Exhibit 99.1
SIMTEK REPORTS FOURTH QUARTER 2005 FINANCIAL RESULTS
COLORADO SPRINGS, Colorado - March 10, 2006, - Simtek Corporation (OTC Bulletin
Board: SRAM ), the inventor, pioneer, and world's leading supplier of advanced
nonvolatile static random access memory (nvSRAM) products, today announced its
financial results for the fourth quarter and year ended December 31, 2005.
Company highlights in the fourth quarter
o Revenue of $2.8 million, representing 16% growth over Q305 o Bookings of $3.6
million, resulting in a book to bill ratio of 1.29 o Raised $11.0 million in
private placement for working capital and strategic acquisition o Acquisition of
nvSRAM product line from ZMD o 0.25 micron product volume increased 27% over
Q305 o Manufacturing cost reduced by 20% during the quarter o 0.8 micron
(legacy) product volume increased 12% over Q305
Revenue for the fourth quarter of 2005 is $2.8 million, which compares to third
quarter 2005 revenue of $2.4 million. Loss from continuing operations for the
fourth quarter 2005 was $1.8 million or $.03 per share. In the fourth quarter of
2005, the Company incurred nearly $300 thousand of final development costs
related to 0.25 micron products, in particular, the 256K "cut down" and 256K
with real time clock. The company chose to complete revisions to the smaller
256K products once the qualification of the parent device, the 1 Megabit nvSRAM,
was complete and design changes were validated.
Revenue for the twelve months ended December 31, 2005 is $10.4 million versus
revenue of $13.1 million for the twelve months ended December 31, 2004. Loss
from continuing operations for the twelve months is $7.5 million or $.11 per
share, compared to $3.7 million or $.06 per share in 2004.
Net loss for the twelve months of 2005 is $5.8 million and includes the gain
from the sale of Q-Dot compared to $3.7 million in 2004. Net loss per share for
the twelve months is $.08 compared to net loss per common share of $.06 for the
12 months of 2004.
The book to bill ratio at 1.29, represents significant growth in demand for
legacy and 1 Megabit products. The company is experiencing rapid growth in the
RAID controller market. "Based on increasing demand from significant customers
in the fourth quarter and continuing into the first quarter of 2006, the company
is positioned well to sustain the growth rate that has been achieved over the
last two quarters," stated Harold A. Blomquist, president, chairman, and chief
executive officer of Simtek
Conference Call
Simtek management's teleconference will be webcast live at
www.companyboardroom.com and at www.simtek.com and will be available thereafter
on both websites for replay for 90 days, several hours after the completion of
the call.
How to participate on the teleconference portion
Simtek Fourth-Quarter 2005 Results Teleconference
March 10, 10:00 a.m. Eastern time, call 1-800-319-9003
(U.S. toll-free number) or 719-457-2719 (local) and mention ID code: SRAM.
The conference call will also be webcast live.
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SIMTEK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
(Unaudited)
December 31, 2005 December 31, 2004
----------------- -----------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,765,774 $ 2,146,790
Restricted investments 2,281,400 --
Accounts receivable - trade, net 1,456,139 2,439,135
Inventory, net 2,287,226 1,869,842
Prepaid expenses and other current assets 98,779 85,221
Deposits 600,000 --
Assets from discontinued operations -- 554,996
------------ ------------
Total current assets 8,489,318 7,095,984
EQUIPMENT AND FURNITURE, net 570,522 771,901
DEFERRED FINANCING COSTS 58,087 74,684
INTANGIBLE ASSETS 9,685,416 --
OTHER ASSETS 20,000 33,250
------------ ------------
TOTAL ASSETS $ 18,823,343 $ 7,975,819
============ ============
LIABILITES AND SHAREHOLDERS' EQUITY
-----------------------------------
CURRENT LIABILITIES:
Accounts payable $ 2,821,849 $ 2,054,337
Accrued expenses 1,419,703 357,033
Accrued vacation payable 145,020 159,690
Accrued wages 39,789 29,975
Obligation under capital leases 13,024 47,310
Liabilities of discontinued operations -- 325,523
Debentures, current 239,940 --
------------ ------------
Total current liabilities 4,679,325 2,973,868
DEBENTURES, NET OF CURRENT 2,760,060 3,000,000
OBLIGATIONS UNDER CAPITAL LEASES, NET OF CURRENT PORTION -- 13,024
------------ ------------
Total liabilities 7,439,385 5,986,892
TEMPORARY EQUITY 9,100,000 --
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $1.00 par value; 2,000,000 shares authorized,
none issued -- --
Common stock, $.01 par value; 300,000,000 shares authorized,
146,920,823 and 146,910,823 shares issued and outstanding
at December 31, 2005 and 62,881,679 and 62,871,679 shares
issued and outstanding at December 31, 2004 781,708 628,817
Additional paid-in capital 47,705,575 41,778,120
Treasury stock, at cost; 10,000 shares (12,504) (12,504)
Accumulated deficit (46,190,821) (40,405,506)
------------ ------------
Total shareholders' equity 2,283,958 1,988,927
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 18,823,343 $ 7,975,819
============ ============
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SIMTEK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------------------- ---------------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
NET SALES $ 2,793,652 $ 4,025,244 $ 10,385,131 $ 13,092,441
Cost of sales 2,101,228 2,698,589 7,590,866 9,139,617
------------ ------------ ------------ ------------
GROSS MARGIN 692,424 1,326,655 2,794,265 3,952,824
OPERATING EXPENSES:
Research and development costs 1,671,666 943,634 6,369,109 4,942,391
Sales and marketing 328,309 447,061 1,492,838 1,608,441
General and administrative 516,015 187,449 2,274,525 916,660
------------ ------------ ------------ ------------
Total operating expenses 2,515,990 1,578,144 10,136,472 7,467,492
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (1,823,566) (251,489) (7,342,207) (3,514,668)
OTHER INCOME (EXPENSE):
Interest income 35,342 7,258 91,659 26,436
Interest expense (61,089) (61,897) (238,208) (241,254)
Other expense -- -- (810) (1,124)
------------ ------------ ------------ ------------
Total other income (expense) (25,747) (54,639) (147,359) (215,942)
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS
BEFORE PROVISION FOR INCOME TAXES (1,849,313) (306,128) (7,489,566) (3,730,610)
Provision for income taxes -- -- -- --
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (1,849,313) (306,128) (7,489,566) (3,730,610)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
(including gain on disposal of $1,689,208) (1,804) 14,671 1,704,251 60,256
------------ ------------ ------------ ------------
NET LOSS $ (1,851,117) $ (291,457) $ (5,785,315) $ 3,670,354)
============ ============ ============ ============
NET LOSS PER COMMON SHARE:
Basic and diluted
Loss from continuing operations $ (.03) $ (.01) $ (.11) $ (.06)
Income from discontinued operations 00 .00 .03 (.00)
------------ ------------ ------------ ------------
Total $ (.03) $ (.01) $ (.08) $ (.06)
============ ============ ============ ============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic and diluted 73,010,654 54,666,967 68,613,090 58,586,411
============ ============ ============ ============
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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
Simtek's future growth. These forward-looking statements are inherently
difficult to predict and involve risks and uncertainties that could cause actual
results to differ materially, including, but not limited to, projections of
future performance including predictions of future profitability and
expectations of the business environment in which Simtek operates. For a
detailed discussion of these and other risk factors, please refer to Simtek's
filings with the Securities and Exchange Commission (SEC), including its Annual
Report on Form 10-KSB and subsequent Form 10-Q and Form 8-K filings.
SOURCE: Simtek Corporation
IR Contact:
Sheldon Lutch
Fusion IR & Communications
212-268-1816
sheldon@fusionir.com
Company Contact:
Brian Alleman
719-590-6548
mailto:info@simtek.com
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