September 25, 2006 – Simtek Corp., a supplier of nonvolatile static random access memory (SRAM) ICs, has completed a private placement of 11.5 million shares, raising $4.56 million to use for general working capital, and procure silicon wafers.
The company’s growth — 30%-50% projected revenue growth rate from 1H06 to 2H07 — has brought several challenges, among then a cash flow issue in the near term and the ability to secure silicon, according to company execs. “With our fabless business model it generally takes between four and five months from when we start wafers until we collect cash from customers. Without this financing we would probably have limited the growth of the company based on our available cash resources from operations and other sources,” stated Brian Alleman, Simtek CFO.
Harold Blomquist, president and CEO, noted that the company “felt this was the quickest and most effective manner at this time to raise capital. (…) based on the need to ramp production at our wafer fabs right now to support growth and further improve profitability.”