PixTech Announces Third Quarter 1998
Results
Company Ships First Displays From Unipac
SANTA CLARA, Calif., and ROUSSET, France, Oct. 23 /PRNewswire/ -- PixTech, Inc.
(Nasdaq: PIXT; Easdaq) today announced financial results for the three-month and nine-month
period ended September 30, 1998.
The company also announced that it had recently shipped its first field emission displays
(FEDs) manufactured by its high-volume Taiwanese foundry partner, Unipac, to an U.S.
customer. The displays shipped were in compliance with the company's internal specifications
and match the quality of the displays currently being shipped from the company's pilot plant in
Montpellier, France. Over the course of the next several weeks the company plans to complete
the full qualification process.
''This is the beginning of a new era for PixTech. With the first displays shipped from Unipac,
the company is now entering its commercial phase. We are all extremely excited to have
accomplished this goal and our efforts over the next several months are centered on shipping
displays in volume from Unipac,'' said, Jean-Luc Grand-Clement, Chairman and CEO of
PixTech.
Revenues for the third quarter ended September 30, 1998 were $597,000 compared to $1.4
million in the second quarter of 1998. Product revenues increased to $135,000 in the third
quarter from $66,000 in the second quarter, reflecting the increase in the number of displays
shipped to customers in the quarter. During the quarter, the company recorded an income tax
benefit in the amount of $1.0 million. Net loss for the third quarter of 1998 was $3.9 million or
$(0.26) per share compared to a net loss of $4.0 million or $(0.27) per share in the second
quarter of 1998.
Revenues for the nine-months ended September 30, 1998 were $3.2 million compared to $3.3
million for the same period in 1997. Net loss for the first nine-months of 1998 was $11.4
million or $(0.78) per share compared to a net loss of $10.8 million or $(0.85) per share for the
first nine-months of 1997.
Dieter Mezger, PixTech's President stated, ''The shipment of our first displays made in Taiwan
to our customer is a key milestone for PixTech. We will now focus on completing the
qualification process and ramping up units shipped from Unipac. As Unipac's deliveries
increase and qualified products becomes available, we will be able to satisfy the customer's
growing demand for our products and expand our customer base.''
The company also announced it has filed prospectuses with European regulatory agencies
relating to an offering of its Common Stock to U.S. and offshore investors. The shares, which
will be listed on EASDAQ (European Association of Securities Dealers Automated Quotation),
will be offered through a private placement in the U.S. and in Europe. Up to 2,970,000 shares of
Common Stock will be offered and the offering price is to be determined. The shares will not be
registered under the Securities Act of 1933, and will be sold in the U.S. and Europe pursuant to
an exemption from registration requirements.
Statements that are not historical facts, including statements about PixTech's confidence and
strategies, the timing of its shipments from Unipac, its manufacturing plans with Unipac, and its
distribution agreement with Sumitomo, the development of new or existing products,
technologies and opportunities, market 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 risks 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 and other risks
detailed in PixTech's Securities and Exchange Commission filing including its Form 10-K for
the year 1997 and any subsequent filings.
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. More information is available from the company's web site at
www.pixtech.com.
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 10-K Form for the year ended December 31, 1997.
Three months ended
Sept. 30, Sept. 30, June 30,
1998 1997 1998
(unaudited)
Revenues:
Cooperation and license revenues $238 $-- $1,001
Product sales 135 152 66
Other revenues 225 284 311
Total Revenues 598 436 1,378
Cost of revenues
Licenses fees and royalties (80) -- (122)
Gross Margin 518 436 1,256
Operating expenses:
Research and development 5,107 3,227 4,553
Sales and marketing 371 369 354
General and administrative 639 611 586
Total operating expenses 6,117 4,207 5,493
Loss from operations (5,599) (3,771) (4,237)
Other income / (expense):
Interest income/(expense) (208) 82 (174)
Foreign exchange gains 844 32 424
636 114 250
Loss before income tax benefit (4,963) (3,657) (3,987)
Income tax benefit 1,047 -- --
Net loss $(3,916) $(3,657) $(3,987)
Net loss per share $(.26) $(.27) $(.27)
Shares used in computing net
loss per share 14,778 13,763 14,777
September 30, June 30,
1998 1998
Cash available $6,346 $9,882
Other current assets 4,046 3,426
Restricted cash 10,113 10,069
Property and equipment (net) 19,657 18,678
Other assets 5,610 4,033
Total assets $45,772 $46,088
Current liabilities $13,623 $12,520
Deferred revenues 2,282 1,042
Long-term debt and liabilities 18,063 17,438
Stockholders' equity 11,844 15,088
Total liabilities and stockholders' equity $45,772 $46,088
SOURCE: PixTech, Inc. |
