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Names Kevin Walker as Vice President of Worldwide Marketing
PALO ALTO, Calif., Jul 1, 2003 -- Southwall Technologies Inc. (SWTX) , a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, has named N. Kevin Walker to the position of vice president of Worldwide Marketing. Walker most recently served as marketing manager for Rogers Corporation (ROG ) Advanced Circuit Materials Division in Chandler, Arizona. In his new position Walker will report to Thomas G. Hood, president and chief executive officer, of Southwall.
Prior to his most recent assignment with Rogers, Walker was a sales representative for Merix, a high-technology printed circuit fabricator. Before that, he was marketing manager for the Rogers Soladyne business unit for 5 years, until Merix acquired it. In addition, he has held various sales engineering positions with other technology companies. Walker has a B.S. degree in Industrial Engineering from Texas Tech University.
"I'm very pleased that Kevin has decided to join us," said Hood. "He is an excellent complement to our present management team. We believe that his broad and diverse marketing and sales experience will help us to focus the company on better serving key markets and increasing sales in the coming years."
About Southwall Technologies Inc.
Southwall Technologies Inc., designs and produces thin film coatings that selectively absorb, reflect or transmit light. Southwall products are used in a number of automotive, electronic display and architectural glass products to enhance optical and thermal performance characteristics, improve user comfort and reduce energy costs. Southwall is an ISO 9001:2000-certified manufacturer and exports advanced thin film coatings to over 25 countries around the world. Southwall's customers include Audi, BMW, DaimlerChrysler, Mitsui Chemicals, Renault, Peugeot-Citroen, Volvo, Saint-Gobain SEKURIT, Pilkington, Hewlett-Packard, and Mitsubishi Electric.
This press release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995), including, without limitation, statements regarding the company's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements in this press release are based on information available to the company on the date hereof, and the company assumes no obligation to update any such forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented. These risks include the possibility that the company will not achieve any future growth or will experience losses, that Southwall's growth strategies will not be successful, that Mr. Walker's hiring and subsequent activities will not benefit the company, and that shipments to customers will be materially less than anticipated, as well as risks associated with its failure to meet covenants under credit facilities and strains on the company's liquidity. Further risks are detailed in the company's filing with the Securities and Exchange Commission, including those set forth in the company's most recent Form 10-K for the year ended December 31, 2002, filed on March 31, 2003 and Form 10-Q for the quarter ended March 30, 2003, filed May 14, 2003.
Secures $10 Million Line of Credit Facility
PALO ALTO, Calif., May 21, 2003--Southwall
Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and
marketer of thin-film coatings for the electronic display, automotive
glass and architectural markets, today announced that it has secured a
one-year, $10 million line of credit facility with Pacific Business
Funding, a division of Cupertino National Bank which is a subsidiary
of Greater Bay Bancorp (Nasdaq:GBBK). The facility replaces the
company's $10 million facility that was scheduled to mature in June
2003.
According to Southwall, the credit facility will be used primarily
for general working capital purposes. The Export-Import Bank of the
United States Working Capital Guarantee Program guarantees $5 million
of the total facility. Availability under the facility is based upon
the company's accounts receivable that meet certain eligibility
requirements.
"We are very pleased that we were able to obtain this replacement
credit facility, despite a difficult credit market," said Michael E.
Seifert, Southwall senior vice president and chief financial officer.
"Southwall has been and continues to be a valued client of our
bank," said Michael Hansen, senior vice president of Pacific Business
Funding. "We look forward to continuing our banking relationship with
Southwall."
About Southwall Technologies Inc.
Southwall Technologies Inc., designs and produces thin film
coatings that selectively absorb, reflect or transmit light. Southwall
products are used in a number of electronic display, automotive, and
architectural glass products to enhance optical and thermal
performance characteristics, improve user comfort and reduce energy
costs. Southwall is an ISO 9001:2000-certified manufacturer and
exports advanced thin film coatings to over 25 countries around the
world. Southwall's customers include Audi, BMW, DaimlerChrysler,
Mitsui Chemicals, Renault, Peugeot-Citroen, Volvo, Saint-Gobain
SEKURIT, Pilkington, HP and Mitsubishi Electric.
This press release may contain forward-looking statements (as that
term is defined in the Private Securities Litigation Reform Act of
1995), including, without limitation, statements regarding the
company's expectations, beliefs, intentions or strategies regarding
the future. All forward-looking statements in this press release are
based on information available to the company on the date hereof, and
the company assumes no obligation to update any such forward-looking
statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those presented. These risks include the possibility that
shipments to customers will be materially less than anticipated, that
the company's availability under the facility will be reduced because
the company's accounts receivable do not meet eligibility requirements
as set forth in the financing documents or the accounts receivable are
not accepted by the lender, that the company will be required to
reimburse the lender for loans based upon accounts receivable not paid
by customers, that the company may fail to meet financial or other
covenants or otherwise default under the facility, that the lender may
foreclose on the company's assets during a default situation, that the
lender may terminate the facility at any time, as well as other
strains on the company's liquidity. Further risks are detailed in the
company's filing with the Securities and Exchange Commission,
including those set forth in the company's most recent Form 10-K filed
on March 31, 2003, as amended by a Form 10-K filed on April 9, 2003.
ANNOUNCES FIRST-QUARTER 2003 RESULTS
PALO ALTO, Calif., April 28, 2003--Southwall
Technologies Inc. (Nasdaq:SWTX)
Selected Financial Highlights
-- First-quarter net revenues of $15.2 million, compared with
$19.3 million for the first quarter of 2002.
-- First-quarter net loss of $1.7 million, or a loss of $0.13 per
diluted share, compared with net income of $1.2 million, or
$0.13 per diluted share, for the first quarter of 2002.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer,
manufacturer and marketer of thin-film coatings for the automotive
glass, electronic display and architectural markets, today reported
its financial results for the first quarter ended March 30, 2003.
These results were consistent with the expectations disclosed by
Southwall when it reported fourth-quarter 2002 results on February 26,
2003.
Net revenues were $15.2 million, compared with $19.3 million for
the same quarter a year ago and with $13.5 million for the fourth
quarter of 2002. The company attributed the 12.6% sequential increase
to stronger sales in its automotive and display segments.
Southwall's first-quarter net loss was $1.7 million, or a loss of
$0.13 per share, compared with net income of $1.2 million, or $0.13
per share, for the same quarter a year ago and with a net loss of $6.9
million, or a loss of $0.55 per share, for the fourth quarter of 2002.
The fourth quarter of 2002 included the effects of a $2.6-million
restructuring charge.
Southwall's first-quarter sales of automotive products were $6.1
million, compared with $7.0 million for the first quarter of 2002. The
decline was due primarily to lower volume and lower average selling
prices. Sales of electronic display products were $6.6 million,
compared with $7.9 million for the same quarter of 2002, primarily as
a result of a decrease in shipments and lower average selling prices
for products used in cathode ray tube (CRT) monitors. This decline was
partially offset by increased sales of reflective film in liquid
crystal display (LCD) backlighting in laptop markets and electronic
and infrared shielding films for plasma display panel (PDP) markets.
Sales of architectural products were $2.6 million, compared with $4.3
million for the first quarter of 2002, reflecting decreased sales of
Heat Mirror(R) products. In the fourth quarter of 2002, the Company
achieved revenue of $4.8 million of automotive products; $6.0 million
of electronic display products; and $2.7 million in architectural
products.
The Company's available cash on hand at the end of the first
quarter was $1.7 million, compared with $2.7 million at the end of the
same period a year ago. Sequentially, the Company's cash balance
declined by $0.3 million, from $2.0 million at December 31, 2002. The
Company is in the process of negotiating a new credit facility to
replace our existing line of credit, and expects such a new line of
credit to be put in place in the second quarter of 2003.
"Although we realized an improvement over fourth-quarter results,
our performance in the first quarter was slow, as we had expected,"
said Thomas G. Hood, president and chief executive officer of
Southwall Technologies. "While we've taken significant steps to reduce
the company's fixed cost structure, particularly in our Palo Alto
operations, we continue to face the challenge of lower sales volume.
The sluggish global economy and its impact on the markets for many of
our products have been important factors to the year-over-year decline
in our revenues."
"Looking ahead to the remainder of 2003, we would not expect
quarterly revenues to exceed those for the first quarter, as we
indicated previously," said Michael E. Seifert, senior vice president,
and chief financial officer. "Accordingly, we anticipate a net loss
for the full year."
Mr. Hood concluded, "Our priority goals for 2003 and beyond are to
continue improving our cost structure and reducing our operating
expenses. We expect that these improvements along with the cost
reduction actions announced in December 2002 should enable us to
generate positive cash flow from operations on a quarterly basis in
2003 and return us to profitability by 2004. In addition, we plan to
implement our new enterprise resource planning (ERP) system in the
third quarter of 2003, and to increase the focus and effectiveness of
our sales, marketing and engineering functions, aligning them more
closely with our customers and target markets."
First-Quarter Results Teleconference
Southwall management plans to hold a teleconference on
first-quarter 2003 results at 2:00 p.m. PT / 5:00 p.m. ET today. This
call will be open to all investors at 800/377-7407 for U.S and at
706/634-0663 for International, access code number 9697841. A live
webcast will be accessible on the Investor Relations page of the
Southwall website at www.southwall.com. In addition, both phone and
webcast replays will be available for approximately one week after the
teleconference. The phone replay will be accessible at either
800/642-1687 or 706/645-9291, code number 9697841.
About Southwall Technologies Inc.
Southwall Technologies Inc., designs and produces thin film
coatings that selectively absorb, reflect or transmit light. Southwall
products are used in a number of automotive, electronic display and
architectural glass products to enhance optical and thermal
performance characteristics, improve user comfort and reduce energy
costs. Southwall is an ISO 9001:2000-certified manufacturer and
exports advanced thin film coatings to over 25 countries around the
world. Southwall's customers include Audi, BMW, DaimlerChrysler,
Hewlett-Packard, Mitsubishi Electric, Peugeot-Citroen, Pilkington,
Renault, Saint-Gobain Sekurit, and Volvo.
This press release may contain forward-looking statements (as that
term is defined in the Private Securities Litigation Reform Act of
1995), including, without limitation, statements regarding the
company's expectations, beliefs, intentions or strategies regarding
the future. All forward-looking statements in this press release are
based on information available to the company on the date hereof, and
the company assumes no obligation to update any such forward-looking
statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those presented. These risks include the possibility that
shipments to customers will be materially less than anticipated, that
the company's expected quarterly and full year revenues and net loss
for 2003 will be materially worse than those estimated above, that a
new credit line will not be entered into in the second quarter of 2003
or at all, that the company will not reduce its cost structure or
operating expenses during 2003 or that they will increase, that the
company may not generate positive cash flow from operations on a
quarterly basis in 2003 and may not return to profitability in 2004,
that the new ERP system will not be implemented in the third quarter
of 2003, and that the company will not be able to achieve some or all
of its priorities for 2003 as described above, including, without
limitation, increasing the focus and effectiveness of its sales,
marketing and engineering functions, as well as risks associated with
its failure to meet covenants under credit facilities and strains on
the company's liquidity. Further risks are detailed in the company's
filing with the Securities and Exchange Commission, including those
set forth in the company's most recent Form 10-K filed on March 31,
2003, as amended by a Form 10-K filed on April 9, 2003.
1Q 03 Results Teleconference To Be Webcast Live on April 28th
PALO ALTO, Calif. April 14, 2003 --Southwall
Technologies Inc. (Nasdaq:SWTX) plans to release its financial results
for the first quarter of 2003 on Monday, April 28, 2003, following the
close of market. The company's management will hold a teleconference
at 2:00 p.m. PT / 5:00 p.m. ET that same day. This call will be open
to all investors via a webcast, accessible at www.southwall.com and by
teleconference U.S. Domestic dial (800) 377-7407/International dial
(706) 634-0663, access code #9697841. In addition, both webcast and
phone replays will be available beginning approximately two hours
after the call ends. The phone and webcast replays will be available
for one week.
How to Participate in the Webcast Southwall Technologies 1Q03
Teleconference April 28th 2:00 p.m. PT / 5:00 p.m. ET Go to Investor
Relations page of the Southwall website at www.southwall.com and
click on CCBN webcast. From here you can listen to the teleconference,
assuming that your computer system is configured properly. A phone
replay will also be available at (800) 642-1687 or (706) 645-9291,
access code #9697841.
About Southwall Technologies
Southwall Technologies Inc., designs and produces thin film
coatings that selectively absorb, reflect or transmit light. Southwall
products are used in a number of automotive, electronic display and
architectural glass products to enhance optical and thermal
performance characteristics, improve user comfort and reduce energy
costs. Southwall is an ISO 9001:2000-certified manufacturer and
exports advanced thin film coatings to over 25 countries around the
world. Southwall's customers include Audi, BMW, DaimlerChrysler,
Renault, Peugeot-Citroen, Volvo, Saint-Gobain SEKURIT, Pilkington, HP
and Mitsubishi Electric.
Announces Fourth-Quarter and Fiscal Year 2002 Results
Revenues for the fourth quarter of 2002 were $13.5 million, down 34.1 percent from the $20.5
million recorded for the fourth quarter of 2001. Sequentially, net revenues declined $2.8
million from $16.3 million for the third quarter of 2002.
Net loss for the fourth quarter of 2002 was $6.9 million, or $0.55 per share, compared with a
net income of $2.2 million, or $0.25 per diluted share, for the comparable quarter last year.
Fourth-quarter net loss included the effect of a $2.6-million restructuring charge for a
reduction in force and a progressive consolidation of facilities in the company's Palo Alto,
California operations.
Southwall's automotive product sales for the fourth quarter were $4.8 million, down from $9.6
million for the fourth quarter of 2001. The decline was due primarily to lower volume and
lower average product sale prices. Sales of electronic display products were $6.0 million,
down from $6.7 million for the comparable quarter of 2001, primarily as a result of a
decrease in shipments and lower average sale prices for products used in flat-panel display
and CRT monitors. Sales of architectural products were $2.7 million, down from $4.2 million
for the same quarter of 2001, reflecting decreased sales of Heat Mirror(R) products.
For the fiscal year ended December 31, 2002, Southwall recorded net revenues of $68.8
million, a decline of $14.2 million from the $83.0 million reported for 2001. The company
attributed the annual revenue decrease principally to a significant decline in sales of its solar
control film products for the automotive industry in Europe. Sales of Southwall's
anti-reflective film for the electronic display markets and solar control film for the residential
and commercial architectural glass markets were also down slightly from 2001 to 2002.
"We are not pleased with the overall results of the fourth quarter and the fiscal year," said
Thomas G. Hood, president and chief executive officer of Southwall Technologies. "In
addition to disappointing revenues, factors impacting our fourth-quarter operating
performance included product claims and returns, higher than expected freight charges
resulting from our efforts to mitigate the effects of the West Coast dock strike; and our
limited ability to absorb fixed manufacturing costs. Going forward, we expect our previously
announced restructuring of Palo Alto operations to reduce our fixed manufacturing costs and
thereby improve our gross margin.
"Regarding our outlook for the first quarter of 2003, we are anticipating net revenues between
$15.0 million and $16.0 million," Hood continued. "At this level, we would expect gross
margin in the mid-20% range and an overall net loss. As for the rest of the year, we would
not expect significant increases in quarterly net revenues. However, we would expect
continued improvement in operating costs and expenses as a direct result of the
restructuring."
Hood concluded, "Our priority goals for 2003 are to restore profitability as quickly as
possible, to generate positive cash flow on a quarterly basis, and to secure a credit facility
for the company. In addition, we plan to implement our new enterprise resource planning
(ERP) system; and to increase the focus and effectiveness of our sales, marketing and
engineering functions and align them more closely with our customers and target markets.
In support of these priorities, we expect to achieve the full benefits of the cost structure
improvements that we effected in the fourth quarter of 2002."
Fourth-Quarter Results Teleconference
The company's management plans to hold a teleconference on fourth-quarter and fiscal year
2002 results at 2:00 p.m. PT / 5:00 p.m. ET today. This call will be open to all investors at
(800) 377-7407, access code number 8433865. A live webcast will be accessible on the
Investor Relations page of the Southwall website at www.southwall.com. In addition, both
phone and webcast replays will be available for approximately one week after the
teleconference. The phone replay will be accessible at (800) 642-1687, code number
8433865.
About Southwall Technologies Inc.
Southwall Technologies Inc., designs and produces thin film coatings that selectively
absorb, reflect or transmit light. Southwall products are used in a number of automotive,
electronic display and architectural glass products to enhance optical and thermal
performance characteristics, improve user comfort and reduce energy costs. Southwall is an
ISO 9001:2000-certified manufacturer and exports advanced thin film coatings to over 25
countries around the world. Southwall's customers include Audi, BMW, DaimlerChrysler,
Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, HP and Mitsubishi
Electric.
This press release may contain forward-looking statements (as that term is defined in the
Private Securities Litigation Reform Act of 1995), including, without limitation, statements
regarding the company's expectations, beliefs, intentions or strategies regarding the future.
All forward-looking statements in this press release are based on information available to the
company on the date hereof, and the company assumes no obligation to update any such
forward-looking statements. These statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those presented. These risks include
the possibility that shipments to customers will be materially less than anticipated, that the
company's expected revenues and net loss for the first quarter will be materially worse than
those estimated above, that the company will not reduce expenses during 2003, and that
the company will not be able to achieve some or all of its priorities for 2003 as described
above, as well as risks associated with its failure to meet covenants under credit facilities
and strains on the company's liquidity. Further risks are detailed in the company's filing with
the Securities and Exchange Commission, including those set forth in the company's most
recent Form 10-K filed on April 1, 2002 and Form 10-Q filed on November 13, 2002, and
those to be set forth in the company's Form 10-K to be filed for the year ended December
31, 2002.
Teleconference on Fourth-Quarter and Fiscal Year 2002 Financial Results
This call will be open to all investors at 800/377-7407, access
code number 8433865. A live webcast will be accessible on the Investor
Relations page of the Southwall website at www.southwall.com. In
addition, both phone and webcast replays will be available for
approximately one week after the teleconference. The phone replay will
be accessible at 800/642-1687, code number 8433865.
About Southwall Technologies
Southwall Technologies Inc. designs and produces thin film
coatings that selectively absorb, reflect or transmit light. Southwall
products are used in a number of automotive, electronic display and
architectural glass products to enhance optical and thermal
performance characteristics, improve user comfort and reduce energy
costs. Southwall is an ISO 9001:2000-certified manufacturer and
exports advanced thin film coatings to over 25 countries around the
world. Southwall's customers include Audi, BMW, DaimlerChrysler,
Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, HP
and Mitsubishi Electric.
The foregoing announcement is a forward-looking statement, and you
are cautioned that the time and/or manner of the live teleconference,
webcast and replays may change for technical and/or administrative
reasons outside of the company's control.
Signs
Chinese Supply and Manufacturing Agreement
The XIR(R)-based glass products manufactured under the new
agreement were officially launched by Xinyi on January 6, 2003, at the
opening of their new tempering facility in Shenzhen, China.
"This is our first agreement with respect to our automotive XIR(R)
films in mainland China, and we are very pleased to be doing business
with Xinyi," stated Thomas G. Hood, President and CEO of Southwall.
"Xinyi will not only export the glass units, but also sell them
domestically. China has a burgeoning passenger vehicle market that has
shown astounding growth this year, with sales numbers running at a 40%
increase over 2001 numbers. Presently 95% of the passenger cars sold
in China are built there."
"Our high performance XIR(R) products block near infrared and
ultraviolet energy," Hood continued, "while allowing visible light to
pass through. Consumers with XIR(R) films in their autos and
residences will enjoy clear unobstructed views, with less sun damage
while also receiving the benefits of comfort and energy savings."
About Southwall Technologies Inc.
Southwall Technologies (www.southwall.com) designs and produces
thin film coatings that selectively absorb, reflect or transmit light.
Southwall products are used in a number of automotive, electronic
display and architectural glass products to enhance optical and
thermal performance characteristics, improve user comfort and reduce
energy costs. Southwall exports advanced thin film coatings to over 25
countries around the world for use in products manufactured by such
companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen,
Volvo, Saint-Gobain Sekurit, Pilkington, HP and Mitsubishi Electric.
About Xinyi
Xinyi Group (Glass) Co., Ltd., founded in Shenzhen, China in 1989,
is one of the leading manufacturers of automobile glass products in
the world and is an OEM glass supplier for automobile manufacturers in
China. The company specializes in manufacturing glass for automobile,
architecture, furniture, electronic, bulletproof, and other safety
glass products. It can produce over 15,000 models of auto glass and
has the largest laminated windshield workshop in China with annual
capacity of 3 million pieces. With an enterprising spirit Xinyi has
the largest tempered glass workshop in China with annual consumption
of more than 80,000 tons of float glass in 2002. Since its inception,
Xinyi has invested 850 million RMB and currently covers an area of
296,000 square meters. Xinyi is the largest safety glass manufacturer
in China and one of the largest automobile glass suppliers in the
world.
This press release may contain forward-looking statements (as that
term is defined in the Private Securities Litigation Reform Act of
1995), including, without limitation, statements regarding the
Company's expectations, beliefs, intentions or strategies regarding
the future. All forward-looking statements in this press release are
based on information available to the Company on the date hereof, and
the Company assumes no obligation to update any such forward-looking
statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those presented. These risks include the possibility that the
agreement between Southwall and Xinyi will be terminated by either
party, that provisions of the agreement may be declared unenforceable,
that customer demand for the products covered by the agreement will be
less than expected, that production costs at the company's facilities
will increase, that Southwall will experience manufacturing or quality
problems in the future that will impair its ability to produce or
provide sufficient quantities of product under the agreement with
Xinyi, that actual orders for products or revenues to Southwall under
the agreement with Xinyi will be materially lower than those described
above, that Xinyi will not purchase the minimum amounts set forth In
the agreement, that Southwall will experience significant warranty or
indemnification obligations in connection with the agreement, that
Southwall's costs to produce product for Xinyi will be higher than
anticipated, that the agreement will not be profitable to Southwall,
that Southwall will be directly or indirectly harmed by negative
developments for Xinyi and/or that the exclusivity provisions
applicable to Southwall will have a negative affect, as well as risks
associated with doing business in China and Hong Kong and/or
Southwall's failure to meet covenants under credit facilities and
strains on the company's liquidity. Further risks are detailed in the
Company's filings with the Securities and Exchange Commission,
including those set forth in the Company's most recent Form 10-K filed
on April 1, 2002 and its most recent Form 10-Q filed on November 13,
2002.
Restructures Palo Alto Operations to Improve Cost Structure
These actions include a reduction in force and a progressive
consolidation of facilities in the company's Palo Alto, California
operations, in conjunction with a transfer of product lines
to its expanding manufacturing operations in Dresden, Germany.
In the fourth quarter, Southwall expects to take a restructuring
charge of between $2.5 million and $3.0 million for severance
costs related to the reduction in force and recognition of remaining
lease obligations for excess facilities in Palo Alto.
The reduction in force affected approximately 37 positions,
or 13% of Southwall's total headcount, and followed the earlier
reductions announced in August 2002. Severance costs associated
with these positions are estimated to be approximately $0.4
million. Southwall has reduced its work force by 20% since the
beginning of the year and now has approximately 243 employees
worldwide. Palo Alto operations currently consist of approximately
107 employees, down from 170 a year ago.
The consolidation of facilities is expected to reduce Southwall's
facilities requirements in Palo Alto from six buildings to three
buildings by the end of 2003. The lease on one building is scheduled
to expire at the end of 2002. The company plans to vacate two
other buildings prior to the expiration of their leases in 2003
and recognize the remaining lease obligations, estimated to
be between $2.1 million and $2.6 million, in the fourth quarter
of 2002.
As a result of these restructuring actions, Southwall expects
to reduce its total operating expenses by approximately $3.7
million in 2003 and approximately $4.4 million in 2004.
"The continued growth and success of our manufacturing operations
in Germany have provided sufficient capacity for us to transition
a number of product lines from California," said Thomas G. Hood,
president and chief executive officer of Southwall Technologies.
"Since California operations carry disproportionately higher
costs relative to our other plants in Germany and Arizona, it
is in the company's best interests to balance its cost base
geographically for improved efficiencies and economies. We believe
that reducing our labor and facilities costs now will lead to
lower operating expenses and position us for sustainable profitability
in the years ahead."
Southwall management plans to have a teleconference at 10:30
a.m. ET / 7:30 a.m. PT on Thursday, December 19, to discuss
today's news and introduce its new senior vice president and
chief financial officer, Michael E. Seifert, as announced on
December 17. This call will be broadcast live for all investors
and archived for one month, until 1/19/03 at www.southwall.com.
In addition, a telephone replay will be available until 12/26/02
at (800) 642-1687, code number 7238130.
Southwall Technologies (www.southwall.com) designs and produces
thin film coatings that selectively absorb, reflect or transmit
light. Southwall products are used in a number of automotive,
electronic display and architectural glass products to enhance
optical and thermal performance characteristics, improve user
comfort and reduce energy costs. Southwall exports advanced
thin film coatings to over 25 countries around the world for
use in products manufactured by such companies as Audi, BMW,
DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain
Sekurit, Pilkington, Hewlett-Packard, and Mitsubishi Electric.
This press release may contain forward-looking statements
(as that term is defined in the Private Securities Litigation
Reform Act of 1995), including, without limitation, statements
regarding the Company's expectations, beliefs, intentions or
strategies regarding the future. All forward-looking statements
in this press release are based on information available to
the Company on the date hereof, and the Company assumes no obligation
to update any such forward-looking statements. These statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those presented. These
risks include the possibility that the cost savings from the
above-described restructuring will not be as substantial or
as beneficial to the Company as indicated, that the German facility
will not have the excess capacity that is anticipated in the
future, that the Company's competitiveness and productivity
will not improve, that shipments to customers will be materially
less than anticipated, that yields and throughputs will not
be improved and production targets may not be met, or that the
markets will soften, as well as risks associated with its failure
to meet covenants under credit facilities and strains on the
Company's liquidity. Further risks are detailed in the Company's
filing with the Securities and Exchange Commission, including
those set forth in the Company's most recent Form 10-K filed
on April 1, 2002, and its most recent Form 10-Q, filed November
13, 2002.
Names Michael E. Seifert as Sr. Vice President
and Chief Financial Officer
Prior to joining SiteSmith, Seifert held a number
of senior financial management positions in the high-technology
industry, including vice president and chief financial officer
of Wayfarer Communications, Inc.; vice president of finance
at Compression Labs, Inc.; and corporate controller at PMC-Sierra
(Nasdaq:PMCS). Seifert also spent 10 years at Ernst & Young,
where he became senior manager and principal in the firm's San
Jose, California office. He presently serves on the board of
directors of Applied Wave Research, Inc., a privately held software
company located in Southern California. Seifert is a magna cum
laude graduate of Santa Clara University with a B.S. degree
in commerce with a major in accounting and a certified public
accountant in the State of California.
"The board of directors and I want to express
our heartfelt thanks to Bob Freeman for assisting Southwall
in the strengthening and management of our finance and accounting
operations over the last two years. We wish him well in his
future endeavors," said Thomas G. Hood, president and chief
executive officer of Southwall Technologies. "Mike Seifert is
an excellent complement to our present management team. We believe
that his broad and diverse financial experience will help us
to focus the company on increasing sales while improving profitability
in the coming years."
Southwall Technologies (www.southwall.com) designs
and produces thin film coatings that selectively absorb, reflect
or transmit light. Southwall products are used in a number of
automotive, electronic display and architectural glass products
to enhance optical and thermal performance characteristics,
improve user comfort and reduce energy costs. Southwall exports
advanced thin film coatings to over 25 countries around the
world for use in products manufactured by such companies as
Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo,
Saint-Gobain Sekurit, Pilkington, Hewlett-Packard, and Mitsubishi
Electric.
This press release may contain forward-looking
statements (as that term is defined in the Private Securities
Litigation Reform Act of 1995), including, without limitation,
statements regarding the Company's expectations, beliefs, intentions
or strategies regarding the future. All forward-looking statements
in this press release are based on information available to
the Company on the date hereof, and the Company assumes no obligation
to update any such forward-looking statements. These statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those presented. These
risks include the possibility that the addition of Mr. Seifert
will not be successful, that the Company will not be able to
increase sale or improve profitability, that shipments to customers
will be materially less than anticipated, that the installation
of the new production machine in Germany will take longer or
be more expensive than we anticipate, that yields and throughputs
will not be improved and production targets may not be met,
or that the markets will soften, as well as risks associated
with its failure to meet covenants under credit facilities and
strains on the Company's liquidity. Further risks are detailed
in the Company's filing with the Securities and Exchange Commission,
including those set forth in the Company's most recent Form
10-K filed on April 1, 2002, and Form 10-Q, filed November 13,
2002. |