Opinion ID: 199400
Heading Depth: 2
Heading Rank: 2

Heading: The Press Releases and the Conference Call

Text: 6 On March 18, 1996, Micrion issued a press release (the March 18 Release) reporting that it had completed negotiation of a multiple-system purchase agreement valued at over $50 million, and that when combined with a previous agreement with the same customer, the total order was valued at over $60 million. 4 The March 18 Release also warned that the press release include[d] forward looking statements ...subject to risks and uncertainties that could cause the Company's actual results to vary materially. It referred readers to a Form 8-K (the 8-K) filed with the Securities and Exchange Commission on the same day. The 8-K identified a number of potential risks relevant to the Agreement, including the exercise of cancellation or termination provisions..., including provisions that entitle the customer to cancel issued purchase orders or to terminate the agreement for convenience. 7 On April 25, 1996, Micrion issued a press release (the April 25 Release) announcing record revenues for its third quarter ending March 31, 1996. In the April 25 Release, Economou stated that: 8 [Micrion] booked an order worth over $50 million for Micrion FIB systems to be used in a new production application. This order is an extension of the $10 million order announced by Micrion in October. The total order is now valued at over $60 million, the largest order ever placed for FIB equipment. 9 A note attached to the release referred investors to the 8-K for information on risks and uncertainties associated with forward looking statements contained therein. 10 Also on April 25, Economou and Hunter held a conference call with securities brokers and analysts (the Conference Call). During the call, Hunter stated that Micrion's actual backlog totaled $72.9 million as of the end of March, 1996. Economou then had the following exchange with financial analyst Mark Fitzgerald to explain further what Micrion meant by backlog: 11 Fitzgerald: [I]n terms of the timing on [the backlog], this is all within 12 months, that 72 million, is that how you are defining your backlog? 12 Economou: That's correct. 13 Fitzgerald: And when you said it was concentrated in the first two quarters, are we talking 50, 60, 90 percent of it in the first two quarters of '97? 14 Economou: No, I didn't mean to say quite that. I think what I said was that the significant shipments would start in the second half of the calendar year. I wouldn't necessarily say that the rest of the order or whatever is left of the order would be in the first six months of our fiscal year. I think it will be a little more evenly distributed than that. But it will certainly be within the twelve months starting from now. 15 During the Conference Call, Micrion Director of Corporate Relations Bill Monigle again referred to the 8-K, noting that there are important factors that might cause [Micrion's] performance to vary from that projected in the [Conference Call and that] current cautionary information identifying these factors [could] be found in the form 8K.