ASYST TECHNOLOGIES, INC. ANNOUNCES RESULTS FOR SECOND QUARTER OF FISCAL 1999
FREMONT, Calif., October 21, 1998 Asyst Technologies, Inc. (Nasdaq:ASYT), the leading supplier of manufacturing automation and Standard Mechanical InterFace (SMIF) isolation systems to the global semiconductor industry, today reported results for the second quarter of fiscal 1999 ended September 30, 1998.
Net sales for the second quarter of fiscal 1999 were $16.0 million, compared to net sales of $40.3 million for the second quarter of fiscal 1998. Net loss for the second quarter was $13.2 million, or ($1.13) per share, compared to net income of $4.3 million, or $0.37 per share, for the comparable period last year. For the six months ended September 30, 1998, the Company had net sales of $50.0 million, versus net sales of $78.0 million for the first half of fiscal 1998. Net loss for the first six months of fiscal 1999 was $11.6 million, or ($0.98) per share, compared to net income of $7.7 million, or $0.67 per share, for the same period last year. (All per share figures in this document are stated on a diluted basis.)
Included in these results is a one-time charge of $5.9 million (pretax) for in-process R&D related to the acquisition of Hine Design Incorporated, as well as a one-time restructuring charge in the amount of $2.9 million in connection with the closure of certain facilities and severance costs. Absent such charges, net loss for the second quarter would have been $7.4 million, or ($0.63) per share.
Asyst's Chairman and Chief Executive Officer Dr. Mihir Parikh commented, "As we stated last month, our revenues and earnings have been significantly impacted by the prolonged global industry slowdown, in which semiconductor manufacturers' capital budgets have been markedly reduced. During these challenging market conditions, we continue to focus on the key technologies and programs that the Company believes positions it for long-term growth."
Parikh continued, "Most notably, we are targeting several synergistic new markets while we continue to leverage our leading position in SMIF. The completion of the acquisition of Hine Design provides Asyst the ability to offer our customers a complete tool front-end solution. In addition, we are focusing our sales and marketing efforts on the market for facility upgrades, which offers revenue potential from those chipmakers who seek to enhance their manufacturing capabilities with the most efficient level of investment. Moreover, several installations globally have adopted our new fab automation software, SMART-Station™. Customers have realized increased efficiency in equipment effectiveness and a significant reduction in misprocessed wafers. Upon the return of more favorable market conditions, the Company believes that it will benefit from increased adoption of this software, as well as Asyst's broad set of manufacturing productivity solutions."
Commenting on the Company's actions in response to the severity of the industry downturn, Terry Moshier, president and chief operating officer, noted, "In order to lower our cost structure going forward, we have further implemented cost reduction measures over the last quarter. Specifically, we have reduced headcount by approximately 23 percent, eliminated many discretionary spending programs and instituted a salary freeze for senior management. In addition, we are consolidating several facilities and integrating our Asyst Software subsidiary into Asyst Technologies, which will allow us to more effectively integrate our automation and software solutions to meet our customers' requirements."
"We are on track with the implementation of measures designed to improve operational efficiencies while we continue to make investments designed to better position Asyst for long-term growth," added Doug McCutcheon, senior vice president and chief financial officer. "Despite the significant loss in the period, we sustained a negative cash flow from operations of approximately $4 million. The remaining reduction in our cash position this quarter is attributable to the Hine acquisition ($25 million) and the repurchase of approximately $11 million of Company stock. We remain confident in the strategies we are executing and are committed to making every effort to return Asyst to profitability and positive cash flow in the near-term."
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, general economic conditions, semiconductor industry cycles, risks associated with the acceptance of new products and product capabilities, and other factors more fully detailed in the Company's most recent Forms 10-K annual report and 10-Q quarterly report on file with the SEC.
About Asyst: The pioneer of the Standard Mechanical InterFace (SMIF), Asyst Technologies, Inc. is the leading provider of automated material handling systems, software and integration services critical to seamless fab automation worldwide. Hine Design Incorporated, a wholly owned subsidiary, designs and manufactures precision substrate handling equipment for vacuum, atmospheric and corrosive environments. |
