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Friday April 17, 12:54 pm Eastern Time
Company Press Release
SOURCE: Semicon Tools, Inc.
Semicon Tools Reports Q4 Earnings Up More Than 300%; Company Sets Fiscal 1999
Growth Target of at Least 50%
Acquisition, Growth in Base Business Fuel Sharp Gains In FY98 Sales, Profits
ARMONK, N.Y., April 17, /PRNewswire/ -- Semicon Tools, Inc. (OTC: SETO - news), citing significant increases in revenues for both its base
businesses and a recently acquired Malaysian company, today reported fourth-quarter net income increased more than 300 percent to $487,587,
or 3 cents per share, from $116,992, or 1 cent per share, for the fourth quarter last year. Revenues increased to $6.3 million from $491,758 a year
earlier.
For the year ended January 31, 1998, net income was $629,586, or 5 cents per share, compared with $213,652, or 2 cents per share, a year earlier.
Revenues increase to $7.8 million from $1.6 million. Semicon acquired Teik Tatt Holding Co., a privately held Malaysian manufacturer, for 10
million shares of Semicon stock in late November 1997. About two months of Teik Tatt operations are included in Semicon's fourth-quarter
results.
Pro Forma EPS 9 Cents
On a pro forma basis, assuming the transaction had taken place February 1, 1996, net income for the year ended January 31, 1998, increased 19
percent to $1.8 million, or 9 cents per share, compared with $1.5 million, or 7 cents per share, for the prior year. Revenues increased to $23.9
million from $13.0 million.
''Both our newly acquired business and our existing operations posted significant gains in operating results during the year,'' said Gene Pian,
president of Semicon Tools. ''The existing business, where we are concentrating on high-end, value-added products, experienced a 20 percent
gain in revenues and a 17 percent increase in net income. Teik Tatt's revenues more than doubled and profitability was up nearly 20 percent.''
Pian noted that both the newly acquired business and the base business experienced significant expansion during the year, and the benefits of
those enhanced operations will be included in full-year results going forward.
Comfortable With 50% Growth Target
''We expect this current quarter to be even stronger than the fourth quarter with a full three months of Teik Tatt results included,'' Pain said.
''Additionally, the growth in our businesses and the prospect of having a full year of benefits from our acquisition and expansion initiatives
makes me confident that we can grow revenues and profits by at least 50 percent over the coming year,'' Pian said. ''In the existing Semicon
business, for example, we doubled capacity of our technical ceramics forming group with the installation of new equipment. Also, Teik Tatt
expanded into Vietnam and launched its highly successful recycling business during the year. These are among the factors that we expect to
contribute to continue solid growth in the coming quarters.''
Semicon Tools, Inc. has been a public company since 1987 and operates through four divisions. STI is primarily a manufacturer and distributor
of diamond cutting tools used by the microelectronics and semiconductor industries. Teik Tatt Holding Co., a wholly owned subsidiary, is one
of the leading Malaysian manufacturers of plastic products such as rope, yarn, twine, high quality rubber bands and a recycler of plastics and
nonferrous metals from cable and precious metals from electronic components and circuit boards obtained from obsolete computers. East Coast
Sales, Inc., is a wholly owned subsidiary that is a value-added fabricator and distributor of technical ceramic products and disposable clean
room supplies. DTI Technology, Sdn Bhd, a wholly owned subsidiary, manufactures products sold by the other two divisions and sells direct
to an additional base of semiconductor manufacturers in Asia. The Company's divisions sell their products to hundreds of Fortune 1000
companies, including such customers as IBM, National Semiconductor, Motorola, General Motors, Coors and Westinghouse.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this press release which are not historical facts are forward-looking statements that involve risks and uncertainties that
could cause actual results to differ from projected results. Factors that could cause actual results to differ materially include, among others,
economic and political events in or effecting Malaysia, the Company's dependence on the semiconductor industry and other risk factors
detailed in the Company's Securities and Exchange Commission filings.
SOURCE: Semicon Tools, Inc.
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