AMTECH CORPORATION REPORTS FIRST QUARTER RESULTS AND THE FORMATION OF A JOINT VENTURE IN THE PEOPLE'S REPUBLIC OF CHINA.DALLAS--(BUSINESS WIRE)--May 12, 1995--Amtech Corporation (NASDAQ--AMTC) today announced operating results for the first quarter ended March 31, 1995, and an agreement to form Sino-Amtech, a joint venture established to market Amtech systems in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. FIRST QUARTER RESULTS Revenues for the first quarter ended March 31, 1995, were $13,935,000, down 26% from the $18,959,000 reported for 1994. Consistent with the Company's 1995 outlook announced on February 15, 1995, net loss for first quarter 1995 was $280,000 or $0.02 per share, compared to quarterly net income of $3,680,000 or $0.25 per share for 1994. The Company also announced that it has suspended its $0.02 quarterly cash dividend. During the first quarter, the Company completed the acquisition of Cotag International Limited, a Cambridge, England-based manufacturer of radio frequency electronic identification security systems for hands-free personnel and vehicle access control. The results of operations for Cotag are included in the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of the Company, beginning February 1, 1995. The Company's order backlog as of March 31, 1995 was approximately $21.5 million, compared with $25 million at March 31, 1994. The Company's balance sheet remains strong, with cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $42,786,000 and working capital of $58,070,000. FORMATION OF JOINT VENTURE IN THE PRC Separately, the Company announced that it had agreed to the formation of a joint venture to market and support its state-of-the-art radio frequency identification See RFID. technology in the People's Republic of China (PRC) for the rail, intermodal transport Intermodal transport (or intermodal transportation) involves the use of more than one form of transport for a journey. See:
The venture, to be called Sino-Amtech Inc., includes as shareholders: Amtech World Corporation, a wholly-owned subsidiary of Amtech Corporation; Cross Harbour Tunnel Company Ltd., an affiliate of Wharf WHARF. A space of ground artificially prepared for the reception of merchandise from a ship or vessel, so as to promote the convenient loading and discharge of such vessel. (Holdings) Ltd. of Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. ; Mitsubishi Corporation Mitsubishi Corporation (三菱商事株式会社 of Japan; and Sinorails Development Inc., a state enterprise wholly-owned by the Ministry of Railways in the PRC. Sino-Amtech will be headquartered in the new Outer Gaoqiao Free Trade Zone in Shanghai, supplemented by a regional office in Beijing. "China's Ministry of Railways is working closely with institutions such as the World Bank to modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. its rail and intermodal transport systems," said G. Russell Mortenson, Amtech president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "With the formation of Sino-Amtech, we are well-positioned to introduce to China Amtech's automatic equipment identification (AEI AEI American Enterprise Institute AEI Archive of European Integration AEI Australian Education International AEI Automotive Engineering International AEI Australian Education Index AEI Albert Einstein Institute ) technology. This same Amtech technology has already been adopted as the industry standard by all North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. railroads rail·road n. 1. A road composed of parallel steel rails supported by ties and providing a track for locomotive-drawn trains or other wheeled vehicles. 2. through the Washington-based Association of American Railroads and by European railroads through the Paris-based Union Internationale des Chemins de fer," he continued. Zhong Chong Ben, president of Sinorails Development Inc., stated, "Establishment of Sino-Amtech will allow China to share in both the advantages and the profits of Amtech's proven technology, offering China the opportunity to place itself among the world leaders For a list of heads of state, see . World leaders is a MMORPG. The game involves creating a state, joining an alliance and going into war. It is mostly played by players from Israel, China, USA, Britain, Brazil and Saudi-Arabia. in transportation information systems." He continued, "Sino-Amtech will initially import Amtech-manufactured products, but the venture may be expanded to manufacture products in China once economic order volumes have been attained." The new joint venture has already appointed The Autopass Company Limited, a Hong Kong company established in 1992, to implement Amtech's electronic toll collection systems at the Cross Harbour, Aberdeen and Lion Rock Tunnels The Lion Rock Tunnel, being the first tunnel in Hong Kong, is a twin-bored toll tunnel, connecting Sha Tin in the New Territories and New Kowloon near Kowloon Tong. It has two lanes in each direction, with toll booths located at the Sha Tin end. It is a vital component of Route 1. in Hong Kong, as its agent for responding to the rapidly increasing interest in China for advanced non-stop electronic toll collection systems. In addition, Shanghai Sinorail Diamond International Trading Co., Ltd., a recently formed venture owned by Mitsubishi and Sinorails Development, was named as an agent for Sino-Amtech to help it develop the market in China for intermodal transportation systems. Formal approval of the venture by PRC authorities is expected by the third quarter of 1995, and the venture will begin operations immediately after necessary approvals are granted. Amtech Corporation designs, manufactures, markets and supports a line of hardware and software products and provides services utilizing radio frequency technology. The Company uses radio frequency identification (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) technology for remote identification and communication with vehicles, intermodal containers, and other transportation equipment through the use of radio signals. Other RFID products include low frequency electronic security systems for hands-free personnel access control, as well as hospital security systems to help prevent infant abduction Abduction Balfour, David expecting inheritance, kidnapped by uncle. [Br. Lit.: Kidnapped] Bertram, Henry kidnapped at age five; taken from Scotland. [Br. Lit. and provide reliable caring protection for wandering Wandering See also Adventurousness, Bohemianism, Journey, Quest. Ahasuerus German name for the Wandering Jew. [Ger. Lit. patients. Amtech is expanding its product line into the radio frequency data collection (RF/DC RF/DC Radio Frequency / Data Communication ) market for transportation and logistics applications through an investment in WaveLink Technologies, Inc. of Ontario, Canada. Amtech products are currently marketed to commercial, industrial, government, hospital, Intelligent Transportation Systems (ITS), intermodal, rail, air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f , vehicle fleet management, access control and security industries. -0-
AMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------
March 31, March 31,
1995 1994
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Sales $ 13,935 $ 18,959
Operating costs and expenses:
Cost of sales 9,373 8,328
Research and development 1,642 1,515
Marketing, general and administrative 3,689 3,743
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14,704 13,586
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Operating income (loss) (769) 5,373
Interest income 453 310
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Income (loss) before income taxes (316) 5,683
Provision (benefit) for income taxes (36) 2,003
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Net income (loss) $ (280) $ 3,680
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Earnings (loss) per share $ ( 0.02) $ 0.25
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Shares used in computing
earnings (loss) per share 14,704 14,893
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AMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, March 31,
1995 1994
--------- ---------
ASSETS
Cash and marketable securities $ 42,786 $ 38,585
Accounts receivable, net 10,252 8,327
Inventories and other current assets 9,008 8,217
Deferred income taxes--current portion 1,306 1,500
Property and equipment, net 10,385 9,430
Long-term marketable securities -- 11,250
Goodwill, net 4,039 --
Other assets 4,146 3,709
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$ 81,922 $ 81,018
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 5,282 $ 6,619
Deferred license revenues 1,569 2,537
Stockholders' equity 75,071 71,862
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$ 81,922 $ 81,018
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WORKING CAPITAL $ 58,070 $ 50,010
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CONTACT: Amtech Corp., Dallas Beverly V. Fuortes, 214/733-6059 |
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