Trikon (NASDAQ:TRKN)
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Trikon Technologies, Inc. (Nasdaq: TRKN) today reported
results for its second quarter and six months ended June 30, 2005.
Revenues for the quarter were $8.9 million, an increase of 14
percent from $7.8 million for the first quarter of 2005 and a decrease
of 13 percent from $10.2 million for the second quarter of 2004.
Revenue deferred under our revenue recognition policy increased to
$6.1 million at June 30, 2005 compared to $4.7 million at March 31,
2005. The book to bill ratio in the quarter was 1.1:1.
Operating expenses for the second quarter of 2005 of $5.9 million
were at a similar level to the $6.0 million in first quarter of 2005
and down from the $6.5 million in the second quarter of 2004.
Operating loss for the quarter was $3.8 million compared to an
operating loss of $4.6 million for the second quarter of 2004 and an
operating loss of $2.1 million for the first quarter of 2005.
Net loss applicable to common shares for the quarter was $5.4
million, or $0.34 per share, compared to a net loss of $4.9 million,
or $0.31 per share in the second quarter of the prior year and a net
loss of $2.4 million, or $0.15 per share for the first quarter of
2005.
The net loss for the quarter included foreign currency losses of
$1.6 million, compared to foreign currency losses of $0.3 million in
the second quarter of 2004 and foreign currency losses of $0.3 million
in the first quarter of 2005.
Revenues for the six months ended June 30, 2005 were $16.7
million, a decrease of 2 percent from revenues of $17.0 million for
the prior year period.
Operating expenses for the six months ended June 30, 2005 were
$11.9 million, down 15 percent from the $13.9 million in the prior
year period. Operating loss for the six months ended June 30, 2005 was
$5.9 million compared to an operating loss of $11.0 million for the
prior year period and net loss applicable to common shares for the six
months was $7.7 million, or $0.49 per share, compared to a net loss of
$10.7 million, or $0.68 per share in the prior year period.
The net loss for the six months ended June 30, 2005 included
foreign currency losses of $1.8 million, compared to foreign currency
gains of $0.4 million in the prior year period.
"As I guided in our Q1 call, revenues this quarter were up from
the first quarter of 2005," said Martyn Tuffery, acting chief
financial officer for Trikon. "We have also continued to keep tight
control of operating costs, which, when excluding the costs associated
with the proposed consolidation through merger with Aviza, were more
than $1 million less in Q2 of 2005 than in Q2 of 2004."
Mr. Tuffery continued, "The British pound 5 million (approximately
$9 million) revolving credit facility with Lloyds TSB Bank plc. has
been both extended and amended. Lloyds TSB Bank has agreed that this
facility will continue, subject to certain conditions being met, after
completion of the previously announced proposed consolidation by
merger of Trikon and Aviza Technology, Inc."
"A significant part of cash outflow reflects expenditure related
to the placement of evaluation tools in the first six months,
concluded Mr. Tuffery. "This was particularly in support of our Asia
sales policy. We will not be shipping further evaluation systems in
the third quarter and our cash flow is expected to further benefit
from the receipt of final payments on systems already shipped."
"Trikon is working closely with a number of customers in Asia, the
USA and Europe on capacity expansion plans and new technologies," said
Dr. Macneil. "Like many device makers, these customers have relatively
short range visibility of their customers' requirements and therefore
they require us to be highly responsive to their rapidly changing
requirements. We have succeeded in increasing the responsiveness of
our manufacturing and supply chain to meet their shortened lead times
and we continue to work on further improvements."
"During the quarter we received our first order for the i2L, an
etch platform launched at Semicon China in Shanghai earlier this
year," continued Dr. Macneil. "I was also very pleased when, in July,
our Omega fxP silicon trench etcher won the Eurosemi IC Industry Award
for 'best tool' in the 'wafer processing' category."
Dr. Macneil concluded, "I'm particularly pleased with our
continuing progress in the market for extremely high-quality aluminum
nitride deposition. During the second quarter we received an order
from the USA--which we also shipped in the quarter. We also shipped
aluminum nitride systems to Japan and Europe this quarter, two for
filter applications and one for thin film heads."
Investor Conference Call and Webcast
There will be a conference call at 10:30 am New York time today,
hosted by Dr. John Macneil, to discuss the results for the second
quarter ended June 30, 2005 and the outlook for the third quarter of
2005. A live and subsequently recorded audio webcast of the call will
be available at www.trikon.com.
About Trikon Technologies
Trikon Technologies, Inc. is a technology leader in wafer
fabrication equipment to the global semiconductor industry. Trikon
develops and manufactures advanced capital equipment for plasma
etching and chemical and physical vapor deposition (CVD and PVD) of
thin films for use in the production of semiconductor devices. These
are key components in all electronic products, such as
telecommunication devices, consumer and industrial electronics and
computers. More information is available on Trikon's Web site at:
www.trikon.com.
"Safe Harbor" Statement Under the Private Securities Litigation
Act of 1995:
This news release contains certain forward-looking statements that
include, without limitation, statements by Dr. Macneil and Martyn
Tuffery about Trikon's business strategy, its cash flow position and
its ability to continue to control operating costs, comply with the
financial covenants in its credit facility, and expand business in the
USA, Asia and Europe, meet customer demands and ability to collect
amounts owed from its customers. These forward-looking statements are
subject to various risks and uncertainties that could cause actual
results to differ materially, including, but not limited to the
economic conditions within the semiconductor capital equipment
industry, increased costs due to Trikon's pending merger and other
business demands, demand for Trikon's products and services, Trikon's
ability to continue to comply with its bank covenants and possible
changes in the company's strategy. Additional factors that may cause
actual results to differ are included in the more detailed cautionary
statements included in the company's SEC reports, including, without
limitation, its annual report on Form 10-K and 10-K/A, quarterly
reports on Form 10-Q and current reports on Form 8-K.
Additional Information and Where to Find It
In connection with the proposed consolidation through merger
involving Trikon Technologies Inc and Aviza Technology Inc., New
Athletics, Inc., a company newly created by Trikon and Aviza has filed
with the Securities and Exchange Commission a registration statement
and other relevant documents (File No. 333-126098). Security holders
of Trikon are urged to read the proxy statement/prospectus that is
contained in the registration statement and the other relevant
documents because they contain important information about New
Athletics, Aviza and Trikon and the proposed merger transaction.
Investors and security holders of Trikon may obtain free copies of the
proxy statement/prospectus and the other relevant documents filed with
the Securities and Exchange Commission at the Securities and Exchange
Commission's website at and may also obtain free copies of the proxy
statement/prospectus by writing to Trikon Technologies, Inc., Ringland
Way, Newport, South Wales NP18 2TA, United Kingdom, Attention:
Investor Relations. Information regarding the identity of persons who
may, under the Securities and Exchange Commission's rules, be deemed
to be participants in the solicitation of stockholders of Trikon in
connection with the proposed merger transaction, and their interests
in the solicitation, will be set forth in the proxy
statement/prospectus that will be filed by Trikon with the Securities
and Exchange Commission and are contained in the registration
statement that has been filed by New Athletics with the Securities and
Exchange Commission.
-0-
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December
June 30, 31,
2005 2004
-----------------------
(Unaudited)
Assets
Current assets:
Restricted cash $ 8,950 $ -
Cash and cash equivalents 4,171 21,202
Accounts receivable, net 7,874 6,654
Inventories, net 15,488 16,543
Prepaid and other current assets 1,477 2,203
----------- -------
Total current assets 37,960 46,602
Property, equipment and leasehold improvements,
net 10,235 13,597
Demonstration systems, net 4,137 551
Other assets 258 391
----------- -------
Total assets $ 52,590 $ 61,141
=========== =======
Liabilities and shareholders' equity
Current liabilities:
Short term borrowing $ 8,950 $ 9,600
Accounts payable 4,698 5,709
Accrued expenses 1,253 1,453
Deferred revenue 451 541
Warranty & related expenses 1,204 1,171
Current portion of long term debt. 155 281
Other current liabilities. 2,907 971
----------- -------
Total current liabilities 19,618 19,726
Long-term debt less current portion 54 91
Other non-current liabilities. 661 782
----------- -------
$ 20,333 $ 20,599
----------- -------
Shareholders' equity:
Preferred Stock:
Authorized shares -- 20,000,000
Issued and outstanding -- Nil
at June 30, 2005 and December 31, 2004 - -
Common Stock, $0.001 par value:
Authorized shares -- 50,000,000
Issued and outstanding -- 15,754,985
at June 30, 2005 and at December 31, 2004 261,416 261,416
Accumulated other comprehensive loss 2,329 2,886
Accumulated deficit (231,488) (223,760)
---------- ----------
Total shareholders' equity 32,257 40,542
---------- ----------
Total liabilities and shareholders' equity $ 52,590 $ 61,141
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
Three Months
Ended Six Months Ended
------------------------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
------------------------------------
Revenues:
Product revenues $ 8,814 $10,106 $14,610 $ 16,844
Licence revenues 70 66 2,085 109
------- -------- ------- ---------
8,884 10,172 16,695 16,953
------- -------- ------- ---------
Costs and expenses:
Cost of goods sold 6,799 8,303 10,721 14,089
Research and development 2,220 2,710 4,497 5,607
Selling, general and
administrative 3,673 3,773 7,369 8,282
------- -------- ------- ---------
12,692 14,786 22,587 27,978
------- -------- ------- ---------
Loss from operations (3,808) (4,614) (5,892) (11,025)
Foreign currency (losses) gains (1,563) (264) (1,823) 359
Interest income, net 62 63 88 129
------- -------- ------- ---------
Loss before income tax charge (5,309) (4,815) (7,627) (10,537)
Income tax charge (45) (55) (101) (120)
------- -------- ------- ---------
Net loss $(5,354) $(4,870) $(7,728) $(10,657)
------- -------- ------- ---------
Loss per share data:
Basic: $ (0.34) $ (0.31) $ (0.49) $ (0.68)
Diluted: $ (0.34) $ (0.31) $ (0.49) $ (0.68)
Weighted average common shares
used in the calculation:
Basic: 15,755 15,745 15,755 15,723
Diluted: 15,755 15,745 15,755 15,723
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