*AV*--Just got through listening to a trio of conference calls or replays of conference calls (due to conflicting times) for GSNX, IDTI, and IDTI. Of the 3, the IDTI call was the most interesting. I think they are on track for a good calendar 1999 but are being affected by the chaos in the marketplace today. The WinChip ramp looks healthy and they are improving yields.
What I find funny is that the CEO has done it once more. You know me, I seem to have a problem with him. We all know that 2 things are kept close to the vest; yield and cycle time. Even though he stated they were not going to share yield numbers, he let the information kinda slide out. He told us the number of die per wafer, which anyone could figure out. He then told us that based on the defect density expected for that type of circuit you would expect somewhere between 60-70% die yield. Well, from this information I could come close to figuring out the device density for the chip. No biggie there but he never should have said that they were positively working to get the yields into that range. This means that yields are below 60% right now and that their target is 60-70%. This is not a good thing to let loose on the public. Too much data that can be used against you in other business areas like SRAMS since Defect densities could also be calculated to determine expected yields there. I am not saying it succintly but he laid too much out on the table along with admitting to a 7 week cycle time (another industry taboo). Anyway, if I were running the company, I would now focus on 2 real cost savings measures; aggressive yield enhancement programs and very aggressive cycle time reduction programs. Both of these numbers are not much to be proud of and have a great deal of room for improvement. In the long run this is a good sign, though. Improvements in both these arenas are a function of good manufacturing and production engineering which will lead to lower wafer costs, lower die costs, higher margins, and improved productivity leading to more conceivable starts. More starts, as cycle time is reduced leads to more wafer outs, more die, lower monthly operationg expenses per unit wafer, etal. Okay, off the soapbox. Last time I went this beserk on IDTI is not only DID NOT go down, but it actually popped up a few dollars. Let's hope lightning hits twice here. (I have friends with May 15 Calls that are getting antsy)<GGG>.
New Releases to follow on IDTI, AEIS, GSNX(I forgot to add that to the worry list), and AGAI(On the worry list). For financials on these stocks, you will have to go back to the Rueters news stories covering the line by line numbers.
Wednesday April 22, 4:30 pm Eastern Time
Company Press Release
IDT Reports Profitable Fourth Quarter of Fiscal Year 1998
Microprocessor Sales Lead Quarter-on-Quarter Growth
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 22, 1998--IDT (NASDAQ:IDTI - news) today announced results for the quarter and fiscal year ended March 29, 1998.
Fourth-quarter revenue was $150.2 million, a 4.2 percent increase from the immediately prior quarter, and a 4.9 percent increase from $143.2 million in the year-ago quarter. Fourth-quarter earnings were $1.4 million or $0.02 per share, compared to $0.03 per share in both the immediately prior quarter and the year-ago quarter.
For fiscal year 1998, revenue was $587.1 million, a 9.3 percent increase from the $537.2 million recorded in fiscal year 1997. Earnings in fiscal 1998 of $8.2 million, or $0.10 per share, compare with a net loss of $42.3 million, or $0.54 per share, in fiscal year 1997. The fiscal 1997 result included a $45.2 million pretax charge for asset impairment. Diluted and basic earnings per share were the same for all periods discussed.
''I am very pleased that we were able to grow our business and maintain profitability during our fourth fiscal quarter,'' said
Len Perham, IDT's president and chief executive officer. ''Our microprocessor, logic and communications memory divisions performed well," continued Perham, "offsetting sluggish demand for SRAM products."
The Company shipped more than 100,000 IDT WinChip(TM) microprocessors during the quarter, including first production units from its state-of-the-art Hillsboro, Oregon, wafer fabrication plant. Quarterly unit shipments of and revenue from the Company's RISC embedded controllers were also at record levels. Combined, x86 and RISC processors accounted for 17 percent of total quarterly revenue.
Sales activity (excluding IDT WinChip products) was weaker than expected for personal computers (PCs) and related market segments, notably for multinational customers with assembly operations in Asia. For the fourth fiscal quarter, sales into PC-related markets accounted for 19 percent of the Company's total, compared with 57 percent into communications markets.
The Company's average selling price (ASP) was essentially flat compared to the immediately prior quarter, while unit sales were up slightly.
''The fourth fiscal quarter saw an acceleration in new product activity, alliances, and the ramp of the IDT WinChip microprocessor business,'' said Dave Cote, vice president of marketing. ''We have enhanced our product offerings in memory and high-performance logic and announced key design wins for our embedded RISC microprocessors.''
Continuing its industry leadership in communications memories, IDT introduced the industry's first 1-Mbit and 512K SuperSync(TM) FIFOs available in 3.3 volts, and a roadmap to extend pin compatibility in 4-Mbit FIFOs and beyond. These new products add to the already broad array of 3.3- and 5-volt products in smaller densities.
Additionally, the Company introduced two new members of its FourPort(TM) SRAM family.
IDT announced and shipped first revenue of an 8 ns, 4-Mbit Zero Bus Turnaround(TM) (ZBT(TM)) SRAM during the quarter.
IDT introduced its next-generation logic families, the Advanced Low-Voltage CMOS (ALVC) and Low-Voltage CMOS (LVC) 3.3-volt Double-Density(TM) logic family. In addition, IDT and Texas instruments (TI) announced an agreement to serve as alternate sources for the two 16/18/20-bit logic interface families.
The Company announced several major new designs utilizing IDT's RISController(TM) embedded processor family including a Bay Networks cable modem, VideoSurfer's set-top box, and I-Cube's switching application.
IDT WinChip products continued to gain acceptance in the marketplace, with more than 100,000 units shipped during the quarter. The Company began volume production of WinChip processors at its Hillsboro, Oregon fab, and signed a foundry agreement with IBM Corporation for increased capacity to meet anticipated demand. In addition, IDT sales efforts focused on building channel relationships with resellers worldwide that purchase through IDT master distributors.
In fiscal 1998, IDT completed the transition of its SRAM business away from PC cache and continued to focus its development efforts in SRAM on communications markets with products like ZBT. In fiscal 1999, the Company will continue the product and market diversification begun several years ago to focus on value-added products such as its
communications memories, IDT WinChip and embedded RISC microprocessors, and high-performance logic products.
''Looking forward to fiscal 1999, the success of our new products should allow us to grow well in excess of the industry average,'' said Perham.
About IDT
IDT enables a digitally connected world by providing innovative semiconductor solutions to leading-edge system designers in communications and computing. IDT's broad product mix consists of communications memories, networking devices, both RISC and x86 microprocessors, high-speed SRAMs and high-performance logic. The Company's innovative technologies and products take aim at markets expected to exceed a total of $20 billion in 1998.
Headquartered in Santa Clara, Calif., the Company employs approximately 5,000 people worldwide and has manufacturing facilities in California, Oregon, the Philippines and Malaysia. IDT stock is traded on the NASDAQ stock market under the symbol ''IDTI.'' Additional information about IDT is easily accessible through the World Wide Web (http://www.idt.com), CD-ROM by calling 800/345-7015, or via fax-on-demand at 800/9-IDT-FAX. The investor hotline is 408/654-6420.
Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, manufacturing, capacity and costs, competition, pricing, patent and other intellectual property rights of third parties, timely development and supply of new products and manufacturing processes, availability of capital and equipment, and other risk factors detailed in the Company's Securities and Exchange Commission Filings. Actual results may differ materially from the Company's projections.
Note to Editors: Double-Density, IDT WinChip, FourPort , RISController and SuperSync are trademarks of Integrated Device Technology, Inc. Zero Bus Turnaround and ZBT are trademarks of Integrated Device Technology, Inc. and the architecture is supported by Micron Technology, Inc. and Motorola, Inc.
Wednesday April 22, 4:46 pm Eastern Time
Company Press Release
AG Associates Reports Second Quarter Results for Fiscal 1998
SAN JOSE, Calif.--(BUSINESS WIRE)--April 22, 1998--AG Associates (NASDAQ:AGAI - news), the pioneer and a leading supplier of advanced, single-wafer rapid thermal processing (RTP) equipment used in the manufacture of integrated circuits (ICs), today reported results for the second quarter of fiscal 1998 ended March 31, 1998.
Net sales for the quarter were $12.6 million, a 13 percent increase over the $11.1 million in net sales reported during the second quarter of fiscal 1997, and a 24 percent decline from the $16.4 million in net sales reported for the prior quarter. Net loss for the second quarter was $ 2.2 million, or ($0.36) per share, compared to net loss of $2.2 million, or ($0.37) per share, for the same period last year, and a net income of $9,000, or ($0.00) per share, reported for the previous
quarter. For the second quarter of fiscal 1998, the net loss was adversely impacted by the company's inability to record a credit for income taxes, which was a result of certain changes to the tax law.
For the quarter, R&D spending remained below $4.0 million as the company shipped its first 200 mm and 300 mm Starfire beta units to leading chipmakers in Japan for 0.18 micron RTP applications. The company has also received a commitment for a credit facility of up to $15 million for working capital purposes.
Commenting on the results, AG Associates' Chairman and Chief Executive Officer Dr. Arnon Gat noted, ''Our financial performance was the result of the overall softness in the semiconductor capital equipment market. We continue to tightly manage our overhead and operating expenses, while still aggressively investing in the development of our new RTP products and technologies that will allow us to remain competitive in today's marketplace. Multiple beta shipments of our
new Starfire systems to leading chipmakers this quarter are testament to our successful R&D efforts.''
During the quarter, AG Associates announced that it had received several multimillion-dollar follow-on orders from a leading Japanese chipmaker for its Heatpulse 8800 RTP systems. ''All competitive wins over another leading RTP supplier, these orders are indicative of this chipmaker's confidence in AG Associates as a supplier of leading-edge, low cost RTP solutions in this climate of price pressure on IC manufaturers. Our success with this customer can also be attributed to our Japanese distributor, Canon Sales Co., Inc., which continues to maintain our greater than 50 percent market share in this region,'' said Gat.
Gat continued, ''During the quarter, we also filed amended counter claims against Applied Materials, Inc. (Santa Clara, Calif.) for the infringement of three additional patents held by AG Associates -- bringing the total number of patents infringed by Applied Materials to four. As a result, we are taking the necessary steps to protect the investment we have made in our core business technology and intellectual properties over the last 17 years.''
Looking forward, Gat noted that despite a slight increase in the company's book-to-bill ratio, AG Associates does not expect the subsequent quarters to improve until the semiconductor market begins to turn around. ''We believe we have the right technology and global infrastructure in place to capitalize on the RTP market once the industry's condition improves. In fact, this past quarter we brought on board two seasoned industry veterans to help lead the way. In January, we added Dr. Randhir Thakur as vice president of technology and R&D and recently appointed Joseph Savarese to our board of
directors. Their extensive industry experience and strategic guidance will prove to be valuable assets as we position AG Associates for the next wave of industry growth.''
Except for historical information, the matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including the degree to which orders and shipments are affected by the economic instability in Asia, the timely development and acceptance of new products, pricing, competition, the uncertainties of ongoing negotiations, unpredictability of litigation and other risks detailed from time to time in the company's SEC reports. In particular, see the ''Factors That May Affect Future Results'' sections in the company's Form 10-K for the year ending September 30, 1997, and the company's Form 10Q for
the three months ending December 31, 1997. The company assumes no obligation to update the forward-looking information in this release.
AG Associates is a leading supplier of rapid thermal processing (RTP) equipment to the worldwide semiconductor industry. Founded in 1981, AG Associates is headquartered in San Jose, Calif., and maintains customer service and support centers in the United States, Europe and Far East to support its global customer base. The company's common stock trades on the Nasdaq Stock Market under the symbol AGAI. For more information on the company, visit AG Associates at:
agassociates.com on the World Wide Web.
Wednesday April 22, 4:01 pm Eastern Time
Company Press Release
SOURCE: Advanced Energy Industries, Inc.
Advanced Energy Industries Announces Operating Results for First
Quarter of 1998
FORT COLLINS, Colo., April 22 /PRNewswire/ -- Advanced Energy Industries, Inc. (Nasdaq: AEIS - news) today announced financial results for the first quarter which ended March 31, 1998. Advanced Energy is the industry leading manufacturer of critical power delivery systems to original equipment manufacturers to make semiconductors, compact disks, data storage, flat panel displays, and advanced industrial products.
For the first quarter of 1998, the Company reported net sales of $36.7 million, a 77% increase from year-ago net sales of $20.7 million. As anticipated, first quarter 1998 net sales were down 20% from the fourth quarter of 1997, reflecting lower customer demand in the semiconductor and data storage markets and continued impact from the Asian financial crisis.
Gross margin for the first quarter was 30.3% compared with 36.3% a year ago and 37.6% in the fourth quarter. Part of the decline in gross margin was due to additional inventory reserves in the first quarter of $1.5 million, or four cents per diluted share when tax affected. During the quarter, raw materials were returned from outsource vendors that became excess following a decline in orders and which could become obsolete as new products are introduced.
Advanced Energy reported net income for the first quarter of $921,000, or four cents per share on a diluted basis, compared with net income a year ago of $765,000, or four cents per diluted share. This compared with net income of $5.8 million, or 25 cents per share on a diluted basis, in the fourth quarter. Diluted average shares outstanding for the first quarters of 1998 and 1997 were 23,124,000 and 21,735,000, respectively. There were 23,112,000 diluted average shares outstanding for the fourth quarter of 1997.
Douglas S. Schatz, president and chief executive officer, said the lower gross margin was a result of under-absorbed manufacturing overhead as related to lower production and inventory returned from outsourcing vendors. ''If we hadn't taken the inventory reserve, operating income would have been $2.8 million, or eight cents per diluted share when tax affected. Like many participants in the semiconductor equipment industry, we significantly increased capacity to address the 1997 upturn and now find ourselves with over-capacity. We have initiated cost reduction measures that should help us through this continuing softness in the semiconductor and data storage markets, including 10% salary reductions for top management and enforcing a company-wide policy for an additional two-weeks mandatory time-off. Other cost-reducing initiatives are being examined and may be implemented to further align expenses relative to market conditions.''
Commenting on the remainder of 1998, Schatz said, ''We expect this current market softness to continue at least through the third quarter and likely into the fourth quarter of 1998. Even though we carry little backlog, as most of our business is just-in-time delivery, backlog is down and we are seeing our semiconductor capital equipment customers continue to adjust their production needs downward. We will continue to make investments in applications and product development to ensure we are well positioned for 1999 and forward.''
Advanced Energy ended the first quarter of 1998 with cash and marketable securities of $29.4 million, working capital of $65.2 million, total assets of $106.4 million, and stockholders' equity of $88.0 million.
Safe Harbor Statement
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the achievement of goals established by the Company to improve gross margin and maintain operating expenses in line with revenue, continued sales growth in non-semiconductor areas, and other risks detailed from time to time in the Company's Securities and Exchange Commission reports, including the Company's recent Prospectus, Form 10-K and Forms 10-Q. The Company continues to be susceptible to fluctuations in quarterly and annual revenues and operating results. The Company assumes no obligation to update the information in this release.
About the Company
Advanced Energy Industries, Inc. was founded in 1981 and is the leading manufacturer of power delivery systems that are critical in the manufacturing of semiconductors, data storage media, flat panel displays, and other products using thin-film technology. Within its comprehensive product portfolio of direct current (DC), low/mid-frequency and radio frequency (RF) solutions, the company sells hundreds of different products critical in applications ranging from compact disks, digital video disks, flat panel displays, the most popular logic semiconductor devices, among many other applications. The Company's stock is traded on Nasdaq under the symbol AEIS.
Wednesday April 22, 5:13 pm Eastern Time
Advanced Energy sees continued weakness
FORT COLLINS, Colo., April 22 (Reuters) - Advanced Energy Industries Inc. Wednesday said it expects weakness in the semiconductor equipment industry to persist into the second half of 1998.
''We expect this current market softness to continue at least through the third quarter and likely into the fourth quarter of 1998,'' the company said in a statement.
In response, the company said it has begun cost-cutting measures, including a 10 percent salary cut for top managers and a company-wide additional two-week mandatory time-off.
''We have initiated cost reduction measures that should help us through this continuing softness in the semiconductor and data storage markets,'' the company said.
''Like many participants in the semiconductor equipment industry, we significantly increased capacity to address the 1997 upturn and now find ourselves with over-capacity.''
Wednesday April 22, 4:02 pm Eastern Time
Company Press Release
GaSonics International Reports Fiscal 1998 Second Quarter Results
SAN JOSE, Calif.--(BUSINESS WIRE)--April 22, 1998--GaSonics International Corp. (NASDAQ/NM:GSNX - news), the leading global supplier of semiconductor equipment for the dry photoresist and residue removal markets, today reported financial results for its second quarter ended March 31, 1998.
Net sales were $27.6 million, as compared to $29.6 million in the second quarter of fiscal 1997. Net income was $228,000, or $0.02 per diluted share, as compared to $1.3 million, or $0.09 per diluted share, posted in the same period the prior year.
For the first six months of fiscal 1998, GaSonics reported revenues of $60.5 million, compared with $59.3 million for the same six-month period last year. Net income for the first six months of fiscal 1998 was $2.2 million, or $0.15 per diluted share, as compared to $2.2 million, or $0.16 per diluted share, in the prior year period.
Commenting on the results, GaSonics Chairman Dave Toole noted, ''Our book to bill during the period was below one-to-one. We anticipate that near term revenues will continue to be adversely impacted by order softness in Korea and Japan, and by recent order delays or reschedulings from North American customers.''
Toole explained that GaSonics is focusing on three fronts that are designed to enable the company to accelerate momentum. ''First, we plan to increase our market share on the strength of an expanding base of new applications in integrated clean. Second, we continue to fund key product development programs, and we expect to introduce important integrated clean products later this year. Finally, we have taken steps to reduce our operating costs while continuing to drive for operational efficiencies. These strategies will enable us to emerge an even stronger organization when business conditions improve,''
Toole concluded.
Management would like to remind readers that any forward looking statements in this press release are always subject to risks in this ever-changing marketplace, including the cyclicality in the markets served by the Company's customers, market acceptance of new and enhanced versions of the Company's products, the stability of the Asia-Pacific region, the mix of products sold, the timing of significant orders and delays, deferrals, reschedulings or cancellations of orders, the relationship of operating expenses to revenue, and the proportion of direct sales and sales through distributors. For a more detailed discussion of these and associated risks, the Company refers the readers to documents filed with the Securities and Exchange Commission (SEC) from time to time, specifically, the most recent Form 10-K and Form 10-Q.
GaSonics International (NASDAQ/NM:GSNX - news) is a leading global supplier of integrated clean solutions for the critical process steps between etch and deposition. GaSonics' photoresist and residue removal tools improve device performance and increase yield in semiconductor manufacturing. GaSonics' technology leadership includes vertical
high-pressure (VHP) thermal processing for ultrathin gate oxides and low-pressure chemical vapor deposition (LPCVD) for liquid-crystal display (LCD) manufacturing. Headquartered in San Jose, Calif., GaSonics supports its installed base of more than 4,500 systems with a global sales and support network. Additional information about the company is available on GaSonics' website, located at gasonics.com.
Wednesday April 22, 5:36 pm Eastern Time
GaSonics cites softness in Japan, S.Korea
SAN JOSE, Calif, April 22 (Reuters) - GaSonics International Corp. chairman Dave Toole expects near-term revenues to continue to be hurt by softer orders in South Korea and Japan and by recent order delays or rescheduling from North American customers.
Toole said GaSonics is continuing to fund key product development and expects to introduce important integrated clean products later this year.
It also said it has taken steps to reduce operating costs, while continuing to drive for operational efficiencies.
Andrew |
