June 29, 2011
Petaluma, Calif., June 29, 2011 — Tegal Corporation (NASDAQ: TGAL, TGALD) today announced financial results for the fiscal year 2011, which ended March 31, 2011.
Fiscal 2011 Highlights
On January 14, 2011, Tegal and se2quel Partners formed Sequel Power, a company dedicated to the development and operation of large scale photovoltaic (PV)-based solar utilities in the United States, Latin America, the Middle East and Africa. Tegal contributed $2 million in cash to Sequel Power in exchange for an approximate 25% economic interest and a majority voting interest in Sequel Power. Sequel Power has multiple projects under development and has developed a unique approach to develop, build and operate PV-based utilities which are cost competitive with conventional energy sources.
On February 9, 2011, Tegal sold its deep silicon etch assets to SPP Process Technology Systems Ltd. (SPTS), a unit of Sumitomo Precision Products. The agreement included the sale of all of the shares of Tegal France, SAS, the Company’s wholly-owned subsidiary and product lines and certain equipment, intellectual property and other assets relating to the DRIE plasma etch systems and certain related technology for an aggregate consideration of approximately $2.1 million.
Financial Statement Highlights
The Company’s Net Loss per share decreased to ($1.85) for the year from a comparable ($10.96) from the prior fiscal year.
The Company ended the fiscal year with $7.8 million in cash (including restricted cash), an increase over the prior year of approximately $0.5 million. This balance reflects the investment in Sequel Power and proceeds of the asset sale to SPTS and installment payments from OEM Group for the sale last year of the of the Legacy Etch and PVD assets, but does not include any contingent payments from OEM Group.
The NLD hardware in the remaining amount of $0.4 million was written off to discontinued operations in the income statement and shown on the balance sheet as “Assets Held for Sale- Discontinued Operations”. The NLD Intellectual Property Portfolio (which includes over 35 granted patents and applications) is currently being marketed to interested third-parties.
The balance sheet has been presented at March 31, 2011 and restated at March 31, 2010 using the captions “Assets of Discontinued Operations”, “Assets Held for Sale - Discontinued Operations”, “Long-term Assets of Discontinued Operations”, and “Liabilities of Discontinued Operations”. Discontinued Operations in the Income Statement includes revenue and expenses from the Company’s Legacy Etch, PVD, and DRIE lines of business, along with the amount of the write-off of the NLD hardware.
Tegal Q4 2011 Earnings Release
The proportionate share of the results of the operations of Sequel Power are included in the Company’s Income Statement as “Equity in (Earnings) Loss of Unconsolidated Affiliate” and in the Company’s Balance Sheet as “Investment in Unconsolidated Affiliate”, under the principle of the Equity Method as required by GAAP and according to SEC disclosure rules.
On June 15, 2011, following a 70% affirmative vote of the Stockholders, the Company effected a 1 for 5 reverse split. The number of outstanding shares is 1,688,943 at June 29, 2011.
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. Most recently, in response to a challenging industry and financial environment, Tegal has set a new course to develop and support multiple efforts in the field of renewable energy and other diversified technologies. Through its recent investment in sequel Power, Tegal is engaged in the promotion of solar power plant development projects worldwide and other renewable energy projects. In addition, Tegal is actively evaluating opportunities for partnerships with other 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.
Consolidated Financial Statement
Contact:
Tegal Corporation
Christine Hergenrother (Vice President & CFO), 707/763-5600
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