Asyst Technologies Completes Acquisition of Asyst-Shinko Joint Venture Interest
Wednesday October 16, 4:06 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--Asyst Technologies, Inc., (Nasdaq:ASYT - News), a leading provider of integrated automation solutions that maximize semiconductor manufacturing productivity, today announced that it has completed its acquisition of 51% of Asyst-Shinko Inc., a Japanese joint venture company formed from the carve-out of the Automated Materials Handling Systems (AMHS) division of Shinko Electric Co. Ltd. In accordance with the definitive agreement signed in May 2002, Asyst paid cash of 8.16 billion Japanese Yen, or $65.7 million, for its interest in the JV.
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Asyst funded its purchase through a previously announced $25 million credit facility, a $20 million payment for certain inventory related to its previously announced outsourcing of manufacturing, and available balances of cash and short-term investments. Following funding of the JV transaction, Asyst has approximately $55 million of cash and short-term investments. The company's cash burn over each of its past two quarters has been less than $5 million, and its objective is to manage cash burn during the downturn to approximately these levels. The cash being paid for the Asyst-Shinko JV interest will compensate Shinko Electric and its shareholders for the transfer of AMHS assets into the JV. These assets include cash and other working capital, and the JV will have no debt. The company expects Asyst-Shinko to be self-funding for working capital and capital expenditures.
Asyst-Shinko has the world's largest installed base of 300mm AMHS, having won five of the ten installations awarded to date, including the first 300mm fab for TSMC and the first 300mm fab for a large North American chip manufacturer. Asyst-Shinko's current annualized sales are approximately $100 million.
"300mm AMHS represents a $45 to $60 million opportunity per fab, and Asyst-Shinko provides the premier platform for building Asyst's presence in this significant new market," said Steve Schwartz, president and CEO of Asyst. "Our AMHS strategy is three-fold. First, to maximize the sales, margin and customer satisfaction performance of Asyst-Shinko, which has a substantial backlog of 300mm, 200mm and flat panel AMHS projects as well as what we believe is the best customer satisfaction record in the industry. Second, to leverage our respective customer relationships and business infrastructures, with Asyst helping the JV penetrate Europe and other underserved markets and the JV providing the proven system design, installation, integration and support that will accelerate market acceptance of Asyst's next-generation FasTrack AMHS. Third and most exciting, we have the opportunity to expand on Asyst-Shinko's leading market share as we bring to market a unique solution for the high-throughput bottleneck bays in fabs, combining our FasTrack continuous flow technology with Asyst-Shinko's field-proven OHS, OHT and stocker product lines."
Josui Nashimoto, president of Asyst Japan, Inc. and CEO of Asyst-Shinko, said, "Asyst-Shinko retains all of the management and engineering talent that made Shinko the success story of 300mm AMHS, including the former general manager of the AMHS division, Hitoshi Kawano, who will be president of Asyst-Shinko. We are very pleased to complete formation of the JV and to move ahead with this strong team."
About Asyst
Asyst Technologies, Inc. is a leading provider of integrated automation systems for the semiconductor manufacturing industry, which enable semiconductor manufacturers to increase their manufacturing productivity and protect their investment in silicon wafers during the manufacture of integrated circuits, or ICs. Encompassing isolation systems, work-in-process materials management, substrate-handling robotics, automated transport and loading systems, and connectivity automation software, Asyst's modular, interoperable solutions allow chipmakers and original equipment manufacturers, or OEMs, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst's homepage is asyst.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to: the rate of adoption of 300mm technology; the company's ability to successfully leverage and integrate its interest in the Asyst-Shinko joint venture; future sales, margin and customer satisfaction performance; future working capital needs of Asyst and Asyst-Shinko; and other factors more fully detailed in the Company's annual report on Form 10-K for the year ended March 31, 2002 and quarterly report on Form 10-Q for the quarter ended June 30, 2002, filed with the Securities and Exchange Commission |
