Semitool Announces Fiscal 2003 Third Quarter Results
Tuesday July 29, 4:32 pm ET
KALISPELL, Mont.--(BUSINESS WIRE)--July 29, 2003--Semitool, Inc. (Nasdaq: SMTL - News) today reported financial results for its fiscal 2003 third quarter, ended June 30, 2003.
Revenue for the third quarter was $25.0 million, down 11.8 percent from $28.4 million for the same quarter last year, and down 29.8 percent from $35.6 million in the second quarter of 2003. Net loss for the third quarter was $2.3 million, or $0.08 per share, an improvement over last year's third quarter net loss of $3.5 million, or $0.13 per share, and over the second quarter's loss of $2.5 million. Shipments for the third quarter were $15.9 million.
Revenue for the first nine months of fiscal year 2003 was $91.0 million up from $86.5 million in the prior fiscal year's first nine months. The company reported a fiscal 2003 first nine months net loss of $7.2 million, or $0.25 per share, compared to a net loss of $11.3 million, or $0.40 per share, for the same period last year.
Third quarter gross margin improved sequentially to 47.8 percent from 45.7 percent in the second quarter, primarily the result of sales mix in the quarter, which included a considerable amount of high-margin installation revenues. In addition, reduced manufacturing overhead pushed margins higher in the quarter compared to the second quarter, but down from the year-ago quarter's margin of 50.3 percent. Margins for the first nine months of fiscal 2003 were 45.4 percent compared with the same period of fiscal 2002 margins of 48.2 percent.
Operating expenses during the quarter benefited from the company's settlement of a dispute with an equipment supplier. Expenses related to patent litigation were higher than the year ago quarter, reflecting increased activity attributable to the discovery phase of a lawsuit. The company's effective tax rate also increased a percentage point to 39 percent and is expected to remain there through the end of the fiscal year.
Bookings for the third quarter were $28 million, up 56 percent over second quarter bookings of $18 million. At June 30, 2003, deferred revenue was approximately $13.1 million, and the company's shipping backlog was $23.5 million.
Cash, cash equivalents and marketable securities were $25.4 million at June 30, 2003, a decrease of $1.7 million from the end of the second quarter. Subsequent to the close of the third quarter, the company received $9.2 million in income tax refunds related to net operating loss carrybacks.
Ray Thompson, Semitool's chairman and chief executive officer, commented on the quarter, "Our recent increase in bookings indicates a stronger competitive position due in part to the market acceptance of our new plating and cleaning systems."
He continued, "Our first new Raider single wafer cleaning system shipped, installed and went into production in record time. We anticipated that would happen, and both the tool and our field service team exceeded our high expectations. This quick success is building momentum for us."
The company provided guidance for its fiscal fourth quarter, saying that anticipated revenue should range from $22 to $25 million, and the resulting net loss should range between $0.08 and $0.11 per share, before any special income tax adjustments that might become necessary due to changes in the tax law as it relates to tax loss carrybacks. The company will provide further guidance on this item during the fourth quarter should it become necessary. Shipments are expected to range between $27 and $30 million.
The company believes that reporting quarterly shipments, a non-GAAP financial measure of performance, assists our investors in making additional relevant period-to-period comparisons.
Semitool will hold a conference call that will be broadcast via the Internet at 5 p.m. eastern time today. Access to the call is available through the Semitool website at www.semitool.com, and replays will be available at that location for two weeks after the call.
Safe Harbor Statement
The matters discussed in this news release include forward-looking statements. These include, statements relating to (i) the anticipated effective tax rate for the Company, (ii) the impact that increased bookings in the third quarter will have on future bookings, (iii) the Company's increasing competitive position, (iv) the impact of lowered operating costs on future results, (v) the future acceptance of the Raider platform and the sale of that tool at other customer facilities, (vi) the expectation that our fiscal 2003 fourth quarter revenues will range from $22 to $25 million and that the resulting net loss will be in the range of $0.08 to $0.11 per share, and (vii) the expectation that fourth quarter shipments will be between $27 and $30 million. Our business in general is subject to 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, 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 our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. We cannot assure you that our anticipated quarterly shipments, revenues and net loss for the fiscal 2003 fourth quarter will be realized, or that we will achieve profitability in the near future. Further, new order bookings, orders backlog and deferred revenues are not necessarily indicative of future quarterly and annual revenues. We assume no obligation to update forward-looking statements that become untrue because of subsequent events.
About Semitool, Inc.
Semitool designs, manufactures and supports high performance, single-wafer and batch wet chemical processing systems used 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.
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SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
(Unaudited)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
------- ------- -------- --------
Net sales $25,041 $28,384 $ 90,953 $ 86,461
Cost of sales 13,074 14,110 49,636 44,780
------- ------- -------- --------
Gross profit 11,967 14,274 41,317 41,681
------- ------- -------- --------
Operating expenses:
Selling, general and
administrative 12,653 15,345 40,343 43,992
Research and development 3,476 5,439 13,361 17,399
------- ------- -------- --------
Total operating
expenses 16,129 20,784 53,704 61,391
------- ------- -------- --------
Loss from operations (4,162) (6,510) (12,387) (19,710)
Other income, net 330 795 615 1,410
------- ------- -------- --------
Loss before income tax (3,832) (5,715) (11,772) (18,300)
Income tax benefit (1,574) (2,172) (4,591) (6,954)
------- ------- -------- --------
Net loss $(2,258)$(3,543) $ (7,181)$(11,346)
======= ======= ======== ========
Loss per share:
Basic $ (0.08)$ (0.13) $ (0.25)$ (0.40)
======= ======= ======== ========
Diluted $ (0.08)$ (0.13) $ (0.25)$ (0.40)
======= ======= ======== ========
Average common shares:
Basic 28,438 28,421 28,434 28,405
Diluted 28,438 28,421 28,434 28,405
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SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
June 30, Sept. 30,
ASSETS 2003 2002
-------- ---------
Current assets:
Cash and cash equivalents $ 21,280 $ 34,265
Marketable securities 4,125 6,575
Trade receivables, net 16,420 33,908
Inventories 49,545 47,085
Prepaid expenses and other current assets 30,394 26,167
-------- ---------
Total current assets 121,764 148,000
Property, plant and equipment, net 26,389 29,310
Other assets, net 7,423 6,353
-------- ---------
Total assets $155,576 $ 183,663
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ - $ 51
Trade accounts payable 12,550 15,894
Other current liabilities 23,926 41,058
-------- ---------
Total current liabilities 36,476 57,003
Long-term liabilities 4,712 5,238
-------- ---------
Total liabilities 41,188 62,241
-------- ---------
Shareholders' equity:
Common stock 47,410 47,376
Retained earnings 67,629 74,810
Accumulated other comprehensive income (651) (764)
-------- ---------
Total shareholders' equity 114,388 121,422
-------- ---------
Total liabilities and
shareholders' equity $155,576 $ 183,663
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Contact:
Semitool, Inc.
Larry Viano, 406-752-2107
lviano@semitool.com
or
Investor Relations Partners, Inc.
Shellie Roth, 973-535-8389
roth@irpartners.com
Source: Semitool, Inc. |
