IPEC announced earnings today. They met analysts' estimates of $0.26 before taking a one-time charge. Considering the financials after the charge, IPEC still shows an inability to be consistently profitable. There were quite negative comments about the impact of the Asian crisis during the recent quarter and the next two quarters. This negativity may weigh on the sector a bit tomorrow. The complete company press release follows:
Integrated Process Equipment Corp. Announces Revenue of $57.9 Million for the Second Fiscal Quarter
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 27, 1998--Integrated Process Equipment Corp. (NASDAQ/NMS:IPEC - news) today reported a 62% increase in revenue for the second quarter ended December 31, 1997, to $57,879,000 versus $35,662,000 last year. The Company recorded net income from continuing operations of $4,951,000, or $0.26 per share on a diluted basis. The Company recorded a write-down, net of taxes, of $6,664,000 in the second quarter of fiscal 1998 for the unsold net assets of IPEC Clean. During the twelve-month period ending December 31, 1997, the Company had negotiated a signed letter of intent for the sale of these assets. The deteriorating business climate in the Pacific Rim resulted in customers delaying expected purchases from IPEC Clean, and the Company was unable to consummate the transaction. The net loss for the quarter, including the write-off, was $1,774,000, or $0.10 per share on a diluted basis. In the same prior-year quarter, IPEC reported net income of $1,335,000, or $0.09 per share on a diluted basis, before discontinued operations and a program discontinuance charge, on revenues of $35,662,000. In that prior-year period, the loss from the operations and on the disposal of IPEC Clean, net of taxes, was $26,846,000, and the program discontinuance charge was $17,601,000, resulting in a total net loss of $36,952,000, or $2.48 per share on a diluted basis.
For the six months ended December 31, 1997, IPEC recorded revenue of $109,153,000 versus $65,069,000, representing a 68% increase over the prior-year period. The Company posted net income from continuing operations of $9,642,000, or $0.50 per share on a diluted basis. Including the write-off from IPEC Clean, net income for the period was $2,856,000, or $0.15 per share on a diluted basis. This compares to a net loss of $405,000, or $0.03 per share on a diluted basis, exclusive of discontinued operations and program discontinuance charges, for the six months ended December 31, 1996. In that prior-year period, the total net loss, including the charges, was $40,410,000, or $2.72 per share on a diluted basis.
John S. Hodgson, Vice President-Finance and Chief Financial Officer, commented: ''IPEC's ongoing business performed well in the second quarter. The additional $6.7 million in net write-off in the second quarter for IPEC Clean represents the difference between IPEC Clean's estimated value a year ago and its current liquidation value, and reflects the cost of running it while we were in the negotiating process.''
Roger D. McDaniel, President and Chief Executive Officer, stated: ''IPEC made good progress in the second quarter in the roll-out of its advanced high-throughput products for 150 and 200mm device lines, and the development of its 300mm tool to meet the industry's next-generation requirements. While we are well positioned for long-term growth, the Asian financial situation will dampen market prospects for the near-term. Due to the situation in Asia, particularly in Korea, we anticipate that Planar revenues will be lower for the next two quarters compared to the prior two quarters. Until the Korean financial situation is relieved, it will adversely affect margins and our bottom line. We are still experiencing year-to-year growth and expect sales for the first half of calendar 1998 to exceed the $79.6 million in revenues in the comparable year-ago period.
''Despite the expected slowdown in the next two quarters,'' he continued, ''total revenue for fiscal 1998 is expected to be significantly ahead of fiscal '97. While there is a degree of uncertainty over the short-term because of Asia, CMP remains a critical process to semiconductor manufacturing. Over the past year, IPEC continued its strong commitment to R&D investment for development of its product line. Our programs in product and process development have yielded a superb position with our unique product platform. IPEC leads the CMP industry and is strongly positioned in the new 300mm market and in copper technologies.''
Integrated Process Equipment Corp. is a leading supplier of chemical-mechanical planarization systems used in the manufacture of advanced semiconductors. IPEC Planar manufactures CMP equipment and CMP-related products. IPEC Precision manufactures advanced plasma-assisted etching and metrology equipment.
This press release contains forward-looking statements such as projections of future revenue and results of operations. Potential risks and uncertainties include fluctuations and competition in the semiconductor equipment market, the financial situation in Asia, technological changes, and difficulties in developing and shipping products in a timely manner.
INTEGRATED PROCESS EQUIPMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited) (unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenue $ 57,879 $ 35,662 $ 109,153 $ 65,069
Cost and expenses:
Cost of goods sold 31,582 20,480 60,660 39,523
Research and
development 8,341 5,443 15,050 11,950
Selling, general and
administrative 9,780 6,812 17,568 13,117
Program discontinuance
charge -- 17,601 -- 17,601
Operating income (loss) 8,176 (14,674) 15,875 (17,122)
Other expense (income),
net 367 315 622 711
Income (loss) from
continuing operations
before income taxes 7,809 (14,989) 15,253 (17,833)
Income tax expense
(benefit) 2,858 (4,964) 5,611 (6,149)
Income (loss) from
continuing operations 4,951 (10,025) 9,642 (11,684)
Discontinued operations:
Loss from operations
IPEC Clean, net of
taxes -- (1,896) -- (3,614)
Loss on disposal of IPEC
Clean, net of taxes (6,664) (24,950) (6,664) (24,950)
Net loss from
discontinued operations (6,664) (26,846) (6,664) (28,564)
Net income (loss) (1,713) (36,871) 2,978 (40,248)
Dividends on preferred
stock 61 81 122 162
Net income (loss)
attributable to common
stockholders $ (1,774) $ (36,952) $ 2,856 $ (40,410)
Earnings (loss) from
continuing operations
per common share:
Basic $ 0.28 $ (0.68) $ 0.54 $ (0.80)
Diluted $ 0.26 $ (0.68) $ 0.50 $ (0.80)
Net earnings (loss)
per common share:
Basic $ (0.10) $ (2.48) $ 0.16 $ (2.72)
Diluted $ (0.10) $ (2.48) $ 0.15 $ (2.72)
Shares used in basic per
share calculation 17,599 14,916 17,526 14,851
Shares used in diluted
per share calculation 19,208 14,916 19,351 14,851
-0-
INTEGRATED PROCESS EQUIPMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, 1997 June 30, 1997
(unaudited)
Assets:
Cash and cash equivalents $106,153 $ 40,656
Accounts receivable 68,759 45,590
Inventories 54,261 44,729
Net assets of discontinued
operations -- 2,463
Other current assets 15,610 12,393
Total current assets 244,783 145,831
Property, plant and
equipment, net 30,787 25,462
Other assets 27,246 26,772
Total Assets $302,816 $198,065
Liabilities and
stockholders' equity:
Total current liabilities $ 46,797 $ 46,735
Long-term debt, less
current portion 117,418 19,546
Stockholders' equity 138,601 131,784
Total Liabilities and
stockholders' equity $302,816 $198,065 |
