SpeedFam-IPEC Announces Third Fiscal Quarter Results
CHANDLER, Ariz.--(BUSINESS WIRE)--March 26, 2002--SpeedFam-IPEC, Inc. (Nasdaq:SFAM - news), a global supplier of leading-edge chemical mechanical planarization (CMP) systems for advanced semiconductor manufacturing, today announced its results for the third fiscal quarter ended March 2, 2002. Total revenue for the third quarter was $25.1 million, compared with $58.8 million reported for the same quarter a year earlier and with $25.8 million reported for the second fiscal quarter. Revenue for the first three quarters of fiscal 2002 was $92.0 million, down from $215.7 million for the same period last year.
The third-quarter net loss was $10.4 million, or $0.34 per share, compared with a net loss of $11.8 million, or $0.39 per share, for the same period last year, excluding one-time charges. Inclusive of one-time charges, the net loss for the same period last year was $50.9 million, or $1.70 per share. For the second fiscal quarter, the company reported a net loss of $13.6 million, or $0.45 per share, excluding one-time charges for the write-down of certain assets, primarily inventory, as well as restructuring charges related to the consolidation of certain of the company's operations. Inclusive of one-time charges, the net loss for the second fiscal quarter was $61.7 million, or $2.03 per share.
Inclusive of all charges, the net loss for the first three quarters of fiscal 2002 was $89.1 million, or $2.94 per share. Excluding one-time charges, the net loss for the first three quarters of fiscal 2002 was $36.6 million, or $1.22 per share, compared with $25.6 million, or $0.85 per share, also excluding one-time charges, for the prior-year period. Inclusive of charges related to the dissolution of the Far East Joint Venture, as well as a cumulative effect adjustment for changes in accounting principle, the net loss for the first three quarters of fiscal 2001 was $122.8 million, or $4.11 per share.
``Throughout the quarter, we continued to execute the strategy that we initiated at the onset of the downturn, which focuses on securing six 200-mm and three 300-mm Momentum(TM) orbital hard-platen CMP system evaluations at top-ranking device manufacturers' sites,'' said SpeedFam-IPEC President and CEO Richard J. Faubert. ``Importantly, we shipped our first Momentum300 system to a top-10 device manufacturing group for the volume production of DRAM products during the third quarter. This is a significant milestone, as it demonstrates our customer's commitment to the factory productivity and yield performance benefits of Momentum300. In addition, we received a purchase order from a Japan-based consortium for Momentum300 for copper and ultra-low-k dielectric development at and below 0.10-micron technology nodes. This is a strategic placement of Momentum technology, as the consortium members are influential manufacturers with a broad base among top Asian chipmakers.''
Faubert continued, ``We are very pleased with our progress to date with regard to the placement and qualification of Momentum technology in the field. The most recent acceptance by a multinational chipmaker for shallow trench isolation (STI) applications marks the third competitive post-evaluation production acceptance of Momentum. In addition to STI, Momentum has also been accepted into production for copper and oxide processes at our customers' most advanced processing nodes.''
Faubert added, ``From its inception, SpeedFam-IPEC has been committed to developing CMP tools with advanced process capabilities at the lowest cost of ownership. Throughout the downturn, we have demonstrated this commitment through continued investment in our research and development facilities, our engineering staff and our partnerships with technology leaders. We were especially encouraged throughout the last quarter by the growing interest of top-tier chipmakers in the superior process capabilities of Momentum. More and more, future-focused device manufacturers are realizing the potential benefits of orbital hard-platen CMP technology, as they prepare for a fast and effective ramp at the next upturn.''
Conference Call
SpeedFam-IPEC, Inc. will host a quarterly conference call today at 5:00 p.m. Eastern Standard Time. The live conference call and a subsequent replay will be available via Webcast at www.sfamipec.com or www.ccbn.com, and will be archived for replay access for seven days. A telephonic replay will also be available for seven days after the live call at 703/326-3020, access code no. 5887656.
SpeedFam-IPEC, Inc.
SpeedFam-IPEC, Inc. is a pioneer and innovator in the manufacture of chemical mechanical planarization (CMP) systems used in the fabrication of advanced semiconductor devices. With more than 1,300 CMP systems installed worldwide, the company enables the development of next-generation integrated circuit technology through its leading-edge polishing systems. SpeedFam-IPEC also markets and distributes parts used in CMP and precision surface processing. With headquarters in Chandler, Ariz., and offices throughout the world, SpeedFam-IPEC is publicly traded on Nasdaq under the symbol SFAM. The company's web site URL is www.sfamipec.com.
This press release includes statements that constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 (the ``Reform Act''), and SpeedFam-IPEC claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms ``may,'' ``believes,'' ``projects,'' ``expects,'' or ``anticipates,'' and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: (i) SpeedFam-IPEC's commitment to securing a number of product evaluations at top-ranking device manufacturers' sites during the industry downturn; (ii) SpeedFam-IPEC's belief that Momentum provides superior process capabilities and cost-of-ownership benefits; (iii) SpeedFam-IPEC's assertion that there is a growing interest among top-tier chipmakers for the Momentum products; (iv) SpeedFam-IPEC's assertion that future-focused device manufacturers will quickly and efficiently ramp their operations at the next industry upturn; and (v) SpeedFam-IPEC's assertion that there will be an industry upturn.
Forward-looking statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of SpeedFam-IPEC to be materially different from those expressed or implied by such forward-looking statements. Factors that could affect SpeedFam-IPEC's results and cause them to materially differ from those contained in the forward-looking statements include risks set forth in SpeedFam-IPEC's filings with the SEC, including the Annual Report on Form 10-K filed on August 24, 2001 and the Quarterly Report on Form 10-Q filed on January 11, 2002, and include (i) current depressed market conditions in the semiconductor industry; (ii) SpeedFam-IPEC's ability to preserve its capital reserves, and raise or generate sufficient capital to fund operations beyond the current fiscal year; (iii) the possible significant dilution of the company's outstanding common stock in connection with any new financing or refinancing; (iv) the ultimate success of SpeedFam-IPEC's business model, which is highly predicated on the successful market acceptance of its Momentum(TM) and Momentum300 products, and the possibility that sales of Momentum may not occur on the scale or in the time frame anticipated; (v) possible constraints on the roll-out of Momentum tools due to manufacturing problems, unforeseen technical problems or changes in the CMP marketplace that differ from the company's expectations; (vi) SpeedFam-IPEC's dependence on selling a small number of high-priced machines to a small number of major customers; (vii) intense competition from companies with greater resources; (viii) prospects of, and risks related to, international markets and the global economy, given that SpeedFam-IPEC depends heavily on international sales; and (ix) other factors that SpeedFam-IPEC is currently unable to identify or quantify, but that may exist in the future.
Forward-looking statements speak only as of the date the statement was made. SpeedFam-IPEC does not undertake and specifically declines any obligation to update any forward-looking statements.
SPEEDFAM-IPEC, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars and shares in thousands, except per-share data)
Third Quarter Ended Three Quarters Ended
March 2, March 3, March 2, March 3,
2002 2001 2002 2001
Net sales $ 25,119 $ 58,818 $ 92,028 $ 215,748
Cost of sales 18,799 74,107 108,404 187,968
---------- ---------- ---------- ----------
Gross margin 6,320 (15,289) (16,376) 27,780
---------- ---------- ---------- ----------
Operating
expenses:
Research and
development 7,398 18,474 37,637 49,443
Selling,
general and
administrative 7,170 12,636 22,573 44,105
Litigation
settlement
cost -- -- 1,800 --
Restructuring
charges -- 3,460 3,000 8,583
---------- ---------- ---------- ----------
Total
operating
expenses 14,568 34,570 65,010 102,131
---------- ---------- ---------- ----------
Operating
income (loss) (8,248) (49,859) (81,386) (74,351)
Other income
(expense),
net (2,186) (1,070) (5,148) (1,279)
Income (loss)
from
consolidated
companies (10,434) (50,929) (86,534) (75,630)
Gain (loss)
on sale of
joint venture
interest -- -- -- (10,763)
Equity in net
earnings (loss)
of affiliates -- -- -- 110
---------- ---------- ---------- ----------
Income (loss)
before
cumulative
effect of
changes in
accounting
principle (10,434) (50,929) (86,534) (86,283)
Cumulative
effect of
changes in
accounting
principle -- -- (2,582) (36,542)
---------- ---------- ---------- ----------
Net income
(loss)
attributable
to common
stockholders $ (10,434) $ (50,929) $ (89,116) $(122,825)
========== ========== ========== ==========
Net income
(loss)
per share:
Net income
(loss) before
cumulative
effect of
changes in
accounting
principle $ (0.34) $ (1.70) $ (2.85) $ (2.89)
Cumulative
effect of
changes in
accounting
principle $ -- $ -- $ (0.09) $ (1.22)
Net income
(loss)
attributable
to common
stockholders:
Basic $ (0.34) $ (1.70) $ (2.94) $ (4.11)
Diluted $ (0.34) $ (1.70) $ (2.94) $ (4.11)
Weighted
average
number
of shares:
Basic 30,474 29,996 30,338 29,909
Diluted 30,474 29,996 30,338 29,909
SPEEDFAM-IPEC, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 2, June 2,
2002 2001(1)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 36,164 $ 60,839
Trade accounts receivable, net 20,959 60,619
Inventories 39,622 83,857
Shipped systems pending acceptance 6,668 13,953
Other current assets 2,511 4,549
---------- ----------
Total current assets 105,924 223,817
Property, plant and equipment, net 60,773 75,241
Other assets 15,627 15,827
---------- ----------
Total assets $ 182,324 $ 314,885
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 87 $ 229
Accounts payable 10,067 23,314
Deferred revenue 18,061 46,281
Other current liabilities 16,150 18,675
---------- ----------
Total current liabilities 44,365 88,499
Long-term debt 115,043 115,124
Other liabilities 4,789 5,321
---------- ----------
Total liabilities 164,197 208,944
Stockholders' equity 18,127 105,941
---------- ----------
Total liabilities and
stockholders' equity $ 182,324 $ 314,885
========== ==========
(1) Certain prior-period amounts have been reclassified to conform
with the current year presentation.
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Contact:
SpeedFam-IPEC
Lisa Lyscio, 480/705-2119
llyscio@sfamipec.com |
