-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D1e03azh0Nb9cJAAz9lSF7uFMEGeFl7NVKxQupPwGLN7TSywOPowJbh5q7vm1Fwc KMw+0Spt3BPj9CT+3/9DCQ== 0001047469-98-028551.txt : 19980729 0001047469-98-028551.hdr.sgml : 19980729 ACCESSION NUMBER: 0001047469-98-028551 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980728 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEI INC CENTRAL INDEX KEY: 0000351298 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 410944876 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 000-10078 FILM NUMBER: 98672557 BUSINESS ADDRESS: STREET 1: 1495 STEIGER LAKE LN STREET 2: P O BOX 5000 CITY: VICTORIA STATE: MN ZIP: 55386 BUSINESS PHONE: 6124432500 MAIL ADDRESS: STREET 1: P O BOX 5000 STREET 2: 1495 STEIGER LAKE LANE CITY: VICTORIA STATE: MN ZIP: 55386 DEFA14A 1 DEFA14A SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant /X/ Filed by a party other than the Registrant / / Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 HEI, INC. - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): /X/ No fee required / / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11 (1) Title of each class of securities to which transaction applies: ------------------------------------------------------------------------ (2) Aggregate number of securities to which transaction applies: ------------------------------------------------------------------------ (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): ------------------------------------------------------------------------ (4) Proposed maximum aggregate value of transaction: ------------------------------------------------------------------------ (5) Total fee paid: ------------------------------------------------------------------------ / / Fee paid previously with preliminary materials. / / Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: ------------------------------------------------------------------------ (2) Form, Schedule or Registration Statement No.: ------------------------------------------------------------------------ (3) Filing Party: ------------------------------------------------------------------------ (4) Date Filed: ------------------------------------------------------------------------ A Message from HEI to our Shareholders and the Community: LET'S SET THE RECORD STRAIGHT For the past several months, the shareholders of Minnesota-based HEI have been subjected to an unfortunate and extremely expensive struggle for control of HEI and its assets. Everything from HEI's performance and prospects to the integrity of the Board and management has come under public attack in a series of misleading ads and public statements by the opposition. Over the same period, our employees, customers, suppliers, friends, community leaders, and shareholders have endured this mischaracterization and asked why we haven't responded in the media. The answer is commitment and responsibility. We have a duty to focus on growing our business and providing return for our shareholders. We continue to do so; however, we have a responsibility to set the record straight. The charts below show HEI's achievements, its solid financial base and its excellent prospects for the future. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC HEI ANNUAL REVENUE FISCAL YEAR 1990-1997 $ Millions
TOTAL REVENUE 1990 8.5 1991 9.0 1992 14.1 1993 18.9 1994 17.3 1995 23.4 1996 20.7 1997 31.0
- - 20% COMPOUND ANNUAL REVENUE GROWTH: FY 90 - FY 97. - - FIRST NINE MONTHS OF FY 98: $14.7 MILLION REVENUE. - - AGGRESSIVE GROWTH STRATEGIES IN TARGET MARKETS LED TO 53% REVENUE GROWTH IN MEDICAL AND COMMUNICATIONS FOR FIRST NINE MONTHS OF FY 98 VS. SAME PERIOD OF FY 97. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC HEI NET PROFIT (LOSS) BEFORE TAX FISCAL YEAR 1990-1997 $ Millions
NPBT % RETURN ON REVENUE 1990 -.8 -9.7 1991 -.1 -0.6 1992 2.0 14.2 1993 4.0 21.2 1994 2.1 12.2 1995 3.3 13.9 1996 2.8 13.7 1997 4.0 12.9
- - ANNUAL PRE-TAX PROFITS HAVE EXCEEDED 12% OF REVENUES: FY 92-97. - - FIRST NINE MONTHS OF FY 98: $647,000 PRE-TAX PROFIT, 4.3% RETURN ON REVENUE. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC HEI CASH AND INVESTMENTS FISCAL YEAR 1990-1997 $ Millions
CASH/INV. 1990 0 1991 .2 1992 .9 1993 2.0 1994 2.3 1995 5.3 1996 6.7 1997 12.6
- - FROM ZERO TO $13 MILLION: FY 90 - FY 97. - - AT 5/30/98: CASH AND INVESTMENTS WERE $13.4 MILLION. - - STRONG FINANCIAL PLATFORM FOR GROWTH AND DIVERSIFICATION. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC HEI SHAREHOLDER EQUITY FISCAL YEAR 1990-1997 $ Millions
SHAREHOLDERS EQUITY BOOK VALUE PER SHARE 1990 1.1 0.77 1991 1.6 0.56 1992 3.6 1.14 1993 6.8 1.86 1994 8.7 2.35 1995 11.0 2.90 1996 13.8 3.43 1997 17.0 4.14
- - SHAREHOLDER EQUITY FROM $1.1 MILLION TO $17 MILLION: FY 90 - FY 97. - - BOOK VALUE PER SHARE FROM $0.77 TO $4.14: FY 90 - FY 97. - - AT 5/30/98: SHAREHOLDER EQUITY WAS $17.5 MILLION, BOOK VALUE PER SHARE WAS $4.29. - - RETAINED EARNINGS GROWTH FROM NEGATIVE $3.1 MILLION TO POSITIVE $9.3 MILLION: FY 90 - FY 97. We are proud of our results, the skills and abilities of our employees and our partnerships with our customers. We are equally excited about our prospects for the future. That's because HEI has the people, the strategy, the hard earned financial resources and the technology in place to produce positive long-term results and shareholder value. We would like to thank the entire HEI community for their patience and continued support as we work together for an even brighter future here in Minnesota. HEI, Inc. Board of Directors Robert L. Brueck Eugene W. Courtney William R. Franta Frederick M. Zimmerman -----END PRIVACY-ENHANCED MESSAGE-----