SpeedFam-IPEC Announces First Fiscal Quarter Results
Thursday September 26, 4:16 pm ET
CHANDLER, Ariz.--(BUSINESS WIRE)--Sept. 26, 2002--SpeedFam-IPEC, Inc. (Nasdaq: SFAM - News), a global supplier of leading-edge chemical mechanical planarization (CMP) systems for the semiconductor industry, today announced its results for the first fiscal quarter ended Aug. 31, 2002. Total revenue for the first fiscal quarter was $33.8 million, compared with the $27.1 million reported for the fourth fiscal quarter of 2002 and $41.1 million for the same quarter a year ago. The net loss for the quarter was $6.5 million, or $0.21 per share, an increase in net loss from $5.0 million, or $0.16 per share, for the fourth quarter and a reduction in net loss from $17.0 million, or $0.56 per share, for the same quarter a year ago. Results for the first quarter of fiscal 2002 included the cumulative effect of a change in accounting principle of $2.6 million, or $0.08 per share, related to the adoption of FAS 142, "Goodwill and Other Intangible Assets", and a litigation settlement charge of $1.8 million, or $0.06 per share. Exclusive of these one-time adjustments, the net loss for the first fiscal quarter of 2002 was $12.6 million, or $0.42 per share.
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SpeedFam-IPEC and Novellus Systems, Inc. announced in August 2002 that they had signed a definitive agreement for Novellus to acquire all outstanding shares of SpeedFam-IPEC in a stock-for-stock merger. Pending SpeedFam-IPEC shareholder approval, the proposed merger is anticipated to close during the fourth calendar quarter of 2002.
"Our focus during fiscal 2003 continues to be on strengthening our market position by capitalizing on our successful evaluation placements and securing additional tool-of-record decisions," said Richard J. Faubert, SpeedFam-IPEC president and chief executive officer. "We believe that the pending merger with Novellus Systems will enhance our ability to successfully penetrate the market with our industry-leading Momentum(TM) products."
Because the merger is anticipated to close during SpeedFam-IPEC's second fiscal quarter, the company will not be hosting its quarterly conference call in connection with the results announced today.
SpeedFam-IPEC, Inc.
SpeedFam-IPEC, Inc. is a pioneer and innovator in the manufacture of chemical mechanical planarization (CMP) systems used in the fabrication of advanced semiconductor devices. With more than 1,300 CMP systems installed worldwide, the company enables the development of next-generation integrated circuit technology through its leading-edge polishing systems. SpeedFam-IPEC also markets and distributes parts used in CMP and precision surface processing. With headquarters in Chandler, Ariz., and offices throughout the world, SpeedFam-IPEC is publicly traded on Nasdaq under the symbol SFAM. The company's web site URL is www.sfamipec.com.
This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), and SpeedFam-IPEC claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to SpeedFam-IPEC's belief that the pending merger with Novellus will enhance its ability to penetrate the semiconductor capital equipment market with its Momentum products.
Forward-looking statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of SpeedFam-IPEC to be materially different from those expressed or implied by such forward-looking statements. Factors that could affect SpeedFam-IPEC's results and cause them to materially differ from those contained in the forward-looking statements include risks set forth in SpeedFam-IPEC's filings with the SEC, including the Annual Report on Form 10-K filed on August 23, 2002 and include: (i) the potential that the merger with Novellus may not be consummated or may not produce the expected or desired results; (ii) current depressed market conditions in the semiconductor industry; (iii) SpeedFam-IPEC's ability to preserve its capital reserves and raise or generate sufficient capital to fund operations; (iv) the possible significant dilution of the company's outstanding common stock in connection with any new financing or refinancing; (v) the ultimate success of SpeedFam-IPEC's business model, which is highly predicated on the successful market acceptance of its Momentum and Momentum300 products, and on sales of Momentum, which may not occur on the scale or in the timeframe anticipated; (vi) possible constraints on the roll-out of Momentum tools due to manufacturing problems, unforeseen technical problems or changes in the CMP marketplace that differ from the company's expectations; (vii) SpeedFam-IPEC's dependence on selling a small number of high-priced machines to a small number of major customers; (viii) intense competition from companies with greater resources; (ix) prospects of, and risks related to, international markets and the global economy, given that SpeedFam-IPEC depends heavily on international sales; and (x) other factors that SpeedFam-IPEC is currently unable to identify or quantify, but which may exist in the future.
Forward-looking statements speak only as of the date the statement was made. SpeedFam-IPEC does not undertake and specifically declines any obligation to update any forward-looking statements.
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SPEEDFAM-IPEC, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars and shares in thousands, except per share data)
First Quarter
Ended
August September
31, 1,
2002 2001
-------- ---------
Net sales $33,789 $ 41,082
Cost of sales 25,536 31,695
-------- ---------
Gross margin 8,253 9,387
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Operating expenses:
Research and development 7,781 12,388
Selling, general and administrative 5,696 8,120
Litigation settlement cost -- 1,800
-------- ---------
Total operating expenses 13,477 22,308
-------- ---------
Operating loss (5,224) (12,921)
Other expense, net (1,266) (1,502)
-------- ---------
Loss before cumulative effect of change
in accounting principle (6,490) (14,423)
Cumulative effect of change in accounting principle -- (2,582)
-------- ---------
Net loss attributable to common stockholders $(6,490) $(17,005)
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Net loss per share:
Net loss before cumulative effect of change in
in accounting principle $ (0.21) $ (0.48)
Cumulative effect of change in accounting
principle $ -- $ (0.08)
Net loss attributable to common stockholders:
Basic $ (0.21) $ (0.56)
Diluted $ (0.21) $ (0.56)
Weighted average number of shares:
Basic 30,871 30,223
Diluted 30,871 30,223
SPEEDFAM-IPEC, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
August 31, June 1,
2002 2002
--------- ---------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 60,391 $ 33,358
Trade accounts receivable, net 21,995 22,162
Inventories 42,500 44,545
Shipped systems pending acceptance 6,379 9,175
Other current assets 3,000 3,896
--------- ---------
Total current assets 134,265 113,136
Property, plant and equipment, net 31,413 58,007
Other assets 5,883 5,684
--------- ---------
Total assets $171,561 $176,827
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 48 $ 65
Accounts payable 13,513 11,061
Deferred revenue 14,752 18,238
Other current liabilities 14,934 13,904
--------- ---------
Total current liabilities 43,247 43,268
Long-term debt 115,057 115,054
Other liabilities 4,711 4,620
--------- ---------
Total liabilities 163,015 162,942
Stockholders' equity 8,546 13,885
--------- ---------
Total liabilities and stockholders' equity $171,561 $176,827
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Contact:
SpeedFam-IPEC
J. Michael Dodson, 480/705-2119 (Chief Financial Officer)
Lisa Lyscio, 480/705-2119 (Director, Investor Relations)
llyscio@sfamipec.com
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Source: SpeedFam-IPEC |
