Monday July 19, 4:23 pm Eastern Time
Company Press Release
SOURCE: PRI Automation, Inc.
PRI Automation Reports Third Quarter Results and Continued Strong Book-To-Bill Ratio
BILLERICA, Mass., July 19 /PRNewswire/ -- PRI Automation, Inc., (Nasdaq: PRIA, TSE; PRJ), the leader in semiconductor factory automation, today reported financial results for the third fiscal quarter ended June 27, 1999.
Net revenue for the quarter was S34.5 million, a 14% increase from second quarter, fiscal 1999, and a 21% decrease from third quarter fiscal 1998. The net loss for the third quarter was $3.8 million, or $0.17 per share, excluding a charge for a tax valuation reserve and the termination of recording the tax benefits of current operating losses. The company ended the quarter with more than $60 million in cash.
The company's financial results in the third quarter included a non-cash charge of $7.2 million for a valuation reserve against its deferred tax assets under applicable accounting standards. The deferred tax assets, consisting of net operating loss carryforwards, remain available in future years to offset future taxable income and have been fully reserved for financial reporting purposes. Including this charge, net loss for the third quarter was $13.1 million, or $0.60 per share.
''We are very encouraged by the increase in bookings activity and business outlook. Our book-to-bill ratio was again above the industry average,'' said Mitch Tyson, president and chief executive officer. ''We believe we are finally in the upturn.''
Significant events this quarter included:
* Factory Systems Division received orders from two major Asian foundries
and an order from Hitachi Semiconductor Europe GmbH, further opening
inroads into Japanese semiconductor manufacturing.
* OEM Systems Division increased revenues 35% over Q2 1999.
* Software Systems Division shipped new versions of its Encore! Process
Composer(TM), Encore! Performance(TM) software and booked significant
orders for new customer licenses, upgrades and consulting services.
''Throughout the industry downturn, we have continued to invest in research and development to strengthen our position in the market. We have also managed our balance sheet to produce a strong cash position. As the industry continues its ascent we continue to roll out new technologies, gain market share and expect to bring revenues and earnings back to previous levels,'' concluded Tyson.
About PRI Automation
PRI Automation, Inc., headquartered in Billerica, Massachusetts, is the leading global supplier of advanced factory automation systems and software that optimize the productivity of semiconductor and precision electronics manufacturers as well as OEM process tool manufacturers. PRI is the only company to provide a tightly integrated and flexible hardware and software solution that optimizes the flow of products, data, materials and resources throughout the production chain. The company has thousands of systems installed in approximately one hundred locations throughout the world. For more information visit PRI online at www.pria.com.
Some of the statements made in this release are forward-looking, and actual results could differ materially from these statements. Such forward-looking statements include, but are not limited to, statements that relate to the company's future bookings, revenue and operating expenses, management's plans and objectives for future operations and statements relating to the recent upturn in the semiconductor industry. The company's actual results of operations may differ materially from forward-looking statements made by the company due to a number of risks, including; the company's lengthy sales cycle makes it difficult to anticipate sales; the company's operating results fluctuate significantly and are affected by the high price and relatively small number of systems it sells, variations in its gross margin, and its significant fixed costs; the company depends on a limited number of customers; the company has invested heavily in 300mm wafer technology, which is being adopted more slowly than the company expected; and the company faces significant competition from other automation companies. The company encourages readers of forward-looking information concerning the company to refer to its filings with the Securities and Exchange Commission, Including its Annual Report on Form 10-K for the fiscal year ended September 30, 1998, which set forth certain risks and uncertainties that may have an impact on the future results and direction of the company.
NOTE: Encore! Process Composer and Encore! Performance are registered trademarks of PRI Automation Inc. All other trademarks are the property of their respective company.
PRI AUTOMATION, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
6/27/99 6/28/98 6/27/99 6/28/98
Net revenue $34,494 $43,458 $94,420 $171,084
Cost of revenue 19,875 30,531 58,793 95,425
Gross profit 14,619 12,927 35,627 75,659
Operating expenses:
Research and development 11,507 11,485 32,796 33,976
Selling, general and administrative 9,809 12,608 28,532 37,667
Acquired in-process research and
development -- -- -- 8,417
Merger costs and special charges -- 1,640 6,450 8,453
Total operating expenses 21,316 25,733 67,778 88,513
Operating loss (6,697) (12,806) (32,151) (12,854)
Other income, net 877 214 2,158 386
Loss before income taxes (5,820) (12,592) (29,993) (12,468)
Provision for (benefit from)
income taxes 7,301 (4,189) 985 (1,860)
Net loss $(13,121) $(8,403) $(30,978) $(10,608)
Basic and diluted net loss per
common share $(0.60) $(0.40) $(1.44) $(0.51)
Weighted average shares used
in basic and diluted share
calculations 21,736 21,045 21,491 20,938
Pro Forma Net Loss Per Common Share
(To reflect the conversion of Equipe Technologies from an S-Corporation
To a C-Corporation for income tax purposes)
Nine Months
Ended
6/28/98
Historical net loss $(10,608)
Adjustment to Equipe income tax expense (1,156)
Pro forma net loss $(11,764)
Pro forma basic and diluted net loss per common share $(0.56)
PRI AUTOMATION, INC.
Condensed Consolidated Balance Sheets
(In thousands)
June 27, September 30,
1999 1998
Assets
Cash and cash equivalents $60,008 $57,047
Accounts receivable, net 27,756 34,443
Contracts in progress 4,744 9,017
Inventories 22,279 27,494
Deferred income taxes, current -- 7,832
Other current assets 7,133 7,254
Property and equipment, net 18,832 20,306
Other assets, net 2,866 4,085
Total assets $143,618 $167,478
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $11,431 $12,281
Accrued expenses and other liabilities 18,530 17,331
Billings in excess of revenue and customer
advances 14,344 14,726
Minority interests 170 --
Stockholders' equity 99,143 123,140
Total liabilities and stockholders' equity $143,618 $167,478
SOURCE: PRI Automation, Inc.
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