Silicon Valley Group
Reports Second Quarter Results
ÿÿÿÿBusiness Editors
ÿÿÿÿSAN JOSE, Calif.--(BUSINESS WIRE)--April 21, 1998--Silicon Valley Group, Inc.
(NASDAQ:SVGI) today reported sales of $195,872,000 for the second quarter of fiscal
1998 ended March 31, 1998, which represented a 34% increase from second quarter fiscal
1997 sales of $145,881,000 and a 4% increase from first quarter fiscal 1998 sales of
$188,707,000.
ÿÿÿÿSales for the six month period ended March 31, 1998 were $384,579,000 compared to
$273,903,000 for the corresponding prior fiscal year. Consistent with the Company's
March 10, 1998 announcement that earnings for the second quarter ended March 31, 1998
would be 25% lower than analysts' previous expectations, the Company recorded net
income of $9,560,000 or $0.29 per share. This compared to a net loss of $15,982,000 or
$0.51 per share in the second quarter of fiscal 1997 and net income of $12,145,000 or
$0.37 per share in the first quarter of fiscal 1998. During the first six months of fiscal 1998,
the Company recorded a net profit of $21,705,000 or $0.66 per share compared to a net loss
of $12,398,000 or $0.40 per share for the six months ended March 31, 1997. The
comparative quarter and fiscal year to date results include the historical results of Tinsley
Laboratories, and the second quarter of 1997 results include a pre-tax charge of
$32,582,000 associated with the second quarter fiscal 1997 settlement in full of royalty
obligations to IBM.
ÿÿÿÿThe Company recorded orders of $135,793,000 for the second quarter of fiscal 1998
compared to first quarter fiscal 1998 bookings of $175,253,000. During the quarter, orders
for seven Micrascan units were added to the Company's backlog, which represents products
to be shipped within a one year period. After rescheduling, and cancellations totaling
$35,351,000 of orders, the Company ended the quarter with a net backlog of
$288,608,000.
ÿÿÿÿExcluding the aforementioned IBM charge in the second quarter of fiscal 1997,
operating profit in the second fiscal quarter of 1998 compared to the previous year's second
fiscal quarter increased primarily due to higher sales in the Company's Track and
Lithography operations offset in part by increased R&D spending in all of the Company's
operating units. MG&A expenses for the second quarter of fiscal 1998 compared to the year
earlier period increased in absolute dollars, but declined as a percentage of sales. In
comparing the second and first quarters of fiscal 1998, operating profit declined as sales
increased moderately, gross margins remained relatively constant and both R&D and MG&A
spending increased. The increase in R&D reflects the Company's commitment to advancing
technology as well as improving its existing products.
ÿÿÿÿOn March 10, 1998, the Company announced it believed that sales volumes in the
second half of fiscal 1998 would be 15 to 20 % lower than those in the first half of its fiscal
year. Due to very recent customer demand developments, the Company now believes that
the decline in sales could reach 30 to 35%.
ÿÿÿÿ"The semiconductor and related industries are going through a difficult period. Demand
and technology requirements are changing quickly as the industry digests the Asian
economic crisis, over supply of certain products, technology transitions and the implications
of low cost personal computers," said Papken S. Der Torossian, Chairman and CEO. "As
our customers adjust their capital spending and technology requirements, SVG will adjust its
capacity and infrastructure to fit the needs of its worldwide customer base. During this
period of uncertainty, SVG will make the necessary investments in research and
development to keep the Company in a leadership position as the industry sorts through its
current issues. The Company also remains steadfast in making the necessary investments in
its lithography operation to be a dominant factor in providing advanced lithography tools to
the global semiconductor market."
ÿÿÿÿForward-looking Statements Disclaimer: The matters discussed in this news release,
and in particular those of the Company's Chairman and CEO, include forward looking
statements that involve risks and uncertainties including but not limited to economic
conditions, industry conditions, product demand, competitive products, currency
competitiveness, trade environment, and other risks discussed more fully in filings by the
Company with the Securities and Exchange Commission. Reference is made to the
Company's most recent Forms 10K and 10Q, which detail such risk factors.
ÿÿÿÿAbout Silicon Valley Group, Inc.: SVG is a leading manufacturer of automated wafer
processing equipment for the worldwide semiconductor industry. The Company designs,
manufactures, and markets technically sophisticated equipment used in the primary stages of
semiconductor manufacturing. Its products include photoresist processing equipment;
oxidation, diffusion and low-pressure chemical vapor deposition processing systems;
photolithography exposure tools that use step-and-scan technology; and precision optical
components and systems. Silicon Valley Group is listed on the NASDAQ Stock Market
under the symbol SVGI. The Company's World Wide Web address is: |
