GENERALLY POSITIVE AND MATCHING EARNING EXPECTATIONS?
<<< SpeedFam-IPEC Announces Fourth-Quarter Fiscal 2000 Results
Company Reports $0.10 Net Earnings per Share and Record CMP Orders
CHANDLER, Ariz., Jun 29, 2000 (BUSINESS WIRE) --
Expands to 100% Ownership of Far East Joint Venture's CMP Operations
SpeedFam-IPEC, Inc. (Nasdaq: SFAM chart, msgs) today announced its financial results for the fourth fiscal quarter ended June 3, 2000. Total revenue was $94.9 million, up 92% from $49.3 million for the same quarter a year ago and up 30% from $73.1 million for the third fiscal quarter. Net earnings were $3.2 million, or $0.10 diluted earnings per share. This was up from a net loss of $46.0 million, or a diluted loss of $1.58 per share, for the fourth quarter of fiscal 1999, excluding merger-related and other one-time integration charges, and a net loss of $99.9 million, or a diluted loss of $3.42 per share, inclusive of these charges. Chemical mechanical planarization (CMP) orders for the fourth fiscal quarter were at record levels and increased 22% on a sequential basis, and CMP revenue for the same period increased 35% sequentially.
For the fiscal year ended June 3, 2000, SpeedFam-IPEC's total revenue was $274.0 million, up 27% from $216.4 million for fiscal 1999. Net loss for fiscal 2000 was $14.2 million, or a diluted loss of $0.48 per share, including the net effects of the sale of a 50% interest in Fujimi Corporation, a joint venture, and a restructuring charge taken by the company's Far East Joint Venture. This was down from a net loss of $86.1 million, or a diluted loss of $2.98 per share, excluding merger-related and other one-time integration charges, for the prior year. The prior-year loss, inclusive of these charges, was $139.9 million, or a diluted loss of $4.84 per share.
"Our record CMP orders reflect strong industry fundamentals and increasing capital spending by our customers to increase their capacity, as they continue to deploy advanced 0.25-and 0.18-micron technologies," said Richard J. Faubert, president and chief executive officer of SpeedFam-IPEC. "We have successfully capitalized on this growing demand by increasing our global presence and our installed base of CMP systems, which is rapidly approaching 1,300 worldwide.
"We believe our company is well positioned for future growth and increased market share. Next month, we will be expanding our leading-edge portfolio of innovative solutions with the introduction of our new flagship CMP system to universally address copper and STI, as well as existing applications. We have maintained our focus on keeping our existing customer base satisfied, which has translated into higher revenue and profit. In addition, we are solidifying our position as the CMP innovation leader with the launch of our next-generation system," said Faubert.
The company also announced that on June 27, 2000, it reached an agreement with Obara Corporation, a Japanese company and SpeedFam-IPEC's partner in the Far East Joint Venture, that will transfer full ownership of CMP sales and service operations in that region to SpeedFam-IPEC. Presently, the company sells its CMP systems in the Far East through this 50%-owned joint venture. The joint venture conducts operations primarily in Japan, but also has significant operations in South Korea, Taiwan, Singapore, and Malaysia. In addition to providing sales and service for the CMP industry, the joint venture principally engages in the design, engineering, manufacture, and distribution of manufacturing equipment for the thin film memory disk media and silicon wafer markets. Per the agreement, Obara Corporation will assume the business operations for non-CMP activities.
"The Far East has significantly contributed to the overall growth of our CMP business," said Giovanni Nocerino, executive vice president of SpeedFam-IPEC. "Assuming control of our sales and service operations in this critical region will further strengthen our competitiveness in the global marketplace."
In conjunction with this agreement, the company is evaluating its impact on SpeedFam-IPEC's domestic non-CMP operations. Based upon this ongoing review, as well as the terms of the agreement reached with Obara Corporation, the company believes it will incur a one-time non-cash charge to operations in the range of $10 million to $20 million in the first half of fiscal 2001. The company believes there will be no material cash outlays in conjunction with finalizing this transaction.
Commenting on this agreement, Faubert said, "The strategic focus for our company is the CMP business, and gaining direct control over these sales and service channels will benefit our customers and enable SpeedFam-IPEC to further its success in the Far East region." >>>
What do the rest of you folks think?
Best wishes,
Jim |
