Date of Report (Date of earliest event reported) |
August 12, 2011
|
SOUTHWALL TECHNOLOGIES INC. |
(Exact Name Of Registrant As Specified In Its Charter)
|
DELAWARE |
(State or Other Jurisdiction of Incorporation) |
0-15930 | 94-2551470 | |
(Commission File Number) | (I.R.S. Employer Identification No.) | |
3788 Fabian Way, Palo Alto, CA | 94303 | |
(Address of Principal Executive Offices) | (Zip Code) |
(650) 798-1200 |
(Registrant’s Telephone Number, Including Area Code) |
N/A |
(Former Name or Former Address, if Changed Since Last Report) |
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 9.01.
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Financial Statements and Exhibits
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Exhibit No.
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Description:
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Exhibit 99.1
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Press Release, dated August 12, 2011, issued by Southwall Technologies Inc.
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Dated: August 12, 2011 | SOUTHWALL TECHNOLOGIES INC. | |
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By:
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/s/ Dennis F. Capovilla |
Dennis F. Capovilla | ||
Chief Executive Officer |
Contact: | |
Kathy Taylor | |
Southwall Technologies Inc. | |
Phone: (650) 798-1200 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
2011 |
June 30,
2010 |
June 30,
2011 |
June 30,
2010 |
|||||||||||||
Net revenues
|
$ | 13,534 | $ | 11,790 | $ | 28,065 | $ | 22,271 | ||||||||
Cost of revenues
|
7,763 | 5,891 | 16,167 | 11,659 | ||||||||||||
Gross profit
|
5,771 | 5,899 | 11,898 | 10,612 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research & development
|
1,113 | 792 | 2,147 | 1,584 | ||||||||||||
Selling, general and administrative
|
2,938 | 2,266 | 5,877 | 4,266 | ||||||||||||
Goodwill and intangible assets impairment
|
1,833 | - | 1,833 | - | ||||||||||||
Total operating expenses
|
5,884 | 3,058 | 9,857 | 5,850 | ||||||||||||
Income (loss) from operations
|
(113 | ) | 2,841 | 2,041 | 4,762 | |||||||||||
Interest expense, net
|
(65 | ) | (64 | ) | (131 | ) | (159 | ) | ||||||||
Other income (expense), net
|
64 | 123 | 336 | (358 | ) | |||||||||||
Income (loss) before provision for income taxes
|
(114 | ) | 2,900 | 2,246 | 4,245 | |||||||||||
Provision (benefit) for income taxes
|
531 | (107 | ) | 1,481 | (99 | ) | ||||||||||
Net income (loss)
|
(645 | ) | 3,007 | 765 | 4,344 | |||||||||||
Net loss attributable to noncontrolling interest
|
58 | 30 | 219 | 30 | ||||||||||||
Net income (loss) attributable to Southwall
|
(587 | ) | 3,037 | 984 | 4,374 | |||||||||||
Deemed dividend on preferred stock
|
122 | 122 | 244 | 244 | ||||||||||||
Net income (loss) attributable to common stockholders
|
$ | (709 | ) | $ | 2,915 | $ | 740 | $ | 4,130 | |||||||
Net income (loss) per share (1):
|
||||||||||||||||
Basic
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$ | (0.12 | ) | $ | 0.51 | $ | 0.13 | $ | 0.72 | |||||||
Diluted
|
$ | (0.12 | ) | $ | 0.42 | $ | 0.14 | $ | 0.61 | |||||||
Weighted average shares used in computing net income per share (1):
|
||||||||||||||||
Basic
|
5,811 | 5,766 | 5,809 | 5,762 | ||||||||||||
Diluted
|
5,811 | 7,215 | 7,204 | 7,198 |
June 30,
2011 |
December 31,
2010 |
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 13,400 | $ | 13,776 | ||||
Accounts receivable, net
|
7,450 | 5,902 | ||||||
Inventories, net
|
6,904 | 5,536 | ||||||
Prepaid income taxes
|
- | 2,017 | ||||||
Other current assets
|
4,454 | 1,901 | ||||||
Total current assets
|
32,208 | 29,132 | ||||||
Property, plant and equipment, net
|
15,279 | 15,235 | ||||||
Goodwill
|
366 | 1,854 | ||||||
Intangible assets
|
357 | 901 | ||||||
Deferred tax and other assets
|
3,545 | 3,468 | ||||||
Total assets
|
$ | 51,755 | $ | 50,590 | ||||
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long term debt and capital leases
|
$ | 1,048 | $ | 1,024 | ||||
Accounts payable
|
2,414 | 2,628 | ||||||
Accrued compensation
|
1,337 | 1,742 | ||||||
Other accrued liabilities
|
4,795 | 4,764 | ||||||
Total current liabilities
|
9,594 | 10,158 | ||||||
Term debt and capital leases
|
3,213 | 3,511 | ||||||
Other long term liabilities
|
122 | 112 | ||||||
Total liabilities
|
12,929 | 13,781 | ||||||
Series A, convertible preferred stock
|
4,810 | 4,810 | ||||||
Stockholders' equity:
|
||||||||
Common stock
|
29 | 29 | ||||||
Capital in excess of par value
|
78,791 | 78,759 | ||||||
Accumulated other comprehensive income:
|
||||||||
Translation gain on subsidiary
|
4,440 | 3,466 | ||||||
Accumulated deficit
|
(49,244 | ) | (50,228 | ) | ||||
Total Southwall stockholders' equity
|
34,016 | 32,026 | ||||||
Noncontrolling interest
|
- | (27 | ) | |||||
Total stockholders' equity
|
34,016 | 31,999 | ||||||
Total liabilities, preferred stock and stockholders' equity
|
$ | 51,755 | $ | 50,590 |
Six Months Ended
|
||||||||
June 30,
2011 |
June 30,
2010 |
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 765 | $ | 4,344 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Gain on acquisition of controlling interest in SIG
|
- | (706 | ) | |||||
Deferred income tax
|
(11 | ) | (12 | ) | ||||
Loss on disposal of property, plant and equipment
|
38 | 2 | ||||||
Depreciation and amortization
|
1,749 | 1,227 | ||||||
Goodwill and intangible assets impairment
|
1,833 | - | ||||||
Stock-based compensation
|
452 | 265 | ||||||
(Provision for) inventory reserves
|
(88 | ) | (279 | ) | ||||
Recovery of returns and allowances reserves
|
40 | 206 | ||||||
Non-cash effect of acquisition of controlling interest in SIG
|
- | (232 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
(1,307 | ) | (1,244 | ) | ||||
Inventories, net
|
(1,000 | ) | 891 | |||||
Other current and non-current assets
|
(504 | ) | (451 | ) | ||||
Accounts payable and accrued liabilities
|
(864 | ) | (2,416 | ) | ||||
Net cash provided by operating activities
|
1,103 | 1,595 | ||||||
Cash flows from investing activities:
|
||||||||
Acquisition of controlling interest in SIG, net of cash acquired
|
- | (195 | ) | |||||
Expenditures for property, plant and equipment
|
(866 | ) | (455 | ) | ||||
Net cash used in investing activities
|
(866 | ) | (650 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
71 | 39 | ||||||
Repayments of term debt and capital leases obligations
|
(521 | ) | (448 | ) | ||||
Proceeds from investment tax credit
|
9 | - | ||||||
Net cash used in financing activities
|
(441 | ) | (409 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
(172 | ) | 140 | |||||
Net increase (decrease) in cash and cash equivalents
|
(376 | ) | 676 | |||||
Cash and cash equivalents, beginning of period
|
13,776 | 12,454 | ||||||
Cash and cash equivalents, end of period
|
$ | 13,400 | $ | 13,130 | ||||
Supplemental cash flows disclosures:
|
||||||||
Interest paid
|
$ | 156 | $ | 154 | ||||
Income taxes paid
|
$ | 564 | $ | 230 | ||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||
Dividends accrued
|
$ | 244 | $ | 244 | ||||
Deposits applied to acquisition of property, plant and equipment
|
$ | 86 | $ | - | ||||
Acquisition of interest in SIG
|
$ | 246 | $ | 232 |