Asyst Technologies Reports GAAP Net Income, Improved Results for Third Quarter of Fiscal 2006.FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif. -- Asyst Technologies, Inc., (Nasdaq:ASYT), a leading provider of integrated automation solutions that enhance semiconductor and flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time manufacturing productivity, today announced consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for its fiscal third quarter ended Dec. 31, 2005. The company reported GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income of $3.0 million, or $0.06 per share, for the fiscal third quarter, which compares with a GAAP net loss of $1.5 million, or $(0.03) per share, in the prior sequential One after the other in some consecutive order such as by name or number. quarter. On a non-GAAP basis, the company reported net income for the fiscal third quarter of $4.7 million, or $0.10 per share, compared with non-GAAP net income of $0.7 million, or $0.02 per share, in the prior sequential quarter. Net income on a GAAP and non-GAAP basis includes the benefit of $2.2 million of additional royalty income. A table reconciling GAAP net income (loss) to non-GAAP net income (loss) is provided as part of this release. Consolidated 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 fiscal third quarter were $106.8 million, which compares with $124.6 million in the prior quarter. Net sales for the fiscal third quarter at ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. , the company's base business, were $39.5 million, essentially flat with $39.2 million in the prior sequential quarter. Net sales for the fiscal third quarter at Asyst Shinko, Inc. (ASI ASI, n See Anxiety Sensitivity Index. ), the company's 51%-owned joint venture in Japan, were $67.3 million. This compares with $85.4 million in the prior sequential quarter, which was higher than expected because a number of customer projects were completed ahead of schedule in that quarter. For the fiscal third quarter, consolidated gross margin was 39%, up from 35% in the fiscal second quarter. Gross margin at ATI was 42%, up from 38% in the prior sequential quarter, primarily reflecting continued material cost reductions. Gross margin at ASI was 38%, up from 33% in the prior sequential quarter. The gross margin improvement at ASI was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. project mix and the impact of lower than estimated costs on a number of completed customer projects. Total net bookings for the fiscal third quarter were $85 million, which compares with $100 million in the prior sequential quarter. Bookings at ATI were $37 million, which is essentially flat with $38 million in the prior sequential quarter. Bookings at ATI tend to lag by four-to-six weeks behind its predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. Bookings at ASI were $48 million, which compares with $62 million in the prior sequential quarter. AMHS AMHS ATS Message Handling System (air traffic control) AMHS Alaska Marine Highway System AMHS Automated Message Handling System AMHS Aeronautical Message Handling System AMHS Academic Magnet High School bookings can be volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. based on the timing of customer investment decisions. "We now have reported four consecutive quarters of gross margin improvement and achieved a significant milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. in reporting GAAP profitability for the fiscal third quarter," said Steve Schwartz Dr. Schwartz founded Unitrends in 1989 in Myrtle Beach, South Carolina. Schwartz is considered the initial developer of a data recovery and restoration technique known as bare-metal restore and is recognized in the software industry as the developer of CTAR (Compressing Tape Archiver) and , chairman 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. . "This success is a direct result of our focus on continuous operational improvements, which are driving gains in customer satisfaction, market share, and gross margin. In December December: see month. , we began to see an uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in customer activity, which is leading to increased bookings in the current quarter. As we look to our 2007 fiscal year that begins in April, we see the opportunity to leverage our improved operational performance in an environment of increasing customer demand -- an alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
Outlook For the fiscal fourth quarter ending Mar. 31, 2006, the company provided the following guidance:
-- Consolidated net sales are expected to be in the range of $110
to $120 million.
-- GAAP net income is expected to be in the range of $2 to $4
million, or $0.04 to $0.08 per share.
-- On a non-GAAP basis, the company expects to report net income
of $4 to $6 million, or $0.08 to $0.12 per share. To reconcile
net loss or net income under GAAP to non-GAAP net income, the
company expects to exclude:
-- $1.6 million related to the amortization of intangibles,
net of taxes and minority interest
-- $0.3 million of stock-based compensation expense, as part
of selling, general & administrative expense
This guidance is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. The company has no obligation to update this guidance. About Our Non-GAAP Operating Results and Adjustments To supplement our consolidated financial results prepared under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Our non-GAAP net income (loss) gives an indication of our baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of amortization of acquisition-related intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and 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. charges, costs related to events outside the normal course of business, and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP. About Asyst Asyst Technologies, Inc. is a leading provider of integrated automation solutions that enable semiconductor and flat panel display (FPD (1) (Flat Panel Display) See LCD, plasma display, EL display, FED and flat panel display. (2) (Field Programmable Device) An umbrella term for all chips that can be programmed by the customer including SPLDs, CPLDs and FPGAs. See PLD. ) manufacturers to increase their manufacturing productivity and protect their investment in materials during the manufacturing process. Encompassing isolation systems, work-in-process materials management Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, , substrate-handling robotics robotics, science and technology of general purpose, programmable machine systems. Contrary to the popular fiction image of robots as ambulatory machines of human appearance capable of performing almost any task, most robotic systems are anchored to fixed positions , 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. transport and loading systems, and connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. automation software, Asyst's modular, interoperable The ability for one system to communicate or work with another. See interoperability. solutions allow chip and FPD manufacturers, as well as original equipment manufacturers, to select and employ the value-assured, hands-off hands-off adj. Characterized by nonintervention: a hands-off foreign policy. Adj. 1. hands-off - not involving participation or intervention; "a hands-off foreign policy" manufacturing capabilities that best suit their needs. Asyst's homepage See home page. is http://www.asyst.com. Conference Call Details A live webcast of the conference call to discuss the quarter's financial results will take place today, Jan. 31, 2006, at 5:00 p.m. Eastern Time. The webcast will be publicly available on Asyst's website at http://www.asyst.com and accessible by going to the investor relations Investor relations The process by which the corporation communicates with its investors. page and clicking on the "webcast" link. For more information, including this press release, any non-GAAP financial measures that may be discussed on the webcast as well as the most directly comparable GAAP financial measures and a reconciliation of the difference between those GAAP and non-GAAP financial measures, as well as any other material financial and other statistical information contained in the webcast, please visit Asyst's website at www.asyst.com. A replay of the Webcast may be accessed via the same procedure. In addition, a standard telephone instant replay of the conference call is available by dialing (303) 590-3000, followed by the passcode 11051553#. The audio instant replay is available from Jan. 31 at 7:00 p.m. Eastern Time through Feb. 14 at 11:59 p.m. Eastern Time. "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 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: the volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of semiconductor industry cycles; our ability to achieve forecasted revenues and profits; failure to respond to rapid demand shifts; dependence on a few significant customers; the timing and scope of decisions by customers to transition and expand fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facilities; continued risks associated with the acceptance of new products and product capabilities; the risk that customers will delay, reduce or cancel (character) Cancel - (CAN, Control-X) ASCII character 24. planned projects or bookings and thus delay recognition or the amount of our anticipated revenue; competition in the semiconductor equipment industry and specifically in AMHS; failure to retain and attract key employees; and other factors more fully detailed in the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended March 31, 2005, and other reports filed with the Securities and Exchange Commission. Asyst is a registered trademark of Asyst Technologies, Inc. Asyst Shinko is a registered trademark of Asyst Shinko, Inc. All Rights Reserved.
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)
December 31, March 31,
2005 2005
------------- -----------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $ 128,434 $101,180
Accounts receivable, net 146,154 189,943
Inventories 38,309 33,515
Prepaid expenses and other 23,904 33,971
------------- -----------
Total current assets 336,801 358,609
------------- -----------
LONG-TERM ASSETS:
Property and equipment, net 17,855 15,458
Goodwill 58,708 64,014
Intangible assets, net 23,001 40,898
Other assets 3,796 4,795
------------- -----------
Total long-term assets 103,360 125,165
------------- -----------
Total assets $ 440,161 $483,774
============= ===========
LIABILITIES, MINORITY INTEREST AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and notes payable $ 19,388 $ 20,563
Current portion of long-term debt and
capital leases 1,776 2,757
Accounts payable 92,852 123,155
Accrued liabilities 72,985 70,439
Deferred revenue 6,770 6,013
------------- -----------
Total current liabilities 193,771 222,927
------------- -----------
LONG-TERM LIABILITIES:
Convertible notes 86,250 86,250
Long-term debt and capital leases,
net of current portion 1,172 2,500
Deferred tax and other long-term
liabilities 14,652 18,319
------------- -----------
Total long-term liabilities 102,074 107,069
------------- -----------
MINORITY INTEREST 61,839 63,855
------------- -----------
SHAREHOLDERS' EQUITY: 82,477 89,923
------------- -----------
Total liabilities, minority interest
and shareholders' equity $ 440,161 $483,774
============= ===========
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share data)
Three Months Ended Nine Months Ended
-------------------- -------------------
Dec 31, Dec 31, Dec 31, Dec 31,
2005 2004 2005 2004
--------- ---------- --------- ---------
NET SALES $106,824 $161,383 $348,870 $469,414
COST OF SALES 64,828 133,814 229,664 383,902
--------- ---------- --------- ---------
Gross profit 41,996 27,569 119,206 85,512
--------- ---------- --------- ---------
OPERATING EXPENSES:
Research and development 6,310 8,485 20,461 27,237
Selling, general and
administrative 21,075 22,551 62,450 56,820
Amortization of acquired
intangible assets 3,494 5,086 13,126 15,178
Restructuring charges
(credits) (138) 1,116 (45) 1,703
Impairment charges -- 4,645 -- 4,645
--------- ---------- --------- ---------
Total operating expenses 30,741 41,883 95,992 105,583
--------- ---------- --------- ---------
Operating income (loss) 11,255 (14,314) 23,214 (20,071)
Other income (expense), net 2,409 297 939 (1,064)
--------- ---------- --------- ---------
Income (loss) before
benefit from (provision
for) income taxes and
minority interest 13,664 (14,017) 24,153 (21,135)
BENEFIT FROM (PROVISION FOR)
INCOME TAXES (6,507) 962 (16,191) 2,549
MINORITY INTEREST (4,178) 1,411 (10,115) 2,825
--------- ---------- --------- ---------
NET INCOME (LOSS) $ 2,979 $(11,644) $ (2,153) $(15,761)
========= ========== ========= =========
NET INCOME (LOSS) PER BASIC
SHARE $ 0.06 $ (0.24) $ (0.04) $ (0.33)
========= ========== ========= =========
NET INCOME (LOSS) PER DILUTED
SHARE $ 0.06 $ (0.24) $ (0.04) $ (0.33)
========= ========== ========= =========
WEIGHTED SHARES USED IN THE
PER SHARE CALCULATION
- BASIC 48,019 47,553 47,918 47,387
========= ========== ========= =========
WEIGHTED SHARES USED IN THE
PER SHARE CALCULATION
- DILUTED 48,789 47,553 47,918 47,387
========= ========== ========= =========
ASYST TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(Unaudited; in thousands, except per share data)
Three Months Ended
---------------------------------
Dec 31, Sept 30, Dec 31,
2005 2005 2004
---------- ---------- ----------
GAAP net income (loss) $2,979 $(1,545) $(11,644)
Adjustments:
Stock based compensation expense 271 289 205
Amortization of intangible assets 3,494 4,714 5,086
Restructuring charges (credits) (138) -- 1,116
Impairment charges -- -- 4,645
Professional fees related to ASI -- -- 1,720
Income tax benefit relating to
amortization of intangible assets
(1) (1,079)(1) (1,562) (1,699)
Minority interest relating to the ASI
adjustments above (2) (801)(2) (1,159) (1,151)
---------- ---------- ----------
Total adjustments 1,747 2,282 9,922
---------- ---------- ----------
Non-GAAP net income (loss) $4,726 $737 $ (1,722)
========== ========== ==========
Non-GAAP net income (loss)
per basic share $ 0.10 $ 0.02 $ (0.04)
========== ========== ==========
Non-GAAP net income (loss) per
diluted share $ 0.10 $ 0.02 $ (0.04)
========== ========== ==========
Weighted shares used in the
per share calculation - basic 48,019 47,963 47,553
========== ========== ==========
Weighted shares used in the per
share calculation - diluted 48,789 48,522 47,553
========== ========== ==========
(1) Income tax adjustment relating to the amortization of
intangibles attributable to ASI.
(2) Reflects 49% minority interest adjustment relating to
the net adjustments at ASI.
ASYST TECHNOLOGIES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited; in thousands, except per share data)
Three Months Ended
December 31, 2005
---------------------------------
Consolidated
ATI ASI Under GAAP
-------- --------- ------------
SUPPLEMENTAL STATEMENT OF OPERATIONS
NET SALES $39,487 $67,337 $106,824
COST OF SALES 23,053 41,775 64,828
-------- --------- ------------
Gross profit 16,434 25,562 41,996
-------- --------- ------------
OPERATING EXPENSES:
Research and development 4,950 1,360 6,310
Selling, general and administrative 14,106 6,969 21,075
Amortization of acquired intangible
assets 781 2,713 3,494
Restructuring charges (credits) (138) -- (138)
-------- --------- ------------
Total operating expenses 19,699 11,042 30,741
-------- --------- ------------
Operating income (loss) (3,265) 14,520 11,255
Other income, net 2,212 197 2,409
-------- --------- ------------
Income (loss) before
provision for income taxes
and minority interest (1,053) 14,717 13,664
PROVISION FOR INCOME TAXES (238) (6,269) (6,507)
MINORITY INTEREST (25) (4,153) (4,178)
-------- --------- ------------
NET INCOME (LOSS) $(1,316) $ 4,295 $ 2,979
======== ========= ============
Net income (loss) per basic
share $ (0.03) $ 0.09 $ 0.06
======== ========= ============
Net income (loss) per diluted
share $ (0.03) $ 0.09 $ 0.06
======== ========= ============
Weighted shares used in the per
share calculation - basic 48,019 48,019 48,019
======== ========= ============
Weighted shares used in the per
share calculation - diluted 48,019 48,789 48,789
======== ========= ============
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