Asyst Reports First Quarter Fiscal Year 2002 Financial Results
FREMONT, Calif.--(BUSINESS WIRE)--July 26, 2001--Asyst Technologies, Inc. (Nasdaq:ASYT - news), the leading provider of Standard Mechanical Interface (SMIF)-based manufacturing automation systems, today reported results for its first quarter of the fiscal year 2002, ended June 30, 2001. Net sales for the quarter were $67.3 million. This compares with net sales of $122.5 million reported for the comparable period in the prior fiscal year. Excluding amortization of acquired intangible assets and nonrecurring charges net of their related tax benefit, net loss for the quarter was ($10.6) million, or a loss of ($0.30) per share, compared to net income of $12.9 million, or $0.36 per share for the year-ago period. All per share amounts are stated on a dilutive basis. The company reported gross margins for the quarter of 26.0 percent. Net bookings for the quarter were $62.6 million.
Including amortization of acquired intangible assets of $3.5 million and nonrecurring charges of $20.6 million, net loss for the first quarter of the fiscal year 2002 was ($27.6) million, or a loss of ($0.79) per share. The company's non-recurring charges were comprised of a $15.0 million impairment charge for the land previously planned for the development of new corporate headquarters, $2.9 million for the write off of leasehold improvement costs incurred for the planned new facility, $2.0 million for the write-off of in-process research and development costs associated with the acquisition of GW Associates, Inc. and $0.7 million for severance costs.
Summary
-- Despite the challenging environment and subsequent financial loss
incurred for the first quarter, Asyst is positioning its
technology and market share leadership to capitalize on an upturn.
-- Recent acquisitions, while resulting in charges to first quarter
results, will allow Asyst to broaden the markets it serves,
thereby increasing its competitive advantage.
-- Expanding global reach is creating significant future opportunity,
especially in China.
``The difficulties of the current operating environment have not abated,'' said Mihir Parikh Ph.D., Asyst's chairman and chief executive officer, ``and we are not immune to the global issues facing our industry. We are pleased, however, with the company's key customer wins and increased market share during the quarter; achieved in spite of what appears to be a protracted recovery period.
``We believe that Asyst's position in the marketplace has strengthened,'' continued Parikh, ``as evidenced by further competitive wins in the 300mm FOUP arena, an area in which we continue to be a leader. In order to position the company for future growth, while maintaining our leadership, we are making necessary investments during the current down-cycle.''
Parikh outlined the company's multi-faceted strategy:
-- Expand on Asyst's 300mm Plus Portal(TM) and automation foundry
penetration with leading global equipment manufacturers.
-- Become the leader in 300mm intrabay fab automation (transport and
equipment-loading) with the FasTrack(TM) and FastLoad(TM) product
lines.
-- Provide integrated circuit manufacturers with the capability to
upgrade their aging (and, often, non-SMIF -optimized) 200mm fabs.
-- Expand the company's leading market share in high-growth Asian
regions, especially China, as well as build on Asyst's strength in
Japan.
-- Further strengthen Asyst's connectivity offering through its
recent acquisition of GW Associates.
``We continue to see demand for 200mm products in China, where we believe the ramp up will occur very quickly,'' stated Parikh. ``China rapidly emerged as a significant market and a strong opportunity exists for Asyst to be a leader in this region. Currently, Asyst's technology is employed in two major China fabs, including the previously announced win with Semiconductor Manufacturing International Corporation (SMIC).''
The company noted that due to uncertainties in the current difficult operating environment, it had taken specific measures at the onset of the current cyclical downturn to increase the efficiencies of its operations and strengthen its competitive position. These measures include:
-- Reorganization of the company around product groups, thereby
strengthening its strategic position for the next upturn;
-- Increased focus on cost management, asset management and key
consolidations of activities and manufacturing;
-- Cancellation of the construction of new corporate headquarters in
Fremont, California in June 2001, along with amendment of the
contractual arrangements with the bank syndicate financing the
project;
-- Reduced global headcount; and
-- Closing the recent private placement of convertible subordinated
notes, providing the company with total net proceeds of
approximately $82.9 million. These proceeds are additive to the
$84.6 million cash and short-term investments balance on hand at
the end of the first quarter.
Douglas McCutcheon, senior vice president and chief financial officer, commented, ``We took these prudent steps in order to provide the company maximum flexibility should the recovery period be protracted, as some industry experts are predicting. At the same time, we continue to focus on our strengths and believe that the key to our success worldwide is earning our customers' loyalty by providing them with a complete package that includes support, services and quality products. With these efforts in place, we believe Asyst is well positioned to withstand the uncertainties of the current operating environment and to take advantage of a market upturn.''
Outlook
The following outlook is for ongoing business only. The outlook excludes any impact of non-recurring items.
The company expects revenues for the second quarter of fiscal year 2002 to be approximately $50 - $55 million.
Highlights of the Quarter
New product successes:
-- In June, Asyst announced it had received an order for its 200mm
SMIF products from China's SMIC. The company believes that the
order, totaling more than $15 million, indicates Asyst's market
share leadership of the 200mm SMIF market in the region.
-- At the end of the quarter, Asyst announced the completion and
acceptance of the first phase of the planned four-phase
FasTrack(TM) installation for Atmel Corporation.
-- Asyst's 300mm position continues to be one of strength.
-- Growth in shipments of 300mm FOUPS of nearly 200 percent in
the first quarter versus the fourth quarter.
-- Four new OEM 300mm Plus Portal(TM) design wins during the
first quarter.
Growth strategy:
-- In May, Asyst broadened its leadership position in providing
comprehensive fab automation solutions through the acquisition of
the connectivity market leader, privately held GW Associates.
Additional initiatives:
-- In June, Asyst announced a private placement of $86.25 million of
convertible subordinated notes due 2008, which subsequently closed
on July 3, 2001.
Awards:
-- In June, Asyst announced that Texas Instruments had selected Asyst
for its 2000 Supplier Excellence Award.
-- After the close of the quarter, Asyst also announced that Atmel
Corporation had recognized Asyst for its outstanding service in
the areas of automated material handling systems and robotic SMIF
technology implementation at Atmel's facilities.
Conference Call Details
A live webcast of the conference call to discuss the first quarter of the fiscal year 2002 financial results for Asyst Technologies, Inc. will take place on July 26 at 5:00 p.m. Eastern Time. The webcast will be publicly available on Asyst's website at asyst.com. A replay of the Webcast may be accessed via the same address until August 2, 2001 at 7:00 p.m. Eastern Time.
In addition, a standard telephone instant replay of the conference call is available by dialing 303/590-3000, followed by the passcode 368586. The telephone instant replay service is available from July 26, 2001 at 7:00 p.m. Eastern Time and will conclude August 2, 2001 at 7:00 p.m. Eastern Time.
``Safe Harbor'' Statement under the Private Securities Litigation
Reform Act of 1995
Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to: the volatility of semiconductor industry cycles, failure to respond to rapid demand shifts, dependence on a few significant customers, the transition of the industry from 200mm wafers to 300mm wafers, risks associated with the acceptance of new products and product capabilities, including our Plus Portal systems, competition in the semiconductor equipment industry, failure to efficiently integrate acquired companies, failure to retain employees, and other factors more fully detailed in the Company's annual report on Form 10-K for the year ended March 31, 2001 filed with the Securities and Exchange Commission on June 19, 2001, as amended.
About Asyst
Asyst Technologies, Inc. is a leading provider of integrated automation systems for the semiconductor manufacturing industry, which enable semiconductor manufacturers to increase their manufacturing productivity and protect their investment in silicon wafers during the manufacture of integrated circuits, or ICs. Through its ``Value-Assured Fab'' strategy, Asyst offers a broad range of 200mm and 300mm solutions that enable the safe transfer of wafers and information between the process equipment and the fab line throughout the IC fabrication process, while reducing IC damage caused by human, environmental, mechanical and chemical factors. Encompassing isolation systems, work-in-process materials management, substrate-handling robotics, automated transport and loading systems, and connectivity automation software, Asyst's modular, interoperable solutions allow chipmakers and original equipment manufacturers, or OEMs, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst's homepage is asyst.com
Asyst Technologies, Inc.
Condensed Consolidated Statement of Operations
(Dollars in thousands, except per share amounts)
Three Months Ended
June 30,
--------------------
2001 2000
--------- ---------
(unaudited)(unaudited)
Net Sales $ 67,259 $122,483
Cost of sales 49,765 67,151
--------- ---------
Gross profit 17,494 55,332
--------- ---------
Operating expenses:
Research and development 11,319 9,721
Selling, general and administrative 23,075 21,451
Non-recurring charges 18,652 --
In-process research and
development of acquired businesses 2,000 --
Goodwill amortization 3,542 1,702
--------- ---------
Total operating expenses 58,588 32,874
--------- ---------
Operating income (loss) (41,094) 22,458
Other income (expense), net (32) 1,311
--------- ---------
Income (loss) before provision
for income taxes and cumulative
effect of a change in accounting principle (41,126) 23,769
Provision (benefit) for income taxes (13,571) 8,380
--------- ---------
Income (loss) before cumulative
effect of a change in accounting principle (27,555) 15,389
Cumulative effect of change in
accounting principle, net of tax -- (2,506)
--------- ---------
Net income (loss) $ (27,555) $ 12,883
========= =========
Basic earnings per share:
Income (loss) before cumulative
effect of change in accounting principle $ (0.79) $ 0.48
Cumulative effect of change
in accounting principle -- (0.08)
--------- ---------
Basic net income (loss) per share $ (0.79) $ 0.40
========= =========
Diluted earnings per share:
Income (loss) before cumulative effect
of change in accounting principle $ (0.79) $ 0.43
Cumulative effect of change
in accounting principle -- (0.07)
--------- ---------
Diluted net income (loss) per share $ (0.79) $ 0.36
========= =========
Shares used in basic per share calculations 35,007 32,162
========= =========
Shares used in diluted per share calculations 35,007 35,377
========= =========
Asyst Technologies, Inc.
Condensed Consolidated Balance Sheet
(Dollars in thousands, except per share amounts)
June 30, March 31,
2001 2001
--------- ---------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 41,613 $ 34,749
Resticted cash equivalents
and short-term investments 43,032 52,500
Short-term investments -- 3,000
Accounts receivable, net 57,650 77,660
Inventories 69,750 76,972
Deferred tax asset 32,057 20,068
Prepaid expenses and
other current assets 12,133 16,017
--------- ---------
Total current assets 256,235 280,966
--------- ---------
Property and equipment, net 40,914 40,160
Goodwill and other assets, net 131,120 87,306
--------- ---------
$428,269 $408,432
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,808 $ 1,791
Short-term loans 63,622 28,776
Accounts payable 19,075 29,560
Accrued liabilities and other 44,719 36,495
Deferred revenue 8,995 5,190
--------- ---------
Total current liabilities 138,219 101,812
--------- ---------
Long-term liabilities:
Long-term debt, net of current portion 4,883 3,683
Other long-term liabilities 378 474
--------- ---------
Total long-term liabilities 5,261 4,157
--------- ---------
Shareholders' equity:
Common stock 292,805 282,925
Retained earnings (accumulated deficit) (8,016) 19,538
--------- ---------
Total shareholders' equity 284,789 302,463
--------- ---------
$428,269 $408,432
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