Press Release
Company Press Release:
SpeedFam-IPEC Revises First Fiscal Quarter 2001 Outlook
Strong Interest for New Momentum Platform Creates Transition Challenges
CHANDLER, Ariz.--(BUSINESS WIRE)--Sept. 7, 2000--SpeedFam-IPEC, Inc. (Nasdaq: SFAM - news) today announced it anticipates reporting revenues of approximately $75 million, and an estimated net operating loss for the first quarter of fiscal year 2001, ending September 2, 2000, of approximately $7 million to $8 million, or a loss of $0.23 to $0.27 per share. In addition, the company will record a one-time, non-cash charge of approximately $10 million to $20 million, resulting from an agreement with Obara Corporation to transfer full ownership of the CMP sales and service operations in the Far East of the previous Far East Joint Venture to SpeedFam-IPEC, Inc. and other related charges. In total, the estimated net loss for the first quarter will be approximately $17 million to $28 million, or a loss of $0.57 to $0.94 per share. The delay in delivery of a number of tools during the quarter was the primary cause for the revision in operating results, as two key customers requested time-intensive modifications to incorporate advances from the company's newest chemical mechanical planarization (CMP) product, Momentum(TM).
``While we are disappointed with the short term impact of the Momentum product transition on our operating results, we continue to gain confidence in the long term competitive advantages that Momentum will provide,'' said Richard J. Faubert, president and chief executive officer of SpeedFam-IPEC. ``Since Semicon West in July, the Momentum system has demonstrated a two-fold improvement in oxide uniformity as compared to current systems, as well as leading-edge copper capabilities which minimize dishing, erosion, and oxide thinning. We already have two additional commitments from customers for the Momentum system, one at 200mm and the other at 300mm. This is a very fast response to a new system and provides further evidence of Momentum's long term potential. The strong desire for these revolutionary capabilities of Momentum, however, is creating some transition issues. Stronger than anticipated interest for Momentum's capabilities is likely to cause additional deferments for some expected orders and shipments until Momentum tools ramp to volume production and until our customers evaluate the system. SpeedFam-IPEC is thus expecting to record a revised, but still strong, revenue growth of approximately 40 percent in fiscal year 2001 versus last year, while continuing to grow market share on a year-over-year basis. These revisions are due to the challenges in transitioning the product mix to Momentum and are not reflective of any current or new trends in the industry.''
SpeedFam-IPEC believes that it will begin volume shipments of Momentum toward the end of the fiscal year. ``We continue to see strong demand for CMP tools and strong growth for SpeedFam-IPEC, while we address manufacturing capabilities focused on accelerating the volume production ramp of the Momentum,'' stated Faubert. Momentum is a universal CMP system, which can be configured to provide world-class process results for all CMP applications. This system is the first platform to combine the stability of an advanced solid platen with the flexibility of the orbital system architecture to consistently produce improved process results, while enabling straightforward transitions for chipmakers between oxide, tungsten, STI, low-k, and copper applications.
At 5:00 p.m. EDT today, the company will be hosting a conference call. The call-in number for this call is 719-457-2645. A replay of this call will be available until September 14, 2000 at 5:00 p.m. EDT. The replay number is 719-457-0820, pass code #548775. Actual results for the first quarter ended September 2, 2000 will be released on September 26, 2000. |
