Quantum Epitaxial Designs, Inc.
Proposed Ticker:QEDI 119 Technology Drive
Exchange:NASDAQ-National Market Bethleham, PA 18015
Industry:High-Tech (SIC Code 3674) (610) 861-6930
# of Employees:48

Filing Information
Type of Shares:Common Shares Filing Date:10/8/97
U.S. Shares Filed:2,250,000 Filing Range:$8.00 - $10.00
Non-U.S. Shares Filed:0 Offering Amount: $20,250,000
Primary Shares:2,000,000 Expenses: -
Secondary Shares:250,000 Shares Out After:5,423,424

Primary Underwriting Group
ManagerTierPhone
Needham & CompanyLead Manager (212) 705-0344
Janney Montgomery ScottCo-manager (215) 665-6520

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Pepper Hamilton & Scheetz
Bank's Law Firm: Saul, Ewing, Remick & Saul
Auditor: Arthur Andersen

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
6 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 6/30/97 6/30/96 6/30/97
Revenue:$5.25$4.14$2.67Assets:$9.39
Net Income:-$0.06-$0.33-$0.23Curr Assets:$2.24
EPS:-$0.03-$0.14Liabilities:$5.59
Prior EPS:$0.23$0.48Curr Liabilities:$2.56
Cash Flow/Oper:$0.30$1.42$0.05Equity:$3.80
Cash Flow/Fin:$2.82-$0.40-$3.01Cash:$0.34
Cash Flow/Inv:-$2.21-$0.40Working Cap:-$0.32

Business Description
The company designs, develops and manufactures compound semiconductor materials using molecular beam epitaxy and is a leading producer of gallium arsenide based epitaxial wafers supplied to the semiconductor device manufacturing industry.

Use of Proceeds
The proceeds from the proposed offering will be used to repay bank debt, purchase capital equipment and for general corporate purposes including working capital and possible acquisitions.

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