PETALUMA, Calif.--(BUSINESS WIRE)--Tegal Corporation (NASDAQ:TGAL) today announced financial results for the Fourth Quarter and Fiscal Year 2012, which ended March 31, 2012.
Fiscal 2012 Fourth Quarter Financial Statement Highlights
- The Company’s Net (Loss) per share in the Fourth Quarter of Fiscal Year 2012 was ($1.32), compared with ($0.42) in the Fourth Quarter of the prior fiscal year and $1.34 in the Third Quarter of Fiscal Year 2012.
- Tegal recorded a Net Loss of ($2,227) in the Fourth Quarter of Fiscal Year 2012. The Company wrote off the investment in Sequel Power and recognized its proportionate share of Sequel Power’s operating loss of ($1,545) in the Fourth Quarter of Fiscal Year 2012.
- Tegal ended the Fourth Quarter of Fiscal Year 2012 with approximately $7.8 million in cash.
Fiscal 2012 Financial Statement Highlights
- The Company’s Net (Loss) per share decreased to ($0.85) for the year from a comparable ($1.85) from the prior fiscal year.
- The Company ended the fiscal year with $7.8 million in cash, an increase over the prior year of approximately $0.2 million. This balance reflects the use of cash for the investment in NanoVibronix and proceeds of the IP asset sale.
Fiscal 2012 Business Highlights
Tegal and its portfolio companies achieved numerous milestones in Fiscal Year 2012. Tegal’s two portfolio companies are Sequel Power, a private company dedicated to the development and operation of large scale photovoltaic (PV)-based solar utility projects, and NanoVibronix Inc., a private company that develops medical devices and products that implement its proprietary therapeutic ultrasound technology.
Among the highlight’s of Fiscal 2012:
- Tegal awarded patents to multiple bidders for three of the four bid lots of Tegal’s NLD Patent Portfolio recently offered for sale for an aggregate consideration of approximately $4 million. Tegal received approximately $3.8 million in the Fiscal Year 2012. Tegal sold over 30 patents from the NLD portfolio—which includes more than 35 U.S. and international patents in the areas of pulsed-chemical vapor deposition (CVD), plasma-enhanced atomic-layer deposition (ALD) and NLD. NLD is a process technology that bridges the gap between high throughput, non-conformal chemical vapor deposition and lower throughput, highly conformal atomic layer deposition (ALD). Tegal offered the patent portfolio for sale earlier in 2011 in an effort to complete the divestment of its semiconductor capital equipment assets. Tegal also reported ongoing discussions regarding placement of Lot 4 of the NLD Patent portfolio, which applies to copper barrier and low-k dielectric technology. Interest in Lot 4 is coming primarily from IC device manufacturers, the company said.
- Tegal made a $300,000 strategic investment in NanoVibronix Inc., a medical device company focused on creating products utilizing its proprietary low-intensity surface acoustic wave (SAW) technology. The company's unique, patented approach enables the transmission of low-frequency, low-intensity ultrasound waves through a variety of soft, flexible materials, including skin and tissue, enabling low-cost, breakthrough devices targeted at large, high-growth markets.
- Sequel Power opened offices in Buenos Aires, Argentina, and Santiago, Chile, during the Fourth Quarter. The offices serve Sequel Power’s customers and partners in South America and are overseen by Prince Alexander von Sachsen, Sequel Power’s Chairman of South America and Middle East/Africa. Sequel Power is currently working on South American large-scale photovoltaic-based solar utilities projects in California, Chile and Ecuador.
“Tegal emerges from Fiscal 2012 with a substantially strengthened balance sheet and excellent prospects for additionally monetizing our IP portfolio,” said Thomas Mika, President and Chief Executive Officer of Tegal. “Our investment focus became more tightly focused on healthcare technologies, whose growth is driven by government mandates and increasing demands for efficiency. We expect healthcare technology to be a significant part of our growth in Fiscal 2013.”
Safe Harbor Statement
Except for historical information, matters discussed in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements, which are based on assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of the words "anticipate," "believe," "estimate," "expect," "intend," "project" or similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company including, but not limited to industry conditions, economic conditions, acceptance of new technologies, market acceptance of the Company's products and services, the Company’s exploration and execution of strategic alternatives. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. For a further discussion of these risks and uncertainties, please refer to the Company's periodic filings with the Securities and Exchange Commission.
About Tegal
Since its founding in 1972, Tegal Corporation has been dedicated to the development and application of emerging technologies. Often on the forefront of major inventions, Tegal’s process and capital equipment know-how enabled the development and manufacturing of leading-edge devices – from early microprocessors to advanced memory and LEDs, as well as to newest filtering and sensing devices that are present in the most advanced smart phones. Tegal draws upon its historic market and technology leadership in semiconductors and MEMS devices to engage in the promotion of other emerging technologies, including PV-based solar power generation and medical diagnostic and therapeutic devices. Tegal is actively evaluating opportunities for partnerships with diversified technology-based companies in order to exploit our shared experience and to enhance our value as a public company. Tegal is headquartered in Petaluma, California. Please visit us on the web at www.tegal.com.
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TEGAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
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ASSETS |
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March 31, |
March 31, |
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| Current assets: | ||||||
| Cash and cash equivalents | $ | 7,820 | $ | 7,575 | ||
| Restricted Cash | -- | 200 | ||||
| Prepaid expenses and other current assets | 56 | 139 | ||||
| Other assets of discontinued operations | 418 | 1,129 | ||||
| Total current assets | 8,294 | 9,043 | ||||
| Property and equipment, net | 56 | 112 | ||||
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Investment in unconsolidated affiliate |
-- | 2,046 | ||||
| Investment in convertible promissory note | 312 | -- | ||||
| Total assets | $ | 8,662 | $ | 11,201 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1 | $ | 262 | ||
| Common Stock Warrant Liability | 19 | 26 | ||||
| Accrued expenses and other current liabilities | 316 | 94 | ||||
| Liabilities on discontinued operations | 246 | 1,410 | ||||
| Total liabilities | 582 |
1,792 |
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| Stockholders’ equity: | ||||||
| Common stock | 17 | 17 | ||||
| Additional paid-in capital | 129,052 | 128,977 | ||||
| Accumulated other comprehensive income | (142) | (167) | ||||
| Accumulated deficit | (120,847) | (119,418) | ||||
| Total stockholders’ equity | 8,080 | 9,409 | ||||
| $ | 8,662 | $ | 11,201 | |||
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TEGAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) |
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Year Ended March 31, |
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| 2012 | 2011 | |||||
| Revenue – related party | $ | 100 | $ | 16 | ||
| Operating expenses: | ||||||
| General and administrative expenses | 2,615 | 1,883 | ||||
| Total operating expenses | 2,615 | 1,883 | ||||
| Operating loss | (2,515) | (1,867) | ||||
| Equity in (loss) and impairment of unconsolidated affiliate | (2,046) | (179) | ||||
| Other income (expense), net | 18 | 337 | ||||
| Loss before income tax benefit | (4,543) | (1,709) | ||||
| Income tax expense (benefit) expense | -- | -- | ||||
| Loss from continuing operations | (4,543) | (1,709) | ||||
| Gain on sale of discontinued operations, net of tax | 2,930 | 506 | ||||
| Income (loss) from discontinued operations, net of taxes | 184 | (1,927) | ||||
| Income (loss) from discontinued operations | 3,114 | (1,421) | ||||
| Net loss | $ | (1,429) | $ | (3,130) | ||
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Other comprehensive income (loss) |
25 | (18) | ||||
| Total comprehensive (loss) | $ | (1,404) | $ | (3,148) | ||
| Net (loss) income per share from continuing operations: | ||||||
| Basic and diluted | $ | (2.69) | $ | (1.01) | ||
| Net (loss) income per share from discontinued operations: | ||||||
| Basic and diluted | $ | 1.84 | $ | (0.84) | ||
| Net (loss) income per share: | ||||||
| Basic and diluted | $ | (0.85) | $ | (1.85) | ||
| Weighted average shares used in per share computation: | ||||||
| Basic and diluted | 1,689 | 1,689 | ||||
The weighted average number of shares and the (loss) income per share reflect a 1-for-5 reverse split effected by the Company on June 15, 2011