Semitool Announces Fiscal 2002 Third Quarter Results
KALISPELL, Mont.--(BUSINESS WIRE)--July 19, 2002--Semitool, Inc. (Nasdaq: SMTL - News), a leading manufacturer and supplier of wafer surface preparation and electrochemical deposition equipment to the worldwide semiconductor industry, today reported financial results for its fiscal third quarter ended June 30, 2002.
Net sales for the third quarter were $28.4 million, down 9.4 percent from $31.3 million for the second quarter of fiscal 2002 and down 53.6 percent from $61.2 million for the same quarter last year. The company reported a third quarter net loss of $3.5 million ($0.13 per share), sequentially better than the $4.1 million ($0.14 per share) net loss in this fiscal year's second quarter. In the same quarter a year ago, the company's net income was $5.4 million ($0.19 per diluted share).
Sales for the first nine months of fiscal year 2002 were $86.5 million, down 59.4 percent from $213.2 million in the same period last year, resulting in a nine-month net loss of $11.3 million ($0.40 per share). For fiscal year 2001's first nine months, excluding the gain from the sale of the company's software control business and a charge for the cumulative effect of a change in accounting principle at the beginning of that year to reflect the Company's adoption of the accounting method required by Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101), the company reported net income of $23 million ($0.80 per diluted share).
Third quarter new order bookings increased sequentially in all product segments, resulting in bookings of $41 million, up 74 percent from $24 million in the second quarter. Geographically, bookings were higher than the previous quarter in North America, Europe and Asia.
Deferred revenue at June 30, 2002 was $41.4 million, and the company's shipping backlog was $40.6 million. Shipments for this fiscal year's third quarter were $33.8 million.
Fiscal 2002 third quarter gross profit margin improved to 50.3 percent, up from 47.8 percent in this fiscal year's second quarter, primarily as a result of sales mix.
Commenting on the quarter, Ray Thompson, president and chief executive officer, said, "Although the pace of the upturn is moderating, Semitool's development of critical new processes and tools is providing an advantage in a highly competitive market. We are in a strong position to grow market share, and our bookings this quarter demonstrates the new interest we are enjoying from existing and new customers - for both our platform of older products and our latest 300mm and single-wafer tools. For the immediate future, we expect fourth quarter new order bookings to be flat with the third quarter, but given the unsettled market situation there could be some downside risk in this outlook, as well as some upside opportunity."
Continuing, Mr. Thompson said, "We expect fourth quarter revenue to be sequentially higher and to be in the range of $32 to $36 million, thereby resulting in a net loss per share in the range of $0.10 to $0.07. Fourth quarter shipments are expected to be in the range of $27 to $30 million."
Semitool will hold a conference call, broadcast via the Internet, at 9 a.m. Eastern time today, to discuss the company's operating results and its outlook. Access to the call is available through the Semitool website at www.semitool.com, and replays will be available there through August 9, 2002.
Safe Harbor Statement
Except for historical information, the matters discussed in this news release include forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include, statements relating to (i) the pace of the upturn in the semiconductor industry, (ii) advantages provided by the development of critical new processes and tools, (iii) our position to grow market share, (iv) our bookings this quarter demonstrating new interest in our products from existing and new customers - for both our platform of older products and our latest 300mm and single-wafer products (v) our expectation that fourth quarter new order bookings will be flat with the third quarter with some downside risk, as well as, upside opportunity (vi) our expectation that fourth quarter revenue will be sequentially higher and will be in the range of $32 to $36 million, resulting in a net loss per share in the range of $0.10 to $0.07 and (vii) our expectation that fourth quarter shipments will be in the range of $27 to $30 million. Semitool's business in general is subject to certain risks and uncertainties that could cause actual results to materially differ from those projected in such forward-looking statements, including, but not limited to, the cyclicality in the semiconductor industry, fluctuations in Semitool's operating results, rapid technological change, the introduction of competing products and technologies and market non-acceptance of Semitool's new products and new applications for existing products, as well as, other risk factors related to our business contained in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2001 and other filings with the Securities and Exchange Commission. The company cannot assure you that its anticipated quarterly shipments, revenues, loss per share and new order bookings outlook for the fiscal 2002 fourth quarter will be realized. Further, new order bookings, orders backlog and deferred revenues are not necessarily indicative of future quarterly and annual revenue. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
About Semitool, Inc.
Semitool is a worldwide leader in the design, development, manufacture, and support of high performance, single-wafer and multi-wafer batch wet chemical processing systems for use in the fabrication of semiconductor devices. The company's primary suites of equipment include electrochemical deposition systems for electroplating copper, gold, solder and other metals; surface preparation systems for cleaning, stripping and etching silicon wafers; and wafer transport container cleaning systems. The company's equipment is used in semiconductor fabrication front-end and back-end processes, including wafer level packaging.
Headquartered in Kalispell, Montana, Semitool maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on the Nasdaq National Market under the symbol SMTL. For more information, please visit the company's website at www.semitool.com.
Semitool is a registered trademark of Semitool, Inc.
SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
Three Months Nine Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
----------------------------------------------------
Net sales $ 28,384 $ 61,196 $ 86,461 $ 213,189
Cost of sales 14,110 30,194 44,780 105,216
----------------------------------------------------
Gross profit 14,274 31,002 41,681 107,973
----------------------------------------------------
Operating expenses:
Selling, general
and administrative 15,345 16,405 43,992 52,299
Research and
development 5,439 7,283 17,399 21,434
----------------------------------------------------
Total operating
expenses 20,784 23,688 61,391 73,733
----------------------------------------------------
Income (loss)
from operations (6,510) 7,314 (19,710) 34,240
Gain on sale of Semy
Engineering, Inc.(1) - 106 - 31,054
Other income, net 795 667 1,410 40
----------------------------------------------------
Income (loss)
before income tax (5,715) 8,087 (18,300) 65,334
Income tax provision
(benefit) (2,172) 2,675 (6,954) 22,804
----------------------------------------------------
Income (loss) before
cumulative effect
of change in
accounting principle (3,543) 5,412 (11,346) 42,530
Cumulative effect of
change in accounting
principle, net of
tax benefit - - - (17,645)
----------------------------------------------------
Net income (loss) $ (3,543) $ 5,412 $ (11,346) $ 24,885
====================================================
Earnings (loss)
per basic share:
Income (loss)
before cumulative
effect of change
in accounting
principle $ (0.13) $ 0.19 $ (0.40) $ 1.50
Cumulative effect
of change in
accounting
principle - - - (0.62)
----------------------------------------------------
Basic earnings
(loss) per share $ (0.13) $ 0.19 $ (0.40) $ 0.88
====================================================
Earnings (loss) per
diluted share:
Income (loss) before
cumulative effect
of change in
accounting principle $ (0.13) $ 0.19 $ (0.40) $ 1.48
Cumulative effect
of change in
accounting
principle - - - (0.61)
----------------------------------------------------
Diluted earnings
(loss) per share $ (0.13) $ 0.19 $ (0.40) $ 0.87
====================================================
Average common
shares:
Basic 28,421 28,356 28,405 28,331
Diluted 28,421 28,760 28,405 28,747
(1) The fiscal year 2001 after-tax gain on the sale of Semy was
approximately $19.6 million or $0.68 per diluted share.
SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
June 30, September 30,
ASSETS 2002 2001
---------------------------------------
Current assets:
Cash and cash equivalents $ 36,130 $ 39,890
Marketable securities 5,651 6,947
Trade receivables, net 38,706 51,578
Inventories 45,193 52,914
Prepaid expenses
and other current assets 25,910 15,968
---------------------------------------
Total current assets 151,590 167,297
Property, plant and
equipment, net 30,530 27,555
Other assets, net 6,027 5,238
---------------------------------------
Total assets $ 188,147 $ 200,090
=======================================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ - $ 839
Trade accounts payable 13,632 10,973
Other current liabilities 43,703 48,755
---------------------------------------
Total current liabilities 57,335 60,567
Long-term liabilities 6,405 6,324
---------------------------------------
Total liabilities 63,740 66,891
---------------------------------------
Shareholders' equity:
Common stock 47,241 45,181
Retained earnings 77,702 89,048
Accumulated other
comprehensive income (536) (1,030)
---------------------------------------
Total shareholders' equity 124,407 133,199
---------------------------------------
Total liabilities and
shareholders' equity $ 188,147 $ 200,090
=======================================
--------------------------------------------------------------------------------
Contact:
Semitool, Inc.
Bill Freeman, 406/752-2107
or
Investor Relations Partners, Inc.
Shellie Roth, 973/535-8389
roth@irpartners.com |
