Here's the first of two news releases.... BTW, the last Zack's estimate was .49 and with .47 being reported it was 2 cents below not 6 cents (is Zack's estimates off target?)
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Etec Systems, Inc. Reports Financial Results For Third Quarter Fiscal 1998
May 26, 1998 4:45 PM EDT
HAYWARD, Calif.--(BUSINESS WIRE)--May 26, 1998--Etec Systems, Inc. (NASDAQ:ETEC), a leader in patterning solutions for the worldwide semiconductor and electronics industries, today reported financial results for the third quarter and the first nine months of fiscal 1998 ended May 1, 1998.
Revenues for the third quarter of fiscal 1998 were $70.0 million, flat compared to $69.7 million reported for the third quarter of fiscal 1997. As announced on April 30, 1998, revenues were impacted when one ALTA(R) 3500 advanced laser pattern generation system, scheduled to ship during the quarter, failed to meet one specification during the final system calibration, delaying the system shipment.
Net income for the third quarter of fiscal 1998 was $10.7 million, a 7% decrease compared to $11.5 million in the same period of fiscal 1997. Earnings per diluted share in the third quarter were $0.47, a 9% decrease compared to $0.51 per diluted share in the same fiscal 1997 period. Net income and earnings per diluted share in the fiscal 1997 third quarter exclude the nonrecurring item of $3.9 million write-off related to the acquisition of Ebetech GmbH. Reported net income for the third quarter of fiscal 1997 including the nonrecurring item was $7.6 million, or $0.34 per diluted share.
Revenues for the first nine months of fiscal 1998 were $200.6 million, up 19%, compared to $168.3 million in the same period one year ago. The increase reflects a shift in product mix to Etec's advanced 0.18 and 0.25 micron systems.
Net income for the first nine months of fiscal 1998 was $28.6 million, up 15%, compared to $24.9 million in the same period of fiscal 1997. This excludes the $3.9 million acquisition-related write-off and a $1.2 million favorable adjustment in a valuation allowance previously recorded against deferred tax assets. Earnings per diluted share in the first nine months were $1.25, up from $1.14 per diluted share on a comparable basis for the same period one year ago. Reported net income for the first nine months of fiscal 1997 including the nonrecurring items was $22.2 million, or $1.02 per diluted share.
Gross margin in the fiscal 1998 third quarter was 51.1%, up from 49.8% in the same period one year ago. In the first nine months of fiscal 1998, gross margin was 51.3%, up from 48.0% for the same period of fiscal 1997.
ALTA 3500 Stripe Butting Specification
Based on analysis of data from the first four ALTA 3500 systems, the stripe butting specification has been revised from 15.0 nanometers (nm) to 18.0 nm. With this relaxed specification, the ALTA 3500 still meets or exceeds the Semiconductor Industry Association's technology roadmap for 0.25 micron mask requirements. Stripe butting of 18.0 nm is the highest performance available in commercial mask pattern generation systems today. All other print performance specifications of the ALTA 3500, including key specifications such as critical dimension uniformity, remain unchanged. Etec is meeting with current and future ALTA 3500 customers to discuss this change and expects no material business impact as a result. The delayed ALTA 3500 is currently undergoing factory acceptance tests with the customer in Etec's facility.
IC Mask Pattern Generation Trends
"Requirements for leading-edge 0.18 and 0.25 micron mask pattern generation (PG) systems remain strong in North America, Europe and Taiwan. In Korea and Japan, capital budgets for semiconductor manufacturers continue to be severely constrained. In Japan, we see a shift in manufacturing capacity requirements to the merchant maskmakers from the captive mask shops," stated Steve Cooper, Etec's chairman, president and chief executive officer. "This shift is delaying order rates in Japan, although we expect activity to pick up toward the end of calendar 1998 for shipments in the first half of calendar 1999. The Korean financial situation is unchanged and order activity is not expected to improve in this calendar year."
Cooper continued, "As merchant maskmakers try to meet growing demand with both existing and new PG tools, we are seeing increased interest in MEBES upgrades, which provide higher productivity and performance."
First Shipment of DigiRite 2000
In the quarter, Etec's Interconnect Products Group formally launched the DigiRite(TM) 2000, a laser direct imaging system for advanced printed circuit board (PCB) manufacturing, and shipped its first machine to a United States PCB manufacturer. This system has completed final acceptance at the customer's facility.
Printed circuit board fabricators throughout the world have expressed strong interest in the DigiRite 2000 and numerous customer demonstrations are in progress. This new laser direct imaging product serves a variety of applications, including fast-turn prototyping, as well as imaging fine lines down to 2 mils. Laser direct imaging reduces primary imaging costs by eliminating many of the steps in the current imaging process, including photoplotting, film processing and diazo contact printing.
Business Outlook
"Semiconductor manufacturers' requirements for smaller and smaller design features continue to drive the overall mask business. Etec's MEBES and ALTA product offerings are well-positioned to satisfy these requirements by providing for 0.18 micron pilot production and 0.25 micron peak production requirements. For the 12 months ending May 1, 1998, Etec estimates its market share for commercial mask pattern generation equipment for the semiconductor industry exceeded 75%.
"The long-term outlook for the mask industry remains positive. Market conditions in Japan and Korea dictate caution for the first half of fiscal 1999; however, we look forward to improving conditions in the first half of calendar 1999," stated Cooper.
Safe Harbor Under the Private Securities Litigation Reform Act of 1995: 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 actual results to differ materially from those projected. These risks and uncertainties include risks associated with the timely development and market acceptance of new products in an environment of rapid technological change, reduced or postponed orders as a result of changes in customers' planned capital spending, timely availability of key components, delays in factory testing and acceptance, manufacturing capacity constraints, the possibility of new products or technologies introduced by competitors, and material variations in financial results due to a delay in delivery of even one system. Statements in this release are based upon internal estimates, preliminary information and management assumptions which are subject to a number of risks and uncertainties inherent in estimating future events. Other risks are detailed from time to time in the Company's SEC reports, including the annual report filed on Form 10-K and quarterly filings on Form 10-Q. The Company assumes no obligation to update the information in this release.
About Etec: Etec Systems, Inc. is a leader in patterning solutions for the worldwide semiconductor and electronics industries. Its products include electron-and laser-beam systems that produce high-precision masks, which are used to print circuit patterns onto semiconductor wafers and high-speed, large-area laser direct imaging systems and e-beam test equipment for electronic interconnect and flat panel display production applications. Founded in 1970, the company is headquartered in Hayward, California, with manufacturing facilities in Hayward, California; Beaverton, Oregon; Tucson, Arizona; and Feldkirchen, Germany, and with sales and service offices worldwide. Etec's stock is traded on the NASDAQ Stock Market under the symbol ETEC. The Company's World Wide Web site can be accessed at www.etec.com.
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I cut out the tables because it did not paste very well, sorry ..... |
