Semitool Announces Fiscal 2002 Second Quarter Results
KALISPELL, Mont.--(BUSINESS WIRE)--April 25, 2002--Semitool, Inc. (Nasdaq: SMTL - news), a leading manufacturer and supplier of wafer surface preparation and electrochemical deposition equipment to the worldwide semiconductor industry, today reported financial results for its fiscal 2002 second quarter ended March 31, 2002.
Net sales for the second quarter were $31.3 million, up 17.1 percent from $26.8 million for the first quarter of fiscal 2002 and down 63.9 percent from $86.7 million for the same quarter last year. The company reported a second quarter net loss of $4.1 million ($0.14 per share) compared to a net loss of $3.7 million ($0.13 per share) in the first quarter and net income of $30.2 million ($1.05 per diluted share) in the same quarter a year ago. Last year's second quarter net income includes a $19.5 million ($0.68 per diluted share) gain from the sale of the company's software control business.
Sales for the first half of fiscal year 2002 were $58.1 million, down 61.8 percent from $152.0 million in the same period in fiscal 2001, resulting in a first half net loss of $7.8 million ($0.27 per share). For fiscal year 2001's first half, the company reported net income of $19.5 million ($0.68 per diluted share), which includes the gain from the sale of the company's software control business, and a $17.6 million ($0.61 per diluted share) charge for the cumulative effect of a change in accounting principle. The company transitioned from its historical accounting method to the accounting method required by Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101) at the beginning of the first quarter of fiscal 2001.
Shipments for this fiscal year's second quarter were $38.5 million, up sequentially from $17.4 million in the first quarter of this year.
Fiscal 2002 second quarter gross profit margin improved to 47.8 percent from 46.5 percent in this fiscal year's first quarter, primarily due to changes in the sales mix. The positive effect of both the sequential gross margin improvement and sequentially higher second quarter net sales was more than offset by higher operating expenses, including variable selling expenses, costs associated with protecting our intellectual property and higher research and development costs.
New order bookings for the second quarter were $24 million, down from $27 million in this fiscal year's first quarter. Deferred revenue at March 31, 2002, was $35.7 million, and the company's shipping backlog was $33.4 million.
Commenting on the quarter, Ray Thompson, president and chief executive officer, said, ``We are enjoying a period of advancing business and quote activity, although there is still a way to go before we could call this an upturn. Nevertheless, there is some indication that an upturn is beginning. Semitool has developed critical new processes and tools to deliver those processes, which together are introducing our company to a larger potential customer base than we have ever enjoyed. These developments are particularly relevant to current customer interest and needs for single-wafer tools. In Taiwan and China, especially, new customers are aiding the company's growing business in Asia.''
Addressing the company's business outlook, Thompson noted, ``We expect third quarter revenue to be sequentially higher and to be in the range of $32 to $36 million, thereby resulting in a net loss per share in the range of $0.11 to $0.08. Third quarter shipments are expected to be in the range of $28 to $31 million. We are gradually benefiting from the more positive outlook that many of our customers are expressing, and as a result, we believe that third quarter new order bookings could rise significantly above the second quarter's booking level.''
Semitool will hold a conference call, broadcast via the Internet, at 5 p.m. Eastern time today, to discuss the company's operating results and its outlook. Access to the call is available through the Semitool website at www.semitool.com, and replays will be available there through May 15, 2002.
Safe Harbor Statement
Except for historical information, the matters discussed in this news release include forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include, statements relating to (i) a period of advancing business and quote activity, (ii) the beginning of a business upturn, (iii) the company's expectation that third quarter net revenues will be in the range of $32 to $36 million and the quarterly net loss per share will range from $0.11 to $0.08, (iv) the anticipation that fiscal 2002 third quarter shipments will range from $28 to $31 million, (v) the expectation that fiscal third quarter new order bookings could rise significantly above the second quarter bookings level and (vi) general statements regarding a larger potential customer base. Semitool's business in general is subject to certain risks and uncertainties that could cause actual results to materially differ from those projected in such forward-looking statements, including, but not limited to, the cyclicality in the semiconductor industry, fluctuations in Semitool's operating results, rapid technological change, the introduction of competing products and technologies and market non-acceptance of Semitool's new products and new applications for existing products, as well as, other risk factors related to our business contained in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2001 and other filings with the Securities and Exchange Commission. The company cannot assure you that its anticipated quarterly shipments, revenues, loss per share and new order bookings outlook for the fiscal 2002 third quarter will be realized. Further, new order bookings, orders backlog and deferred revenues are not necessarily indicative of future quarterly and annual revenue. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
About Semitool, Inc.
Semitool is a worldwide leader in the design, development, manufacture, and support of high performance, single-wafer and multi-wafer batch wet chemical processing systems for use in the fabrication of semiconductor devices. The company's primary suites of equipment include electrochemical deposition systems for electroplating copper, gold, solder and other metals; surface preparation systems for cleaning, stripping and etching silicon wafers; and wafer transport container cleaning systems. The company's equipment is used in semiconductor fabrication front-end and back-end processes, including wafer level packaging.
Headquartered in Kalispell, Montana, Semitool maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on the Nasdaq National Market under the symbol SMTL. For more information, please visit the company's website at www.semitool.com.
Semitool is a registered trademark of Semitool, Inc.
SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Net sales $ 31,323 $ 86,746 $ 58,077 $ 151,993
Cost of sales 16,361 43,598 30,670 75,022
---------- ---------- ---------- ----------
Gross profit 14,962 43,148 27,407 76,971
---------- ---------- ---------- ----------
Operating expenses:
Selling, general
and administrative 15,730 19,641 28,647 35,894
Research and
development 6,199 7,313 11,960 14,151
---------- ---------- ---------- ----------
Total operating
expenses 21,929 26,954 40,607 50,045
---------- ---------- ---------- ----------
Income (loss) from
operations (6,967) 16,194 (13,200) 26,926
Gain on sale of Semy
Engineering, Inc.(1) - 30,948 - 30,948
Other income
(expense), net 353 (203) 615 (627)
---------- ---------- ---------- ----------
Income (loss) before
income tax (6,614) 46,939 (12,585) 57,247
Income tax provision
(benefit) (2,513) 16,727 (4,782) 20,129
---------- ---------- ---------- ----------
Income (loss) before
cumulative effect of
change in
accounting principle (4,101) 30,212 (7,803) 37,118
Cumulative effect of
change in accounting
principle, net of
tax benefit - - - (17,645)
---------- ---------- ---------- ----------
Net income (loss) $ (4,101) $ 30,212 $ (7,803) $ 19,473
========== ========== ========== ==========
Earnings (loss) per
basic share:
Income (loss)
before cumulative
effect of change
in accounting
principle $ (0.14) $ 1.07 $ (0.27) $ 1.31
Cumulative effect
of change in
accounting
principle - - - (0.62)
---------- ---------- ---------- ----------
Basic earnings (loss)
per share $ (0.14) $ 1.07 $ (0.27) $ 0.69
========== ========== ========== ==========
Earnings (loss) per
diluted share:
Income (loss)
before cumulative
effect of change
in accounting
principle $ (0.14) $ 1.05 $ (0.27) $ 1.29
Cumulative effect
of change in
accounting
principle - - - (0.61)
---------- ---------- ---------- ----------
Diluted earnings
(loss) per share $ (0.14) $ 1.05 $ (0.27) $ 0.68
========== ========== ========== ==========
Average common shares:
Basic 28,407 28,322 28,396 28,318
Diluted 28,407 28,737 28,396 28,740
(1) In the second quarter of fiscal 2001, the after-tax gain on the
sale of Semy Engineering, Inc., was approximately $19.5 million,
which contributed $0.68 to diluted EPS.
SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
March 31, Sept. 30,
ASSETS 2002 2001
---------- ----------
Current assets:
Cash and cash equivalents $ 43,907 $ 39,890
Marketable securities 6,256 6,947
Trade receivables, net 32,091 51,578
Inventories 44,826 52,914
Prepaid expenses and other current assets 22,621 15,968
---------- ----------
Total current assets 149,701 167,297
Property, plant and equipment, net 31,276 27,555
Other assets, net 5,608 5,238
---------- ----------
Total assets $ 186,585 $ 200,090
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ - $ 839
Trade accounts payable 11,556 10,973
Deferred profit 21,023 21,711
Other current liabilities 20,221 27,044
---------- ----------
Total current liabilities 52,800 60,567
Long-term liabilities 6,485 6,324
---------- ----------
Total liabilities 59,285 66,891
---------- ----------
Shareholders' equity:
Common stock 47,142 45,181
Retained earnings 81,245 89,048
Accumulated other comprehensive income (loss) (1,087) (1,030)
---------- ----------
Total shareholders' equity 127,300 133,199
---------- ----------
Total liabilities and
shareholders' equity $ 186,585 $ 200,090
========== ==========
--------------------------------------------------------------------------------
Contact:
Semitool, Inc.
Bill Freeman, 406/752-2107
Chief Financial Officer
or
Investor Relations Partners, Inc.
Shellie Roth, 973/535-8389
President
roth@irpartners.com |
