Pivotal Systems Corporation June 2019 Quarter Update

Fremont, California and Sydney, Australia; 24 July 2019 Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS), a leading provider of innovative gas flow control (“GFC”) solutions to the semiconductor industry, is pleased to release a Quarterly update and Appendix 4C Report for the period ended 30 June 2019.

Key highlights

  • During the quarter, Pivotal made substantial customer and product progress:
    • Achieved Preferred Supplier Status for both the Standard GFC and High Flow GFC at a leading US based Original Equipment Manufacturer (OEM)
    • Achieved record bookings (new orders) from China for both the Standard GFC and the High Flow GFC at a leading Chinese Integrated Device Manufacturer (IDM)
    • Achieved qualification and multiple repeat orders for the High Temperature GFC with a leading Japanese OEM
    • Successfully qualified the standard GFC at a leading European foundry
    • Successfully qualified and obtained multiple repeat orders at a leading Japanese Logic IDM
    • Successfully qualified and received multiple repeat orders for both deposition and etch at a leading Taiwanese IDM
    • Successfully shipped a second Flow Ratio Controller (“FRC”) to a leading Korean IDMo Successfully passed ISO 9001:2015 recertification
  • Unaudited Revenue for 1H2019 of US$8.0 million was in line with our expectations despite reduced capital expenditure by leading Korean IDMs.
  • Net cash outflow of US$3.7 million primarily reflects growth in the Accounts Receivable balance as shipments made closer to the end of the quarter will be collected outside Q2.
  • Backlog (confirmed orders not yet shipped) at 30 June 2019 was US$5.8 million.
  • Pivotal appointed Mr. Timothy Welch as Chief Financial Officer.

June 2019 Quarter Cash Flow

The Company finished the Q2 2019 quarter with a cash balance of US$9.8 million and no debt.

Cash receipts from customers for the period were US$2.4 million, reflecting the low Q1 shipments and continuing soft market for semiconductor capital equipment as OEM’s continue to manage inventory levels.

Cash payments for Product Manufacturing (Section 1.2(b)) were US$3.2M which is down from Q1. The skew in shipments toward the end of the June 2019 quarter means that a significant portion of Q2 costof goods sold (“COGS”) will be paid in Q3. We also continue to invest in Product Development during the downturn.

This investment has been undertaken to deliver into four customer-led product development initiatives, together with building inventory levels of the new High Flow GFC. This will enable the Company to respond quickly to any Increase in capital expenditure purchases from IDM and OEM customers that have qualified the High Flow product.

Product update

The standard low flow GFC, commonly used for tch applications, continued its qualification with a leading Japanese OEM and first units have shipped for testing. The Company also achieved new process gas qualifications for the standard GFC at a leading US based OEM for etch applications.

The High Flow GFC was qualified at a second leading US based OEM for the large deposition market. This qualification will potentially lead to a doubling of our existing market share with this OEM over time. The rapid qualification and subsequent selection as a “Preferred Supplier” by this OEM further demonstrate the excellent working relationships Pivotal has built while addressing their leading-edge process requirements.

The recently introduced Flow Ratio Controller continues to perform well in beta site production tests at leading Korean memory companies as evidenced by a second revenue unit being shipped in the 1H2019.

At the recent SEMICON West industry conference, the Company once again demonstrated a new architecture for the existing etch gas stick commonly used by the OEMs. This architecture is called SmartStik as it leverages all of the intelligent signals of the standard GFC, while operating at the microsecond (up to 1,000 times faster than standard GFC millisecond speeds). This design also includes the insertion of a Teflon coating to the GFC valve, enabling a positive shutoff capability. This new architecture potentially enables the elimination of costly components used on traditional etch gas sticks as the SmartStik makes them redundant.

The Company also provided live demonstrations at SEMICON West of the new High Temperature GFC, running at 100 degrees centigrade and the Flow Ratio Controller showing industry leading fast turn on, switching speeds at industry leading accuracy.

Pivotal is also intending to release a derivative of the High Flow GFC, which is expected to materially enhance metal-organic chemical vapour deposition techniques (“MOCVD”) used in the production of solar, LED and flat panel markets. The combination of these product initiatives is expected to increasePivotal’s total available market to over US$1 billion. The development and testing per specific application continued during the period, which is expected to be completed in the next 6-12 months.

Operations Update

As of 6 June 2019, Pivotal appointed Mr. Timothy Welch as Chief Financial Officer (“CFO”). Mr. Welch is a highly experienced CFO for high-technology companies, has operations experience and a proven track record of building infrastructures, scaling revenues, and executing successful mergers & acquisitions.

Headcount grew from 44 to 46 full-time employees during Q2 2019.
As at 30 June 2019, the Company had an order backlog of US$5.8 million.

John Hoffman, Chairman and CEO of Pivotal Systems stated, “As we mentioned in our March Release, we believe industry slowdowns, while arduous and painful, are a time to get closer to key customers to better address their next generation flow control requirements. Pivotal has maintained our commitment to innovation and productization of new technology. As evidenced by the significant design wins in the 1H2019 we believe we are leveraging the current industry slowdown to gain strategic market share.”

Outlook

Pivotal’s growth strategy continues to be to successfully leverage established IDM customer acceptance of its GFC technology into new semiconductor processes while gaining increased acceptance by the major OEMs into new applications or tool sets. The Company continues to move positively towards our market penetration and fan out objectives for FY2019 based on the rapid acceptance of the High Flow GFC.

The preliminary unaudited revenue for the 1H2019 of US$8.0 million is in line with the Company’s prior guidance.

The Company expects to update the market on 27 August 2019 regarding its financial results for 1H2019. The Company expects 2H2019 revenues to increase sequentially from the first half. At this time, the Company sees strengthening in the overall semiconductor industry and we will be able to provide more specific guidance during our 1H2019 release and subsequent conference call.

Investor Conference Call

The Company will host an investor conference call at 9.00am AEST today (4.00pm PDT on Tuesday, 23 July) with Mr. John Hoffman, Chairman and CEO and Mr. Timothy Welch, CFO.

You can listen to a recording of the call HERE.

 

Pivotal Presentation to SEMICON West and CEO Summit

Fremont, California and Sydney, Australia; 10 July 2019 — Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS) today has released the presentation to be given by Mr. John Hoffman, Chairman and CEO of Pivotal Systems at SEMICON West and at the 11th Annual CEO Summit held in conjunction with SEMICON West.

You can download the presentation HERE (.pdf).

Pivotal to Present at Upcoming SEMICON West and CEO Summit

Fremont, California and Sydney, Australia; 2 July 2019 — Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS) today announced that the Company will be attending and exhibiting it’s new products at the upcoming Semicon West Conference. Mr. John Hoffman, Chairman and CEO of Pivotal Systems will also be presenting at the upcoming 11th Annual CEO Summit held in conjunction with Semicon West.

SEMICON West will be held between the 9th and 11th of July. In 20181 the SEMICON West conference had a total attendance of approximately 20,000, with over 500 exhibitors and over 60 investment banking/broking groups.

SEMICON West attracts a highly influential audience from every segment and sector of the global microelectronics industries, including semiconductors, solar/PV, LEDs, MEMS, Display, Fabless/Design, System OEMs, printed/flexible electronics, and other adjacent markets. In 2018, 82% of visitors at the meeting influence buying decisions on behalf of the companies they represented. Pivotal has announced it will be conducting live demonstrations of several of their products including the High Flow GFC, the Flow Ratio Controller (FRC) and the Ultra-High Speed Control System running at microsecond speeds.

In addition, Pivotal Chairman and CEO, John Hoffman will be presenting at the 11th Annual CEO Summit to be held on Wednesday, 10th July at the St Regis, San Francisco. The CEO Summit is an invitation only event for investors and publishing research analysts and is held concurrently each year with SEMICON West.

Quarterly Cash Flow Report and Investor Conference Call Notification

Fremont, California and Sydney, Australia; 15 July 2019 — Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS), today advises that its June quarter Appendix 4C Cash Flow Report and Management Quarterly Update will be released on Wednesday, 24 July 2019.

Immediately following the release, the Company will host an investor conference call at 9.00am AEST on Wednesday, 24 July (4.00pm PDT on Tuesday, 23 July) with Mr. John Hoffman, Chairman and CEO and Mr. Timothy Welch, CFO.

Details of the call are set out below.

In order to pre-register for the conference call and avoid a queue when calling, please follow the link below. You will be given a unique pin number to enter when you call which will bypass the operator and give you immediate access to the event.

https://s1.c-conf.com/diamondpass/pivotal-10000986-invite.html

Alternatively, you may dial in with the following details, shortly before the scheduled start time and provide the Conference ID to an operator.

page1image43912192

Conference ID: 10000986

Participant Dial-in Numbers:

Australia Toll Free: 1800 131 617 Australia Local: +61 7 3112 0421 New Zealand: 800 480 392 Canada/USA: 1 855 336 4664 Hong Kong: 800 906 986

Japan: 005 3116 1306
China: 4001 200 641
Singapore: 800 852 3140
United Kingdom: 0808 168 3761

Pivotal Systems Appoints New CFO

Fremont, California – 5 June, 2019 – Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS) today announced the appointment of Timothy D. Welch as Chief Financial Officer, commencing on 5 June 2019. Mr. Welch will be replacing Mr. Omesh Sharma who has resigned his position to pursue new commercial opportunities. Mr. Sharma will be working with Mr. Welch for an indefinite period to ensure an orderly transition.

Mr. Welch is a highly experienced CFO for high-technology companies with operations experience and a proven track record of building infrastructures, scaling revenues, and executing successful mergers & acquisitions. Mr. Welch was the former CFO and VP, Operations of ReVera, Inc. a semiconductor capital equipment company located in Santa Clara, CA. ReVera was acquired by Nova Measuring Instruments (NASDAQ:NVMI) in April, 2015. Prior to his experience at ReVera, Mr. Welch was the CFO of Boxer Cross which was acquired by Applied Materials (NASDAQ:AMAT). Also noteworthy, Mr. Welch was the CFO of Asyst Technology which went public on the NASDAQ. Mr. Welch has a MBA from the University of California, Berkeley and a B.A. in Chemistry from California State University, Chico.

Mr. John Hoffman, Chairman and CEO of Pivotal Systems commented “On behalf of the Board, management and employees of Pivotal, I would like to thank Omesh for his dedicated service over the many years as the CFO, having made a valuable contribution to the success of the business and more recently, the completion of an initial public offering on the ASX in 2018. Omesh has done an excellent job bringing the company to the next phase of its development.”

Mr. Hoffman continued “I am delighted that Tim has joined Pivotal as our new CFO. His extensive corporate experience as a CFO, Mergers & Acquisitions, capital structuring, along with strong financial and risk management capabilities will be invaluable as Pivotal continues to grow its global business and drive both customer and shareholder value.”

Investor Relations & Media (Australia):
Dr Thomas Duthy
Nemean Group
tduthy@nemean.com.au
+61 402 493 727

ASX Representative:
Naomi Dolmatoff
Company Matters Pty Ltd Naomi.Dolmatoff@companymatters.com.au

Media Contact (US):
Rob Haralson
Anzu Partners
rhh@anzupartners.com

 

https://www.asx.com.au/asxpdf/20190606/pdf/445nd2d3ycjdd2.pdf

 

Pivotal Systems Appoints Nemean Group to Run Investor Relations Initiatives

http://3.227.228.84/wp-content/uploads/Appointment-of-Nemean-Group.pdf

Sydney, Australia – 22 May, 2019 – Pivotal Systems Corporation (“Pivotal” or the “Company”) (ASX: PVS) today announces the appointment of Dr Thomas Duthy of Nemean Group Pty Ltd (“Nemean”) to lead Pivotal’s investor relations initiatives, effective from 23 May, 2019.

Prior to establishing Nemean in late 2018, Tom was the Global Head of Investor Relations & Corporate Development at Sirtex Medical Limited (ASX:SRX) an S&P/ASX Top 200 Company that was acquired in September 2018 for A$1.9 billion, and to date represents the largest medical device transaction in Australian corporate history. Prior to Sirtex, he spent a decade as a leading sell-side analyst at Taylor Collison Limited in Sydney.

Mr John Hoffman, Chairman and CEO of Pivotal Systems commented, “As our Company grows and the awareness within the Australian financial markets builds, it is vital to have someone on the ground in Australia who possesses significant technical and financial market expertise to engage with our existing investors and analysts, while generating new investor interest through an effective investor relations strategy aligned with our corporate activities and goals, to drive shareholder value.”

– ENDS –

Investor Relations & Media (Australia):

Dr Thomas Duthy
Nemean Group
tduthy@nemean.com.au
+61 402 493 727

ASX Representative:

Naomi Dolmatoff
Company Matters Pty Ltd
Naomi.Dolmatoff@companymatters.com.au

Media Contact (US):

Rob Haralson
Anzu Partners
rhh@anzupartners.com

Pivotal Systems provides the best-in-class gas flow monitoring and control technology platform for the global semiconductor industry. The company’s proprietary hardware and software utilizes advanced machine learning to enable preventative diagnostic capability resulting in an order of magnitude increase in fab productivity and capital efficiency for existing and future technology nodes. Pivotal Systems Corporation (ARBN 626 346 325), is a company incorporated in Delaware, USA, whose stockholders have limited liability.