Play Meter

Issue: 1980 June 01 - Vol 6 Num 10

Seeburg 'reorganization' related
XCOR reports 1979 net loss
XCOR International , Inc . reported
financial results which show that for
the year ended December 31 , 1979,
after deducting two nonrecurring
items, the company experienced a
net loss of $2 ,448 ,000 on revenues
of $139,192,000. This compares to
the Oak Brook , Illinois firm 's reve-
nues and net income of $123 ,596 ,-
000 and $5,412,000, respectively ,
th e year before.
XCOR posted a loss of 79 cents
per share in 1979 versus income of
$1.86 per share during 1978, which
includes an extraordinary credit of
$2,015,000, or 69 cents per share ,
from the utilization of tax loss
carryforwards.
In the fourth quarter XCOR
reported a loss of $2 ,122,000 on
reven ues of $32 ,720 ,000 compared
with revenue and net income during
the year ago fourth quarter of
$29 ,383,000 and $504 ,000 , respec-
tively .
The first of the non-recurring items
resulted from a tornado which struck
XCOR's Choice Vend vending ma-
chine manufacturing facility in Wind-
sor Locks , Connecticut on October
3, 1979 , substantially damaging the
facility and halting all production until
January 14, 1980 , and creating a
significant shortfall in sales and
earnings during the last quarter of the
year. The company maintains in-
surance for damage to the property
and its contents as well as business
interruption expense .
The company has reached agree-
ment on certain of its claims under its
insurance coverage for damages to
the building , equipment, and inven-
tory : however, the business inter-
ruption claim as a result of the
disruption caused by the tornado was
in the process of being filed at the
time of XCOR's April financial
reports . Since the resolution of this
claim is dependent upon agreement
with the insurance company, no
estimate of the recovery is reflected
in the 1979 financial statements .
The second item related to
XCOR 's October announcement of a
loss provision for the third quarter of
$5 .2 million relating to the full book
value of securities of the Seeburg
Corporation , the carrying value of
receivables due from it and the cost
of present and future operations of
properties leased to it . The loss
provision was established after See-
burg Corporation , the purchaser of
XCOR's coin-operated phonograph
division , became delinquent in the
payment of certain of its obligations
to the company and had filed for
re -organization under Chapter 11 of
the bankruptcy code .
James J. Hughes , president and
chief operating officer of XCOR , said
that despite the loss reported for
1979, he is "optimistic that the
company is in basically sound fiscal
health and is well positioned to take
full advantage of the various markets
in which its subsidiary companies
compete ."
"We are confident that we have
put these two distinct and nonrecur-
ring events behind us and that we
can look forward to successful
operations during the coming year,"
he said.
XCOR International , Inc . is a
diversified manufacturing and ser-
vicing company which , through its
subsidiaries, manufactures vending
machines , amusement games, mu-
sical instruments, and hearing aids . It
also operates a theater-in-the-round
near Cleveland , Ohio .
GoHiieb holds seminars on new system
Key Gottlieb distributor solid state
service personnel recently attended
the company's "Star Series 80
Technical Seminars" in Chicago at
th e O'Hare Holiday Inn .
The purpose of the two seminars
which were held on Tuesday , March
11 , and Thursday , March 13, was to
familiarize the distributor technicians
with the technical characteristics of
Gottlieb's new "System 80" solid
state electronics.
The program included welcoming
remarks by Bob Bloom and Alvin
Gottlieb as well as a video presenta-
tion centering around the company's
50-year history . A reception and
dinner was also included in each two
day affair.
The affair was hosted by Dick
Finger, Director of Engineering, and
the school conducted by George
Off shack , Gottlieb Field Service
Engineer . Members of the Gottlieb
management staff including Robert
W . Bloom , Alvin Gottlieb, Gil
Pollock , Jack Mittel , and Tom
Herrick also attended .
Gottlieb Field Service Engineer George Offshack [ right] responds to a dis-
tributor tech with an assist from Alvin Gottlieb, executive V . P.
By William Arkush
Microelectronics Division Manager
Exidy, Incorporated
Sunnyvale, California
THE INTEGRATED CIRCUIT:
The 'nuts and bolts'
The integrated circuit is an assembly
of component parts . Because of this ,
packaging considerations are equally
as important as the device function .
Functionally , the component parts
are: the silicon chip , the mounting
substrate , the die attach material , the
package , the lead frame, the wire
bonds, the package lid , and hermetic
seal.
With so many items comprising
the integrated circuit , the possibilities
of things going wrong with it are
greater than if the part was a unitized
construction . There are the bumped
lead devices which directly adhere to
the substrate through the use of
th ermo-compression bonding . This
system like the TAB ( tape auto-
mated bonding) is good for auto-
mated assembly-but very few semi-
conductor manufacturers are build-
ing the die for this structure, the
assembly
procedures
are
not
completely defined, the assembly
equipment is hard to obtain and
expensive, and not many device
types are available through these
processes. Therefore, the semicon-
d uctor industry remains a wire bond
and substrate format.
This is where the circuit die is
pasted down to the substrate of the
carrier or package with conductive
epoxy ( palladium-silver) , a noble
solder paste ( silver-iridium), a eutec-
tic die attach ( gold) , or a thermo-
compression ball bonding in the case
of the flip chip arrangement.
After the die is pasted down using
one of these technologies, the wire
bonding is the next assembly step .
For those devices which have sixteen
leads , the die has sixteen metalized
lands or pads . These are the
terminations for the wire bonds
between the lands and the le_ad
attach terminations. A 1-mill wire
( .001 inch) is then used to inter-
connect the chip die to the legs of the
package .
The standard wire used is alumin-
um or gold . Both materials can be
attached in one of these methods:
ultrasonic.
thermocompression ,
wedge, or ball bonding . Aluminum
wire interconnections are applied
through the ultrasonic and wedge
bonding equipment which does not
require the working area to be
heated .
New ROMs to modify Sprint 4
As a result of many field requests by
Sprint 4 owners, Atari has developed
new Sprint 4 ROMs to modify the
existing game p,lav .
The new ROMs increase player
challenge and competition, while
maintaining the excitement of the
Sprint 4 driving experience, reports
an Atari spokesman .
The new ROMs are designed to
decrease the size of the cars , limit the
number of drones according to one -,
two-, and three -player games, and
allow a player bonus for the high
score in a four -player game ( option
selectable) . Any start switch starts all
players with credit and subsequent
coins now start players immediately
into the game .
Operators can obtain this new
Sprint 4 modification ROM for under
$150 through an Atari distributor,
the company reports .
In compression , gold wire is
usually gold ball or thermocompres-
sion bonded. The working area and
the wire are heated to the point
where they soften and then a
pressure is applied while the wire and
metalization area are cooled . This
method is slower than stitch bonding
with ultrasonics, because the time
required to heat the junction is
greater than ultrasonics where the
connection is made in a fraction of a
second . In fact , a semi-automatic
ultrasonic wire or wedge bonder and
a skilled operator can produce an
interconnection every second . That
is, every wire bond requires two
operations so there are two seconds
consumed for each completed inter-
connection .
This means, at best , a sixteen-pin
package can be produced every 48
seconds. Sixteen pins at 2 seconds
each plus one -second relocate time
for each pin , ( 16 pins X 2 seconds)
+ ( 16 pins X 1 second) = 48
seconds/ device.
Therefore , at best, a superb
machine operator turns out about 60
to 80 parts per hour at about 1 +one
part per minute. Multiply this by 7 +
productive hours and one operator
produces 400 to 600 parts per day
per operator .
WEAK LINK IN PRODUCTION
This system of semi-automatic
wire bonding is the weak link in
production . This is why the semicon-
ductor manufacturers are seriously
considering the TAB system of fully
automatic chip bonding. With auto-
mated equipment we are looking at
1200 parts per hour as a con-
servative average .
What a difference the production
rate will be when more flip chip

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