August Technology Announces Third Quarter 2002 Financial Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 23, 2002 August Technology Corporation (Nasdaq:AUGT), a 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. inspection solutions for the microelectronic The miniaturization of electronic circuits. See chip. industries, today announced results for its third quarter ended September September: see month. 30, 2002. Third quarter highlights: -- Revenue of $6.3 million and gross margin above 55% -- Multiple repeat orders for our 3Di Series bump inspection solutions to top contract manufacturing customers in Asia -- First order and shipment of the NSX-105 - the latest high performance addition to the NSX Series The Company reported revenues of $6.3 million during the quarter, a decrease of 10% from $7.0 million in the previous quarter and an increase of 93% from the third quarter of 2001. Gross margin for the quarter was 55.1%, compared to 57.5% in the previous quarter, and up from 54.1% in the third quarter of 2001. Including non-recurring expenses, the net loss was $2.5 million, or $0.19 per share, compared to a net loss of $1.4 million, or $0.11 per share, in the third quarter of 2001. Excluding non-recurring expenses the net loss was $1.9 million, or $0.14 per share, for the quarter. "There is no question that there is a growing need for critical information during the complex integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for manufacturing process," explained Jeff O'Dell, August Technology's 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. . "August Technology serves this need by providing defect defect - bug and process information which enables our customers to drive down the cost of manufacturing and the time to get their products to market. As we continue to meet face-to-face (jargon, chat) face-to-face - (F2F, IRL) Used to describe personal interaction in real life as opposed to via some digital or electronic communications medium. with customers worldwide, the mood of those who are working on leading edge or next generation products is somewhat upbeat. However, many device manufacturers are experiencing poor visibility and, as a result, the placement of equipment orders is not fully keeping pace with their growing need for this information. For this reason we are projecting that 4th quarter revenue will be relatively flat from 3rd quarter." "We are seeing activity driven by advances in 300mm and wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. level bumping Bumping can refer to:
O'Dell concluded, "Based on these new business opportunities, August Technology has made the strategic decision to continue making significant investments in research and development, as well as investing wisely in sales and customer service. Despite this relatively positive outlook, we will continue to make every effort to manage and control expenses that are not absolutely essential to building our future business opportunities." August Technology will provide a live webcast of its earnings conference call with senior management, today at 3:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT to discuss third quarter financial performance. The webcast will be available live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on August Technology's web site at www.augusttech.com and archived for replay shortly following the conference call and continuing through October October: see month. 30, 2002. To listen to the call, visit the web site at least fifteen minutes beforehand to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. August Technology Corporation, based in Bloomington, Minnesota Bloomington is a city in Hennepin County, Minnesota, and a southern suburb of Minneapolis. As of 2005, it had a population of 84,347, making it the largest Twin Cities suburb, and the fifth largest city in the state[1]. , is a leading supplier of automated visual defect inspection equipment for the microelectronic industries and has established service and sales representation in all major microelectronic manufacturing markets worldwide. The inspection solutions designed, manufactured and marketed by August Technology provide microelectronic device manufacturers with cost-saving quality and process information. August Technology is a founding member of the Advanced Packaging and Interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. Alliance (APiA) and is an active member of the Die Products Consortium (DPC DPC Department of Premier and Cabinet (Victoria, Australia) DPC Dutch Power Cows DPC Deferred Procedure Calls (Microsoft Windows NT 4. ). Additional information can be found by visiting August Technology's web site at www.augusttech.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This release contains forward-looking statements regarding projected fourth quarter and fiscal year 2002 revenues, semiconductor and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. microelectronic market conditions in the last quarter of 2002 and the beginning of 2003, potential customer and market moods and outlooks, and acceptance of new visual inspection solutions. These forward-looking statements involve risks and uncertainties which may cause actual results to differ from those set forth in the forward-looking statements, including, but not limited to: (i) no improvements, or further or continued deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in general economic conditions and in the semiconductor and/or microelectronic industries; (ii) pre-order 1. (graph theory) pre-order - traversal. 2. (theory) pre-order - A relation R is a pre-order if it is reflexive (x R x) and transitive (x R y R z => x R z). If it is also antisymmetric (x R y R x => x = y) then it is a partial ordering. sales activities not resulting in orders; (iii) possible failure to meet the revenue projections for inspection products in the fourth quarter and fiscal year 2002; and (iv) lack of customer acceptance in the fourth quarter of the Company's newer products including the 3Di Series, NSX-105, or new YieldPilot enhancements that were or are planned to be shipped to them. Please refer to additional risk factors stated in August Technology's 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. filed with the Securities and Exchange Commission. August Technology does not assume any obligation to update the 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. information contained in this press release.
AUGUST TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2002 2001 2002 2001
----------- -------- ----------- --------
(unaudited) (unaudited)
Net revenues $6,273 $3,253 $18,763 $24,312
Cost of revenues 2,819 1,494 8,148 9,688
----------- -------- ----------- --------
Gross profit 3,454 1,759 10,615 14,624
Selling, general and
administrative expenses 3,104 2,691 8,762 8,939
Research and development
expenses 2,347 1,809 7,211 6,149
Non-recurring expenses (1) 676 - 1,244 432
----------- -------- ----------- --------
Operating loss (2,673) (2,741) (6,602) (896)
Interest income 124 330 506 1,177
Other expense - - - (17)
----------- -------- ----------- --------
Income (loss) before
provision for (benefit
from) income taxes (2,549) (2,411) (6,096) 264
Provision for (benefit from)
income taxes (2) - (1,033) 687 (124)
----------- -------- ----------- --------
Net income (loss) $(2,549) $(1,378) $(6,783) $388
=========== ======== =========== ========
Net income (loss) per share:
Basic $(0.19) $(0.11) $(0.52) $0.03
Diluted $(0.19) $(0.11) $(0.52) $0.03
Pro forma net income (loss)
and per share amounts: (3)
Net income (loss) $(1,873) $(2,411) $(4,852) $696
Per share amounts:
Basic $(0.14) $(0.19) $(0.37) $0.05
Diluted $(0.14) $(0.19) $(0.37) $0.05
Weighted average shares
outstanding:
Basic 13,123 12,768 13,000 12,698
Diluted 13,123 12,768 13,000 13,314
(1) Non-recurring expenses include the following items for the periods
indicated: Three months ended September 30, 2002: $459 for the
write-off of acquisition costs, $173 of employee severance costs
and $44 of distributor termination costs.
Nine months ended September 30, 2002: $459 for the write-off of
acquisition costs, $427 of distributor termination costs and $358
of employee severance costs.
Nine months ended September 30, 2001: $348 of distributor
termination costs and $84 of employee severance costs.
(2) The Company recorded a full valuation allowance against deferred
tax assets in the second quarter of 2002. The Company has
continued to provide such allowance due to the continued
uncertainty of the industry downturn and its impact on current and
projected results.
(3) The pro forma net income (loss) and the related per share amounts
are presented for comparative purposes. The pro forma amounts
exclude non-recurring expenses and assume that a full valuation
allowance against the deferred tax assets had been established in
2001. The reconciling items to GAAP for the periods indicated are
as follows:
The three months ended September 30, 2002 excludes non-recurring
expenses of $676.
The three months ended September 30, 2001 excludes the benefit
from income taxes of $1,033.
The nine months ended September 30, 2002 excludes non-recurring
expenses of $1,244 and the valuation allowance recorded against
deferred tax assets of $687.
The nine months ended September 30, 2001 excludes non-recurring
expenses of $432 and the benefit from income taxes of $124.
AUGUST TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2002 2001
------------- ------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $6,112 $1,523
Short-term investments 15,538 23,196
Accounts receivable, net 6,428 4,737
Inventories 8,430 9,384
Prepaid expenses and other current
assets 1,088 2,838
------------- ------------
Total current assets 37,596 41,678
Property and equipment, net 3,742 3,541
Long-term investments - 1,138
Other assets 716 798
------------- ------------
Total assets $42,054 $47,155
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,950 $1,641
Accrued compensation 923 615
Accrued liabilities 470 536
Customer deposits 1,684 1,715
------------- ------------
Total current liabilities 5,027 4,507
Other non-current liabilities 102 125
------------- ------------
Total liabilities 5,129 4,632
------------- ------------
Shareholders' equity:
Common stock, no par value 42,066 41,020
Undesignated capital stock, no par
value - -
Deferred compensation related to stock
options (118) (192)
Retained earnings (accumulated deficit) (5,079) 1,704
Accumulated other comprehensive income
(loss) 56 (9)
------------- ------------
Total shareholders' equity 36,925 42,523
------------- ------------
Total liabilities and
shareholders' equity $42,054 $47,155
============= ============
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