SpeedFam-IPEC Announces Fourth Fiscal Quarter Results
CHANDLER, Ariz.--(BUSINESS WIRE)--July 2, 2002--SpeedFam-IPEC, Inc. (Nasdaq:SFAM - News), a leading supplier of high-throughput chemical mechanical planarization (CMP) systems for the semiconductor industry, today announced its results for the fourth fiscal quarter ended June 1, 2002. Total revenue was $27.1 million, compared with $51.3 million for the same quarter a year ago and compared with $25.1 million reported for the third fiscal quarter. The net loss for the quarter was $5.0 million, or $0.16 per share, compared with a net loss of $11.7 million, or $0.39 per share, for the same quarter a year ago and compared with $10.4 million, or $0.34 per share, reported for the third fiscal quarter. Exclusive of a non-recurring net tax benefit primarily related to certain tax law changes, the net loss for the fourth quarter of fiscal 2002 was $7.5 million, or $0.24 per share. Exclusive of a gain on the sale of land, the net loss for the fourth quarter of fiscal 2001 was $13.5 million, or $0.45 per share.
For the fiscal year ended June 1, 2002, SpeedFam-IPEC's total revenue was $119.2 million, compared with $267.1 million for fiscal 2001. The net loss for fiscal 2002 was $94.1 million, or $3.09 per share, compared with a net loss of $134.5 million, or $4.49 per share, for fiscal 2001. Excluding non-recurring transactions, the net loss for fiscal 2002 was $44.1 million, or $1.45 per share, compared with a net loss of $39.0 million, or $1.30 per share, for fiscal 2001, also excluding non-recurring transactions. (See attached Table A for reconciliation of U.S. GAAP results and adjusted results.)
"We were pleased to announce last week that we had completed a sale-leaseback transaction of our corporate headquarters during the first quarter of fiscal 2003, as part of our ongoing focus on strengthening our balance sheet," said Richard J. Faubert, president and chief executive officer. "We ended the fiscal year with $33.4 million in cash and short-term investments. The sale-leaseback transaction resulted in net cash proceeds of $23.7 million, which brings our current cash balance to more than $55 million."
Faubert added, "During fiscal 2002 we surpassed our original account penetration goal of securing six 200-mm and three 300-mm Momentum(TM) evaluations at top-ranking device manufacturers' sites. Our customers' interest in orbital, hard-platen CMP technology is a testament to its superior process capability, wide and flexible process window, and cost-of-ownership benefits. As we look forward to fiscal 2003, our primary focus will be on strengthening our market position by turning our successful evaluation placements into additional tool-of-record wins. We believe we have the product portfolio and the business strategy to capitalize on the next upturn in the semiconductor capital equipment market."
Conference Call
SpeedFam-IPEC, Inc. will host its regular quarterly conference call today at 5 p.m. Eastern Daylight Time/2 p.m. Pacific Daylight 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 706-645-9291, access code no. 4535051.
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 assertion that it has surpassed its 200-mm and 300-mm account penetration objectives; (ii) SpeedFam-IPEC's belief that its customers' interest in advanced CMP equipment illustrates that Momentum provides superior process capabilities and cost-of-ownership benefits; and (iii) SpeedFam-IPEC's assertion that its products, strategy and financial strength will provide a competitive edge at the next 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 April 10, 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; (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 and Momentum300 products, since 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 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)
Fourth Quarter Ended Year Ended
June 1, June 2, June 1, June 2,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 27,138 $ 51,332 $ 119,166 $ 267,080
Cost of sales 20,505 40,577 128,909 228,545
--------- --------- --------- ---------
Gross margin 6,633 10,755 (9,743) 38,535
--------- --------- --------- ---------
Operating expenses:
Research and
development 7,028 14,583 44,665 64,026
Selling, general
and administrative 5,558 8,331 28,131 52,436
Litigation
settlement cost -- -- 1,800 --
Restructuring
charges -- -- 3,000 8,583
--------- --------- --------- ---------
Total operating
expenses 12,586 22,914 77,596 125,045
--------- --------- --------- ---------
Operating loss (5,953) (12,159) (87,339) (86,510)
Other income
(expense), net (1,485) 496 (6,633) (783)
--------- --------- --------- ---------
Loss from consolidated
companies (7,438) (11,663) (93,972) (87,293)
Income tax benefit 2,482 -- 2,482 --
Loss on sale of
joint venture
interest -- -- -- (10,763)
Equity in net
earnings (loss)
of affiliates -- -- -- 110
--------- --------- --------- ---------
Loss before
cumulative effect
of changes in
accounting principle (4,956) (11,663) (91,490) (97,946)
Cumulative effect of
changes in
accounting principle -- -- (2,582) (36,542)
--------- --------- --------- ---------
Net loss attributable
to common stockholders $ (4,956) $ (11,663) $ (94,072) $(134,488)
========= ========= ========= =========
Net loss per share:
Net loss before
cumulative effect of
changes in
accounting principle $ (0.16) $ (0.39) $ (3.01) $ (3.27)
Cumulative effect of
changes in
accounting principle $ -- $ -- $ (0.08) $ (1.22)
Net loss attributable
to common
stockholders:
Basic $ (0.16) $ (0.39) $ (3.09) $ (4.49)
Diluted $ (0.16) $ (0.39) $ (3.09) $ (4.49)
Weighted average
number of shares:
Basic 30,664 30,116 30,414 29,961
Diluted 30,664 30,116 30,414 29,961
SPEEDFAM-IPEC, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 1, June 2,
2002 2001
---- ----
ASSETS
Current assets:
Cash, cash equivalents
and short-term investments $ 33,358 $ 60,839
Trade accounts receivable, net 22,162 60,619
Inventories 44,545 88,059
Shipped systems pending acceptance 9,175 13,953
Other current assets 3,896 4,549
-------- --------
Total current assets 113,136 228,019
Property, plant and equipment, net 58,007 75,241
Other assets 5,684 11,625
-------- --------
Total assets $176,827 $314,885
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt $ 65 $ 229
Accounts payable 11,061 23,314
Deferred revenue 18,238 46,281
Other current liabilities 13,904 18,675
-------- --------
Total current liabilities 43,268 88,499
Long-term debt 115,005 115,124
Other liabilities 4,669 5,321
-------- --------
Total liabilities 162,942 208,944
Stockholders' equity 13,885 105,941
-------- --------
Total liabilities and
stockholders' equity $176,827 $314,885
======== ========
Certain prior-period amounts have been reclassified to conform to
the current-year presentation.
Table A
SpeedFam-IPEC, Inc. and Consolidated Subsidiaries
Reconciliation of U.S. GAAP Results to Adjusted Results
(In thousands, except per-share data)
Year Ended June 1, 2002 and June 2, 2001
Per Share in Thousands
2002 2001 2002 2001
---- ---- ---- ----
U.S. GAAP reported
net loss $ (3.09) $ (4.49) $ (94,072) $ (134,488)
----------------- ---------------------
Change in accounting
principle related to
SAB 101 - 1.22 - 36,542
Change in accounting
principle related to
goodwill amortization 0.08 - 2,582 -
Inventory write-downs 1.19 1.15 36,288 34,619
Asset impairments 0.28 0.40 8,520 11,872
Lease termination costs 0.04 0.06 1,081 1,666
Severance costs - 0.03 - 1,023
Other charges 0.03 0.03 896 771
Non-cancellable purchase
commitments 0.04 - 1,314 -
Loss on sale of joint
venture interest - 0.36 - 10,763
Litigation settlement
costs 0.06 - 1,800 -
Income tax benefit (0.08) - (2,482) -
Gain on sale of land - (0.06) - (1,800)
----------------- ---------------------
Total net non-recurring
transactions 1.64 3.19 49,999 95,456
----------------- ---------------------
Adjusted net loss $ (1.45) $ (1.30) $ (44,073) $ (39,032)
================= =====================
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Contact:
SpeedFam-IPEC, Inc.
J. Michael Dodson, 480/705-2119 (Chief Financial Officer)
Lisa Lyscio, 480/705-2119 (Director, Investor Relations)
llyscio@sfamipec.com |
