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Technology Stocks : Varian Semiconductor Equipment Associates -- VSEA -- Ignore unavailable to you. Want to Upgrade?

To: Duker who wrote (73)	7/23/1999 10:00:00 AM
From: Duker	Read Replies (1) \| Respond to of 1929

Varian Semiconductor Equipment Associates' FY 1999 Third Quarter Results Reflect Further Improvement Friday July 23, 9:23 am Eastern Time Company Press Release GLOUCESTER, Mass.--(BUSINESS WIRE)--July 23, 1999--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA - news) today announced results for the third quarter of fiscal 1999, ended July 2, 1999. Third quarter revenues totaled $63.8 million, up 20 percent from the $53.2 million revenue level in this fiscal year's second quarter, but down 22 percent from the prior year's quarterly revenue of $81.8 million. The quarter's net loss per share was $0.11, compared with a net loss per share of $0.63 in the second quarter of this fiscal year and earnings per share of $0.03 on a diluted basis for the previous year's third quarter. For the nine-month fiscal year period, revenues reached $164.4 million, compared with $301.1 million in the same period last year. The net loss per share for the nine months was $0.96, against $0.86 earnings per share on a diluted basis in last year's comparable nine-month period. Richard A. Aurelio, Varian Semiconductor's president and chief executive, noted ''This quarter's dramatic rise in demand for our ion implantation equipment indicates that industry growth has clearly resumed. We are both ready to meet that demand, and uniquely positioned with new technologies to serve our customers' accelerating technological needs.'' Aurelio also noted that the company's gross margins are recovering toward target levels. ''We increased our gross margin significantly in the past quarter, and we believe that the industry recovery will allow us to maintain, and possibly exceed that level in the short term. With demand for our products growing, we expect our capacity utilization to ramp up in coming quarters.'' Gross profit for the quarter of $21.9 million represented 34 percent of revenues, compared with 7 percent before special charges and other unusual items as reported in the previous quarter and 28 percent in the third quarter of the previous fiscal year. Aurelio also commented that ''customer interest in our single-wafer family of products is increasing as semiconductor manufacturers move toward sub-.18 micron and 300-mm technologies. We are using a winning formula of leadership in technology, market share and customer satisfaction to achieve growing financial performance.'' ''For the third year in a row,'' Aurelio said, ''Varian Semiconductor won VLSI's customer satisfaction survey, and we received the 1998 Texas Instruments Supplier Excellence Award. The hard work on the part of all our employees, which brought us to the top of these prestigious competitions, has clearly led to our market share growth.'' Varian Semiconductor Equipment Associates is the world's largest producer of ion implantation equipment used in the manufacture of semiconductors. The company is headquartered in Gloucester, Massachusetts, and operates from three manufacturing sites and 26 worldwide offices. Varian Semiconductor maintains a web site at www.vsea.com. Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, the statements concerning the industry outlook, the company's sales growth, market share, capacity utilization and technological improvements and benefits, and any statements using the terms ''believes,'' ''anticipates,'' ''expects,'' ''plans'' or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the lack of recent operating history for the company as a separate entity; volatility in the semiconductor equipment industry; significant fluctuations in the company's quarterly operating results; risks associated with the company's transition to a new information technology infrastructure; the impact of rapid technological change and the company's dependence on the development and introduction of new products; the company's concentration on ion implantation systems and related products; concentration in the company's customer base and lengthy sales cycles; the highly competitive market in which the company competes; risks of international sales; foreign currency risks; uncertain protection of patent and other proprietary rights; potential environmental liabilities; the company's reliance on a limited group of suppliers; the company's dependence on certain key personnel; the impact of the Year 2000 issue; as well as other risk factors described from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. -------------------------------------------------------------------------------- Contact: Varian Semiconductor Equipment Associates, Gloucester Ernest L. Godshalk, 978/282-2303 Chief Financial Officer or Investor Relations Partners, Inc., Livingston, N.J. Shellie M. Roth, 973/535-8389

To: Duker who wrote (73)	7/23/1999 10:00:00 AM
From: Duker	Respond to of 1929

VSEA Financials: VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Three months ended Nine months ended ----------------------- ------------------ July 2, July 3, July 2, July 3, 1999 1998 1999 1998 --------- ------- ------- --------- Revenue $ 63,847 $ 81,766 $ 164,407 $ 301,141 ---------- -------- -------- -------- Operating Costs and Expenses Cost of revenue 41,926 58,565 126,552 190,887 Research and development 9,312 9,945 27,521 28,190 Marketing 9,359 8,754 25,877 30,618 General and administrative 9,391 3,508 25,842 14,099 Restructuring costs - - 2,688 - ---------- ---------- --------- ------ Total Operating Costs and Expenses 69,988 80,772 208,480 263,794 ---------- --------- ---------- -------- Operating (Loss) Earnings (6,141) 994 (44,073) 37,347 Interest Income 1,157 - 1,157 - (Loss) Earnings before Taxes (4,984) 994 (42,916) 37,347 Tax provision (benefit) on (loss) earnings (1,580) 93 (13,600) 11,041 ========== ========= ========== ======= Net (Loss) Earnings $ (3,404) $ 901 $(29,316) $ 26,306 ========== ========= ========= ======== Average Shares Outstanding - Basic 30,423 30,423 30,423 30,423 ========== ======== ======== ======== Average Shares Outstanding - Diluted 30,423 30,508 30,423 30,508 ========== ========= ======== ======== Net (Loss) Earnings Per Share - Basic $ (0.11) $ 0.03 $ (0.96) $ 0.86 ========== ========= ========= ====== Net (Loss) Earnings Per Share - Diluted $ (0.11) $ 0.03 $ (0.96) $ 0.86 ========== ======== ======= ========= VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Amounts in thousands, except share amounts) July 2, October 2, 1999 1998 ---------- ------------ (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 89,024 $ - Accounts receivable, net 60,093 62,677 Inventories 52,210 60,692 Other current assets 46,397 38,754 ---------- ------------ Total Current Assets 247,724 162,123 ---------- ------------ Net Property, Plant and Equipment 36,205 38,814 Other Assets 23,307 23,689 ---------- ------------ TOTAL ASSETS $ 307,236 $ 224,626 ========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Notes payable $ 4,878 $ - Other current liabilities 110,476 112,629 ---------- ------------ Total Current Liabilities 115,354 112,629 Long-Term Liabilities 8,641 8,748 ---------- ------------ Total Liabilities 123,995 121,377 ---------- ------------ Stockholders' Equity Preferred stock Authorized 5,000,000 shares, par value $.01, issued none - - Common stock Authorized 150,000,000 shares, par value $.01 issued and outstanding 30,422,792 at July 2, 1999 304 - Capital in Excess of Par Value 186,341 - Divisional Equity - 103,249 Accumulated Deficit (3,404) - ---------- ------------ Total Stockholders' Equity 183,241 103,249 ---------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 307,236 224,626 ========== ============