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BW0016 DEC 16,1996 5:01 PACIFIC 08:01 EASTERN
( BW)(PLASMA-&-MATERIALS)(PMAT) PMT REGISTERS CONVERTIBLE
SUBORDINATED NOTES DUE 2001
Business Editors
CHATSWORTH, Calif.--(BUSINESS WIRE)--Dec. 16, 1996--Plasma &
Materials Technologies, Inc. (NASDAQ:PMAT) (PMT(r)), an
international supplier of etch and deposition equipment used to
manufacture semiconductors, today announced the filing of a
Registration Statement on Form S-3 for the purpose of registering
$86,250,000 principal amount 7-1/8% Convertible Subordinated Notes
Due 2001 and the Common Stock issuable upon conversion of such
Convertible Notes.
PMT issued the Convertible Notes to the institutional purchasers
in a Rule 144A private placement on October 7, 1996, and has filed
the Form S-3 in accordance with a Registration Agreement entered
into by the Company in connection with the issuance of the
Convertible Notes. A substantial portion of the proceeds of the
sale of the Convertible Notes was used for the November 15, 1996
acquisition by PMT of 100% of the outstanding capital stock of
Electrotech Limited and Electrotech Equipments Limited
(Electrotech).
In the Form S-3, PMT noted under a "Recent Developments" section
that the semiconductor industry is currently experiencing a
significant downturn which has resulted, and which the Company
anticipates could continue to result, in increased pricing pressure
upon equipment manufacturers, including the Company. As previously
reported for the third quarter ended September 30, 1996, PMT's
product sales declined 22.5% to $7.9 million from $10.2 million for
the second quarter ended June 30, 1996. Similarly, for the quarter
ended September 30, 1996, Electrotech's product sales declined to
$15.9 million from $23.7 million for the quarter ended June 30,
1996, a reduction of 33%. Furthermore, decreased product sales
resulted in decreased operating margins for both PMT and Electrotech
for the quarter ended September 30, 1996 compared to the preceding
quarter ended June 30, 1996.
Reduced demand for the semiconductor processing equipment is
anticipated to continue to adversely affect the product sales and
margins for both PMT and Electrotech for the quarter ending December
31, 1996 and subsequent periods. Although actual results for the
quarter ending December 31, 1996 will depend upon shipments by PMT
and Electrotech during the remaining weeks of December 1996, the
Company presently anticipates that the product sales of PMT and
Electrotech, each considered separately, for the quarter ending
December 31, 1996 will be the same or lower than their respective
product sales for the preceding quarter ending September 30, 1996.
The combined Company's consolidated product sales for the quarter
ending December 31, 1996 will not include the product sales of
Electrotech recognized prior to the November 15, 1996 Acquisition.
As a result, the Company will incur a net loss for the quarter
ending December 31, 1996, even before giving effect to the
recognition of a one-time, nonrecurring charge of $89 million
incurred in connection with the Acquisition relating to purchased
in-process technology of Electrotech.
PMT develops, manufactures, and markets a broad line of advanced
processing systems for semiconductor manufacturing. These systems
are used for etch, physical vapor deposition (PVD), and chemical
vapor deposition (CVD) applications, and are sold to customers
worldwide. PMT sells its equipment through a combination of a
direct sales force and a worldwide network of distributors. The
Company maintains wholly owned subsidiaries in Germany, France, and
South Korea. Manufacturing is conducted in Newport, Wales and
Chatsworth, California. The Company's corporate headquarters are
located in Chatsworth, north of Los Angeles.
Safe Harbor Statement: Except for historical information
contained herein, the matters set forth in this news release are
forward looking statements that involve a number of risks and
uncertainties. In addition to factors discussed above, the factors
that could cause actual results to differ materially include the
following: product demand and market acceptance, the timing and
success of new product introductions, business issues and growth
within the semiconductor manufacturing industry, competitive
factors such as rival etch and deposition technologies, and
availability of key supplier components at reasonable prices. For
a description of risks attendant to PMT and the semiconductor
manufacturing industry, please see the Company's SEC filings.
--30--crd/sf* jar/sf
CONTACT: Plasma & Materials Technologies, Inc.
Frederick Reynolds, 818/886-8000 Ext. 155
Fax: 818/886-2245
e-mail: freynolds@pmat.com
pmat.com |
