Semitool Announces Fiscal 2003 Fourth Quarter and Year-End Results
Tuesday November 4, 5:10 pm ET
KALISPELL, Mont.--(BUSINESS WIRE)--Nov. 4, 2003--Semitool, Inc. (Nasdaq: SMTL - News) today reported financial results for its fourth quarter and fiscal year ended September 30, 2003.
Revenue for the fourth quarter was $26.1 million, down 29.9 percent from $37.2 million for the same quarter last year, and up 4.4 percent from $25.0 million in the third quarter of 2003. Net loss for the fourth quarter was $14.0 million, or $0.49 per share, of which $0.41 per share was due to an obsolete inventory write-down of $19.1 million, pre-tax. Excluding the write-down and other unusual items, the pro-forma net loss was $0.07 per share, which compares to last year's fourth quarter GAAP net loss of $2.9 million, or $0.10 per share, and the third quarter of fiscal 2003 GAAP loss of $2.3 million, or $0.08 per share. Shipments for the 2003 fourth quarter were $23.6 million.
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Highlights of Semitool Results
Pro-forma vs. GAAP Reporting
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Pro-forma GAAP
----------------------====================-------====================-
4Q 2003 Fiscal 2003 4Q 2003 Fiscal 2003
----------------------====================-------====================-
Revenue $26.1M $117.0M $26.1M $117.0M
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Gross margin 50.1% 46.5% (23.2)% 30.1%
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Operating expenses $16.4M $70.1M $16.8M $70.5M
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Net loss per share ($0.07) ($0.32) ($.49) ($0.74)
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Revenue for fiscal year 2003 was $117.0 million, down from $123.7 million in the prior fiscal year. The company reported a fiscal year 2003 net loss of $21.2 million, or $0.74 per share. On a pro-forma basis that excludes certain items, the year's net loss was $9.2 million, or $0.32 per share, compared to a net loss on a GAAP basis for fiscal year 2002 of $14.2 million or $0.50 per share.
Ray Thompson, chairman, chief executive officer and founder of Semitool, commented, "Our business activity is picking up, and customer interest strongly favors our newest products, including our Raider platform for cleaning and electroplating. The fourth quarter results primarily reflect the seasonal downturn in equipment purchases that we typically see during the summer months, as well as the fact that Semitool traditionally turns up later than other equipment suppliers because our tools have shorter lead times than most others. Clearly, our investment in new technologies and processes during the downturn is benefiting our competitive position."
He continued, "Also benefiting our results going forward will be our extensive efforts to reduce operating costs, and the substantially lower legal fees we will incur now that some of our patent disputes are settled or coming toward settlement. We expect fiscal 2004 to be a profitable year."
Fourth quarter gross margin was a negative 23.2 percent, although a positive 50.1 percent on a pro-forma basis compared to 47.8 percent in the third quarter. Margins for fiscal year 2003 were 30.1 percent, 46.5 percent on a pro-forma basis, compared with fiscal year 2002 margins of 47.8 percent.
Pro-forma operating expenses during the quarter were $16.4 million, compared with $22.2 million on a GAAP basis in the same quarter of last year and $16.1 million in the third quarter of 2003. On a pro-forma basis, this year's fourth quarter's operating expenses are about $300,000 higher than in the third quarter of fiscal 2003, but the third quarter had benefited from the reversal of R&D expenses resulting from the settlement of a dispute with an equipment supplier.
Bookings for the fourth quarter were $20 million, down 29 percent over third quarter bookings of $28 million. At September 30, 2003, deferred revenue was approximately $10.7 million, and the company's shipping backlog was $20 million, for a combined deferred revenue and shipments backlog of $30.7 million.
Cash, cash equivalents and marketable securities were $27.9 million at September 30, 2003, an increase of $2.5 million from the end of the third quarter. During the fourth quarter, the company received $9.5 million in income tax refunds related to net operating loss carrybacks.
The company provided guidance for its 2004 fiscal first quarter, saying that anticipated revenue should range from $24 to $27 million, and the resulting earnings could range from a $0.01 profit to a $0.03 loss per share. Shipments are expected to range between $25 and $28 million.
In addition, the company indicated that it can expect annual revenues in fiscal 2004 between $150 and $170 million, and that the company anticipates a profitable year.
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.
NOTE: The company believes that reporting pro-forma information and quarterly shipments, both non-GAAP financial measures of performance, assists our investors in making additional relevant period-to-period comparisons.
Safe Harbor Statement
The matters discussed in this news release include forward-looking statements. These include, statements relating to (i) expectations that our business activity is picking up, (ii) customer interest in our newest products, including the Raider platform; (iii) the seasonality of our business (iv) the benefits to our competitive position from our investments in new technologies and processes during the industry downturn; (v) results of our efforts to reduce operating costs, (vi) expected decrease in legal fees as a result of settling patent disputes, (vii) our expectation that fiscal 2004 will be a profitable year, (viii) our expectations that our 2004 fiscal first quarter revenue will range from $24 to $27 million, the resulting earnings will range from a $0.01 profit to a $0.03 loss per share, and shipments will range from $25 and $28 million; and (ix) our expectation that annual revenues in fiscal 2004 will be between $150 and $170 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 earnings or net loss for the fiscal 2004 first 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)
Three Months Fiscal Year
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
---------------- -----------------
Net sales $ 26,095 $37,226 $117,048 $123,687
Cost of sales before write-down
of obsolete inventory 13,019 19,824 62,655 64,604
Write-down of obsolete inventory 19,139 -- 19,139 --
-------- ------- -------- --------
Cost of sales 32,158 19,824 81,794 64,604
-------- ------- -------- --------
Gross profit (6,063) 17,402 35,254 59,083
-------- ------- -------- --------
Operating expenses:
Selling, general and administrative 12,096 16,462 52,439 60,454
Research and development 4,723 5,693 18,084 23,092
-------- ------- -------- --------
Total operating expenses 16,819 22,155 70,523 83,546
-------- ------- -------- --------
Loss from operations (22,882) (4,753) (35,269) (24,463)
Other income (loss), net (19) 88 596 1,498
-------- ------- -------- --------
Loss before income tax (22,901) (4,665) (34,673) (22,965)
Income tax benefit (8,931) (1,773) (13,522) (8,727)
-------- ------- -------- --------
Net loss $(13,970)$(2,892)$(21,151)$(14,238)
======== ======= ======== ========
Loss per basic share $ (0.49)$ (0.10)$ (0.74)$ (0.50)
======== ======= ======== ========
Loss per diluted share $ (0.49)$ (0.10)$ (0.74)$ (0.50)
======== ======= ======== ========
Average common shares:
Basic 28,451 28,428 28,446 28,410
Diluted 28,451 28,428 28,446 28,410
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SEMITOOL, INC.
PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
Three Months Fiscal Year
Ended Sept. Ended Sept.
30, 30,
2003 2002 2003 2002
--------------- -----------------
Net sales $26,095 $37,226 $117,048 $123,687
Cost of sales 13,019 19,824 62,655 64,604
------- ------- -------- --------
Gross profit 13,076 17,402 54,393 59,083
------- ------- -------- --------
Operating expenses:
Selling, general and
administrative 12,096 16,462 52,439 60,454
Research and development 4,339 5,693 17,700 23,092
------- ------- -------- --------
Total operating expenses 16,435 22,155 70,139 83,546
------- ------- -------- --------
Loss from operations (3,359) (4,753) (15,746) (24,463)
Other income (loss), net (19) 88 596 1,498
------- ------- -------- --------
Loss before income tax (3,378) (4,665) (15,150) (22,965)
Income tax benefit (1,317) (1,773) (5,908) (8,727)
------- ------- -------- --------
Net loss $(2,061)$(2,892)$ (9,242)$(14,238)
======= ======= ======== ========
Loss per basic share $ (0.07)$ (0.10)$ (0.32)$ (0.50)
======= ======= ======== ========
Loss per diluted share $ (0.07)$ (0.10)$ (0.32)$ (0.50)
======= ======= ======== ========
Average common shares:
Basic 28,451 28,428 28,446 28,410
Diluted 28,451 28,428 28,446 28,410
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A reconciliation of our net loss excluding certain unusual charges to
our net loss under accounting principles generally accepted in the
United States of America is presented below:
Three Months Fiscal Year
Ended Sept. 30, Ended Sept. 30,
2003 2002 2003 2002
----------------- ------------------
Net loss excluding unusual
charges and benefits $ (2,061) $(2,892) $ (9,242) $(14,238)
Unusual charges:
Inventory write-down (19,139) -- (19,139) --
Write-down of intangible assets (384) -- (384) --
-------- ------- -------- --------
Total charges (19,523) -- (19,523) --
Tax effect on total charges 7,614 -- 7,614 --
-------- ------- -------- --------
Net loss $(13,970) $(2,892) $(21,151) $(14,238)
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SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
Three months ended September 30, 2003
Unusual Charges
------------------
Q4 Inventory Patent Q4
Non-
GAAP Write- Write-
(1) down down GAAP
---------------------------------
Net sales $26,095 $ 26,095
Cost of sales 13,019 (19,139) 32,158
------- --------
Gross profit 13,076 (6,063)
------- --------
Operating expenses:
Selling, general and
administrative 12,096 12,096
Research and development 4,339 (384) 4,723
------- --------
Total operating expenses 16,435 16,819
------- --------
Loss from operations (3,359) (22,882)
Other income (loss), net (19) (19)
------- --------
Loss before income tax (3,378) (22,901)
Income tax benefit (1,317) 7,464 150 (8,931)
---------------------------------
Net loss $(2,061) (11,675) (234)$(13,970)
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Loss per basic share $ (0.07) (0.41) (0.01)$ (0.49)
======================== ========
Loss per diluted share $ (0.07) (0.41) (0.01)$ (0.49)
======================== ========
Average common shares:
Basic 28,451 28,451 28,451 28,451
Diluted 28,451 28,451 28,451 28,451
(1) The pro-forma condensed consolidated statements of operations are
intended to present our operating results, excluding certain unusual
charges and related adjustments on benefits from income taxes. These
pro-forma condensed consolidated statements of operations are not in
accordance with or an alternative for accounting principles generally
accepted in the United States of America and may be different from
similar measures presented by other companies.
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SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
September September
30, 30,
ASSETS 2003 2002
--------- ---------
Current assets:
Cash and cash equivalents $ 23,018 $ 34,265
Marketable securities 4,917 6,575
Trade receivables, net 17,630 33,908
Inventories 32,263 47,085
Prepaid expenses and other current assets 29,054 26,167
--------- ---------
Total current assets 106,882 148,000
Property, plant and equipment, net 24,923 29,310
Other assets, net 6,969 6,353
--------- ---------
Total assets $ 138,774 $ 183,663
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ -- $ 51
Trade accounts payable 13,078 15,894
Other current liabilities 20,696 41,058
--------- ---------
Total current liabilities 33,774 57,003
Long-term liabilities 4,323 5,238
--------- ---------
Total liabilities 38,097 62,241
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Shareholders' equity:
Common stock 47,445 47,376
Retained earnings 53,659 74,810
Accumulated other comprehensive income (427) (764)
--------- ---------
Total shareholders' equity 100,677 121,422
--------- ---------
Total liabilities and shareholders' equity $ 138,774 $ 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. |
