Week in Review: Top business stories from 3/22-3/26

Electronic News, March 29, 1999

Funding Wave

Wave Systems Corp. raised about $23 million through the private placement to institutional, strategic and accredited individual investors of 2.1 million shares of class A common stock at $11 per share. Pacific Growth Equities, Inc., acted as sole placement agent. Wave offers "an inexpensive, proprietary hardware and software-based device that enables secure transaction processing...in users' PCs."

SpeedFam Posts Loss

SpeedFam International, Inc. a supplier of chemical mechanical planarization (CMP) systems, reported revenue of $32.1 million in its third fiscal quarter ended Feb. 28, 1999. This compares with $48.4 million in the third quarter of fiscal 1998. Net loss was $2.1 million, or 13 cents per share, versus net earnings of $5.1 million, or 31 cents per share. CEO Richard J. Faubert was "generally disappointed" with bottom-line results but encouraged by a recent $10 million-plus order from a major Korean firm and the sequential trend in SpeedFam's overall book to bill ratio.

Integrated Systems Reports

Integrated Systems, Inc. reported 4Q99 revenue of $35.1 million versus $33.8 million in 4Q98. Net income was $63,000 versus $3.3 million. The 1999 figure included $6.3 million of arbitration expenses and executive transition costs. Without them, net income was $4.4 million. For the fiscal year ended Feb. 28, 1999, revenue grew 11 percent to $133.5 million; net income rose 59 percent to $9.6 million. Without a tax benefit and expenses/costs, yearly net was $13.0 million.

DSP Tech, MTS to Merger

DSP Technology, Inc. has entered into a definitive merger pact with MTS Systems Corp. The combined company, operating as MTS Systems Corp. would have annual revenues of more than $375 million, it is estimated. "By uniting DSPT's state of the art software, data acquisition and control systems with MTS's computer-based mechanical design and system integration skills, the merged company would offer customers integrated solutions for engine and powertrain design processes...as well as for advanced research....," said DSPT President/CEO F.Gil Troutman.