SatCon Acquires Electronics Manufacturer HyComp Corporation
13 April 1999
SatCon Acquires Electronics Manufacturer HyComp Corporation
CAMBRIDGE, Mass.--April 12, 1999--Acquisition positions SatCon subsidiary, Film Microelectronics, Inc.,
for additional near-term growth
SatCon Technology Corporation(R) (NASDAQ NM:SATC), today announced that it has acquired HyComp Corporation of Marlborough, MA. HyComp has been a manufacturer of high performance, high quality multi-chip modules since 1969. In addition to its microelectronics products, HyComp also produces thick and thin film substrates. HyComp also produces a line of flip chip products that represents significant future potential. Over the last four years, HyComp has generated revenues of approximately $3 million per year and has been profitable. In a credit arrangement with BankBoston, SatCon acquired the company for approximately $800,000 in cash.
Commenting on the acquisition, David Eisenhaure, President and Chief Executive Officer, remarked, "We think this was a great investment for SatCon for several reasons. FMI has been growing at an annual rate of 35% and we're expecting that growth rate to increase substantially. This growth would have made it necessary for FMI to acquire a new facility within 6-12 months. In addition to the facility, FMI would have needed to acquire equipment, modify space, hire/train an additional workforce, and acquire the necessary facility certifications. Since this space must be a semiconductor grade cleanroom level, the estimated investment would have been five to six times the purchase price of HyComp. Acquiring HyComp satisfies FMI's growth and facilitization needs for the foreseeable future at a much lower cost than would otherwise have been necessary."
"In addition," continued Eisenhaure, "HyComp immediately provides us with a complimentary customer base to that of FMI, and they have a backlog of business on which to build. They have the people, space, and equipment to support the growth of FMI's business, particularly with the telecommunications products. The purchase of HyComp provides us with both immediate revenue growth and positions us for longer-term strategic growth in our existing standard product lines, as well as for new products such as the power modules for electric vehicles which we are building for two major automobile manufacturers. In addition, they have a new flip chip product, which we believe will become the new method for building microelectronics."
HyComp manufactures a full line of standard and custom hybrid circuits, precision thin film resistors and networks, and patterned thin film substrates. Their hybrid skills include thin film and thick film, with chip and wire, surface mount, chip on board, and flip chip interconnection. Their flip chip assembly process begins with single chips instead of whole wafers. This results in less waste, which lowers overall costs. The flip chip process will be a new addition to FMI's capabilities. The Company's products are sold nationally and internationally through a network of sales representatives. These representatives also provide FMI with additional coverage of its products. More details about HyComp can be found on their web site at http://world.std.com/~HyComp.
SatCon Technology Corporation(R) designs, develops, and manufactures "Active Motion Control"(R) systems including advanced electric motors, high density electric power electronics, suspension systems, satellite control systems, propulsion system, and flywheel energy-storage systems for a variety of commercial and government customers. SatCon's Film Microelectronics, Inc., subsidiary designs and manufactures microelectronic circuits and interconnect products. Additionally, SatCon has a Magmotor Division in Worcester, Massachusetts, and a Technology Center in Cambridge, Massachusetts.
Note: This release contains forward-looking statements that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends" and similar expressions are intended to identify forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the caption "Factors Affecting Future Results" in the Company's Annual Report on Form 10-K for the year ended September 30, 1998, which factors are incorporated herein by reference. Please note that the Company's future growth opportunities are dependent on the introduction of new products that must penetrate commercial market segments. No assurance can be given that new products can be developed, or if developed, will be successful; that competitors will not force prices to an unacceptably low level or take market share from the Company; or that the Company can achieve or maintain profits in these markets.