Asyst Technologies, Inc. Announces Results for Second Quarter of Fiscal 1999.FREMONT, Calif.--(BUSINESS WIRE)--Oct. 21, 1998--Asyst Technologies, Inc. (Nasdaq:ASYT), the leading supplier of manufacturing automation and Standard Mechanical InterFace (SMIF SMIF Standard Mechanical Interface SMIF Stream-based Model Interchange Format SMIF Shared Materials Instrumentation Facility (Duke University) SMIF Stanford Management Internship Fund SMIF SMAD4-Interacting Transcription Factor ) isolation systems to the global semiconductor industry, today reported results for the second quarter of fiscal 1999 ended Sept. 30, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 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 Sept. 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 di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis.) Included in these results is a one-time charge of $5.9 million (pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ) for in-process R&D related to the acquisition of Hine Design Incorporated, as well as a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the amount of $2.9 million in connection with the closure of certain facilities and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when 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 pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. global industry 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 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 synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. 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(tm). Customers have realized increased efficiency in equipment effectiveness and a significant reduction in misprocessed wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. . Upon the return of more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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 Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , Terry Moshier, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , 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 Salary Freeze The action of a company suspending salary increases for a period of time. Notes: A salary freeze typically occurs when a company is experiencing financial difficulties. It may choose to freeze salaries for a while in order to minimize layoffs. 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 Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of approximately $4 million. The remaining reduction in our cash position this quarter is attributable to the Hine acquisition ($25 million) and the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. 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 au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. material handling systems, software and integration services critical to seamless fab automation worldwide. Hine Design Incorporated, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , designs and manufactures precision substrate The base layer of a structure such as a chip, multichip module (MCM), printed circuit board or disk platter. Silicon is the most widely used substrate for chips. Fiberglass (FR4) is mostly used for printed circuit boards, and ceramic is used for MCMs. handling equipment for vacuum, atmospheric atmospheric /at·mos·pher·ic/ (at?mos-fer´ik) of or pertaining to the atmosphere. atmospheric of or pertaining to the atmosphere. and corrosive corrosive /cor·ro·sive/ (kor-o´siv) producing gradual destruction, as of a metal by electrochemical reaction or of the tissues by the action of a strong acid or alkali; an agent that so acts. environments. Asyst's homepage is located on the World Wide Web at http://www.asyst.com. -0-
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited: Dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
Net sales $ 15,963 $ 40,312 $ 50,036 $ 77,998
Cost of sales 13,086 22,588 30,689 43,902
Gross profit 2,877 17,724 19,347 34,096
Operating expenses:
Research and
development 3,613 3,294 7,392 6,038
Selling, general
and administrative 11,402 8,344 20,981 17,054
Purchased in-process
research and
development 5,900 -- 7,100 --
Restructuring expense 2,922 -- 2,922 --
Total operating
expenses 23,837 11,638 38,395 23,092
Operating
income (loss) (20,960) 6,086 (19,048) 11,004
Other income, net 935 698 1,486 995
Income (loss) before
provision (benefit)
for income taxes (20,025) 6,784 (17,562) 11,999
Provision (benefit)
for income taxes (6,858) 2,442 (5,971) 4,320
Net income (loss) $(13,167) $ 4,342 $(11,591) $7,679
Basic earnings
(loss) per share $(1.13) $0.40 $(0.98) $0.72
Diluted earnings
(loss) per share $(1.13) $0.37 $(0.98) $0.67
Shares used in per
share calculation of:
Basic earnings
(loss) per share 11,656 10,801 11,867 10,732
Diluted earnings
(loss) per share 11,656 11,728 11,867 11,397
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, March 31,
1998 1998
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,129 $ 12,288
Short-term investments 39,861 70,487
Accounts receivable, net 12,737 26,534
Inventories 22,486 18,851
Prepaid expenses and other
current assets 17,373 11,938
Net current assets of
discontinued operations 360 1,438
Total current assets 100,946 141,536
Property and equipment, net 12,237 11,133
Other assets, net 20,131 1,802
$ 133,314 $ 154,471
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,046 $ 8,671
Accrued liabilities and
other current liabilities 15,332 13,124
Customer deposits 1,046 1,267
Income taxes payable 1,280 606
Total current liabilities 22,704 23,668
Shareholders' equity:
Common stock 107,745 116,347
Retained earnings 2,865 14,456
Total shareholders' equity 110,610 130,803
$ 133,314 $ 154,471
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