Look at SVGI earnings. Don't you see a dog!
Thursday April 22, 7:01 am Eastern Time
Company Press Release
Silicon Valley Group Reports Second Quarter Results
SAN JOSE, Calif.--(BUSINESS WIRE)--April 22, 1999--Silicon Valley Group, Inc. (Nasdaq:SVGI - news) today reported sales of $61,496,000 for the second quarter of fiscal 1999 ended March 31, 1999, which represented a 69% decrease from second quarter fiscal 1998 sales of $195,872,000. Consistent with the Company's April 6, 1999 announcement, sales for the second quarter ended March 31, 1999 declined 28% from first quarter fiscal 1999 sales of $85,487,000. Sales for the six-month period ended March 31, 1999 were $146,983,000 compared to $384,579,000 for the corresponding period of the prior fiscal year. The Company recorded a net loss of $17,994,000 or $0.55 per diluted share for the quarter ended March 31, 1999 compared to net income of $9,560,000 or $0.29 per diluted share in the second quarter of fiscal 1998 and a net loss of $7,032,000 or $0.21 per diluted share in the first quarter of fiscal 1999. During the first six months of fiscal 1999, the Company recorded a net loss of $25,026,000 or $0.76 per diluted share compared to net income of $21,705,000 or $0.66 per diluted share for the six months ended March 31, 1998.
The Company recorded orders of $165,710,000 for the second quarter of fiscal 1999 representing a book-to-bill ratio of 2.7-to-1. Second quarter fiscal 1999 bookings increased 90% compared to first quarter fiscal 1999 bookings of $87,286,000. During the second quarter, orders for twenty-one Micrascan units were added to the Company's backlog, which represents products to be shipped within one year of the acceptance of the order. The Company ended the quarter with a net backlog of $360,143,000.
The Company attributes the decline in earnings during the second fiscal quarter of 1999 compared to the previous year's second fiscal quarter primarily to lower sales of the Company's Lithography, Track and Thermco products offset in part by lower R&D and MG&A expenses. In comparing the second and first quarters of fiscal 1999, the net loss was higher in the second fiscal quarter as sales declined. MG&A spending remained relatively constant between periods and R&D spending increased on both of the Company's Track and Lithography products. The increase in R&D reflects the Company's commitment to advancing technology as well as improving its existing products.
''The Company is very disappointed that it did not achieve its revenue objectives for the quarter,'' said Papken S. Der Torossian, Chairman and CEO. ''As previously mentioned, this was primarily attributable to our Lithography products and was caused by both internal issues and the timing of scheduled customer delivery dates. On a positive note, bookings in all product areas increased compared to the first quarter of fiscal 1999.''
Forward-looking Statements Disclaimer: The matters discussed in this news release, and in particular those of the Company's Chairman and CEO, include forward looking statements that involve risks and uncertainties including but not limited to economic conditions, industry conditions, product demand, trade environment, the possibility of cancellations of orders in the company's backlog, and other risks discussed more fully in filings by the Company with the Securities and Exchange Commission. Reference is made to the Company's most recent Forms 10K and 10Q, which detail such risk factors.
About Silicon Valley Group, Inc.: SVG is a leading manufacturer of automated wafer processing equipment for the worldwide semiconductor industry. The Company designs, manufactures, and markets technically sophisticated equipment used in the primary stages of semiconductor manufacturing. Its products include photoresist processing equipment; oxidation, diffusion and low-pressure chemical vapor deposition processing systems; photolithography exposure tools that utilize step-and-scan technology; and precision optical components and systems. Silicon Valley Group is listed on the NASDAQ Stock Market under the symbol SVGI. The Company's World Wide Web address is: svg.com.
SILICON VALLEY GROUP, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarters Ended Six-Months Ended
March 31, March 31,
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $ 61,496 $ 195,872 $ 146,983 $ 384,579
Cost of Sales 47,326 118,358 108,783 232,677
--------- --------- --------- ---------
Gross Profit 14,170 77,514 38,200 151,902
Operating Expenses:
Research, development
and related
engineering 21,651 25,560 37,652 46,629
Marketing, general and
Administrative 20,094 39,469 39,567 76,156
--------- --------- --------- ---------
Operating Income(Loss) (27,575) 12,485 (39,019) 29,117
Interest Income & Other,
Net 1,325 1,829 2,790 3,311
Interest Expense (200) (255) (574) (509)
--------- --------- --------- ---------
Income (Loss) Before
Income Taxes (26,450) 14,059 (36,803) 31,919
Provision (Benefit) for
Income Taxes (8,456) 4,499 (11,777) 10,214
--------- --------- --------- ---------
Net Income (Loss) ($ 17,994) $ 9,560 ($ 25,026) $ 21,705
========= ========= ========= =========
Net Income (Loss) per
Share - Basic $ (0.55) $ 0.30 $ (0.76) $ 0.67
========= ========= ========= =========
Shares Used in Per Share
Computations - Basic 32,833 32,345 32,796 32,311
========= ========= ========= =========
Net Income (Loss) per
Share - Diluted $ (0.55) $ 0.29 $ (0.76) $ 0.66
========= ========= ========= =========
Shares Used in Per Share
Computations - Diluted 32,833 32,989 32,796 33,090
========= ========= ========= =========
CONDENSED BALANCE SHEETS
(In thousands) March 31, September 30,
1999 1998
---- ----
(Unaudited)
Assets
Cash and temporary investments $ 127,493 $ 150,000
Accounts receivable 77,744 121,562
Inventories 220,668 212,975
Other current / other assets 247,866 246,053
------- -------
Total $ 673,771 $ 730,590
========= =========
Liabilities and Stockholders' Equity
Current liabilities $ 122,680 $ 157,802
Noncurrent liabilities 11,522 11,258
Common stock 407,043 404,462
Retained earnings 135,358 160,384
Accumulated other comprehensive
(loss) (2,832) (3,316)
------- -------
Stockholders' equity 539,569 561,530
------- -------
Total $ 673,771 $ 730,590
========= =========
Contact:
Silicon Valley Group, Inc.
Papken S. Der Torossian, 408/434-0500
Russell G. Weinstock, 408/434-0500
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