FSI International, Inc. Announces Second Quarter and First Half Fiscal 2002 Financial Results
Second Quarter Fiscal 2002 Marks the Second Consecutive Quarter of Encouraging Order Growth
MINNEAPOLIS--(BUSINESS WIRE)--March 14, 2002-- FSI International, Inc. (Nasdaq:FSII - news), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the fiscal 2002 second quarter and first half ended February 23, 2002.
Sales for the fiscal 2002 second quarter were $41.9 million, compared to $60.2 million for the same period of fiscal 2001. The Company's net loss for the second quarter of fiscal 2002 was $6.5 million or $0.25 per share (diluted), compared to a net income of $2.2 million or $0.09 per share (diluted) for the second quarter of fiscal 2001.
Sales for the first half of fiscal 2002 were $84.5 million, compared to $121.7 million for the same period of fiscal 2001. The Company's net loss for the first half of fiscal 2002 was $11.3 million or $0.43 per share (diluted), compared to a net income of $6.3 million or $0.24 per share (diluted), before the cumulative effect of the change in accounting principle for the first quarter of fiscal 2001.
The Company previously restated its results for fiscal 2001, based upon guidance of the Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101). As a result, the Company recorded a charge of $15.0 million or $0.57 per share (diluted) in the first quarter of fiscal 2001.
``There are signs that semiconductor industry conditions are improving,'' stated Don Mitchell, FSI's chairman and chief executive officer. ``A number of our customers are reporting increased factory utilization rates. It also appears that device selling prices have stabilized and in certain cases prices have actually increased. These trends are being driven by the increased demand for PC's, wireless communication appliances and entertainment products.''
The Company continues to maintain a strong balance sheet with over $210 million in assets, including $48.7 million in cash, restricted cash, cash equivalents and marketable securities. At the end of the second quarter, the Company had a current ratio of 3.2 to 1.0, no debt and a book value of $6.63 per share.
Outlook
Considering the backlog and deferred revenue levels at the end of the second quarter, the Company expects third quarter fiscal 2002 revenues of $25 to $30 million.* However, a portion of the expected revenue is subject to obtaining timely acceptance from our customers.* Based upon the deferred profit related to the deferred revenue at the end of the second quarter, the anticipated third quarter turns business, the expected manufacturing capacity utilization rate and the anticipated operating expense run rate, the Company expects a loss in the $10 to $11 million range for the third quarter.(a)
``We now believe that our order level bottomed in the fourth quarter of fiscal 2001,'' stated Mr. Mitchell. ``Given our growing list of opportunities, we expect the third quarter to represent our third consecutive quarterly increase in orders.''(a)
``Shipments also appear to have reached their low water mark in the first quarter of fiscal 2002 and are expected to increase again in the third quarter as compared to the second quarter.(a) Given the improving orders and shipments levels, we anticipate that the third quarter will be the revenue and earnings bottom for this cycle,''(a) concluded Mitchell.
Fiscal 2002 capital expenditures are expected to be $3.0 to $3.5 million, with depreciation and amortization expected to be $13.5 to $14.5 million. The Company's goal is to limit its fiscal 2002 cash burn rate at $10.0 to $15.0 million.(a)
Conference Call Details
Investors will have the opportunity to listen to the conference call at 3:30 p.m. CST over the Internet. The web cast is being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America Online's Personal Finance Channel, Fidelity Investments® (Fidelity.com) and others. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About FSI
FSI International, Inc. is a leading global supplier of processing equipment used at key production steps to manufacture microelectronics. The Company develops, manufactures, markets and supports products used in the technology areas of surface conditioning and microlithography. FSI International's customers include microelectronics manufacturers located throughout North America, Europe, Japan and the Asia-Pacific region.
Additional information on FSI International can be obtained by accessing its homepage at fsi-intl.com.
``Safe Harbor'' Statement Under the Private Securities Litigation
Reform Act of 1995
This press release contains certain ``forward-looking'' statements (a), including, but not limited to, anticipated orders, shipments, revenues, operating expense and losses for the third quarter; fiscal 2002 anticipated capital expenditures, depreciation and amortization; and expected 2002 cash burn rate. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to, the length and extent of the current industry downturn; additional order delays or cancellations; savings from our cost-cutting measures may be less than anticipated; we may incur unexpected additional costs as part of our cost cutting measures; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for our products and our ability to meet demand; global trade policies; worldwide economic and political stability; the Company's successful execution of internal performance plans; the cyclical nature of the Company's business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the transition to 300mm products; the level of new orders; the timing and success of current and future product and process development programs; the success of the Company's affiliated distributors; and litigation and legal proceedings; as well as other factors listed from time to time in the Company's SEC reports including, but not limited to, the Company's Annual Report on Form 10-K for the 2001 fiscal year and the most recent 10-Q. The Company assumes no duty to update the information in this press release.
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FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Second Quarter Ended Six Months Ended
-------------------- -------------------
Feb. 23, Feb. 24, Feb. 23, Feb. 24,
2002 2001 2002 2001
--------- --------- --------- ---------
(unaudited) (unaudited)
Sales $ 41,889 $ 60,244 $ 84,516 $121,742
Cost of goods sold 29,729 35,869 59,090 72,739
--------------------------- --------- --------- --------- ---------
Gross profit 12,160 24,375 25,426 49,003
Selling, general and
administrative expenses 9,020 12,863 19,863 26,012
Research and development
expenses 9,680 11,043 17,938 20,345
--------------------------- --------- --------- --------- ---------
Operating income (loss) (6,540) 469 (12,375) 2,646
Interest and other income net 371 693 730 1,419
--------------------------- --------- --------- --------- ---------
Income (loss) before
income taxes (6,169) 1,162 (11,645) 4,065
Income tax expense --- 200 --- 200
--------------------------- --------- --------- --------- ---------
Income (loss) before equity
in earnings (loss)
of affiliates (6,169) 962 (11,645) 3,865
Equity in earnings (loss)
of affiliates (365) 1,283 368 2,393
--------------------------- --------- --------- --------- ---------
Net income (loss) before
cumulative effect of change
accounting principle,
net of tax (6,534) 2,245 (11,277) 6,258
Cumulative effect of change
in accounting principle,
net of tax --- --- --- (14,969)
--------------------------- --------- --------- --------- ---------
Net income (loss) $ (6,534) $ 2,245 $(11,277) $ (8,711)
--------------------------- ========= ========= ========= =========
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Second Quarter Ended Six Months Ended
-------------------- -------------------
Feb. 23, Feb. 24, Feb. 23, Feb. 24,
2002 2001 2002 2001
--------- --------- --------- ---------
(unaudited) (unaudited)
Earnings (loss) per
share-basic:
Income (loss) before
cumulative effect of
change in accounting
principle $ (0.25) $ 0.09 $ (0.43) $ 0.25
Cumulative effect of
change in accounting
principle, net of tax --- --- --- (0.59)
--------------------------- --------- --------- --------- ---------
Earnings (loss) after
cumulative effect of
change in accounting
principle $ (0.25) $ 0.09 $ (0.43) $ (0.34)
--------------------------- --------- --------- --------- ---------
Earnings (loss) per
share-diluted:
Income (loss) before
cumulative effect of
change in accounting
principle $ (0.25) $ 0.09 $ (0.43) $ 0.24
Cumulative effect of
change in accounting
principle --- --- --- (0.58)
--------------------------- --------- --------- --------- ---------
Earnings (loss) after
cumulative effect of
change in accounting
principle $ (0.25) $ 0.09 $ (0.43) $ (0.34)
--------------------------- --------- --------- --------- ---------
Weighted average common
shares
Basic 26,124 25,547 26,109 25,450
Diluted 26,124 25,848 26,109 25,926
--------------------------- --------- --------- --------- ---------
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
February 23, August 25,
2002 2001
----------- -----------
Assets
---------------------------------------
Current assets:
Cash, restricted cash, cash
equivalents and marketable securities $ 48,665 $ 54,628
Receivables, net 23,746 41,374
Inventories 44,566 48,699
Other current assets 3,534 4,788
--------------------------------------- ----------- -----------
Total current assets 120,511 149,489
Property, plant and equipment, net 50,525 55,129
Investment in affiliates 22,280 22,158
Intangible assets, net 13,288 14,595
Other assets 3,927 3,916
--------------------------------------- ----------- -----------
Total assets $210,531 $245,287
--------------------------------------- =========== ===========
Liabilities and Stockholders' Equity
---------------------------------------
Current liabilities:
Trade accounts payable 6,602 10,207
Deferred profit* 10,484 30,350
Accrued expenses 20,055 20,712
--------------------------------------- ----------- -----------
Total current liabilities 37,141 61,269
Total stockholders' equity 173,390 184,018
--------------------------------------- ----------- -----------
Total liabilities and stockholders'
equity $210,531 $245,287
--------------------------------------- =========== ===========
(a) Deferred profit reflects deferred revenue less manufacturing and
other related costs.
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
MISCELLANEOUS FINANCIAL INFORMATION
(in thousands, except per share data)
(unaudited)
Six Months Ended
----------------------------
Feb. 23, Feb. 24,
2002 2001
-------- --------
SALES BY AREA
United States 79% 30%
International 21% 70%
CASH FLOW STATEMENT
Capital expenditures $ 1,028 $ 5,084
Depreciation $ 5,551 $ 5,849
Amortization $ 1,390 $ 2,663
MISCELLANEOUS DATA
Total employees, including contract 621 952
Book value per share $ 6.63 $ 7.55
Shares outstanding 26,164 25,654
--------------------------------------------------------------------------------
Contact:
FSI International, Inc., Minneapolis
Investor and Financial Media:
Benno Sand, 952/448-8936
or
Trade Media:
Laurie Walker, 952/448-8066 |
