FSI INTERNATIONAL, INC. ANNOUNCES SECOND QUARTER FISCAL 1999 FINANCIAL RESULTS
MINNEAPOLIS (March 23, 1999) -- FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the second quarter ended Feb. 27, 1999.
Sales for the fiscal 1999 second quarter were $33.0 million, compared to $59.4 million for the same period of fiscal 1998. The Company's net loss for the second quarter was $7.6 million or $0.33 per share (diluted), compared to a net loss of $4.6 million or $0.20 per share (diluted) in fiscal 1998.
For the first half of fiscal 1999, FSI's sales were $67.2 million, compared to $124.3 million for the same period in fiscal 1998. The net loss for the first six months of fiscal 1999 was $14.7 million or $0.63 per share (diluted), compared to a net loss of $2.7 million or $0.12 per share (diluted) for last year's comparable period.
The Company continues to maintain a strong balance sheet with over $300 million in assets, including $98 million in cash, cash equivalents and marketable securities. On Feb. 27, 1999, the Company had $135 million in working capital, a current ratio of 3.0 to 1 and a book value of $192 million or $8.25 per share.
"We are disappointed with our second quarter and first half fiscal 1999 performance," said Joel Elftmann, chairman and chief executive officer. Due to certain customers postponing some expected purchase orders, second quarter orders were lower than the first quarter and book-to-bill was approximately 1.0."
Fiscal 1999 second quarter sales were also impacted by customer requested shipment delays, manufacturing delays and the delayed customer acceptance of a new product. The Company does not recognize revenue on shipments of new products with new technology until it receives customer acceptance.
"We have seen an increase in quote activity the last few months. However, we are also seeing the continuation of competitive pricing pressure in all divisions," concluded Elftmann.
The Company's goal is to effectively manage its assets while continuing to invest in key strategic programs. The Company has reduced its fiscal 1999 second quarter operating expenses by 34% as compared to the second quarter of fiscal 1998, and fiscal 1999 first half operating expenses by 25% as compared to the first half of fiscal 1998.
SAFE HARBOR: Certain statements contained above are forward-looking statements (*) that involve risks and uncertainties. Actual results may be materially different from these forward-looking statements. Factors that could cause actual results to differ include overall industry conditions including general economic conditions; the demand and price for semiconductors; the level of new orders and order delays or cancellations; product pricing; expenses associated with the pending YieldUP acquisition; the timing and success of current and future product and process development programs; the success of the Company's affiliated distributors; the timing and extent of any industry upturn or downturn; and the successful implementation of new business systems. Other factors that could cause the results of the Company to differ materially from those contained in any forward-looking statements of the Company are included in the Company's Annual Report on Form 10-K for the 1998 fiscal year and other documents recently filed by the Company with the Securities and Exchange Commission.
FSI International, Inc. is a leading global supplier of processing equipment used at key production steps to manufacture microelectronics, including semiconductor devices and thin film heads. The company develops, manufactures, markets and supports products used in the technology areas of microlithography, surface conditioning and chemical management. FSI International's customers include microelectronics manufacturers located throughout North America, Europe, Japan and the Asia-Pacific region.
Additional information on FSI International can be obtained by accessing its homepage at fsi-intl.com.
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