To all, I listened in on the conference call and will recount in chronological order what I heard. I apologize in advance for any errors or omissions. Inre to the analysts' response I didn't read it exactly the same as Dave. At one point one of them remarked that it looked good for PMT (for whatever that's worth).
- Due to the purchase, it took a long time to get the results out but expect be quicker in the future.
- Due to the purchase, only shipped the equipment their clients must have in the 4th Q.
- Gross margins on Electrotech products = 50%. Gross margins on PMT products = 44%.
- SGA AR of $3.4M to Techlink was written off in the 4th Q, but they expect to collect (probably 1Q '97).
- Orders are up and consist of 1/3 etch and 2/3 deposit, totalling $23M. Order breakdown: 60% US (mostly Forcefill and mostly shipping 1Q '97), 22% Europe, 10% Korea and 8% Japan.
- They report a positive book-to-bill (no number).
- Of the 12+ MORI customers, five are repeats w/Hyundai running three systems w/yield advantages.
- They said there are nine users of Forcefill. TI has three running and two more will ship 1Q '97. They expect production 1Q '97.
- They said they had a number (not specified) of Flowfill systems running w/DRAM customers. Their aim for '97 is hi-speed logic manufacturers in US.
- More expectations: revenues in first two Q's '97 to be up but not at the same level, revenue expansion in the 3rd Q '97, R&D to increase (specifically in these areas: oxide etch, low-k CVD and high throughput Forcefill).
- Their focus in the 4th Q was on sales structure: Innotech in Japan, PMT in Korea and US, and Electrotech in Europe. Harvey Fry will be head of sales.
- They've identified cost savings in cost of goods sold and operating expenses and have action plans.
- Balance sheet notes: $21M in cash, $27M in AR, $16M in PMT inventory, $31M in Electrotech inventory, and $31M total equity.
- Flowfill already at beta sites and expect first revenue shipment in 3rd Q.
- Electrotech converted to the Brooks Automation platform prior to the sale to PMT and already have a full running system expected to ship 4th Q.
- They will ship a ferro electric etch order to TI in the 1st Q (for logic/platinum).
- Comapanies mentioned: Hyundai and Siemens for DRAM and Motorola, TI, Phillips and Matsushita for unspecified.
- Balance of AR is over 75-days, but they're confident of receipt because large customers.
- More Balance sheet notes: LTD = $86M, Current liability = $50M, AP = $18.9M, bank debt = $14M, for total debt of $100M.
- AR breakdown: PMT = $9M and Electrotech = $18M.
- 4th Q operating loss approximately $4M.
- Expect an operating loss in 1st Q '97.
- No guidance on EPS for '97.
- No comment on backlog (historically don't give those figures) but will be included in 10K.
- When asked if there were any bank debt profitability requirements, they responded yes and the banks were of the same mind to write off as much as possible this quarter.
- They intend to put the $35M credit line into revolving use and leave the $6.2M reserves be.
- Expect gross margins going forward to be 55% for Electrotech. For PMT they anticipate mid-40% in Korea and 50-to-55% everywhere else.
- Inventory notes: PMT = $16M, Electrotech = $31M, not much in finished goods (but firm orders for all finished goods), no specific breakdown for Electrotech, PMT = $10M in sub-assemblies, $5M in works-in-progress, and $1M in finished goods.
- They expect to ship most inventory in next few quarters. PMT's ship same quarter and Electrotech's ship in the next two quarters.
- Business, as elsewhere, is picking up.
If I left anything out, please pass on the info. Dictation is not my forte.
-- Robert |
