ASYT quarterly report looks descent when compared to BRKS and others.
asyst.com
Press Release
Asyst Technologies Reports Results for Fiscal Third Quarter
Strong Semiconductor AMHS Bookings
FREMONT, Calif., Feb. 2, 2005 – Asyst Technologies, Inc., (Nasdaq NM: ASYT), a leading provider of integrated automation solutions that enhance semiconductor and flat panel display manufacturing productivity, today announced consolidated financial results for its fiscal third quarter ended Dec. 25, 2004.
Net loss for the fiscal third quarter on a GAAP basis was $(11.6 million), or $(0.24) per share, which includes restructuring charges of $1.1 million, impairment charges of $4.6 million related to impairment of a facility in Japan, and $1.7 million of accounting, legal and other costs related to the delayed fiscal second quarter filing and audit committee investigation at Asyst Shinko, Inc. (ASI), the company’s 51%-owned joint venture company. This compares with a net loss on the same basis of $(1.8 million), or $(0.04) per share, in the fiscal second quarter, and $(22.1 million) or $(0.52) per share, in the fiscal third quarter a year ago. The non-GAAP net loss for the fiscal third quarter was $(1.7 million), or $(0.04) per share, compared with non-GAAP net income of $1.1 million, or $0.02 per share, in the fiscal second quarter. A table reconciling GAAP operating results to non-GAAP operating results is provided as part of this release.
Consolidated net sales for the fiscal third quarter were $161.4 million, down 4% from $168.6 million in the prior sequential quarter and up 115% from $74.9 million in the fiscal third quarter a year ago. Net sales at ASI were $109.3 million, compared with $99.8 million in the prior sequential quarter and $42.4 million in the fiscal third quarter a year ago. Net sales at ATI, the company’s base business, were $52.1 million, compared with $68.8 million in the prior sequential quarter and $32.5 million in the fiscal third quarter a year ago.
At ASI, the company achieved record semiconductor AMHS bookings of $111.1 million, as well as bookings of $5.4 million for flat panel display AMHS. This compares with $34.3 million of semiconductor AMHS and $139.7 million of flat panel display AMHS in the prior sequential quarter. Because of the large size of AMHS projects and the unpredictable timing of customer decisions on these projects, AMHS bookings (and the mix of bookings) can vary widely from quarter to quarter. ATI bookings in the fiscal third quarter of $37.3 million compare with $59.0 million in the prior sequential quarter. As a result, total net bookings for the fiscal third quarter were $153.8 million, compared with $233.0 million in the prior sequential quarter.
“We had a solid quarter at ATI, as we drove improved gross margins despite declining sales and further reduced ongoing operating expenses,” said Steve Schwartz, chairman and CEO. “At ATI, the continued progress of our outsourced manufacturing model, combined with the recently announced restructuring activity, has positioned us to weather the current industry slowdown while maintaining investments in critical products and programs that we believe will shape the future of fab automation. At ASI, we achieved very strong semiconductor AMHS bookings, driven almost exclusively by 300mm. We also improved gross margin at ASI as better pricing on recent semiconductor AMHS contracts began to flow out of backlog. This was partially offset by costs related to our large flat panel display project, where we have not efficiently managed the increased project volume.”
Schwartz continued, “Consistent with our strategy for the flat panel display market, we have penetrated two of the industry’s four largest manufacturers, and anticipate that both of these manufacturers will continue to invest in expanding capacity for Gen 6 and Gen 7 glass sizes. However, as our key customers ramp their current capacity and evaluate the timing and nature of their next investments, we expect to see a slowdown in ASI’s flat panel display activity, at least through the first half of the current calendar year. This pause gives us the opportunity to improve ASI’s operational processes and to better estimate the potential profitability of the next large project before we make new commitments to customers.”
Outlook
For the fiscal fourth quarter ending March 2005, the company provided the following guidance. This guidance is forward-looking, and actual results may differ materially:
Consolidated net sales are expected to be in the range of $120 to $130 million.
Including all costs and charges, GAAP net loss is expected to be $(9 million) to $(11 million), or $(0.19) to $(0.23) per share.
On a non-GAAP basis, the company expects to report a net loss of $(5 million) to $(7 million), or $(0.10) to $(0.14) per share. To reconcile net loss under GAAP to the non-GAAP net loss, the company expects to exclude:
$2.5 million related to the amortization of intangibles, net of taxes and minority interest.
$0.5 million of restructuring costs.
$0.2 million of stock-based compensation expense as part of selling, general & administrative expense.
As announced in the company’s press release of Dec. 20, 2004, management has concluded that the issues and events detailed in that press release constitute material weaknesses in the company's internal control over financial reporting. An assessment of the company's internal control over its financial reporting will be included in its Annual Report on Form 10-K, which will be filed in June 2005. Although the company is continuing to devote substantial resources to timely improving its internal controls, at this time management believes it is unlikely that it will report effective internal control over financial reporting in the company’s Form 10-K filing.
Contact: John Swenson
Vice President, Investor Relations & Corporate Communications
Asyst Technologies, Inc.
510-661-5000
“Asyst” is a registered trademark of Asyst Technologies, Inc. All Rights Reserved.
About Our Non-GAAP Operating Results and Adjustments
To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Our non-GAAP net income (loss) gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of amortization of acquisition-related intangibles, restructuring and impairment charges, costs related to events outside the normal course of business, and other non-cash charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP.
About Asyst
Asyst Technologies, Inc. is a leading provider of integrated automation solutions that enable semiconductor and flat panel display (FPD) manufacturers to increase their manufacturing productivity and protect their investment in materials during the manufacturing process. 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 chip and FPD manufacturers, as well as original equipment manufacturers, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst’s homepage is asyst.com
Conference Call Details
A live webcast of the conference call to discuss the quarter’s financial results will take place today, Feb. 2, 2005, at 5:00 p.m. Eastern Time. The webcast will be publicly available on Asyst’s website at asyst.com and accessible by going to the investor relations page and clicking on the “webcast” link. For more information, including this press release, any non-GAAP financial measures that may be discussed on the webcast as well as the most directly comparable GAAP financial measures and a reconciliation of the difference between those GAAP and non-GAAP financial measures, as well as any other material financial and other statistical information contained in the webcast, please visit Asyst’s website at www.asyst.com. A replay of the Webcast may be accessed via the same procedure. In addition, a standard telephone instant replay of the conference call is available by dialing (303) 590-3000, followed by the passcode 11022570#. The audio instant replay is available from Feb. 2 at 7:00 p.m. Eastern Time through Feb. 16 at 11:59 p.m. Eastern Time.
“ 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: uncertainties related to the timing and magnitude of charges relating to restructuring activities; the failure to complete, at all or in a timely, efficient or cost-savings manner, planned restructuring activities and outsourcing programs; uncertainties in operations and the possibility of management and employee changes at ASI that may adversely impact ASI operations, customer relations and completion of customer projects; the possibility that previously disclosed matters within ASI comprising a material weakness in the company’s internal control over its consolidated financial reporting could prevent the company timely meeting its future reporting requirements, including timely certification under Section 404 of the Sarbanes-Oxley Act of 2002; the volatility of semiconductor industry cycles; our ability to achieve forecasted revenues and maintain and improve gross margins through outsourced manufacturing, to reduce operating expenses, and to manage cash flows (and the timing and degree of any such improvements in gross margins, reductions in operating expenses and management of cash flows); failure to respond to rapid demand shifts; dependence on a few significant customers; the transition of the industry from 200mm wafers to 300mm wafers and the timing and scope of decisions by manufacturers to transition and expand fabrication facilities; continued risks associated with the acceptance of new products and product capabilities; the risk that customers will delay, reduce or cancel planned projects or bookings and thus delay recognition or the amount of our anticipated revenue; competition in the semiconductor equipment industry and specifically in AMHS; failure to integrate in an efficient and timely manner acquired companies and to complete planned restructuring and outsourcing programs; failure to retain and attract key employees; and other factors more fully detailed in the company’s annual report on Form 10-K for the year ended March 31, 2004, and quarterly reports on Form 10-Q and 10-Q/A filed with the Securities and Exchange Commission.
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)
December 31, March 31,
2004 2004
------------- ------------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $ 131,095 $117,860
Restricted cash and cash equivalents -- 1,904
Accounts receivable, net 209,820 147,939
Inventories 42,423 27,694
Prepaid expenses and other 20,056 14,276
------------- ------------
Total current assets 403,394 309,673
------------- ------------
LONG-TERM ASSETS:
Property and equipment, net 17,379 22,868
Goodwill 72,991 71,973
Intangible assets, net 50,426 65,778
Other assets 2,820 3,317
------------- ------------
Total long-term assets 143,616 163,936
------------- ------------
Total assets $ 547,010 $473,609
============= ============
LIABILITIES, MINORITY INTEREST AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and notes payable $ 36,232 $ 18,161
Current portion of long-term debt
and capital leases 2,858 2,775
Accounts payable 145,988 109,910
Accrued liabilities 80,738 48,571
Deferred revenue 10,366 2,683
------------- ------------
Total current liabilities 276,182 182,100
------------- ------------
LONG-TERM LIABILITIES:
Convertible notes 86,250 86,250
Long-term debt and capital leases,
net of current portion 3,425 4,824
Deferred tax and other long-term
liabilities 26,472 33,530
------------- ------------
Total long-term liabilities 116,147 124,604
------------- ------------
MINORITY INTEREST 62,043 63,796
------------- ------------
SHAREHOLDERS' EQUITY: 92,638 103,109
------------- ------------
Total liabilities, minority interest and
shareholders' equity $ 547,010 $473,609
============= ============
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share data)
Three Months Ended Nine Months Ended
--------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
---------- ---------- --------- ---------
NET SALES $161,383 $ 74,888 $469,414 $171,505
COST OF SALES 132,299 64,301 378,737 144,475
---------- ---------- --------- ---------
Gross profit 29,084 10,587 90,677 27,030
---------- ---------- --------- ---------
OPERATING EXPENSES:
Research and development 8,485 9,204 27,237 27,219
Selling, general and
administrative 24,066 18,755 61,985 51,274
Amortization of acquired
intangible assets 5,086 5,271 15,178 14,834
Restructuring and other
charges 1,116 1,743 1,703 6,593
Asset impairment charges 4,645 -- 4,645 6,853
---------- ---------- --------- ---------
Total operating expenses 43,398 34,973 110,748 106,773
---------- ---------- --------- ---------
Operating loss (14,314) (24,386) (20,071) (79,743)
Other income (expense), net 297 (2,205) (1,064) (4,593)
---------- ---------- --------- ---------
Loss before benefit
from income taxes and
minority interest (14,017) (26,591) (21,135) (84,336)
BENEFIT FROM INCOME TAXES 962 2,117 2,549 4,502
MINORITY INTEREST 1,411 2,417 2,825 4,086
---------- ---------- --------- ---------
NET LOSS $(11,644) $(22,057) $(15,761) $(75,748)
========== ========== ========= =========
---------- ---------- --------- ---------
BASIC AND DILUTED NET
LOSS PER SHARE $ (0.24) $ (0.52) $ (0.33) $ (1.89)
========== ========== ========= =========
SHARES USED IN THE PER
SHARE CALCULATION 47,553 42,206 47,387 40,066
========== ========== ========= =========
ASYST TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(Unaudited; in thousands, except per share data)
Three Months Ended
-----------------------
Dec. 31, Sept. 30,
2004 2004
GAAP net loss $(11,644) $(1,831)
Adjustments:
Stock based compensation
expense 205 328
Professional fees related to
ASI 1,720 --
Amortization of intangible
assets 5,086 5,040
Restructuring charges 1,116 368
Asset impairment charges 4,645 --
Income tax benefit relating to
amortization of intangible
assets (1,699) (1,688)
Minority interest relating to
the ASI adjustments above (1,151) (1,134)
----------- -----------
Non GAAP net income (loss) $ (1,722) $ 1,084
=========== ===========
Basic non-GAAP net income (loss)
per share $ (0.04) $ 0.02
Diluted non-GAAP net income
(loss) per share $ (0.04) $ 0.02
Shares used in the per share
calculation - basic 47,553 47,428
Shares used in the per share
calculation - diluted 47,553 53,818
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited; in thousands, except per share data)
Three Months Ended December 31, 2004
-------------------------------------
Consolidated
ATI ASI Under GAAP
----------- ----------- ------------
SUPPLEMENTAL STATEMENT OF
OPERATIONS
NET SALES $52,128 $109,255 $161,383
COST OF SALES 34,237 98,062 132,299
----------- ----------- ------------
Gross profit 17,891 11,193 29,084
----------- ----------- ------------
OPERATING EXPENSES:
Research and development 6,769 1,716 8,485
Selling, general and
administrative 15,880 8,186 24,066
Amortization of acquired
intangible assets 1,038 4,048 5,086
Restructuring charges 1,116 -- 1,116
Asset impairment charges 4,645 -- 4,645
----------- ----------- ------------
Total operating expenses 29,448 13,950 43,398
----------- ----------- ------------
Operating loss (11,557) (2,757) (14,314)
Other income (expense), net 1,290 (993) 297
----------- ----------- ------------
Loss before (provision for)
benefit from income taxes and
minority interest (10,267) (3,750) (14,017)
(PROVISION FOR) BENEFIT FROM
INCOME TAXES (274) 1,236 962
MINORITY INTEREST 1,411 -- 1,411
----------- ----------- ------------
NET LOSS $(9,130) $ (2,514) $(11,644)
=========== =========== ============
Basic net loss per share
Diluted net loss per share $ (0.19) $ (0.05) $ (0.24)
Shares used in the per share
calculation - basic $ (0.19) $ (0.05) $ (0.24)
Shares used in the per share
calculation - diluted 47,553 47,553 47,553
47,553 47,553 47,553
CONTACT:
Investor Contact
John Swenson
Asyst Technologies, Inc.
(510) 661-5000
(510) 661-5166 (fax)
jswenson@asyst.com
|
