Semitool Announces Results for Fourth Quarter and Fiscal Year 2002
Wednesday November 6, 4:18 pm ET
KALISPELL, Mont.--(BUSINESS WIRE)--Nov. 6, 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 fourth quarter and fiscal year ended September 30, 2002.
Net sales for the fourth quarter were $37.2 million, an increase of 31.2 percent from $28.4 million for the third quarter of fiscal 2002, a decrease of 14.0 percent from $43.3 million for the same quarter last year. The company reported a fourth quarter net loss of $2.9 million ($0.10 per share), sequentially better than the $3.5 million ($0.13 per share) net loss in this fiscal year's third quarter. In the same quarter a year ago, the company's net income was $728,000 ($0.03 per diluted share).
Fiscal year 2002 net sales were $123.7 million, down 51.8 percent from $256.5 million in the same period last year, resulting in a net loss of $14.2 million ($0.50 per share). Excluding a $19.6 million ($0.68 per diluted share) after-tax gain from the sale of the company's software control business and an after-tax charge of $17.6 million ($0.61 per diluted share) for the cumulative effect of a change in accounting principle to reflect the Company's adoption of the accounting method required by Securities and Exchange Commission Staff Accounting Bulletin No. 101, Semitool reported net income of $23.7 million ($0.82 per diluted share) in fiscal year 2001.
Shipments were $34.1 million for the fourth quarter, essentially unchanged from this year's third quarter and totaled $123.8 million for fiscal year 2002. Deferred revenue at the end of the fourth quarter was $38.3 million, and shipment backlog was $27.6 million.
Ray Thompson, president and chief executive officer, said, "The $1 million-plus average selling price of Semitool's products, the increased Asian content of our international business and an increasingly weak and unpredictable economic environment across the semiconductor industry add up to increased volatility." Semitool's fourth quarter new order bookings were $21 million, a 49 percent decrease from $41 million in the more robust third quarter, but close to this fiscal year's second quarter bookings of $24 million.
Thompson added, "The activity in semiconductor unit volume, which drives demand for capital equipment, is slowing. Since the anticipated recovery continues to be delayed, we have reduced our headcount 16 percent and implemented compensation reductions from 3 to 20 percent across most of our workforce. Our orders are still highly technology-driven. Consequently, we remain optimistic about how our selective and focused leading-edge solutions will perform in a recovered market."
Thompson offered the following guidance for the upcoming quarter: "Our fiscal 2003 first quarter revenues are likely to be somewhat lower than the fourth quarter, with anticipated revenues in the $29 to $32 million range, resulting in an expected net loss per share from $0.10 to $.07. First quarter shipments are expected to be in the $26 to $29 million range."
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 at that location through November 20, 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) the increasingly weak and unpredictable economic environment across the semiconductor industry and the resulting increased volatility, (ii) the slowing of activity in semiconductor unit volume and its effect on demand for semiconductor capital equipment, (iii) the delay in an anticipated business recovery, (iv) our optimistic view about how our selective and focused leading-edge solutions will perform in a recovered market, (v) our expectation that fiscal 2003 first quarter revenue will be somewhat lower than the fourth quarter, with anticipated revenues in the $29 to $32 million range, resulting in a net loss per share from $0.10 to $0.07 and (vi) our expectation that fourth quarter shipments will be in the range of $26 to $29 million. 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, and loss per share for the fiscal 2003 first 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)
Three Months Ended Fiscal Year Ended
Sept. 30, Sept. 30,
2002 2001 2002 2001
----------------- -------------------
Net sales $37,226 $43,278 $123,687 $256,467
Cost of sales 19,824 23,159 64,604 128,375
-------- -------- --------- ---------
Gross profit 17,402 20,119 59,083 128,092
-------- -------- --------- ---------
Operating expenses:
Selling, general and
administrative 16,462 15,752 60,454 68,051
Research and development 5,693 6,098 23,092 27,532
-------- -------- --------- ---------
Total operating expenses 22,155 21,850 83,546 95,583
-------- -------- --------- ---------
Income (loss) from operations (4,753) (1,731) (24,463) 32,509
Gain on sale of Semy Engineering,
Inc. (1) - - - 31,054
Other income, net 88 2,815 1,498 2,855
-------- -------- --------- ---------
Income (loss) before income tax (4,665) 1,084 (22,965) 66,418
Income tax provision (benefit) (1,773) 356 (8,727) 23,160
-------- -------- --------- ---------
Income (loss) before cumulative
effect of change in
accounting principle (2,892) 728 (14,238) 43,258
Cumulative effect of change in
accounting principle,
net of tax benefit - - - (17,645)
-------- -------- --------- ---------
Net income (loss) $(2,892) $728 $(14,238) $25,613
======== ======== ========= =========
Earnings (loss) per basic share:
Income (loss) before
cumulative effect of change
in accounting principle $(0.10) $0.03 $(0.50) $1.52
Cumulative effect of change in
accounting principle - - - (0.62)
-------- -------- --------- ---------
Basic earnings (loss) per share $(0.10) $0.03 $(0.50) $0.90
======== ======== ========= =========
Earnings (loss) per diluted
share:
Income (loss) before
cumulative effect of change
in accounting principle $(0.10) $0.03 $(0.50) $1.50
Cumulative effect of change in
accounting principle - - - (0.61)
-------- -------- --------- ---------
Diluted earnings (loss) per share $(0.10) $0.03 $(0.50) $0.89
======== ======== ========= =========
Average common shares:
Basic 28,428 28,374 28,410 28,333
Diluted 28,428 28,849 28,410 28,769
(1) The fiscal year 2001 after-tax gain on the sale of Semy was
approximately $19.6 million or $0.68 per diluted share.
SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
September September
30, 30,
ASSETS 2002 2001
------------ -----------
Current assets:
Cash and cash equivalents $34,265 $39,890
Marketable securities 6,575 6,947
Trade receivables, net 33,908 51,578
Inventories 47,085 52,914
Prepaid expenses and other current assets 26,167 15,968
------------ -----------
Total current assets 148,000 167,297
Property, plant and equipment, net 29,310 27,555
Other assets, net 6,353 5,238
------------ -----------
Total assets $183,663 $200,090
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $51 $839
Trade accounts payable 15,894 10,973
Other current liabilities 41,058 48,755
------------ -----------
Total current liabilities 57,003 60,567
Long-term liabilities 5,238 6,324
------------ -----------
Total liabilities 62,241 66,891
------------ -----------
Shareholders' equity:
Common stock 47,376 45,181
Retained earnings 74,810 89,048
Accumulated other comprehensive income (764) (1,030)
------------ -----------
Total shareholders' equity 121,422 133,199
------------ -----------
Total liabilities and shareholders' equity $183,663 $200,090
============ ===========
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Contact:
Semitool, Inc., Kalispell
Bill Freeman, 406/752-2107
or
Investor Relations Partners, Inc.
Shellie Roth, 973/535-8389
roth@irpartners.com
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Source: Semitool, Inc. |
