Fourth Quarter results (Stock Smart):
Ultratech Stepper Reports Fourth Quarter and Year-End 1996 Results
SAN JOSE, CALIF. (Jan. 30) BUSINESS WIRE -Jan. 30, 1997--Ultratech
Stepper, Inc. (NASDAQ/NM Symbol: UTEK) today announced unaudited
results for the three month and one-year periods ended December 31,
1996.
For the three months ended December 31, 1996, net sales were $43.5
million, down from $47.3 million in the same quarter last year. Net
income increased to $8.6 million, or $0.40 per share, up from $8.0
million, or $0.38 per share in last year's fourth quarter. Weighted
average shares outstanding were 21.4 million for both fourth quarter
periods.
For the 1996 year, Ultratech's net sales reached $193.5 million, a 22.6
percent increase over 1995. Net income for 1996 was up 45.7 percent to
$35.3 million, or $1.66 per share. Expense Controls, Product Mix and
Manufacturing Efficiencies Contributed to Financial Performance
Ultratech's gross margin reached a record 54.7 percent in the fourth
quarter primarily as a result of favorable product mix and improvements
in manufacturing cycle times. Total operating expenses again declined
sequentially from $13.7 million in the third quarter of 1996 to $12.8
million in the fourth quarter of 1996.
In addition to a continued focus on gaining operating efficiencies,
specific expense control measures included extending the annual holiday
shut- down by one week to a total of two weeks. Ultratech will also
have an extra one-week shut down in February of 1997.
At December 31, 1996, the company had $167.4 million in cash, cash
equivalents and short-term investments and a current ratio of 6.4:1.
Working capital was $212.7 million and stockholders' equity was $11.25
per share.
Ultratech's six month order backlog at the end of 1996 was $81 million
and consisted primarily of thin-film head product orders, followed by
scanner replacement and low-cost IC products, mix-and- match products,
micromachining products and spare parts. Semiconductor Demand Weakness
Continues to Impact Revenues; Management Optimistic About Potential
Pick-Up in Demand in Latter Half of 1997
"1996 was a challenging year. Yet, Ultratech executed very well and
achieved profitability under these difficult circumstances," stated
Arthur W. Zafiropoulo, Chairman and Chief Executive Officer.
"Our diversification strategy, and specifically the strength of our
thin-film head product offering, coupled with our close attention to
expense management, were the keys to our success. We are also pleased
to report that our newest product line, micromachining, gained momentum
during the fourth quarter and, we believe, is poised to make a greater
contribution to revenues in 1997.
"Furthermore, during the fourth quarter we received our first order for
the new Model 6700, our most advanced thin-film head product, from a
leading US supplier. In addition, we expect to add to our product
diversification in 1997 with new products for the semiconductor and
thin-film head markets. Additional offerings of e-beam lithography and
surface activation (P-Gild) systems are also expected to be introduced
in 1997."
Zafiropoulo continued, "Although I believe we may be at or near the low
point in this cycle, many challenges still lie ahead. We are likely to
experience continued demand weakness from the semiconductor sector for
at least the next two or three quarters.
"However, we are now more optimistic about the potential for a recovery
in the semiconductor market in the latter part of 1997. Some leading
industry analysts are forecasting that the rest of the decade could be
one of the strongest recoveries in industry history.
"We believe Ultratech Stepper is well positioned to capitalize on any
renewed demand and, thanks to our financial condition, we will continue
to seek acquisitions and alliances that move us toward our strategic
and financial targets," Zafiropoulo concluded. Profile
Founded in 1979, Ultratech Stepper, Inc. designs, manufactures and
markets photolithography steppers used worldwide in the fabrication of
semiconductor and thin film heads for disk drives. The company produces
products that substantially reduce the cost of ownership for
manufacturers in the electronics industry.
Certain of the statements contained herein may be considered
forward-looking statements that involve risks and uncertainties, such
as the cyclicality in the thin-film head and semiconductor industries,
delays, deferrals and cancellations of orders by customers, dependence
on new product introductions, integration of operations as a result of
an acquisition, competition, and changes in technology.
Such risks and uncertainties are set forth in the company's SEC reports
including the company's Form 10-Q for the period ended September 30,
1996. Results of operations in any past period should not be
considered indicative of the results to be expected for future periods.
-0-
Ultratech Stepper, Inc.
Condensed Consolidated Balance Sheets
Dec. 31, Dec. 31,
(In thousands) 1996 1995(a)
ASSETS (Unaudited)
Current assets:
Cash, cash equivalents, and
short-term investments $167,409 $161,356
Accounts receivable 39,845 23,917
Inventories 35,524 27,387
Prepaid expenses and other
current assets 848 1,332
Deferred income taxes 8,439 6,883
Total current assets 252,065 220,875
Equipment and leasehold
improvements, net 19,242 16,352
Restricted investments 5,129 4,996
Other assets 4,336 3,205
Total assets $280,772 $245,428
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $9,400 $12,925
Other current liabilities 29,981 31,376
Current portion of
long-term debt - 400
Total current liabilities 39,381 44,701
Other liabilities 1,444 1,069
Stockholders' equity 239,947 199,658
Total liabilities and stockholders'
equity $280,772 $245,428
Notes:
(a) The Balance Sheet as of Dec. 31, 1995 has been derived from the
audited financial statements at that date.
Ultratech Stepper, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(In thousands, except 1996 1995 1996 1995
per share amounts)
Net sales $43,500 $47,296 $193,508 $157,831
Cost of sales 19,706 22,067 88,615 75,543
Gross profit 23,794 25,229 104,893 82,288
Operating expenses:
Research,
development, and
engineering 6,099 6,640 27,220 22,655
Selling, general,
and administrative 6,697 8,123 30,995 27,851
Operating income 10,998 10,466 46,678 31,782
Other income 1,480 1,539 6,029 4,388
Income before income
taxes 12,478 12,005 52,707 36,170
Income taxes 3,919 3,962 17,396 11,936
Net income $8,559 $8,043 $35,311 $24,234
Net income per share $0.40 $0.38 $1.66 $1.20
Number of shares used
in per share
calculations 21,359 21,356 21,324 20,158
Note:
All share and per share data have been retroactively restated to
reflect a two-for-one stock split distributed in the form of a 100-
percent dividend on May 10, 1995.
The Statement of Income for the year ended December 31, 1995 has
been derived from the audited financial statements at that date.
--30--kvc/sf* jf
CONTACT: Ultratech Stepper, Inc.
William G. Leunis, III or Laura Rebouche, 408/321-8835
or
Lippert/Heilshorn & Assoc.
Lillian Armstrong, 415/433-3777 (analysts)
or
A. Lavin Communications
Andy Lavin, 212/354-2266 (financial media)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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