Asyst Technologies Reports Results for Fourth Quarter of Fiscal 2006
Tuesday May 9, 4:05 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--May 9, 2006--Asyst Technologies, Inc., (Nasdaq:ASYT - News), a leading provider of integrated automation solutions that enhance semiconductor and flat panel display manufacturing productivity, today announced consolidated financial results for its fiscal fourth quarter ended Mar. 31, 2006.
The company reported GAAP net income of $2.0 million, or $0.04 per share, for the fiscal fourth quarter, which compares with GAAP net income of $3.0 million, or $0.06 per share, in the prior sequential quarter. On a non-GAAP basis, the company reported net income for the fiscal fourth quarter of $4.8 million, or $0.10 per share, compared with non-GAAP net income of $4.7 million, or $0.10 per share, in the prior sequential quarter. Both the GAAP and non-GAAP results for the prior sequential quarter included the one-time impact of $2.2 million of additional royalty income. A table reconciling GAAP net income to non-GAAP net income is provided as part of this release.
Consolidated net sales for the fiscal fourth quarter were $110.7 million, which compares with $106.8 million in the prior quarter. Net sales for the fiscal fourth quarter at ATI were $46.3 million, an increase of 17% over the $39.5 million reported in the prior sequential quarter. Net sales for the fiscal fourth quarter at Asyst Shinko, Inc. (ASI), the company's 51%-owned joint venture in Japan, were $64.3 million, which compares with $67.3 million in the prior sequential quarter.
For the fiscal fourth quarter, consolidated gross margin was 38%, which compares with 39% in the fiscal third quarter. Gross margin at ATI was 41%, down from 42% in the prior sequential quarter primarily as a result of product mix. Gross margin at ASI was 37%, down from 38% in the prior sequential quarter. Gross margin at ASI continued to reflect favorable project mix. The company believes that, based on a normalized mix, gross margins at ASI will trend toward a range of 26-30% in the near term, which is more consistent with ASI's historical gross margin performance.
Total net bookings for the fiscal fourth quarter increased 81% to $154 million, compared with $85 million in the prior sequential quarter. Bookings at ATI were $55 million, up 49% from $37 million in the prior sequential quarter. Bookings at ASI were $99 million, which is more than double the $48 million reported for the prior sequential quarter. AMHS bookings can be volatile based on the timing of customer investment decisions.
Steve Schwartz, chairman and CEO, said, "The fourth quarter again evidenced strong execution as well as a significant rebound in bookings at both ATI and ASI. Sales at ATI were up 17%, largely on the strength of 300mm OEM products and increased sales of the Spartan(TM) Sorter and EFEM, which drove solid increases in gross profit and non-GAAP operating income at ATI. As compared to the current up-cycle in tool-related shipments that we are seeing at ATI, our strong AMHS bookings at ASI relate to customer installation requirements that are several months out. As a result, during the fiscal fourth quarter at ASI we saw essentially flat sales and added substantially to our backlog. In our fiscal first quarter, we see the opportunity to again achieve a book-to-bill ratio in excess of 1.0 at both ATI and ASI, which positions us well to increase sales in later quarters."
Outlook
For the fiscal first quarter ending June 30, 2006, the company provided the following guidance:
-- Consolidated net sales are expected to be in the range of $110
to $120 million.
-- As a result of facilities consolidation, the company expects
to take a charge of $2.0 to $2.5 million, resulting in a GAAP
net loss of $0 to $1 million, or $(0.00) to $(0.02) per share.
-- On a non-GAAP basis, the company expects to report net income
of $4 to $5 million, or $0.08 to $0.10 per share. To reconcile
net income (loss) under GAAP to non-GAAP net income, the
company expects to exclude:
-- $1.6 million related to the amortization of intangibles,
net of taxes and minority interest
-- $2.0 to $2.5 million of facility consolidation charges
-- $0.4 million of stock-based compensation expense
-- $0.7 million of FAS 123R stock option expense
This guidance is forward-looking, and actual results may differ materially. The company has no obligation to update this guidance.
About Our Non-GAAP Operating Results and Adjustments
To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Our non-GAAP net income (loss) gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of amortization of acquisition-related intangibles, restructuring and impairment charges, costs related to events outside the normal course of business, and other non-cash charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP.
About Asyst
Asyst Technologies, Inc. is a leading provider of integrated automation solutions that enable semiconductor and flat panel display (FPD) manufacturers to increase their manufacturing productivity and protect their investment in materials during the manufacturing process. Encompassing isolation systems, work-in-process materials management, substrate-handling robotics, automated transport and loading systems, and connectivity automation software, Asyst's modular, interoperable solutions allow chip and FPD manufacturers, as well as original equipment manufacturers, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst's homepage is asyst.com
Conference Call Details
A live webcast of the conference call to discuss the quarter's financial results will take place today, May 9, 2006, at 5:00 p.m. Eastern Time. The webcast will be publicly available on Asyst's website at asyst.com and accessible by going to the investor relations page and clicking on the "webcast" link. For more information, including this press release, any non-GAAP financial measures that may be discussed on the webcast as well as the most directly comparable GAAP financial measures and a reconciliation of the difference between those GAAP and non-GAAP financial measures, as well as any other material financial and other statistical information contained in the webcast, please visit Asyst's website at www.asyst.com. A replay of the Webcast may be accessed via the same procedure. In addition, a standard telephone instant replay of the conference call is available by dialing (303) 590-3000, followed by the passcode 11059285#. The audio instant replay is available from May 9 at 7 p.m. Eastern Time through May 23 at 11:59 p.m. Eastern Time.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to: the volatility of semiconductor industry cycles; our ability to achieve forecasted revenues and profits; failure to respond to rapid demand shifts; dependence on a few significant customers; the timing and scope of decisions by customers to transition and expand fabrication facilities; continued risks associated with the acceptance of new products and product capabilities; the risk that customers will delay, reduce or cancel planned projects or bookings and thus delay recognition or the amount of our anticipated revenue; competition in the semiconductor equipment industry and specifically in AMHS; failure to retain and attract key employees; and other factors more fully detailed in the company's annual report on Form 10-K for the year ended March 31, 2005, and other reports filed with the Securities and Exchange Commission.
Asyst is a registered trademark and Spartan is a trademark of Asyst Technologies, Inc. Asyst Shinko is a registered trademark of Asyst Shinko, Inc. All Rights Reserved.
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)
March 31, March 31,
2006 2005
--------- ---------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $109,926 $101,180
Accounts receivable, net 141,565 189,943
Inventories 33,219 33,515
Prepaid expenses and other 25,904 33,971
--------- ---------
Total current assets 310,614 358,609
--------- ---------
LONG-TERM ASSETS:
Property and equipment, net 23,305 15,458
Goodwill 58,840 64,014
Intangible assets, net 19,334 40,898
Other assets 2,583 4,795
--------- ---------
Total long-term assets 104,062 125,165
--------- ---------
Total assets $414,676 $483,774
========= =========
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and notes payable $ 1,443 $ 20,563
Current portion of long-term debt and capital
leases 1,368 2,757
Accounts payable 88,785 123,155
Accrued liabilities 62,918 70,439
Deferred revenue 5,109 6,013
--------- ---------
Total current liabilities 159,623 222,927
--------- ---------
LONG-TERM LIABILITIES:
Convertible notes 86,250 86,250
Long-term debt and capital leases, net of
current portion 918 2,500
Deferred tax and other long-term liabilities 14,093 18,319
--------- ---------
Total long-term liabilities 101,261 107,069
--------- ---------
MINORITY INTEREST 66,333 63,855
--------- ---------
SHAREHOLDERS' EQUITY: 87,459 89,923
--------- ---------
Total liabilities, minority interest and
shareholders' equity $414,676 $483,774
========= =========
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share data)
Three Months Ended Fiscal Year Ended
-------------------- -------------------
March 31, March 31, March 31, March 31,
2006 2005 2006 2005
---------------------------------------
NET SALES $110,689 $143,573 $459,559 $612,987
COST OF SALES 68,241 106,828 297,905 490,730
--------- --------- --------- ---------
Gross profit 42,448 36,745 161,654 122,257
--------- --------- --------- ---------
OPERATING EXPENSES:
Research and development 7,356 7,510 27,817 34,747
Selling, general and
administrative 21,758 21,427 84,208 78,247
Amortization of acquired
intangible assets 3,464 5,258 16,590 20,436
Restructuring credits (1) 107 (46) 1,810
Impairment charges - - - 4,645
--------- --------- --------- ---------
Total operating expenses 32,577 34,302 128,569 139,885
--------- --------- --------- ---------
Operating income (loss) 9,871 2,443 33,085 (17,628)
Other income (expense), net 14 335 953 (729)
--------- --------- --------- ---------
Income (loss) before
benefit from (provision
for) income taxes and
minority interest 9,885 2,778 34,038 (18,357)
BENEFIT FROM (PROVISION FOR)
INCOME TAXES (3,570) (633) (19,761) 1,916
MINORITY INTEREST (4,294) (3,926) (14,409) (1,101)
--------- --------- --------- ---------
NET INCOME (LOSS) $2,021 $(1,781) $(132) $(17,542)
========= ========= ========= =========
NET INCOME (LOSS) PER BASIC
SHARE $0.04 $(0.04) $(0.00) $(0.37)
========= ========= ========= =========
NET INCOME (LOSS) PER DILUTED
SHARE $0.04 $(0.04) $(0.00) $(0.37)
========= ========= ========= =========
WEIGHTED SHARES USED IN THE
PER SHARE CALCULATION -
BASIC 48,207 47,678 47,933 47,441
========= ========= ========= =========
WEIGHTED SHARES USED IN THE PER
SHARE CALCULATION - DILUTED 50,174 47,678 47,933 47,441
========= ========= ========= =========
ASYST TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(Unaudited; in thousands, except per share data)
Three Months Ended
------------------------------
March December March
31, 31, 31,
2006 2005 2005
-------- -------- --------
GAAP net income (loss) $2,021 $2,979 $(1,781)
Adjustments:
Stock based compensation expense 670 271 566
Amortization of intangible assets 3,464 3,494 5,258
Restructuring and impairment charges
(credits) 179 (138) 55
Corporate facility relocation
expense 340 - -
Release of deferred tax valuation
allowance - - (2,161)
Income tax benefit relating to
amortization of intangible assets
(1) (1,068)(1) (1,079) (2,508)
Minority interest relating to the
ASI adjustments above (2) (793)(2) (801) (839)
-------- -------- --------
Total adjustments 2,792 1,747 371
-------- -------- --------
Non-GAAP net income (loss) $4,813 $4,726 $(1,410)
======== ======== ========
Non-GAAP net income (loss) per basic
share $0.10 $0.10 $(0.03)
======== ======== ========
Non-GAAP net income (loss) per diluted
share $0.10 $0.10 $(0.03)
======== ======== ========
Weighted shares used in the per share
calculation - basic 48,207 48,019 47,678
======== ======== ========
Weighted shares used in the per share
calculation - diluted 50,174 48,789 47,678
======== ======== ========
(1) Income tax adjustment relating to the amortization of intangibles
attributable to ASI.
(2) Reflects 49% minority interest adjustment relating to the net
adjustments at ASI.
ASYST TECHNOLOGIES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited; in thousands, except per share data)
Three Months Ended
March 31, 2006
------------------------------
ATI ASI Consolidated
Under GAAP
-------- -------- ------------
SUPPLEMENTAL STATEMENT OF OPERATIONS
NET SALES $46,341 $64,348 $110,689
COST OF SALES 27,506 40,735 68,241
-------- -------- ------------
Gross profit 18,835 23,613 42,448
-------- -------- ------------
OPERATING EXPENSES:
Research and development 5,729 1,627 7,356
Selling, general and administrative 14,227 7,531 21,758
Amortization of acquired intangible
assets 778 2,686 3,464
Restructuring credits (1) - (1)
-------- -------- ------------
Total operating expenses 20,733 11,844 32,577
-------- -------- ------------
Operating income (loss) (1,898) 11,769 9,871
Other income (expense), net (288) 302 14
-------- -------- ------------
Income (loss) before provision for
income taxes and minority interest (2,186) 12,071 9,885
PROVISION FOR INCOME TAXES (292) (3,278) (3,570)
MINORITY INTEREST 4 (4,298) (4,294)
-------- -------- ------------
NET INCOME (LOSS) $(2,474) $4,495 $2,021
======== ======== ============
Net income (loss) per basic share $(0.05) $0.09 $0.04
======== ======== ============
Net income (loss) per diluted share $(0.05) $0.09 $0.04
======== ======== ============
Weighted shares used in the per share
calculation - basic 48,207 48,207 48,207
======== ======== ============
Weighted shares used in the per share
calculation - diluted 48,207 50,174 50,174
======== ======== ============
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Source: Asyst Technologies, Inc. |
