Here it is guys.
Monday July 26, 8:06 am Eastern Time
Company Press Release
Silicon Valley Group Reports Third Quarter Results
SAN JOSE, Calif.--(BUSINESS WIRE)--July 26, 1999--Silicon Valley Group Inc. (Nasdaq:SVGI - news) today reported sales of $136,894,000 for the third quarter of fiscal 1999 ended June 30, 1999.
Third quarter fiscal 1999 sales represent an 18% increase over third quarter fiscal 1998 sales of $116,385,000 and an increase of 123% over second quarter fiscal 1999 sales of $61,496,000. Sales for the nine-month period ended June 30, 1999 were $283,877,000 compared to $500,964,000 for the corresponding prior year period.
The company recorded a net loss of $2,065,000 or ($0.06) per diluted share for the third quarter ended June 30, 1999 compared to a net loss of $6,817,000 or ($0.21) per diluted share for the third quarter of fiscal 1998 and a net loss of $17,994,000 or ($0.55) per diluted share in the second quarter of fiscal 1999.
For the first nine months of fiscal 1999, the company recorded a net loss of $27,091,000 or ($0.82) per diluted share compared to net income of $14,888,000 or $0.45 per diluted share for the corresponding prior year period.
Several of the company's original 193nm customers have either decided to use or are evaluating other 248nm and 193nm solutions. As a result of certain customers having decided that their product needs have changed beyond their original requirements for initial 193nm machines, the company has reduced its 193nm orders received by approximately $53,000,000.
Of this amount, approximately $32,000,000 or three units have been reduced from the company's June 30, 1999 backlog. The company recorded new orders of $142,878,000 for the third quarter ended June 30, 1999 representing a decrease of 14% from sequentially higher second quarter fiscal 1999 bookings of $165,710,000.
During the third quarter, new orders for sixteen Micrascan units including its first 157nm Mini-scanner, were added to the company's backlog, which represents products to be shipped within one year. The company ended the quarter with a net backlog of $334,627,000.
The company attributes the improvement in operating results during the third fiscal quarter of 1999 compared to the previous year's third fiscal quarter to higher sales of the company's lithography products offset in part by increased R&D spending on lithography products.
In comparing the third and second quarters of fiscal 1999, operating results improved as sales increased offset in part by increased operating expenses.
''Although the company recorded a loss for the quarter, SVG continues to make progress in its return to profitability,'' said Papken S. Der Torossian, chairman and CEO.
''The operating loss continued to diminish as third quarter gross margin improved and the company increased its commitment to advanced products resulting in higher levels of spending on research and development. However, we are disappointed that certain customers have chosen to seek an alternative option for their initial 193nm needs, which is different from the original 193nm program requirements they entered into with SVG in 1996. ''
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.
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SILICON VALLEY GROUP INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarters Ended Nine-Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $ 136,894 $ 116,385 $ 283,877 $ 500,964
Cost of Sales 89,034 78,297 197,817 310,974
--------- --------- --------- ---------
Gross Profit 47,860 38,088 86,060 189,990
Operating Expenses:
Research, development
and related
engineering 24,016 20,673 61,668 67,302
Marketing, general and
administrative 28,719 29,884 68,286 106,040
--------- --------- --------- ---------
Operating Income(Loss) (4,875) (12,469) (43,894) 16,648
Interest Income & Other,
Net 2,126 1,339 4,916 4,650
Interest Expense (288) (227) (862) (736)
--------- --------- --------- ---------
Income (Loss) Before
Income Taxes (3,037) (11,357) (39,840) 20,562
Provision (Benefit) for
Income Taxes (972) (4,540) (12,749) 5,674
--------- --------- --------- ---------
Net Income (Loss) $ (2,065) $ (6,817) $ (27,091) $ 14,888
========= ========= ========= =========
Net Income (Loss) per Share
- Basic $ (0.06) $ (0.21) $ (0.82) $ 0.46
========= ========= ========= =========
Shares Used in Per Share
Computations
- Basic 33,031 32,556 32,874 32,393
========= ========= ========= =========
Net Income (Loss) per Share
- Diluted $ (0.06) $ (0.21) $ (0.82) $ 0.45
========= ========= ========= =========
Shares Used in Per Share
Computations
- Diluted 33,031 32,556 32,874 32,890
========= ========= ========= =========
CONDENSED BALANCE SHEETS
(In thousands)
June 30, September 30,
1999 1998
---- ----
(Unaudited)
Assets
Cash and temporary investments $ 151,565 $ 150,000
Accounts receivable 97,806 121,562
Inventories 203,248 212,975
Other current / other assets 243,127 246,053
--------- ---------
Total $ 695,746 $ 730,590
========= =========
Liabilities and Stockholders' Equity
Current liabilities $ 131,129 $ 157,802
Noncurrent liabilities 11,652 11,258
Preferred stock 14,976 --
Common stock 407,450 404,462
Retained earnings 133,293 160,384
Accumulated other comprehensive (loss) (2,754) (3,316)
--------- ---------
Stockholders' equity 552,965 561,530
--------- ---------
Total $ 695,746 $ 730,590
========= =========
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