; Hitachi Alliance pre 1995 to present - 7 Advanced Thin Film Patents Filed/Granted Thin Film Product Mix: 1980 - early 1990's: All Military/Aerospace Chips; ramp down early 1990's to majority of Commercial.] [logo California Micro Devices Corporation] California Micro Devices Corporation CMD PRODUCTS Thin Film Integrated Passive Solutions Termination Filtering [picture - bus and chip] [picture - micro chips] Specialty Semiconductor Telecom General purpose [logo California Micro Devices Corporation] California Micro Devices Corporation USES OF CMD PRODUCTS Q1FY97 [graph] PC & Peripherals - 27% Portable Comm. - 20% Work Stations - 16% Fixed Comm - 13% Networking - 6% Instruments - 6% Auto - 3% Military - 3% Medical - 3% Other - 3% [logo California Micro Devices Corporation] California Micro Devices Corporation CMD MAJOR CUSTOMERS 3COM Acer Apple Computer A.T. & T. Cardiac Pacemakers Cisco Systems Dell Computer D.E.C. DSC Communications Ericsson Hewlett-Packard Hyundai I.B.M. Intergraph Lucent (A.T. & T.) Motorola N.E.C. Nortel Siemens Silicon Graphics Sun Microsystems Texas Instruments Twinhead [logo California Micro Devices Corporation] California Micro Devices Corporation STRATEGY FOR SHAREHOLDER VALUE Build a high growth and profitability company by creating/ exploiting the market for Integrated Passive Solutions [logo California Micro Devices Corporation] California Micro Devices Corporation LOOKING FORWARD Positioned for rapid growth [picture - micro chips] [logo California Micro Devices Corporation] California Micro Devices Corporation KEY MESSAGES Integrated Passives Solution to growing industry requirements CMD Leading the industry surge Turned around and positioned for growth Our Customers Want plug and work solutions [logo California Micro Devices Corporation] California Micro Devices Corporation [logo California Micro Devices Corporation] California Micro Devices Corporation INDUSTRY TREND INDUSTRY TREND Higher Frequencies [graph] Clock Frequency vs. PC Generation Clock Frequency (MHz) 0 - 200 Architecture Clock Frequency Focus Focus ---------- ---------------- 200 X X o Initial Clock Frequency X Highest Clock Frequency 150 O 100 X 50 O O XO X 0 ------------------------------ P A 3 4 P P C T 8 8 E E 6 6 N N T T I . U P M R O PC Class [logo California Micro Devices Corporation] California Micro Devices Corporation INDUSTRY TREND Smaller Size - Denser Packaging [picture] Mainframe --- Desktop --- Laptop --- PDA [logo California Micro Devices Corporation] California Micro Devices Corporation INDUSTRY TREND Declining Costs - Integration Passive Cost vs. Integration Level [graph] $1.80 Assumes: 32 Components $1.60 0.5 cent per component $1.40 3.1 cents per insertion $1.20 0.9 cents per via for bussed structure $1.00 Traditional $0.80 --------------------- $0.60 Discretes $0.40 $0.20 ---- CMD------------- $0.00 ------------------------------------- 1 2 4 8 16 32 [logo California Micro Devices Corporation] California Micro Devices Corporation INDUSTRY TREND Faster Time to Market Impact of "Happenings" on Profit [graph] 3.5% (Loss) 22%(Loss) 35%(loss) 100 ---xxxxx---------------------------------------------------- xxxxx 80 xxxxx 60 xxxxx 40 20 0 ----------------------------------------------------------- On Time/Cost 50% Product Cost 6 Months Late Product Development Too High to Market Source: McKinsey and Co. [logo California Micro Devices Corporation] California Micro Devices Corporation INDUSTRY TRENDS CMD's Response - P/Active Circuits Higher Frequency / Performance New technologies / P/Active circuits Smaller Size QSOP Declining Costs Passive and peripheral function integration Faster Time to Market (Solutions, Not Components) Application Specific Passive Networks (ASPN's) [logo California Micro Devices Corporation] California Micro Devices Corporation CORPORATE TURNAROUND Strategic Integration R & D P/Active (TM) Staffing MIS/Financial Systems Offshore Operations Sales/Marketing U.S. Operational Productivity Recommended for ISO-9000 [logo California Micro Devices Corporation] California Micro Devices Corporation CORPORATE ORGANIZATION [organization chart] Chairman of the Board - Wade Meyercord CEO/President - Jeff Kalb VP Marketing - Nick Bacile VP Sales Bob Filiault General Corporate Counsel - Scott Hover-Smoot VP & CFO - John Trewin VP, Operations - Ari Schifrin VP Engineering - John Jorgensen VP HML Business Development - Zia Malik H.R. Manager - Zareen Mohta [logo California Micro Devices Corporation] California Micro Devices Corporation MARKETING STRATEGY Focus Technology on Customer / Needs Markets PC, Workstations, Mobile Telecom, Networks Customers Top 40 Products Terminations, Filters, Peripheral Integration [logo California Micro Devices Corporation] California Micro Devices Corporation PRODUCTS Strategic - P/Active EMI / RFI Filters LCD panel display in notebooks Serial port / parallel port [picture bus and chip] Keyboard / mouse interfaces Communication systems Terminations Clock terminations Series, Parallel, AC, Bus terminations Schottky Diode, Application Specific Peripheral Integration Passives Passives + active [picture - micro chips] Actives [logo California Micro Devices Corporation] California Micro Devices Corporation P/ACTIVE ATTRIBUTES Application Specific High Frequency Operation High Precision Performance ESD Protection - 2 KV or Higher Integrated Thin Film Passive + Active Components [logo California Micro Devices Corporation] California Micro Devices Corporation CMD STRENGTHS TECHNOLOGY Thin film Thin film with CMOS/BICMOS P/Active (TM) technologies Patents PRODUCTS R/RC networks RC with mixed signal Semiconductors MANAGEMENT Strong business experience Extensive semiconductor background SALES & MARKETING Who's who customer base Worldwide manufacturing representatives Large distributors PHYSCIAL ASSETS Large wafter fabrication Capacity opportunities FINANCE Balance sheet HITACHI PARTNER R & D relationship Future alternative source [logo California Micro Devices Corporation] California Micro Devices Corporation POSITIONING THE COMPETITION Primary competition still the traditional methods Many thin film announcements Potential competitors copying CMD Thin film competition going after resistors first KOA-Speer most active Sampling RC's CMD one / two generations ahead [logo California Micro Devices Corporation] California Micro Devices Corporation FINANCIAL HIGHLIGHTS Net Sales [graph Fiscal Years 91 96 in Thousands] $55,000 $50,000 $45,000 $40,000 X $35,000 X $30,000 X $25,000 X X $20,000 X $15,000 $10,000 $ 5,000 ----------------------------------------------------------- '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 *1995 - annualized from nine months data ending 3/31/95 [logo California Micro Devices Corporation] California Micro Devices Corporation FINANCIAL HIGHLIGHTS Research and Development [graph fiscal years 91 - 96 in Thousands] $4,000 $3,500 X X X $3,000 X X $2,500 X $2,000 $1,500 $1,000 $ 500 $ 0 --------------------------------------------------------- '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 *1995 - annualized from nine months data ending 3/31/95 [logo California Micro Devices Corporation] California Micro Devices Corporation R & D HIGHLIGHTS Over the last 15 years, CMD spent more than $35 million in R & D [logo California Micro Devices Corporation] California Micro Devices Corporation SALES & DISTRIBUTION CENTERS 35 reps and 71 distribution centers in North America 19 distributors in 13 European countries 1 distributor in South Africa 13 distributions in 12 Asian-Pacific countries 1 distributor in Australia Mexico as distributor for Latin American countries [logo California Micro Devices Corporation] California Micro Devices Corporation RESULTS FOR FY96/FY97 Operating Profit [graph quarterly profits Mar 95 - Sep 96 $'s in Millions)] 1.2 1 D E 0.8 C 0.6 B 0.4 F 0.2 G 0 --------------------------------------- -0.2 A -0.4 (A-Mar 95; B-Jun 95; C-Sep 95; D-Dec 95; E-Mar 96; F-Jun 96; G-Sep 96) [logo California Micro Devices Corporation] California Micro Devices Corporation SUMMARY BALANCE SHEET September 30, 1996 - Unaudited Actual Proforma Actual Proforma ASSETS ($ thousands) LIABILITIES & EQUITY ($ thousands) Cash $16,341 $ 9,341 Payables $ 2,804 $ 2,804 Receivables 3,700 3,700 Accruals 3,644 3,644 Inventories 8,079 8,079 Deferred margin 748 748 Other assets 752 752 Current debt 583 583 ------- ------- ------- ------ Current assets 28,872 21,872 Current liabilities 7,779 7,779 Fixed assets 12,878 12,878 Long-term debt 7,654 7,654 Restricted cash & other 1,427 3,427 Equity 27,744 22,744 ------- ------- ------- ------- Total assets $43,177 $38,177 Total liabilities & equity $43,177 $38,177 ======= ======= ======= ======= Current ratio 3.7 2.8 Equity to debt 3.4 2.8 DSO 42 Inventory turns 2.5 Shares outstanding 10,908 10,017 NOTE: Proforma numbers assume that the new tentative settlement was finalized and funded as of September 30, 1996. Actual numbers are based on the settlement expensed and funded in fiscal year 1995. [logo California Micro Devices Corporation] California Micro Devices Corporation PRESENT CHALLENGES Industry Environment Book-to-bill < 1:1 Visibility almost non-existent Design-Win Challenge Longer Sell in Large Companies Multiple constituencies - multiple agendas Management - Company stability Procurement - Price / supply Engineer - Technology Operation - Ease of manufacturing, total cost [logo California Micro Devices Corporation] California Micro Devices Corporation SUMMARY The Right Solution, At The Right Place, At The Right Time! [logo California Micro Devices Corporation] California Micro Devices Corporation [logo California Micro Devices Corporation] California Micro Devices Corporation The Industry Leader In Thin Film Passive Solutions