Earnings report:
Thursday July 29, 7:02 am Eastern Time
Company Press Release
PixTech Announces Second Quarter 1999 Results
SANTA CLARA, Calif. and ROUSSET, France--(BUSINESS WIRE)--July 29,
1999--PixTech, Inc. (Nasdaq:PIXT; EASDAQ:PIXT) today announced financial results for the three-month period ended June
30, 1999.
Revenues for the quarter ended June 30, 1999 were $0.5 million compared to $2.2 million in the first quarter of 1999. First quarter
revenues included one-time research and development income of $2 million. Operating expenses increased from $6.7 million in
the first quarter of 1999 to $7.7 million in the second quarter of 1999 due primarily to the integration of the Micron Display
Division acquisition, which was completed on May 19, 1999. The net loss for the second quarter of 1999 was $8.2 million or
$0.43 per share of common stock compared to a net loss of $5.5 million or $0.35 per share of common stock in the first quarter of
1999.
''In the second quarter we enhanced our management team with the addition of Don Crim, as Vice President Manufacturing in
Taiwan and Jim Cathey, as Vice President of Sales and Marketing. With the appointment of Don Crim based in Taiwan, as well
as the recent change of equipment, we now expect meaningful quantities of displays shipped from Unipac this quarter,'' stated
Dieter Mezger, PixTech's president and chief executive officer.
''The smooth integration of the two companies, Micron Display Division and PixTech, has been completed successfully and is
already contributing to our color display and large display programs,'' Mezger concluded.
The company reported that since June 30, 1999, holders of preferred shares elected to convert 70,000 shares of the 367,269
Series E preferred shares outstanding before conversion. This conversion resulted in the issuance of 1.1 million shares of
PixTech common stock.
A replay of PixTech's quarterly conference call will be available for 24 hours. To access the replay, please dial 800/633-8284 and
enter code number 12696591. The replay can also be accessed via the Internet through Vcall at www.vcall.com or PixTech's web
site at www.pixtech.com. The replay on Vcall will be posted for 90 days.
About PixTech, Inc.
PixTech designs, develops and manufactures field emission displays (FEDs), a new type of flat-panel display. The company
operates a flat-panel display pilot manufacturing facility in Montpellier, France and an R&D facility and sales office in Santa
Clara. PixTech is currently developing high-volume manufacturing capabilities for its FEDs in Taiwan, under a contract
manufacturing arrangement with Unipac, a Taiwanese AM-LCD manufacturer. PixTech has also established a marketing
partnership with Sumitomo Corporation, its exclusive distributor in Japan. PixTech recently signed an agreement to acquire
Micron Display Division.
More information is available from the company's web site at www.pixtech.com.
Statements that are not historical facts, including statements about PixTech's confidence and strategies, the timing of its
manufacturing plans with Unipac, and its distribution agreement with Sumitomo, the development of new or existing products,
technologies and opportunities, marked demand or acceptance of new or existing products are forward-looking statements that
involve risks and uncertainties. These uncertainties include but are not limited to, the risk associated with transitioning to high
volume manufacturing of FED displays at Unipac, product demand and market acceptance risks, commitment of Unipac and / or
of PixTech licensees, ability of the company to grant other licenses under FED technology, validity and enforceability of
PixTech's patent rights, infringement by PixTech of other patent rights, impact of competitive product and prices, product
development, commercialization or technological delays or difficulties, trade, legal, social and economic risks detailed in
PixTech's Securities and Exchange Commission filing including its form 10-K for the year 1998 and any subsequent filings.
PixTech, Inc.
(a development stage company)
Selected Financial Information
(in thousands, except share and per share amounts)
The following selected financial data for the three-month period are
derived from unaudited consolidated financial statements of PixTech,
Inc. The data should be read in conjunction with consolidated
financial statements, related notes, and other financial information
included in the company's Registration Statement on Form S-1 as
amended (Reg. No. 33-93024) and with the company's 10-K Form for the
year ended December 31, 1998.
Three months ended
(unaudited)
June 30, June 30, March 31,
1999 1998 1999
Revenues:
Cooperation and
license revenues -- $ 1,001 --
Product sales $ 178 66 $ 161
Other revenues 314 311 2,000
Total Revenues 492 1,378 2,161
Cost of revenues
Licenses fees and royalties 85 122 87
Gross Margin 407 1,256 2,074
Operating expenses:
Research and
development 6,616 4,553 5,587
Sales and marketing 329 354 351
General and
administrative 772 586 730
Total operating expenses 7,717 5,493 6,667
Loss from operations (7,310) (4,237) (4,594)
Other income / (expense):
Interest income/(expense) (98) (174) (266)
Foreign exchange gains/(loss) (621) 424 (516)
(719) 250 (782)
Loss before income tax benefit (8,029) (3,987) (5,376)
Income tax benefit -- -- --
Net loss $ (8,029) $ (3,987) $ (5,376)
Dividends accrued to
holders of Preferred Stock (165) -- (134)
Net loss to holders
of Common Stock $ (8,194) $ (3,987) $ (5,510)
Net loss per share
of Common Stock $ (.43) $ (.27) $ (.35)
Shares of Common stock
used in computing loss
per share 18,462 14,777 15,143
June 30, March 31,
1999 1999
Cash available $ 7,017 $ 4,155
Other current assets 3,047 3,054
Restricted cash 8,792 10,064
Property and equipment (net) 28,604 16,685
Other assets 1,605 4,873
Total assets $49,065 $38,831
Current liabilities $16,790 $14,602
Long-term debt and liabilities 18,686 16,827
Stockholders' equity 13,589 7,402
Total liabilities and
stockholders' equity $49,065 $38,831
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