Transitional Period Highlighted by Commencement of Fab Operations
GRENOBLE, France & SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 1, 2002--MEMSCAP (Euronext:MEMS), the leading provider of innovative solutions based on MEMS (micro-electromechanical systems), today announced results for the half year ending June 30, 2002.
Revenues for the half year rose to 2.5 million Euros, with second quarter revenues of 1.4 million euros.
As MEMSCAP has emphasized since January, the first half of 2002 was expected to be a transitional period as the new fabrication facility began operations. The fab, in operation for several weeks, has already enabled the production and sale of fully qualified optical components to a number of select customers. The ramp-up in production capability will be a key element in achieving the revenue goals set forth for the second half of the year.
During the first half of the year, operational expenses rose to 9.5 million Euros, of which 5.0 million Euros went to research and development.
Given this focus on heavy investment, MEMSCAP saw an operating loss of 10 million Euros and a net loss of 10.3 million Euros. The net loss figure does not include a research tax credit, estimated at 1.7 million euros for the first half of the year, to be taken at the end of the year.
As of June 30, 2002, MEMSCAP had 83.2 million Euros of shareholder's equity and a cash position of 11.4 million Euros, prior to the refinancing of the Bernin fabrication facility underwritten by two banking syndicates for equipment and facilities investment (18.1 million and 19.5 million Euros, respectively, not including tax). As of July 25, 2002, taking into account the first payment from the equipment lease, MEMSCAP's cash position rose to 20.5 million Euros. Based on the cash position of June 30, and taking into consideration the total funds issued for the lease-back (37.5 million Euros), cash levels were at nearly 50 million Euros.
"MEMSCAP's growth is based on long term goals and rapid execution. In less than one year, since the company went public, we have built the most modern MEMS foundry in the world, which is already operational. However, production ramp-up and the sales cycle have inherent delays that affect the entire company despite the excellent performance of our teams and technology," said Jean-Michel Karam, president and chief executive officer, MEMSCAP.
As announced earlier, it is expected that business activity will intensify during the entire second half of the year, although fab start-up costs and market conditions will most likely prevent profitability this year.
First Half 2002 Milestones:
- Closing of lease-back contracts worth 37.5 million Euros with two bank syndicates
- Start-up of fab operations and ramp-up of wafer production (front-end) with high yields, and start-up of assembly and packaging operations (back-end) with full production slated for end of year.
- Delivery of the first optical components (2x2 and 1x2 switches and variable optical attenuators) produced entirely in the new fab, as well as qualification of MEMSCAP solutions by 4 new customers.
- Start-up of wireless component production at Walsin Lihwa's fab, based on patented technology transferred by MEMSCAP (above-IC). Signing of the Walsin Lihwa marketing and manufacturing agreement driving royalty based revenue for the coming 5 years.
- Signing of the Jazz Semiconductors agreement accelerating the deployment and adoption of MEMSCAP wireless technology in the marketplace.
- Signing of several agreements in the medical and aerospace industries, the first indications of a successful integration of Capto AS (now MEMSCAP AS).
- Delivery of the first prototype of the Skin Station in May 2002 after only six months from signing of the contract. Several agreements are in discussion that are expected to be conclude during the second half of the year.
- Significant progress in patent portfolio activity, increasing from 73 patents grouped in 25 categories in December 2001, to more than 100 patents in 45 categories by June 30, 2002.
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MEMSCAP, S.A.
CONSOLIDATED BALANCE SHEET
(in thousands of euros)
Proforma
June 30, Dec. 31, Dec. 31,
2002 2001 2001
-------- -------- --------
EUR EUR EUR
Assets
Fixed Assets
Goodwill............................ 5,520 - 5,810
Intangible fixed assets............. 1,024 476 593
Property, plant and equipment....... 57,837 36,047 37,843
-------- -------- --------
64,381 36,523 44,246
-------- -------- --------
Current Assets
Inventories......................... 2,074 356 1,493
Customer and associates accounts ... 7,578 7,569 9,751
Other accounts receivable and
associates accounts................ 8,483 11,948 12,904
Cash equivalents.................... 8,556 43,070 43,070
Cash 2,811 7,814 138
-------- -------- --------
29,502 70,757 67,356
-------- -------- --------
Total Assets 93,883 107,280 111,602
======== ======== ========
Liabilities and Shareholders' Equity
Shareholders' Equity
Capital ............................ 2,726 2,691 2,691
Additional paid-in capital.......... 93,824 93,674 93,674
Reserves and consolidated
statements ........................(13,275) (2,953) (2,953)
Cumulative translation adjustment... (92) (383) (383)
-------- -------- --------
83,183 93,029 93,029
-------- -------- --------
Liabilities
Borrowings and financial
liabilities........................ 910 213 442
Accounts payable.................... 7,483 12,667 14,420
Other liabilities and
associates accounts ............... 2,307 1,371 3,711
-------- -------- --------
10,700 14,251 18,573
-------- -------- --------
Total Liabilities and
Shareholders' Equity 93,883 107,280 111,602
======== ======== ========
MEMSCAP, S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of euros)
Half period ending
June 30 Year
---------------------------- ending
Proforma Dec. 31
2002 2001 2001 2001
------ ------ ------ ------
EUR EUR EUR
Revenues................ 2,473 6,061 8,346 9,834
Sales cost.............. (2,305) (154) (1,688) (839)
------ ------ ------ ------
Profit Margin....... 168 5,907 6,658 8,995
------ ------ ------ ------
Operating expenses:
Research and development
expenses............... (4,957) (2,466) (2,466) (5,576)
Selling and marketing
expenses (2,358) (3,107) (3,417) (3,994)
General and
administrative
expenses (2,277) (1,369) (1,543) (2,424)
------ ------ ------ ------
Total operating
expenses (9,592) (6,942) (7,426) (11,994)
------ ------ ------ ------
Operational result (9,424) (1,035) (768) (2,999)
------ ------ ------ ------
Interest expenses....... (415) (114) (147) (39)
Interest income......... 363 1,366 1,028 2,441
Foreign exchange
gain (loss)............ (519) 140 137 384
------ ------ ------ ------
Net income (loss)
before tax benefit. (9,995) 357 250 (213)
------ ------ ------ ------
Corporation tax......... - - (67) -
Net income (loss) before
acquisition goodwill
amortization....... (9,995) 357 183 (213)
------ ------ ------ ------
Acquisition goodwill
amortization .......... (290) - (290) -
Net income (loss)... (10,285) 357 (107) (213)
====== ====== ====== ======
Net earning (loss)
per share.............. (0.19) (0.0072) (0.0021) (0.01)
Number of shares........ 53,989,764 49,838,508 49,838,508 51,803,443
Net diluted earning
(loss) per share....... (0.19) (0.0066) (0.0020) (0.01)
Number of shares fully
diluted................ 53,989,764 54,220,519 54,220,519 51,803,443
MEMSCAP, S.A.
CONSOLIDATED CASH FLOWS
(in thousands of euros)
(In thousands) Half period Year
ending ending
June 30 Dec. 31
2002 2001
--------- ---------
EUR EUR
Cash flows from operating activities:
Net income (loss) ............................... (10,285) (213)
Suppression of non monetary elements:
Amortization and depreciation.................. 692 960
Cash increase (decrease) on:
Accounts receivable.......................... 2,349 (6,819)
Inventories.................................. (496) (351)
Other accounts receivable, prepayments
and accrued income.......................... 4,259 (11,316)
Accounts payable............................. (6,983) 12,473
Accrued expenses and other debts............. (1,560) (93)
--------- ---------
Cash flows from operating activities....... (12,024) (5,359)
--------- ---------
Cash flows from investments activities:
Property, plant and equipment acquisition........ (20,094) (35,627)
Intangible fixed assets acquisition.............. (654) (731)
Incidence des variations de perimetre............ (7,676) -
--------- ---------
Cash flows from investments activities..... (28,424) (36,358)
--------- ---------
Cash flows from financing activities:
New loans........................................ 281 -
Capital increase (exercised stock options)....... 146 -
Additional paid-in capital....................... - 83,276
--------- ---------
Cash flows from financing activities....... 427 83,276
--------- ---------
Effect of exchange rate on C&C equivalent........ 292 (330)
--------- ---------
Variation of C&C equivalent...................... (39,729) 41,229
========= =========
C&C equival. Beginning of period................. 50,884 9,655
--------- ---------
C&C equival. End of period....................... 11,155 50,884
========= =========
Contact:
MEMSCAP
Vincent Tempelaere, +33 (0)4 76 92 85 00 (IR and M&A)
vincent.tempelaere@memscap.com
Aurore Foulon, +33 (0)4 76 92 85 00 (Corp. Comm)
aurore.foulon@memscap.com
Tom Breunig, +1 408 392-7570 (Corp. Comm)
tom.breunig@memscap.com
or
EURO RSCG OMNIUM
Laure Chabert, + 33 (0)1 41 34 48 55
Laure.chabert@eurorscg.fr