UTEK reports 2c profit without writeoff and $ (1.34) loss with writeoff! Future is bright says Chairman A.W. Zafiropoulo.
October 21, 7:04 am Eastern Time
Company Press Release
Ultratech Stepper Announces Third Quarter 1999 Results
Positive Results Reflect Strength of Semiconductor Marketplace
SAN JOSE, Calif.--(BUSINESS WIRE)--October 21, 1999--Ultratech Stepper, Inc. (Nasdaq/NM Symbol:UTEK - news) today announced unaudited results for the three- and nine-month periods ended September 30, 1999.
Ultratech's third quarter 1999 net sales were $30.4 million, a 146% improvement over net sales of $12.4 million during the third quarter of 1998. Ultratech posted net income of $434,000 or $0.02 per share (diluted) versus a net loss of $7.2 million or $0.34 per share (diluted) for the same period of 1998, which excludes $21.0 million in costs relating primarily to inventory write-offs, lease receivable reserves, and a workforce reduction, all reflecting business adjustments necessitated by demand weakness during the second half of 1998. Including these charges, the net loss for the 1998 third quarter was $28.2 million or $1.34 per share (diluted).
Ultratech's net sales for the nine months ended September 30, 1999 were $85.5 million compared to $62.5 million for the first nine months of 1998. The net loss for the first nine months of 1999 was $3.2 million or a loss of $0.15 per share (diluted), compared to a net loss of $9.6 million or $0.46 per share (diluted), excluding the $21.0 million in charges outlined above as well as a charge in the second quarter of 1998 of $12.6 million or $0.60 per share for the write-off of acquired in-process research and development associated with the June 1998 acquisition of the assets and certain liabilities of Integrated Solutions, Inc. (ISI). Including all charges for the first nine months of 1998, the net loss was $43.2 million or $2.06 per share (diluted).
Arthur W. Zafiropoulo, Ultratech's Chairman and Chief Executive Officer, stated, ''The third quarter results reflect year-over-year and sequential improvements in our semiconductor-related sales, as the improvement in that sector began to take shape. We experienced demand for our semiconductor-related products, including our flip-chip packaging technology.''
Zafiropoulo continued, ''With improved conditions in the semiconductor market and continued progress in the development of our advanced technologies, Ultratech Stepper remains in a solid position to pursue our revenue diversification strategy and produce long-term growth in our target markets. Our commitment to cost-effective solutions for our customers is at the center of our strategy, and we believe we have the employees, the products and the financial strength to successfully pursue our business plan.''
At September 30, 1999, Ultratech Stepper had $143.9 million in cash, cash equivalents and short-term investments and a current ratio of 6.4:1. Working capital was $166.2 million and stockholders' equity was $9.62 per share based on 21,382,283 total shares outstanding on September 30, 1999.
Profile
Founded in 1979, Ultratech Stepper, Inc. designs, manufactures and markets photolithography equipment used worldwide in the fabrication of integrated circuits, micromachining devices, thin film heads for disk drives, and photomasks for the semiconductor industry. The company produces products that substantially reduce the cost of ownership for manufacturers in the electronics industry. The company's home page on the World Wide Web is located at www.ultratech.com.
Certain of the statements contained herein may be considered forward-looking statements that involve risks and uncertainties, such as the cyclicality in the thin-film head and semiconductor industries, delays, deferrals and cancellations of orders by customers, pricing pressures, competition, lengthy sales cycles for the Company's systems, ability to volume produce systems and meet customer requirements, the mix of products sold, dependence on new product introductions and commercial success of any new products, integration and development of the UltraBeam and Verdant operations, manufacturing inefficiencies and absorption levels, risks associated with introducing new technologies, the failure to develop and commercialize the ISI products, inventory obsolescence, economic and political conditions in Asia, delays in collecting accounts receivable, extended payment terms and changes in technologies. Such risks and uncertainties are set forth in the Company's SEC reports including the Company's Annual Report on Form 10-K for the period ended December 31, 1998 and Form 10-Q for the period ended June 30, 1999.
ULTRATECH STEPPER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Dec. 31,
(In thousands) 1999 1998(a)
ASSETS (Unaudited)
Current assets:
Cash, cash equivalents, and
short-term investments $143,919 $146,107
Accounts receivable, net 22,090 11,899
Inventories 27,766 36,750
Current portion of leases receivable 1,418 2,012
Prepaid expenses and
other current assets 1,981 5,088
Total current assets 197,174 201,856
Equipment and leasehold
improvements, net 21,275 23,319
Restricted long-term investments 5,436 5,510
Leases receivable, net 1,402 1,536
Intangible assets, net 7,167 8,438
Other assets 4,518 5,276
Total assets $236,972 $245,935
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 1,879 $ 1,881
Accounts payable 7,626 8,541
Other current liabilities 21,481 25,017
Total current liabilities 30,986 35,439
Other liabilities 303 345
Stockholders' equity 205,683 210,151
Total liabilities
and stockholders' equity $236,972 $245,935
Notes:
(a) The Balance Sheet as of Dec. 31, 1998 has been derived from the
audited financial statements at that date.
ULTRATECH STEPPER
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(In thousands, 1999 1998 1999 1998
except per
share amounts)
Net sales 30,413 12,359 85,476 62,536
Cost of sales 17,325 10,931 52,372 42,997
Cost of
sales-write
down of
inventory -- 15,231 -- 15,231
Total cost
of sales 17,325 26,162 52,372 58,228
Gross profit
(loss) 13,088 (13,803) 33,104 4,308
Operating
expenses:
Research,
development,
and engineering 6,994 6,884 20,296 20,898
Amortization of
goodwill 430 121 1,167 193
Selling,
general, and
administrative 6,859 6,352 19,938 19,048
Acquired
in-process
research and
development -- -- -- 12,566
Special charges -- 5,775 -- 5,775
Operating loss (1,195) (32,935) (8,297) (54,172)
Interest and
other income,
net 1,629 1,635 5,128 4,821
Income (loss)
before income
taxes 434 (31,300) (3,169) (49,351)
Tax benefit -- (3,134) -- (6,182)
Net income
(loss) $ 434 ($28,166) ($ 3,169) ($43,169)
Net income
(loss) per
share-basic $ 0.02 ($ 1.34) ($ 0.15) ($ 2.06)
Number of
shares used
in per share
calculations
-basic 21,344 21,014 21,244 20,914
Net income
(loss) per
share-diluted $ 0.02 ($ 1.34) ($ 0.15) ($ 2.06)
Number of
shares used
in per share
calculations
-diluted 21,740 21,014 21,244 20,914
Note:
The Company's third fiscal quarter ended on October 2, 1999 and
October 3, 1998. For convenience of presentation, the Company's
financial statements have been shown as ending on September 30, 1999
and September 30, 1998.
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Contact:
At Ultratech:
Bruce Wright
Sr. Vice President, Finance/CFO
Laura Rebouche
Director of Investor Relations and
Corporate Communications
Phone: 408-321-8835
or
At Lippert/Heilshorn & Assoc.:
Lillian Armstrong (analysts)
Managing Director
Phone: 415-433-3777
or
A. Lavin Communications
Andy Lavin (financial media)
Phone: 212-290-9540 |
