ASTeX announces fourth quarter and fiscal 1996 year end revenues and earnings.WOBURN Woburn, village, England Woburn (w  `bərn), village, Bedfordshire, S central England. , Mass.--(BUSINESS WIRE)--Aug. 20, 1996--Applied Science and
Technology, Inc. ("ASTeX") (Nasdaq:ASTX) today reported
record results for the fourth quarter and fiscal 1996 year ending June June: see month. 29, 1996.Total revenues for the fourth quarter increased 114% to a record $13.96 million, compared to the $6.50 million reported in the prior year. Including a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill in the amount of $6.81 million, the net loss for the quarter was $5.93 million or a loss of $1.34 per share. Excluding the write-off, net earnings for the quarter increased 131% to a record $887,000, or $0.20 per share, versus net earnings of $384,000, or $0.10 per share in the comparable fourth quarter of 1995. Revenues for the year ended June 29, 1996, rose 96% to a record $39.14 million, versus the $20.00 million reported in the same period last year. The net loss for the year was $7.30 million, or $1.74 loss per share including acquisition-related expenses and the one-time write-off of goodwill associated with Ehrhorn Technological Operations , Inc. (ETO ETO abbr. European theater of operations ) totalling $9.70 million. Excluding acquisition-related expenses and the one-time goodwill write-off, net earnings for the year would have been $2.40 million, a 113% increase over the $1.13 million reported in fiscal 1995 while earnings per share would have been $0.57, an increase of 104% over the $0.28 per share reported in fiscal 1995. In connection with the Company's acquisition of Ehrhorn Technological Operations, Inc. (ETO), the Company recorded as goodwill $7,048,512, which represented the excess of the purchase price over the fair value of ETO's net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired and in-process research and development. This goodwill was to be amortized over fifteen years. During the fourth quarter, the Company experienced a precipitous decline in sales to one of ETO's major customers. As a result, ETO is not expected to contribute significantly to operating results and, in management's judgement, this decline in revenues is a permanent impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of ETO's prospects. Based on this significant change, the Company reassessed its remaining goodwill and recorded an impairment of goodwill in the amount of $6,813,562, which represented the goodwill balance at the date of reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. . Dr. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Post, President and Chief Executive Officer, stated, "We are pleased to report record operating results for the quarter and fiscal year in which we celebrate our tenth year as a company applying science and technology to meet customer needs. Since fiscal 1994, our revenue base has increased threefold, from $13 million to $39 million, and our earnings from operations has increased tenfold tenfold Adjective 1. having ten times as many or as much 2. composed of ten parts Adverb by ten times as many or as much Adj. 1. , from $358,000 in 1994 to $3.62 million in 1996, excluding one-time charges associated with the acquisition of ETO. These strong results are indicative of our ability to deliver complete system solutions for OEMs and end-users, in addition to our business model as a classic component supplier, derived from our knowledge of our customers' critical process needs. We attribute these record results to the sales of our ozone generators and systems, which contributed $4.5 million for the quarter and $10.8 million during the year versus $3.5 million in fiscal 1995. Ozone sales for the quarter were particularly strong, with the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. increases driven by system deliveries to new customers. Our results also reflect the addition of ETO, acquired at the end of the second quarter of fiscal 1996, which added $4.2 million in revenues for the quarter and $8.5 million for the last half of fiscal 1996." Dr. Post continued, "We continue to strengthen our infrastructure through strategic alliances and acquisitions, and to support these efforts we implemented a number of initiatives. In the second and third quarters of fiscal 1996, we invested in Boston-based Low Entropy Systems (LES) and completed our acquisitions of Newton Engineering Service, Inc. (NES NES Nintendo Entertainment System NES Not Elsewhere Specified (shipping) NES Nuclear Export Signal NES National Election Studies NES Nashville Electric Service NES National Evaluation Systems, Inc. ), based in Newton, MA and Ehrhorn Technological Operations, Inc. (ETO) of Colorado Springs, Colorado The City of Colorado Springs is the second most populous city (after Denver) in the state of Colorado and the 48th most populous city in the United States.[4] The city is the county seat of El Paso County. . We believe these investments allow us to leverage the Company's financial base, technology depth, applications expertise and industry knowledge of the markets we serve, while providing us with significantly greater opportunities to develop cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solutions to meet our customers' future process requirements. This year, the Company elected two new members to serve on the board of directors, Mssrs. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. R. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic and Hans-Jochen Kahl who were formerly a co-founder of KLA KLA Kosovo Liberation Army KLA Key Learning Area (NSW Department of Education) KLA Kansas Livestock Association (Topeka, KS) KLA Kentucky Library Association KLA Kansas Library Association Instruments and a managing director of Leybold respectively. Their combined experience and industry expertise have significantly strengthened our Board and will assist in developing strategies to grow our Company in the semiconductor, medical and diamond markets. "Internally funded research and development spending for fiscal 1996 was $4.5 million, or 11.6% of total revenues of $39 million, versus $2.8 million, or 14.2% of total revenues of $20 million in fiscal 1995. Continued investments in research and development are a necessary component of our strategy, as it will allow us to take advantage of, as well as create, new opportunities for the Company's future growth as we continue to develop new and innovative solutions for next-generation products. "Our expanding customer relationships and diverse, geographic market base provide a strong foundation for our growth in the future as we continue to focus on new opportunities in multiple markets. During the year we signed a $2.5 million technology development agreement with Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar , Inc. and a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants supply agreement with Quester Technology, for approximately $1.2 million. Our ARPA ARPA - Defense Advanced Research Projects Agency contract to develop CVD CVD Cardiovascular disease, see there diamond production technology was extended, and we received $0.9 million in new funding. Also during the year, we completed the construction of a new, 7,000 sq. ft. state-of-the-art clean room manufacturing facility for ozone generators, which enabled us to successfully ramp the manufacture of this major new product. "As previously mentioned in a May press release the loss of business at ETO and the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the semiconductor industry will negatively impact the Company's revenues and earnings in fiscal 1997. Although the current semiconductor equipment market environment remains difficult, there is continued demand for new product development in the marketplace. It is anticipated that the semiconductor market will embrace new capital equipment technologies to enhance the efficiency and productivity of the manufacturing process. ASTeX is prepared to meet the needs of its customers through the introduction of new products, which we expect will add to revenues going forward and continue to strengthen our position as a leading manufacturer of systems and components for semiconductor, medical and CVD diamond processes," Dr. Post concluded. ASTeX is a leading provider of innovative production technology through delivery of components and systems for semiconductor, medical, and CVD diamond applications. ASTeX markets its systems to producers of CVD diamond, while its microwave and RF power generators, plasma sources Plasma sources generate plasmas. Excitation of a plasma requires partial ionisation of neutral atoms and/or molecules of a medium. There are several ways to cause ionisation: collisions of energetic particles, strong electric fields acting on bond electrons, or ionising and ozone generators and subsystems are marketed to the world's leading semiconductor and medical capital equipment manufacturers. Typical semiconductor applications include manufacture of leading edge devices such as Pentium Pentium Family of microprocessors developed by Intel Corp. Introduced in 1993 as the successor to Intel's 80486 microprocessor, the Pentium contained two processors on a single chip and about 3.3 million transistors. and PowerPC chips, while medical applications include diagnostic imaging and sterilization sterilization Any surgical procedure intended to end fertility permanently (see contraception). Such operations remove or interrupt the anatomical pathways through which the cells involved in fertilization travel (see reproductive system). . "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Product sales, net $12,894,803 $ 5,905,394 $36,175,388 $17,157,756
Research contract
revenue 319,304 410,497 894,517 2,138,332
Other revenue 741,619 192,599 2,065,691 708,765
Total revenue 13,955,726 6,508,490 39,135,596 20,004,853
Cost of sales and revenue:
Product sales and other
revenues 8,239,272 4,090,476 23,414,139 10,868,160
Research contracts 149,073 86,741 439,659 945,072
Total cost of sales
and revenue 8,388,345 4,177,217 23,853,798 11,813,232
Gross profit 5,567,381 2,331,273 15,281,798 8,191,621
Operating expenses:
Selling expenses 1,132,923 610,062 3,297,664 1,991,459
General and
administrative
expenses 1,229,226 824,494 3,807,327 2,561,221
Research and development
expenses 1,592,840 721,119 4,553,361 2,839,986
Acquisition related
expenses (65,353) --- 2,887,647 ---
Write-off of goodwill 6,813,562 --- 6,813,562 ---
Total operating
expenses 10,703,198 2,155,675 21,359,561 7,392,666
Earnings (loss) from
operations (5,135,817) 175,598 (6,077,763) 798,955
Other expense (income):
Interest expense 159,282 -0- 323,510 960
Interest income (112,653) (213,890) (659,066) (744,751)
Other expense 1,731 4,687 13,568 13,998
Total other
expense (income) 48,360 (209,203) (321,988) (729,793)
Earnings (loss) before
income taxes (5,184,177) 384,801 (5,755,775) 1,528,748
Income tax expense 742,000 -0- 1,541,000 401,000
Net earnings (net loss) $5,926,177 $384,801 $(7,296,775) 1,127,748
Primary earnings (loss)
per share $ (1.34) $ 0.10 $ (1.74) $ 0.29
Fully diluted earnings
(loss) per share $ (1.34) $ 0.10 $ (1.74) $ 0.28
Weighted average common
shares outstanding used
to calculate primary
earnings per share 4,438,600 3,924,000 4,204,800 3,906,800
Weighted average common
shares outstanding used
to calculate fully diluted
earnings per share 4,438,600 3,950,000 4,204,800 3,992,100
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 29, 1996 July 1, 1995
Assets
Current Assets:
Cash and cash equivalents $5,182,294 $2,303,645
Short-term investments 1,990,962 9,253,545
Trade receivables, net 8,921,890 4,631,789
Inventories 8,734,401 4,179,644
Prepaid expenses and other assets 276,848 157,440
Deferred income taxes 969,741 327,380
Total current assets 26,076,136 20,853,443
Property and equipment:
Land 473,000 -
Building 1,463,400 -
Equipment 7,212,349 4,146,421
Furniture and fixtures 543,860 209,029
Leasehold improvements 1,455,977 651,908
11,148,586 5,007,358
Less accumulated depreciation and
amortization (3,458,407) (2,096,325)
Net property and equipment 7,690,179 2,911,033
Other assets:
Patents, net 141,525 101,017
Other, net 262,224 51,664
Long-term investments - 973,110
Note receivable 191,362 187,267
Total other assets 595,111 1,313,058
$34,361,426 $25,077,534
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long term
debt $1,624,641 -
Accounts payable 2,564,149 1,687,383
Accrued expenses 820,030 421,799
Accrued compensation expense and
related costs 1,428,759 615,027
Accrued income taxes 173,179 228,835
Commissions payable
and customer advances 248,836 129,343
Total current liabilities 6,859,594 3,082,387
Long term debt 6,169,517 -
Deferred income taxes 36,507 101,383
Total liabilities 13,065,618 3,183,770
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 44,484 43,637
Additional paid-in capital 26,690,108 21,279,929
Retained earnings (accumulated
deficit) (5,205,458) 2,091,317
Less: Treasury stock, at cost - (1,446,619)
Notes receivable for common stock
purchases (233,326) (74,500)
Total stockholders' equity 21,295,808 21,893,764
$34,361,426 $25,077,534
Contact: John Tarrh Applied Science and Technology, Inc. Senior Vice President and Chief Financial Officer (617) 937-5135 or Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Donna N. Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. , APR APR See: Annual Percentage Rate Morgen-Walke Associates, Inc. (212) 850-5600 or Press Contact: Lee Foley fo·ley n. 1. A technical process by which sounds are created or altered for use in a film, video, or other electronically produced work. 2. A person who creates or alters sounds using this process. Morgen-Walke Associates, Inc. (212) 850-5600 |
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