-----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, RDzzrew+CE2btE3BoE34o8SYoE6xeRQK3DvFFSgKfVUW57cH7KlE/9CxlvFmmg4J cz0khs57ZBWLJtpli5n8YQ== 0000950005-99-000482.txt : 19990519 0000950005-99-000482.hdr.sgml : 19990519 ACCESSION NUMBER: 0000950005-99-000482 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990404 FILED AS OF DATE: 19990518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWALL TECHNOLOGIES INC /DE/ CENTRAL INDEX KEY: 0000813619 STANDARD INDUSTRIAL CLASSIFICATION: UNSUPPORTED PLASTICS FILM & SHEET [3081] IRS NUMBER: 942551470 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15930 FILM NUMBER: 99629586 BUSINESS ADDRESS: STREET 1: 1029 CORPORATION WAY CITY: PALO ALTO STATE: CA ZIP: 94303 BUSINESS PHONE: 4159629111 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the quarterly period ended April 4, 1999 /_/ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ______ to ________ Commission File Number: 0-15930 SOUTHWALL TECHNOLOGIES INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 94-2551470 ------------------------------ ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 1029 Corporation Way, Palo Alto, California 94303 ------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (650) 962-9111 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of May 12, 1999 there were 7,388,065 shares of the Registrant's Common Stock outstanding. 1 SOUTHWALL TECHNOLOGIES INC. INDEX Page Number PART I FINANCIAL INFORMATION Item 1 Financial Statements: Consolidated Balance Sheets - April 4, 1999 and December 31, 1998.......................................3 Consolidated Statements of Operations - three months ended April 4, 1999 and March 29, 1998 .........................................4 Consolidated Statements of Cash Flows - three months ended April 4, 1999 and March 29, 1998 .........................................5 Notes to Consolidated Financial Statements..................6 Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations............7 Item 3 Quantitative and Qualitative Disclosures about Market Risk.12 PART II OTHER INFORMATION Item 1 Legal Proceedings..........................................13 Item 2 Changes in Securities......................................13 Item 3 Defaults Upon Senior Securities............................13 Item 4 Submission of Matters to a Vote of Stockholders............13 Item 5 Other Information..........................................13 Item 6 Exhibits and Reports on Form 8-K...........................13 Signatures.................................................14 2 PART I FINANCIAL INFORMATION Item 1 - Financial Statements: SOUTHWALL TECHNOLOGIES INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (Unaudited) ASSETS April 4, December 31, 1999 1998 -------- -------- Current assets: Cash and cash equivalents $ 230 $ 4,136 Short-term investments -- 7 Accounts receivable, net of allowance for doubtful accounts of $893 and $845 9,860 12,355 Inventories 6,521 6,057 Other current assets 1,099 813 -------- -------- Total current assets 17,710 23,368 Property and equipment, net 30,431 29,068 Other assets 1,598 1,583 -------- -------- Total assets $ 49,739 $ 54,019 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank credit line $ 500 $ -- Accounts payable 5,582 6,307 Accrued compensation 1,806 2,265 Other accrued liabilities 1,927 3,655 Current portion of long-term debt 15,085 15,397 -------- -------- Total current liabilities 24,900 27,624 Long-term debt 104 141 Deferred income taxes 437 437 -------- -------- Total liabilities 25,441 28,202 -------- -------- Commitments Stockholders' equity: Common stock, $.001 par value, 20,000 shares authorized: Issued and outstanding: 7,889 and 7,889 8 8 Capital in excess of par value 52,181 52,181 Notes Receivable (1,020) (1,020) Accumulated deficit (24,019) (22,500) Less cost of treasury stock, 565 and 565 shares (2,852) (2,852) -------- -------- Total stockholders' equity 24,298 25,817 -------- -------- Total liabilities and stockholders' equity $ 49,739 $ 54,019 ======== ======== See accompanying notes to consolidated financial statements. 3 SOUTHWALL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended --------------------------------- April 4, 1999 March 29, 1998 ------------- -------------- Net revenues $ 10,858 $ 10,416 -------- -------- Costs and expenses: Cost of sales 8,911 10,215 Research and development 1,233 1,060 Selling, general and administrative 1,966 2,408 -------- -------- Total costs and expenses 12,110 13,683 -------- -------- Loss from operations (1,252) (3,267) Interest income/(expense), net (255) (108) -------- -------- Loss before income taxes (1,507) (3,375) Provision for income taxes 12 -- -------- -------- Net loss $ (1,519) $ (3,375) ======== ======== Net loss per share - Basic $ (.21) $ (.45) ======== ======== - Diluted $ (.21) $ (.45) ======== ======== Weighted average shares of common stock and common stock equivalents - Basic 7,324 7,561 - Diluted 7,324 7,561 See accompanying notes to consolidated financial statements. 4 SOUTHWALL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Three Months Ended ----------------------------------- April 4, 1999 March 29, 1998 -------- -------- Cash flows from operating activities: Net loss $ (1,519) $ (3,375) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,152 940 Decrease (increase) in accounts receivable 2,495 2,712 Decrease (increase) in inventories (464) (335) Decrease (increase) in other current assets (286) (2) (Decrease) increase in accounts payable and accrued liabilities (2,912) 945 -------- -------- Cash provided by (used in) operating activities (1,534) 885 -------- -------- Cash flows from investing activities: Decrease (increase) in short-term investments 7 (1,510) Expenditures for property and equipment and other assets (2,530) (1,044) -------- -------- Net cash used in investing activities (2,523) (2,554) -------- -------- Cash flows from financing activities: Payments on long-term debt (349) (118) Bank line of credit borrowings 500 -- Issuance of treasury stock, net -- 74 Repayment of stock option loans -- 50 -------- -------- Net cash provided by financing activities 151 6 -------- -------- Net decrease in cash and cash equivalents (3,906) (1,663) Cash and cash equivalents, beginning of year 4,136 10,524 -------- -------- Cash and cash equivalents, end of period $ 230 $ 8,861 ======== ======== See accompanying notes to consolidated financial statements.
5 SOUTHWALL TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands) (Unaudited) Note 1 - Interim Period Reporting: While the information presented in the accompanying consolidated financial statements is unaudited, it includes all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the Company's financial position and results of operations, and changes in financial position as of the dates and for the periods indicated. Certain information and footnote disclosures normally contained in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the financial statements contained in the Company's Form 10-K for the year ended December 31, 1998. The results of operations for the interim periods presented are not necessarily indicative of the operating results of the full year. Note 2 - Inventories: Inventories are stated at the lower of cost (determined by the first-in, first-out method) or market. Inventories consisted of the following: April 4, 1999 December 31, 1998 ------------- ----------------- Raw materials $3,829 $2,314 Work-in-process 1,056 2,155 Finished goods 1,636 1,588 ------ ------ Total $6,521 $6,057 ====== ====== Note 3 - Commitments: During 1996, the Company entered into an addendum to a previous supply agreement with a major customer for the sale of the Company's anti-reflective film. Beginning July 1, 1997, the Company is committed to supply and the customer is committed to purchase fixed volumes thereafter until December 31, 2000. Should either the Company fail to supply or the customer fail to purchase the specified quantities, a penalty, based on the sales price to the customer from the prior period, must be paid to the other. Currently, the Company and its customer are in the process of negotiating modifications to certain terms and conditions of this supply agreement. Note 4 - Line of Credit Agreement: The Company has secured a $4 million revolving line of credit with a bank which expires in June 2000. This line of credit may be extended further for additional one-year terms with the bank's approval. The amount of borrowings is based upon a percentage of accounts receivable, which at April 4, 1999, did not limit available borrowing under the line. The line is secured by certain assets of the Company and bears interest at an annual rate of prime plus 6 1.25%. Under the terms of the agreement, the Company is required to maintain certain financial covenants. As of April 4,1999, $0.5 million was borrowed under this line of credit. Note 5 - Net income (loss) per share: Basic net income (loss) per share is computed by dividing income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) for the period. Diluted net income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted earnings per share uses the average market prices during the period. During each of the periods presented there were no differences between the numerators used for calculation of basic and diluted net income (loss) per share. The total amount of the difference in the basic and diluted weighted average shares of common stock and common stock equivalents in the periods where there is net income is attributable to the effect of dilutive stock options. In net loss periods, the basic and diluted weighted average shares of common stock and common stock equivalents are the same because inclusion of stock options would be antidilutive. Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations: Except for the historical information contained herein, the matters discussed in this Form 10-Q Report are forward-looking statements that involve risks and uncertainties, including those discussed below and in the Company's Annual Report on Form 10-K. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of the filing of this Form 10-Q Report. The Company disclaims, however, any intent or obligation to update these forward-looking statements. General The Company has experienced significant fluctuations in quarterly results of operations. Revenues have varied from quarter to quarter due to the seasonal buying patterns for the Company's Heat Mirror(TM) products, which typically have been strongest in the second and third quarters, and the timing of short-term sales contracts. Additionally, sales of the Company's energy conservation products are significantly influenced by the residential and commercial construction industries, and reduction in construction has generally resulted in a reduction in the sales of the Company's Heat Mirror(TM) products. Historically, operating results have varied from quarter to quarter as a function of the utilization of the Company's production machines. In 1998, and in the first quarter of 1999, operating results were affected by process and machine problems resulting in quality issues associated with the anti-reflective film product manufactured in Tempe, Arizona. The development and introduction of new products and the changing mix of products manufactured have added to the production problems and inefficiencies experienced by the Company. Primarily as a result of these factors, and in view of the Company's strategy of developing additional applications for its thin-film technology, and its ongoing practice of upgrading its manufacturing processes, the Company may continue to experience quarterly fluctuations in its results of operations. 7 Although the Company has not experienced a significant amount of inventory obsolescence and believes that its inventory is recoverable, obsolescence of the Company's products could be affected by technological change, competition, loss of customers and reduction in demand, among other factors. The Company believes that it must continue to increase revenues and improve manufacturing processes and yields to achieve sustained profitability. Although the Company expanded its capacity by opening a new manufacturing facility in 1997 in Tempe, Arizona and entered into a purchase agreement in 1998 for a new production machine to be completed and installed in Tempe by the fourth quarter of 1999, and is continuously seeking to expand existing applications, to develop new applications and to expand international marketing and sales efforts, there can be no assurance that the Company will be successful in these efforts and continue to increase revenues. Year 2000 readiness The Company believes the Year 2000 issue represents a material risk to the Company. The Year 2000 issue involves the potential inability of information or other data dependent systems to properly distinguish year references at the turn of the century and certain other dates. The Company itself is heavily dependent upon the proper functioning of its own computer systems, including (1) computers and related software for its financial and manufacturing information systems, (2) computers, programmable logic controllers and other data dependent equipment in its manufacturing processes, and (3) computers, scientific equipment and related software for its engineering, research and development activities. Any failure or malfunctioning on the part of these or other systems could cause disruptions of operations, including a temporary inability to process financial transactions, manufacture products or engage in ordinary business activities in ways that are not currently known, discernible, quantifiable or otherwise anticipated by the Company. In October 1996 the Company began reviewing Year 2000 issues and prepared a plan ("The Plan") to address those issues. The Plan consists of several phases. The first is the inventory and prioritization of potential Year 2000 items, and the assessment of Year 2000 compliance. The second phase is the remediation of any noted problems. The third phase is the testing of material items and the fourth phase is the preparation of contingency plans. All phases of The Plan are expected to be handled with existing staff and the Company believes the cost to address Year 2000 issues will not be material. The Company is currently involved in the testing of material items and expects this phase to be completed by June 30, 1999. The Company anticipates that it will complete the contingency planning phase by June 30, 1999 although the Company currently has no contingency plans to deal with the most likely worst case scenarios. 8 For the Company's most significant IT and non-IT systems (defined below), the first and second phases have been completed. The Company has completed major upgrades and modifications, which have made essentially all mainframe accounting and inventory control software Year 2000 compliant. The scope of the Year 2000 compliance effort includes (1) information technology ("IT") such as software and hardware; (2) non-IT systems or embedded technology such as micro-controllers contained in various manufacturing and laboratory equipment; environmental and safety systems, facilities and utilities, and (3) the readiness of key third parties, including suppliers and customers, and the electronic data interchange (EDI) with those key third parties. The Company's suppliers (particularly sole-source and long lead time suppliers) and key customers may be adversely affected by their respective failures to address the Year 2000 issue. If the Company's suppliers are unable to provide goods or services, the Company's operations could be materially adversely affected. Key customers that encounter Year 2000 difficulties could fail to order or take delivery of the Company's products, or could fail to make or delay payments to the Company. Such failure or delay could have a material adverse effect on the Company's business and results of operations. While some of these risks are outside the control of the Company, the Company's Plan includes communications with suppliers and customers to ascertain the state of their Year 2000 compliance program. The questionnaire phase of this activity was completed as of March 31, 1999. Remediation activities and preparation of contingency plans related to suppliers and customers is scheduled for completion by June 30, 1999. The Company's products are not affected by calendar dating. Therefore, there is no known or anticipated Year 2000 impact on its product offerings. The Company believes its Year 2000 Plan will significantly reduce the probability of significant interruptions of normal operations resulting from Year 2000 issues. However, the Company may not properly identify and assess all Year 2000 issues, or it may not remediate and test all its IT and non-IT systems in a timely or adequate manner. In addition, its key suppliers or customers could experience Year 2000 problems. If any of these potential situations occur, the Company's contingency plans may not be adequate to protect the Company from the adverse effects of such problems. The worst case scenario resulting from Year 2000 issues would be a material adverse impact on the Company's results of operations, an interruption in normal business operations, or an adverse impact on the Company's relationships with customers, suppliers or others. Three Months Ended April 4, 1999 and March 29, 1998 Net revenues increased to $10.9 million for the first three months of 1999, compared to $10.4 million for the similar period of 1998. The increase was primarily attributable to increased sales of $3.3 million for automotive film offset by decreased sales of $2.1 million for anti-reflective film and $0.7 million of various other products. The decrease in anti-reflective film sales was primarily due to minimal production in the Tempe plant during January and February 1999 as a result of the re-certification of production processes for product provided to a single customer. In March the Tempe plant was re-certified and commenced production. 9 Cost of sales for the first quarter of 1999 was 82% of net revenue, compared to 98% for the similar period of 1998. The improvement in cost of sales was due to an increase in sales of automotive film which contributes higher gross margins. Also, the loss of production capacity and product yields in Tempe in the first three months of 1999 had less impact on cost of sales than the process and product yield problems experienced at the Tempe facility in the first three months of 1998. Research and development expenses, as a percent of net sales, were 11% of net revenues for the first three months of 1999, compared to 10% for the similar period in 1998. The absolute dollars increased to $1.2 million in the first quarter of 1999 from $1.1 million in the comparable period of 1998. The increase in 1999 is attributable to additional personnel required to support the development of new products, primarily the development of products for the anti-reflective film market, and the development of new deposition technologies resulting in faster coating processes. Selling, general and administrative expense, as a percent of net sales, was 18% of net revenues in the first three months of 1999, compared to 23% for the similar period in 1998. The absolute dollars decreased to $2.0 million in 1999 from $2.4 million in 1998. The decrease in absolute dollars was primarily due to a decrease in personnel in 1999 and reorganization severance payments in 1998 which was the result of combining the Company's two divisions into one in 1998. Net interest expense increased to $0.3 million for the first three months of 1999 compared to $0.1 million for the similar period of 1998 due to a decrease in interest income. The average cash balances invested during the first three months of 1999 was significantly less than the average balances invested for the comparable period of 1998. As a result of the factors discussed above, the Company reported a pre-tax loss of $1.5 million for the first three months of 1999, compared to a pre-tax loss of $3.4 million for the similar period in 1998. Liquidity and Capital Resources On December 16, 1996, the Company borrowed $5 million from an institutional lender for partial financing of the new manufacturing facility in Tempe, Arizona. On April 9, 1997, the Company signed an agreement with Teijin Limited of Japan (Teijin), a major raw material supplier of the Company, which included arrangements for additional financing for the new manufacturing facility and for related potential working capital growth. Teijin purchased 667,000 shares of the Company's common stock at a price of $7.50 per share, and guaranteed a loan through Sanwa Bank for an additional $10 million. Teijin also received warrants to purchase 158,000 shares of common stock at a price of $9.00 per share at any time within three years of the date of the agreement. The stock purchase transaction of approximately $5 million was completed on April 28, 1997. In addition, a loan agreement with Sanwa Bank was signed on May 2, 1997, and the Company received the first $5 million of funding on May 6, 1997, and the remaining $5 million was received on November 6, 1997. The manufacturing facility in Tempe, Arizona began operations during the fourth quarter 1997, and is currently dedicated to the production of anti-reflective film products. 10 From December 31, 1998 to April 4, 1999, cash and short-term investments decreased by $3.9 million, primarily due to expenditures for property and equipment, payments on debt and cash used in operating activities. Of the capital expenditures during the first three months of 1999, approximately $1.2 million was for the conversion of an older, large-scale production machine located in Palo Alto, California to produce advanced anti-reflective film products and approximately $0.9 million for the new manufacturing machine, PM#6, to be located in Tempe, Arizona. The cash used in operating activities resulted primarily from a decrease of $2.9 million in accounts payable and accrued liabilities and the net loss of $1.5 million for the first three months of 1999 offset by a decrease in accounts receivable of $2.5 million and depreciation and amortization of $1.2 million. At April 4, 1999, the Company had $0.2 million of cash and short-term investments. The Company also has a bank line of credit for $4 million under which the Company has $0.5 million in borrowings at April 4, 1999 and term loans of $10 million and $5 million, which are subject to certain financial covenants. The Company was not in compliance with some of the financial covenants pertaining to the term loans at April 4, 1999. The Company is in continuing default of these covenants and has therefore classified the term loans as current liabilities until such time when the Company is in full compliance. The Company has maintained favorable relations with all of its financing institutions and is working closely with its lenders to reset the covenants based on the Company's current 1999 projections. While there can be no assurance that the Company will be successful in these efforts the Company anticipates a favorable resetting of such covenants and the ability to pay these loans in accordance with their original terms. The Company anticipates that it will acquire approximately $14 million to $17 million of new capital equipment in 1999 which includes the purchase of two new production machines for its film products and a planned expansion in the European automotive film market. The Company is currently seeking approximately $10 million of additional equipment financing from one of its current lenders and expects this financing to be in place early in the second quarter of 1999, although there can be no assurance that the Company will be successful in obtaining this financing. Additionally, the Company's Convertible Subordinated Note for $2.65 million is due and payable on May 31, 1999. While there can be no assurance that the Company will be successful in its efforts to renegotiate its financial covenants with its lenders or obtain the additional financing that will be necessary for its 1999 operating cash requirements, the Company believes that existing cash, cash anticipated to be generated from operations, the bank line of credit and the additional term loan borrowing, as discussed above, will be sufficient to meet the Company's operating cash requirements through fiscal 1999. If the Company is not successful in obtaining the financing described above, it may also need to raise additional funds through public or private equity or debt financing from other sources. The sale of additional equity or convertible debt may result in additional dilution to the Company's stockholders and such securities may have rights, preferences or privileges 11 senior to those of the Common Stock. There can be no assurance that additional equity or debt financing will be available or that if available it can be obtained on terms favorable to the Company or its stockholders. Item 3 - Quantitative and Qualitative Disclosures about Market Risk: The Company is exposed to the impact of interest rate changes, foreign currency fluctuations, and changes in the market values of its investments. FINANCING RISK. The Company's exposure to market rate risk for changes in interest rates relates primarily to the Company's term loans which are tied to the London Interbank Offered Rate ("LIBOR") and the Company's Convertible Subordinated Note and bank line of credit which are tied to the prime rate. Fluctuations in interest rates may adversely impact the interest expense expected for the Company. The effect of interest rate fluctuations on the Company in the first three months of 1999 was not material. INVESTMENT RISK. The Company invests its excess cash in certificates of deposit and money market accounts and, by policy, limits the amount of exposure to any one institution. Investments in both fixed rate and floating rate interest earning instruments carries a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. FOREIGN CURRENCY RISK. International revenues amounted to 71% of the Company's total sales in the first three months of 1999 and, by policy, the Company limits foreign currency risk by requiring all sales to be denominated in U.S. dollars. The Company's international business is subject to risks typical of an international business, including, but not limited to differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. Accordingly, the Company's future results could be materially adversely impacted by changes in these or other factors. The effect of foreign exchange rate fluctuations on the Company in the first three months of 1999 was not material. 12 PART II OTHER INFORMATION Item 1 Legal Proceedings and Other Matters Certain litigation filed against the Company by one of its customers was described in the Company's Form 10-K filed on March 31, 1999. Subsequent to such filing, no material developments have occurred with respect to this litigation. In addition, the Company is involved in certain other legal actions arising in the ordinary course of business. The Company believes, however, that none of these actions, either individually or in the aggregate, will have a material adverse effect on the Company's business or its consolidated financial position or results of operations. Item 2 Changes in Securities Not applicable Item 3 Defaults upon Senior Securities Not applicable Item 4 Submission of Matters to a Vote of Stockholders No matters were submitted to a vote of security holders during the quarter ended April 4, 1999. Item 5 Other Information Not applicable Item 6 Exhibits and Reports on Form 8-K (a) Exhibits - None (b) Reports on Form 8-K - None 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: May 12, 1999 Southwall Technologies Inc. By:/s/Thomas G. Hood ----------------------------- Thomas G. Hood President and Chief Executive Officer By:/s/Bill R. Finley ----------------------------- Bill R. Finley Vice President and Chief Financial Officer 14 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1999 APR-04-1999 230 0 10,753 (893) 6,521 17,710 58,141 (27,710) 49,739 24,900 0 0 8 0 24,298 49,739 10,725 10,858 8,911 12,110 0 0 (255) (1,507) 12 (1,519) 0 0 0 (1,519) (.21) (.21)
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