Hi Zeev
Could you explain what this news release means for WFR?
news.com
MEMC ANNOUNCES $1.9 MILLION CUMULATIVE ACCOUNTING
REVISION; REV
Business Wire
March 2, 1999, 7:29 a.m. PT
ision relates to change in functional currency of two
non-consolidated joint ventures, as previously disclosed
Business Editors
ST. PETERS, MO--(BUSINESS WIRE)--March 2, 1999--MEMC Electronic
Materials, Inc. (NYSE: WFR) today announced that in connection with
the SEC's formerly announced review of the Company's change in
functional currency, the Company has revised its financial statements
resulting in an additional cumulative loss of $1.9 million recorded as
equity in income (loss) of joint ventures. Previously reported
operating income and cash flows are not affected by this revision. The
$1.9 million loss is a cumulative adjustment related to the six-year
period from 1993 to 1998.
The Company previously announced its intention to proceed with a
rights offering to all common stockholders. The Company filed a
registration statement with the Securities and Exchange Commission
relating to the rights offering. The Company believes it will have
adequate cash and available credit until the rights offering is
closed.
As previously disclosed the SEC staff has reviewed MEMC's
registration statement and has issued comments concerning certain
legal and accounting issues. The SEC staff questioned the timing of
the change in functional currency for accounting purposes used by the
Company's two non-consolidated Asian joint ventures. In connection
with this review, the Company has agreed to revise its financial
statements for 1993 through 1998 to retroactively reflect the change
in functional currency from the inception of these joint ventures. The
cumulative net effect on results for this six-year period is an
additional loss of $1.9 million recorded as equity in income (loss) of
joint ventures.
The rights and the underlying common stock may not be sold nor
may offers to buy be accepted prior to the time the registration
statement becomes effective. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there
be any sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction. In any state or other jurisdiction where
securities, blue sky or other laws require the rights offering to be
made by a licensed broker or dealer, the rights offering will be
deemed to be made on behalf of the Company by the dealer managers or
one or more registered brokers or dealers licensed under the laws of
such jurisdiction. The rights offering will be made only by means of a
prospectus.
MEMC is the second largest producer of silicon wafers in the
world. The silicon wafer is the fundamental building block of
semiconductors, which, in turn, are found in virtually all electronics
applications, including computers, telecommunications equipment,
automobiles, consumer electronics products, industrial automation and
control systems, and analytical and defense systems. Headquartered in
St. Peters, MO, MEMC operates manufacturing facilities directly or
through joint ventures in Italy, Japan, Malaysia, South Korea, Taiwan
and the United States. To learn more about MEMC visit its web site at
www.memc.com.
--30--bk/ny*
CONTACT: Janine Orf
Director, Investor Relations
314/279-5443
or
Michele Katz/Connie Bienfait/
Elric Martinez
Morgen-Walke Associates
Press: Tammy Rose
212/850-5600
KEYWORD: MISSOURI
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
-0- Mar/02/1999 10:14
EOS (BUS) Mar/02/99 10:14 86
-0- (BUS) Mar/02/1999 10:29 |
