FSI International, Inc. Announces Third Quarter and First Nine Months Fiscal 2002 Financial Results
Third Quarter Fiscal 2002 Represents the Third Consecutive Quarter of Order Growth
7MINNEAPOLIS--(BUSINESS WIRE)--June 18, 2002-- FSI International, Inc. (Nasdaq:FSII - News), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the fiscal 2002 third quarter and first nine months ended May 25, 2002.
Sales for the fiscal 2002 third quarter were $28.9 million, compared to $48.8 million for the same period of fiscal 2001. The Company's net loss for the third quarter of fiscal 2002 was $8.9 million or $0.32 per share (diluted), compared to a net loss of $4.6 million or $0.18 per share (diluted) for the third quarter of fiscal 2001.
Sales for the first nine months of fiscal 2002 were $113.4 million, compared to $170.5 million for the same period of fiscal 2001. The Company's net loss for the first nine months of fiscal 2002 was $20.2 million or $0.75 per share (diluted), compared to a net income of $1.7 million or $0.06 per share (diluted), before the $15.0 million or $0.57 per share (diluted) cumulative effect of the change in accounting principle that was recorded in the first quarter of fiscal 2001. This change was made based upon guidance of the Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101).
During the third quarter of fiscal 2002, the Company recorded a tax benefit of $0.6 million or $0.2 per share (diluted). This benefit is primarily the result of a refund that became available due to a federal tax law revision enacted by Congress in the third quarter of fiscal 2002.
"We are encouraged by the sequential growth in orders that occurred during the third quarter," stated Don Mitchell, FSI's chairman and chief executive officer. "We anticipate a further improvement in orders in the fourth quarter as compared to the third quarter level."(a)
During the past few years, FSI has focused a significant amount of its product and application development resources on opportunities arising from customer adoption of new materials and the transition from 200-mm to 300-mm diameter wafers. As a result, for the first nine months of fiscal 2002, 53 percent of new orders and 38 percent of shipments have been for 300-mm products. This compares to 19 percent of net orders and 14 percent of shipments for 300-mm products during all of fiscal 2001.
The Company continues to maintain a strong balance sheet with approximately $226 million in assets, including $76.8 million in cash, restricted cash, cash equivalents and marketable securities. At the end of the third quarter, the Company had a current ratio of 4.1 to 1.0, no debt and a book value of $6.55 per share.
Outlook
Considering the backlog and deferred revenue levels at the end of the third quarter, the Company expects fourth quarter fiscal 2002 revenues to increase sequentially from the $28.9 million third quarter level.(a) However, a portion of the expected revenue is subject to obtaining timely acceptance from our customers.(a) Taking into consideration the current backlog and anticipated orders, the Company expects that fiscal 2002 fourth quarter shipments should increase to $23.0 to $28.0 million.(a)
Therefore, based upon the deferred profit related to the deferred revenue at the end of the third quarter, the anticipated fourth quarter turns business, the expected manufacturing capacity utilization rate and the anticipated operating expense run rate, the Company expects a loss in the $7.0 to $9.0 million range for the fourth quarter.(a)
Fiscal 2002 capital expenditures are expected to be $3.5 to $4.0 million, with depreciation and amortization expected to be $13.5 to $14.5 million.(a) Taking into consideration the anticipated fiscal 2002 loss and other items impacting working capital, the Company believes it can limit its operating cash burn rate to $15.0 to $20.0 million.(a)
Conference Call Details
Investors will have the opportunity to listen to the conference call at 3:30 p.m. CST over the Internet. The web cast is being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America Online's Personal Finance Channel, Fidelity Investments® (Fidelity.com) and others. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About FSI
FSI International Inc., a global supplier of wafer cleaning and resist processing equipment and technology, delivers economic and technical advantages for current and emerging microelectronics manufacturing challenges. Using the company's broad portfolio of products, which include immersion, spray, vapor and CryoKinetic systems for wafer cleaning, and resist processing systems for wafer coating and developing, customers are able to efficiently achieve their goals. FSI's customers include microelectronics manufacturers located throughout North America, Europe, Japan and the Asia-Pacific region.
FSI maintains a Web site at www.fsi-intl.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain "forward-looking" statements (a), including, but not limited to, anticipated orders, shipments, revenues, operating expense and losses for the fourth quarter; fiscal 2002 anticipated capital expenditures, depreciation and amortization and operating cash burn rate. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to, the length and extent of the current industry downturn; additional order delays or cancellations; savings from our cost-cutting measures may be less than anticipated; we may incur unexpected additional costs as part of our cost cutting measures; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for our products and our ability to meet demand; global trade policies; worldwide economic and political stability; the Company's successful execution of internal performance plans; the cyclical nature of the Company's business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the transition to 300-mm products; the level of new orders; the timing and success of current and future product and process development programs; the success of the Company's affiliated distributors; and litigation and legal proceedings; as well as other factors listed from time to time in the Company's SEC reports including, but not limited to, the Company's Annual Report on Form 10-K for the 2001 fiscal year and the most recent 10-Q. The Company assumes no duty to update the information in this press release.
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Third Quarter Ended Nine Months Ended
------------------- -------------------
May 25, May 26, May 25, May 26,
2002 2001 2002 2001
--------- --------- --------- ---------
(unaudited) (unaudited)
Sales $ 28,906 $ 48,793 $113,423 $170,535
Cost of goods sold 21,399 30,930 80,490 103,669
--------------------------- --------- --------- --------- ---------
Gross profit 7,507 17,863 32,933 66,866
Selling, general and
administrative expenses 8,584 12,755 28,447 38,766
Research and development
expenses 8,595 10,928 26,533 31,274
--------------------------- --------- --------- --------- ---------
Operating loss (9,672) (5,820) (22,047) (3,174)
Interest and other income net 350 520 1,080 1,940
--------------------------- --------- --------- --------- ---------
Loss before income taxes (9,322) (5,300) (20,967) (1,234)
Income tax expense (benefit) (559) 200 (559) 400
--------------------------- --------- --------- --------- ---------
Loss before equity in earnings
(loss) of affiliates (8,763) (5,500) (20,408) (1,634)
Equity in earnings (loss)
of affiliates (134) 893 234 3,285
--------------------------- --------- --------- --------- ---------
Net income (loss) before
cumulative effect of change
accounting principle,
net of tax (8,897) (4,607) (20,174) 1,651
Cumulative effect of change
in accounting principle,
net of tax --- --- --- (14,969)
--------------------------- --------- --------- --------- ---------
Net loss $ (8,897) $ (4,607) $(20,174) $(13,318)
--------------------------- ========= ========= ========= =========
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Third Quarter Ended Nine Months Ended
------------------- -------------------
May 25, May 26, May 25, May 26,
2002 2001 2002 2001
--------- --------- --------- ---------
(unaudited) (unaudited)
Earnings (loss) per
share-basic:
Income (loss) before
cumulative effect of
change in accounting
principle $ (0.32) $ (0.18) $ (0.75) $ 0.06
Cumulative effect of
change in accounting
principle, net of tax 0.00 0.00 0.00 (0.58)
--------------------------- --------- --------- --------- ---------
Loss after cumulative effect
of change in accounting
principle $ (0.32) $ (0.18) $ (0.75) $ (0.52)
--------------------------- --------- --------- --------- ---------
Earnings (loss) per
share-diluted:
Income (loss) before
cumulative effect of
change in accounting
principle $ (0.32) $ (0.18) $ (0.75) $ 0.06
Cumulative effect of
change in accounting
principle 0.00 0.00 0.00 (0.57)
--------------------------- --------- --------- --------- ---------
Loss after cumulative effect
of change in accounting
principle $ (0.32) $ (0.18) $ (0.75) $ (0.51)
--------------------------- --------- --------- --------- ---------
Weighted average common
shares
Basic 27,869 25,678 26,735 25,496
Diluted 27,869 25,678 26,735 25,923
--------------------------- --------- --------- --------- ---------
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
May 26, August 25,
2002 2001
----------- -----------
Assets
---------------------------------------
Current assets:
Cash, restricted cash, cash
equivalents and marketable securities $ 76,822 $ 54,628
Receivables, net 13,812 41,374
Inventories 43,519 48,699
Other current assets 3,486 4,788
--------------------------------------- ----------- -----------
Total current assets 137,639 149,489
Property, plant and equipment, net 49,859 55,129
Investment in affiliates 21,935 22,158
Intangible assets, net 12,640 14,595
Other assets 4,254 3,916
--------------------------------------- ----------- -----------
Total assets $226,327 $245,287
--------------------------------------- =========== ===========
Liabilities and Stockholders' Equity
---------------------------------------
Current liabilities:
Trade accounts payable 7,199 10,207
Deferred profit(1) 8,623 30,350
Accrued expenses 17,817 20,712
--------------------------------------- ----------- -----------
Total current liabilities 33,639 61,269
Total stockholders' equity 192,688 184,018
--------------------------------------- ----------- -----------
Total liabilities and stockholders'
equity $226,327 $245,287
--------------------------------------- =========== ===========
(1) Deferred profit reflects deferred revenue less manufacturing and
other related costs.
FSI INTERNATIONAL, INC. AND SUBSIDIARIES
MISCELLANEOUS FINANCIAL INFORMATION
(in thousands, except per share data)
(unaudited)
Nine Months Ended
----------------------------
May 25, May 26,
2002 2001
-------- --------
SALES BY AREA
United States 75% 33%
International 25% 67%
CASH FLOW STATEMENT
Capital expenditures $ 2,581 $ 6,696
Depreciation $ 8,254 $ 8,803
Amortization $ 2,038 $ 4,056
MISCELLANEOUS DATA
Total employees, including contract 643 823
Book value per share $ 6.55 $ 7.37
Shares outstanding 29,398 25,711
--------------------------------------------------------------------------------
Contact:
FSI International, Inc., Minneapolis
Investor and Financial Media:
Benno Sand, 952/448-8936
or
Trade Media:
Laurie Walker, 952/448-8066 |
