PixTech Announces Third Quarter 1999 Results
SANTA CLARA, Calif. and ROUSSET, France--(BUSINESS WIRE)-- October 28,
1999--PixTech, Inc. (Nasdaq:PIXT - news; EASDAQ: PIXT) today announced financial results for the three-month period
ended September 30, 1999.
Revenues for the quarter ended September 30, 1999 were $1.0 million compared to $0.5 million in the second quarter of
1999. Operating expenses increased from $7.7 million in the second quarter of 1999 to $8.3 million in the third quarter of
1999. Net loss for the third quarter of 1999 was $7.6 million or $0.32 per share of common stock compared to a net loss of
$8.0 million or $0.43 per share of common stock in the second quarter of 1999. The cash balance at September 30, 1999 of
$2.7 million does not include $20 million the company received on October 18, 1999 as a result of a private placement by
Unipac Optoelectronics Corporation (''Unipac'').
Dieter Mezger, PixTech's president and chief executive officer, said, ''The combination of the recent private placement by
Unipac and the $15 million equity-based line of credit with Kingsbridge Capital Limited received during the third quarter,
places PixTech in the strongest financial position we have achieved in several years. We have yet to draw on the Kingsbridge
equity line, and we now have the financial flexibility to focus our efforts on producing displays at volume levels.''
Mezger continued, ''The integration of the team in Boise is now complete and we are making continual progress on our large
display program. This was evidenced by the $4.7 million awarded for the DARPA program and the early delivery of the first
phase of 5.2-inch displays. With regard to Unipac, now that Donald Crim, vice president, Manufacturing Taiwan, is on board,
we are seeing significant progress toward the ramp up in volume manufacturing. In fact, we have recently shipped small
numbers of units manufactured at Unipac that showed the same high quality and comparable lifetime as units manufactured in
our piliot facility in Montpellier, France.''
''Although we had some production down time due to the earthquakes in Taiwan, overall damage was minimal and we are now
up and running again. Our primary focus remains on volume production and we look forward to sharing our progress with
investors,'' Mezger concluded.
PixTech also recently announced it has strengthened its Board of Directors with the appointment of Mr. Ron Ritchie. Mr.
Ritchie has thirty-four years of experience in senior executive positions in the electronics business and currently serves on the
Board of Directors for SBE, Inc.
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 13360680. The replay can also be accessed via the Internet through Vcall at
www.vcall.com for 90 days, StreetFusion at www.streetfusion.com, StreetEvents at www.streetevents.com, or PixTech's web
site at www.pixtech.com.
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, Calif. 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 acquired 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)
Sept. 30, June 30, Sept. 30,
1999 1999 1998
Revenues:
Cooperation and
license revenues -- -- $ 238
Product sales $ 71 $ 178 135
Other revenues 877 314 225
Total Revenues 948 492 598
Cost of revenues
Licenses fees and royalties (82) (85) (80)
Gross Margin 866 407 518
Operating expenses:
Research and development (7,210) (6,616) (5,107)
Sales and marketing (338) (329) (371)
General and administrative (787) (772) (639)
Total operating expenses (8,335) (7,717) (6,117)
Loss from operations (7,469) (7,310) (5,599)
Other income / (expense):
Interest income/(expense) (244) (98) (208)
Foreign exchange gains/(loss) 112 (621) 844
(132) (719) 636
Loss before income tax benefit (7,601) (8,029) (4,963)
Income tax benefit -- -- 1,047
Net loss $(7,601) $(8,029) $(3,916)
Dividends accrued
to holders of
Preferred Stock (78) (165) --
Net loss to holders
of Common Stock $(7,679) $(8,194) $(3,916)
Net loss per share
of Common Stock $ (.32) $ (.43) $ (.26)
Shares of Common stock
used in computing
loss per share 23,408 18,462 14,778
Sept. 30, June 30,
1999 1999
Cash available $ 2,395 $ 7,017
Other current assets 3,362 3,047
Restricted cash 8,665 8,792
Property and equipment (net) 27,033 28,604
Deferred offering costs 163 50
Other assets 1,567 1,555
Total assets $43,185 $49,065
Current liabilities $19,145 $16,711
Deferred revenues 344 79
Long-term debt and liabilities 17,751 18,686
Stockholders' equity 5,945 13,589
Total liabilities and
stockholder's equity $43,185 $49,065
Contact:
PixTech, Inc.
Yves Morel, 33 (0)4 42 29 10 00
ymorel@pixtech.com
or
Lippert/Heilshorn & Associates
Lillian Armstrong/Kris Otridge, 415/433-3777
lillian@lhai-sf.com |
