Published: July 24, 2007
Semitool Announces Third Quarter Results for Fiscal 2007
Semitool, Inc. (NASDAQ: SMTL), a leading
manufacturer of wafer processing equipment for the semiconductor industry,
today reported financial results for its third fiscal quarter ended June
30, 2007.
Third quarter revenue was $46.6 million versus $59.1 million in the third
fiscal quarter a year ago. Gross margin was 47 percent, consistent with
gross margin in the same quarter last year. The Company reported near
breakeven bottom-line results, which included downsizing costs of $677,000,
or $0.02 per share, versus net income of $2.4 million, or $0.07 per share,
in last year's third quarter.
Third quarter bookings were $50.6 million, up from $37.8 million in this
year's second fiscal quarter. Deferred revenue at the end of the quarter
was $10.4 million and shipping backlog stood at $50.9 million, combining
for a total revenue backlog of $61.3 million. Third quarter product
shipments were $42.1 million.
"In spite of the industry-wide volatility in chip demand, we are making
significant progress with our customer penetration efforts, particularly
for our front-end-of-line (FEOL) cleaning and copper damascene tools," said
Larry Murphy, president and chief operating officer. "We continue to make
strategic, process-of-record gains with manufacturers of next-generation
memory devices. This validates our market penetration strategy into our
customers' high-volume manufacturing fabs. As previously reported, we
recently captured a new Korean customer for copper damascene, a new
advanced packaging customer in Japan, and received two Raider tool orders
for FEOL cleans from a major memory customer.
"Our cost containment efforts have been effective, as third quarter SG&A
expenses dropped by $2.7 million, or 14 percent, versus this year's second
fiscal quarter. Research and development expenses dropped by $748,000, or
10 percent, during the same period."
Ray Thompson, chairman and CEO, said, "The process development work we have
done over the last three months is clearly paying off. This point was made
loud and clear last week at SEMICON West, where we ran more than 10,000
wafers through our new high-throughput cleaning tool, the AcceleRAIDER.
This tool, which has production capacity of 420 wafers per hour and a
smaller footprint than a comparable wet bench, was well received and
created excitement among semiconductor and solar industry experts alike.
Our sequential rebound in quarterly bookings reflects the continued
commitment of our customers to new enabling technologies and processes."
Through nine months, revenue was $168.0 million versus $178.2 million in
the comparable period a year ago. Net income was $6.7 million, or $0.21 per
share, versus $6.0 million, or $0.19 per share, at the nine-month mark last
year.
Semitool closed the third quarter with cash and cash equivalents of $10.7
million, total current assets of $163.9 million, and total shareholders'
equity of $169.8 million.
Guidance
Management expects fourth quarter revenue to be in the range of $45 million
to $48 million, which would result in full-year revenue of between $213
million and $216 million. Fourth quarter per share results are expected to
range from a loss of $0.01 to earnings of $0.01, which would result in full
year EPS of between $0.20 and $0.22. Fourth quarter shipments are expected
to be in a range of $50 million to $53 million.
Conference Call Information
Semitool will host an investor conference call and simultaneous webcast
today at 5:00 p.m. Eastern. The call can be accessed by dialing
866-356-3093 (617-597-5381 for international callers) and entering the
passcode 78799196. The webcast will be available via the Internet at
www.semitool.com. Webcast participants should access the website at least
10 minutes early to register and download any necessary audio software. A
replay of the webcast will be available for 90 days. An audio replay will
be available from 7 p.m. Eastern today, until 11:59 p.m. Eastern on July
26, 2007, and can be accessed by calling 888-286-8010 (617-801-6888 for
international callers) and entering the passcode 61343681.
About Semitool, Inc.
Semitool designs, manufactures and supports highly engineered,
multi-chamber single-wafer and batch wet chemical processing equipment used
in the fabrication of semiconductor devices. The company's primary suites
of equipment include electrochemical deposition systems for electroplating
copper, gold, solder and other metals; surface preparation systems for
cleaning, stripping and etching silicon wafers; and wafer transport
container cleaning systems. The company's equipment is used in
semiconductor fabrication front-end and back-end processes, including wafer
level packaging.
Headquartered in Kalispell, Montana, Semitool maintains sales and support
centers in the United States, Europe and Asia. The company's stock trades
on Nasdaq under the symbol SMTL. For more information, please visit the
company's website at www.semitool.com.
Semitool is a registered trademark of Semitool, Inc.
Safe Harbor Statement
The matters discussed in this news release include forward-looking
statements, including statements related to (i) making significant progress
with customer penetration efforts related to our front-end-of-line cleaning
and copper damascene tools, (ii) continued strategic, process of record
gains with manufacturers of next-generation memory devices that validates
our market penetration strategy, (iii) the effectiveness of cost
containment efforts, (iv) process development efforts paying off and (v)
financial guidance for the fourth quarter and fiscal year 2007. Also,
bookings, deferred revenue, revenue backlog and product shipments are not
necessarily an indication of revenue in any future period. These
forward-looking statements are based on management's assumptions, estimates
and projections as of the date hereof and are subject to risks and
uncertainties that are discussed in our filings with the U.S. Securities
and Exchange Commission, including our Annual Report on Form 10-K for the
fiscal year ended September 30, 2006. Strategic gains with customers,
market penetration and sales of new tools and technologies can be adversely
affected by a number of factors, including customers' ultimate preference
for our tools and the tools' performance, as well as the general factors
affecting our industry. In addition, many factors can adversely affect
forecasted financial performance, including cancellations and push-backs,
customers' on-site acceptance of our products, unanticipated costs, as well
as a number of other risk factors described in our Form 10-K. Our business
in general is subject to risks that can cause actual results to differ
materially from those anticipated in our forward-looking statements,
including, without limitation, demand being adversely affected by the
cyclicality in the semiconductor industry, delays in acceptance and payment
for shipped tools, the company's ability to timely deliver and support its
products, technological changes that affect our ability to compete, the
risks associated with competing on a global basis and possible volatility
in key markets. We assume no obligation to update forward-looking
statements that become untrue because of subsequent events.
SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Net sales $ 46,606 $ 59,095 $ 168,045 $ 178,208
Cost of sales 24,497 31,455 86,790 96,251
--------- --------- --------- ---------
Gross profit 22,109 27,640 81,255 81,957
--------- --------- --------- ---------
Operating expenses:
Selling, general and
administrative 16,050 17,992 54,380 54,068
Research and development 6,518 6,186 20,265 18,248
Downsizing costs 677 -- 677 --
Gain on sale of building -- -- (648) --
--------- --------- --------- ---------
Total operating expenses 23,245 24,178 74,674 72,316
--------- --------- --------- ---------
Income (loss) from operations (1,136) 3,462 6,581 9,641
Other income (expense), net (372) 212 (111) (310)
--------- --------- --------- ---------
Income (loss) before income tax (1,508) 3,674 6,470 9,331
Income tax provision (benefit) (1,463) 1,323 (248) 3,359
--------- --------- --------- ---------
Net income (loss) $ (45) $ 2,351 $ 6,718 $ 5,972
========= ========= ========= =========
Earnings (loss) per share:
Basic $ 0.00 $ 0.07 $ 0.21 $ 0.19
========= ========= ========= =========
Diluted $ 0.00 $ 0.07 $ 0.21 $ 0.19
========= ========= ========= =========
Weighted average common shares:
Basic 32,074 31,906 32,015 30,924
Diluted 32,074 32,230 32,478 31,281
SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
June 30, September 30,
2007 2006
------------ ------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 10,701 $ 17,347
Trade receivables, net 51,006 56,593
Inventories 87,255 90,159
Prepaid expenses and other current assets 14,949 14,314
------------ ------------
Total current assets 163,911 178,413
Property, plant and equipment, net 48,298 44,610
Other assets, net 9,207 9,373
------------ ------------
Total assets $ 221,416 $ 232,396
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 10,971 $ 22,882
Other current liabilities 27,621 40,668
------------ ------------
Total current liabilities 38,592 63,550
Long-term liabilities 13,002 7,822
------------ ------------
Total liabilities 51,594 71,372
------------ ------------
Shareholders' equity:
Common stock 82,770 80,738
Retained earnings 87,617 80,899
Accumulated other comprehensive loss (565) (613)
------------ ------------
Total shareholders' equity 169,822 161,024
------------ ------------
Total liabilities and
shareholders' equity $ 221,416 $ 232,396
============ ============
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