Days after Simtek Corp.’s stock fell to a nearly five-year low, chief executive Harold Blomquist said the company’s performance “is the strongest it has been since (it) went public nearly 17 years ago” in a seven-page open letter to shareholders.
Simtek shares fell to $2 on Dec. 7, the lowest since early 2003 and down 50 percent since the company cut its revenue and profit forecasts Oct. 30 after missing its own and analyst forecasts for the third quarter with a small loss and lower-than-expected revenue.
Blomquist reaffirmed the company’s revised 2007 revenue forecast of $32 million to $33 million, which would be a second consecutive annual record, and said projected revenue from design wins through Sept. 30 exceeds a similar projection for all of 2006.
“Based on new products, design wins from customers, and a strong relationship with a credible partner, Cypress Semiconductor, the outlook for Simtek is very good,” Blomquist concluded in the Dec. 19 letter. Simtek stock has since recovered to $2.41 by midday Thursday.