Electroglas Reports First Quarter Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 22, 1999-- Electroglas, Inc. (Nasdaq:EGLS - news) reported operating results for its first quarter ending March 31, 1999.
For the first quarter 1999, revenues were $17.3 million, down 53% from the same period last year but up 18% from the immediate prior quarter. Net loss for the quarter was $5.9 million, or $.30 per share.
During the quarter, the Company was required to continue collateralizing the financing of its new site construction project with the project-to-date amounting to $24.6 million. At March 31, 1999, the Company had $127.3 million in cash and restricted cash.
Commented Curt Wozniak, CEO of Electroglas, ''We are pleased that the first quarter exhibited a solid increase in bookings activity. The lengthy downturn in the semiconductor equipment industry seems to have bottomed out and be returning to a growth cycle. Bookings in the first quarter were $23.0 million, an 87% increase from the fourth quarter 1998 low point of this cycle. Our book-to-bill ratio was 1.33 to 1 compared with the SEMI Express Report book-to-bill of 1.28 to 1 for the Test and Assembly portion of the industry. Our bookings increase also compared favorably with a 55% increase recorded by the industry in the same period. Backlog increased and provides us with more visibility into the current quarter. We are encouraged that forecasts for the industry have begun to be modified positively, with forecasts projecting improving business conditions through 1999 and into the year 2000.''
Continued Wozniak, ''While business conditions have improved at Electroglas, we continue to be cautious in our outlook and focused on containing costs and carefully managing assets, while investing aggressively in new product programs. The investments in the 4090u SMIF and SortNet networking software showed solid gains in revenue this past quarter. Knights' Yield Manager software continued to penetrate new fabs, including the first 300mm facility in the world. While our Inspection Products have not yet shown results in the market, we continue to be optimistic about the nascent opportunities in the flip chip and bump markets for the Quicksilver inspection technology. We are committed to continuing investment in new technology, thereby positioning us to participate in the growth opportunities in process management for our semiconductor customers.''
Legal Notice Regarding Forward-Looking Statements
Forward-looking statements in this release include, but are not limited to, statements regarding the semiconductor industry's growth cycle, projected semiconductor industry business conditions, and market and growth opportunities. The forward-looking statements involve risks and uncertainties including, but not limited to, a possible continuing or worsening of the slowdown in new orders and the Asian financial crisis, the difficulty of continued curtailing of expenses to necessary levels, and unforeseen technological difficulties related to the Company's current and future products, the inability of the Company's product development efforts to grow its market position in process management, and other risks indicated in filings with the Securities and Exchange Commission (SEC). Actual results could differ materially. Electroglas assumes no obligation to update this information. Readers should also refer to risk disclosures in Electroglas' SEC filings, including its most recent Annual Report on Form 10-K for the year ended December 31, 1998 and its quarterly reports on Form 10-Q for the first three quarters of 1998.
About Electroglas: Electroglas delivers essential tools for process management designed to enhance semiconductor companies' profitability. The Company's wafer probers, inspection systems and software solutions serve as data collection, management and analysis tools that semiconductor manufacturers depend on to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 35 years and has an installed base of more than 10,000 systems. The Company's stock trades on the Nasdaq National Market under the symbol ''EGLS''. The Company's World Wide Web site is located at electroglas.com
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Contact:
Electroglas, Inc., Santa Clara
Armand Stegall, 408/727-6500
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