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BW0218 FEB 27,1997 13:16 PACIFIC 16:16 EASTERN
( BW)(PLASMA-&-MATERIALS)(PMAT) PMT ANNOUNCES FOURTH-QUARTER AND
YEAR-END RESULTS
Business Editors
CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 27, 1997--Plasma &
Materials Technologies Inc. (PMT) (NASDAQ:PMAT), an international
supplier of etch and deposition equipment used to manufacture
semiconductors, Thursday reported its unaudited financial results
for its fourth quarter and fiscal year ended Dec. 31, 1996.
PMT's consolidated 1996 financial results include the operating
results of Electrotech Ltd. and Electrotech Equipments Ltd.
(Electrotech), which were acquired on Nov. 15, 1996. Electrotech
was acquired for an aggregate of $75 million cash and 5.6 million
shares of newly issued PMT common stock, and has been accounted for
as a purchase.
Consolidated revenues for the fourth quarter ended Dec. 31,
1996, were $14,608,953, as compared with $7,292,388 reported for the
fourth quarter of 1995, including $8,781,000 related to Electrotech
for the six-week period from the date of acquisition to Dec. 31,
1996. Revenues for the year ended Dec. 31, 1996, were $42,227,245,
compared with revenues of $21,289,713 for the same period last year.
Orders booked in the fourth quarter were approximately
$23 million, including Electrotech orders.
PMT reported a consolidated net loss of $97,597,264, or $8.40
per share, for the fourth quarter in 1996, which includes a one-time
acquisition-related in-process R&D charge of $86,028,748, compared
with net income of $923,497, or 10 cents per share, for the fourth
quarter of 1995.
PMT recorded a consolidated net loss of $94,474,754, or $10.03 per
share, for the year ended Dec. 31, 1996, as compared with net income
of $117,885, or 2 cents per share, for the year ended Dec. 31, 1995.
The consolidated operating loss for the fourth quarter and year
ended Dec. 31, 1996, reflects reduced margins due to the allocation
of a portion of the purchase price (as required under Accounting
Principles Board Opinion No. 16) to step up Electrotech's inventory
on hand at Nov. 15, 1996.
This stepped-up inventory was partially charged to cost of sales
during the six-week period ended Dec. 31, 1996, as such inventory
was sold. Other acquisition-related charges such as the stepped-up
inventory charge are also expected to unfavorably impact operating
results during the first quarter of 1997.
Consolidated operating results were also unfavorably impacted
by: the amortization of intangible assets acquired in connection
with the acquisition of Electrotech ($451,975); higher interest
costs associated with the borrowings under a 7-1/8 percent
convertible debt offering of $86,250,000 principal amount of
convertible subordinated notes which were offered to fund part of
the purchase price for the acquisition of Electrotech; a $3,392,640
charge during the fourth quarter of 1996 to bad-debt expense as a
result of increasing the reserve for doubtful accounts receivable;
and inventory write-downs during the fourth quarter.
``We are very pleased to have completed the acquisition of
Electrotech, and we are now positioned for .25 micron production
expansion in the major segments of Etch, PVD and CVD,'' said Greg
Campbell, PMT's chief executive officer. ``We are encouraged to see
the order rate increasing and believe our prospects for growth in
the second half of 1997 are good.''
1996 Highlights
Delivery of three production systems to Hyundai highlighted
1996's results for PMT's MORI high-density plasma (HDP) etch system.
In addition, PMT received repeat orders in 1996 from Texas
Instruments and LG Semicon, as well as a first system order from
IBM, LSI Logic, Sharp and Daewoo.
To date, the total number of companies that have purchased PMT's
MORI HDP etch systems for R&D and production now exceeds 12.
Flowfill chemical vapor deposition (CVD) saw increased market
acceptance, with first equipment shipped to several customers by
Electrotech prior to the acquisition. Highlights of 1996 include
the discovery of a low dielectric constant silicon dioxide material
that the company believes has shown promise of increasing the speed
of advanced logic devices.
This discovery has resulted in an increase in demand from
semiconductor logic manufacturers -- many of which have already
begun working with the company.
Eighteen Sigma PVD systems were sold during 1996, with
approximately half that number of Forcefill modules shipping to
customers such as Siemens and Texas Instruments -- the majority of
which were sold by Electrotech prior to the acquisition. The total
number of companies that have purchased Forcefill systems for R&D
and production qualification is steadily increasing.
PMT provides a broad line of advanced manufacturing systems that
are used for three of the four major processing steps in the
manufacture of a semiconductor device: etch, physical vapor
deposition (PVD) and chemical vapor deposition (CVD).
The company's corporate headquarters are located in Chatsworth,
north of Los Angeles. Manufacturing is conducted in Newport, Wales,
and Chatsworth, Calif. PMT operates worldwide through wholly owned
subsidiaries in the United Kingdom, Japan, Germany, France and South
Korea.
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,
see the company's Securities and Exchange Commission filings.
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*T
PLASMA & MATERIALS TECHNOLOGIES INC.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
Revenues:
Product sales $13,534,653 $7,292,388 $39,385,818 $20,889,713
License revenues -- -- -- 400,000
Contract revenues 1,074,300 -- 2,841,427 --
14,608,953 7,292,388 42,227,245 21,289,713
Costs and expenses:
Cost of goods sold 11,605,752 3,842,514 24,596,756 11,143,716
Research and
development 4,695,839 1,371,381 10,145,185 4,566,853
Selling, general
and administrative 9,496,563 1,671,013 16,621,716 5,943,702
Amortization of
intangibles 451,975 -- 451,975 --
In process
technology 86,028,748 -- 86,028,748 --
112,278,877 6,884,908 137,844,380 21,654,271
Income (loss)
from operations (97,669,924) 407,480 (95,617,135) (364,558)
Other:
Interest income
(expense), net (1,279,483) 516,017 (192,785) 483,243
Income (loss)
before income
tax provision (98,949,407) 923,497 (95,809,920) 118,685
Income tax
provision (1,352,143) -- (1,335,166) 800
Net income (loss) $(97,597,264) $ 923,497 $(94,474,754) $ 117,885
Net income (loss) per share:
Primary ($8.40) $0.10 ($10.03) $0.02
Fully diluted ($8.40) $0.10 ($10.03) $0.02
Total shares used in per share
calculations:
Primary 11,620,373 9,043,861 9,420,020 6,593,311
Fully diluted 11,620,373 9,042,814 9,420,020 6,593,311
*T
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CONTACT: Plasma & Materials Technologies Inc., Chatsworth
Frederick Reynolds, 818/886-8000, ext. 155
818/886-2245 (fax)
freynolds@pmat.com (e-mail)
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