August Technology Reports Increased Revenues, Orders and Operating Income in Third Quarter 2005 Results; Quarterly shipments achieve new record levels.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- August Technology Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :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 and data analysis solutions for the microelectronic The miniaturization of electronic circuits. See chip. industries, today announced it has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ending September September: see month. 30, 2005. The Company also announced it has filed with the SEC an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Form10-K/A covering fiscal years ended December December: see month. 31, 2004, and amended Quarterly reports on Form10-Q/A for interim periods ended March 31, 2005 and June June: see month. 30, 2005. The Company also announced operating results for the third quarter ended September 30, 2005. The highlights include: --Q3 revenues increase 7.8% sequentially to $21.2 million excluding the impact of the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. --Orders increase 3.6 % driven by increased demand from a broad array of back end customers --Q3 orders include all-surface 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. inspection systems from two new front end customers --Quarterly shipments of $24 million achieve record levels --Operating income more than doubles, sequentially, to $1.6 million excluding the impact of the restatement --Company adds to patent portfolio with issuance of key edge inspection patent The Q3 revenues and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. excluding the impact of the restatement stated above are reconciled to the Company's quarterly financial results prepared 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 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) in the table below entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Reconciliation of Non-GAAP Financials to GAAP Income Statement." Revenues were $33.6 million during the third quarter ended September 30, 2005, an increase of $16.9 million from the previous quarter and an increase of $22.5 million from the third quarter of 2004. As a result of the accounting restatement referenced above, third quarter 2005 revenues included $12.2 million recognized from shipments of AXi(TM) 930 Systems shipped to a major front end customer during the period June 2004 through June 2005. "We delivered very solid operating performance in the quarter and are delighted with the financial results which were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the previously announced accounting restatement," commented 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. . Ignoring the impact of the restatement, the Company delivered increased revenues, orders and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. , and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . Strong demand, especially from final manufacturing customers, drove a continuation of high levels of new order bookings and record factory shipments. "As we look ahead to the close of the year, we anticipate fourth quarter revenues will range from $22 to $24 million," O'Dell concluded. A complete Form10-Q filing can be accessed at www.sec.gov. The Company provides the proforma Proforma A financial projection based on assumptions. Non-GAAP income statement in this press release as additional information regarding the Company's operating results. These proforma measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and may be different from similar proforma Non-GAAP income statements used by other companies. GAAP net revenues and cost of revenues have been adjusted to exclude the effects of the Company's restatement of AXi(TM) 930 Systems revenues and YieldPilot(TM) Software revenues involving customer shipments and deliveries that occurred over the prior twelve months. The Company believes this presentation of the proforma Non-GAAP income statement provides useful information to investors regarding trends relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's current results of operations. August Technology will provide a live conference call with senior management, Thursday November 10 at 11:00 a.m. Eastern Time (EST EST electroshock therapy. EST abbr. electroshock therapy ), 10:00 a.m. Central Time (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) to discuss third quarter financial performance. To participate, please call 1.800.819.9193 prior to the start time and use participant code 4744589. A webcast of the conference call will also 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 beginning 11:00 a.m. Friday, November 11, 2005. To listen to the call live, 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. About the Company: August Technology's automated inspection and data analysis solutions provide critical product and process enhancing information, which enables microelectronic device manufacturers to drive down costs and time to market. With the first all-surface advanced macro inspection solution, August Technology has incorporated frontside, backside BACKSIDE, estates. In England this term was formerly used in conveyances and even in pleadings, and is still, adhered to with reference to ancient descriptions in deeds, in continuing the transfer of the same. property. and wafer edge inspection in a single system. Following detection, August Technology's decision tools correlate the defect defect - bug data across surfaces and provide the comprehensive information necessary for device manufacturers to make process-enhancing decisions. Headquartered 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]. , August Technology supports its customers with a worldwide sales and service organization. Additional information can be found on the company'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 our expectation for Q4 2005 revenues in the range of $22 to $24 million. 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 continuing improvement, or a 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 sales activities not resulting in orders, or customers delaying or canceling orders in backlog; (iii) loss of potential sales to competitors based on pricing or product features; (v) failure of our recently completed and current product development efforts to meet customer needs and expectations including driving down their costs and time-to-market; (vi) unanticipated costs and expenses which increase operating costs operating costs npl → gastos mpl operacionales ; and (vii) delay in the merger transaction increasing costs. 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 SEC on March 16, 2005 and the Form 10-K/A filed on November 9, 2005. August Technology does not assume any obligation to update the forward-looking information contained in this press release.
AUGUST TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------------
2005 2004 2005 2004
-------- ---------- -------- ----------
(Restated) (Restated)
Net revenues $33,622 $11,101 $65,407 $45,970
Cost of revenues 15,174 6,376 28,951 21,593
-------- ---------- -------- ----------
Gross profit 18,448 4,725 36,456 24,377
Selling, general and
administrative expenses 6,268 6,202 19,842 16,781
Research and development
expenses 3,604 3,822 10,594 10,052
-------- ---------- -------- ----------
Operating income
(loss) 8,576 (5,299) 6,020 (2,456)
Merger expenses (734) - (13,959) -
Interest income 317 204 940 594
Other income - 46 - 46
-------- ---------- -------- ----------
Income (loss) before provision
for income taxes 8,159 (5,049) (6,999) (1,816)
Provision for income taxes 162 60 262 160
-------- ---------- -------- ----------
Net income (loss) $7,997 $(5,109) $(7,261) $(1,976)
======== ========== ======== ==========
Net income (loss) per share:
Basic $0.44 $(0.29) $(0.40) $(0.11)
Diluted $0.43 $(0.29) $(0.40) $(0.11)
Weighted average number of
shares:
Basic 18,161 17,803 18,011 17,735
Diluted 18,567 17,803 18,011 17,735
AUGUST TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2005 2004
------------- ------------
ASSETS (Restated)
Current assets:
Cash and cash equivalents (1) $5,866 $5,518
Short-term marketable debt
securities (1) 23,391 28,615
Accounts receivable, net 13,788 8,328
Inventories 21,800 20,106
Inventories at customers under purchase
orders 5,205 6,704
Prepaid expenses and other current
assets 1,474 2,517
------------- ------------
Total current assets 71,524 71,788
Property and equipment, net 6,158 5,994
Long-term marketable debt securities (1) 10,228 16,289
Purchased technology, net 2,742 3,703
Goodwill 498 498
Other assets 180 150
------------- ------------
Total assets $91,330 $98,422
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,167 $3,291
Accrued compensation 3,018 1,636
Other accrued liabilities 2,240 2,322
Customer deposits and deferred revenues 4,457 11,973
------------- ------------
Total current liabilities 16,882 19,222
Other non-current liabilities 112 131
------------- ------------
Total liabilities 16,994 19,353
------------- ------------
Shareholders' equity:
Common stock, no par value 93,023 90,363
Undesignated capital stock, no par
value - -
Accumulated deficit (18,449) (11,188)
Accumulated other comprehensive loss (238) (106)
------------- ------------
Total shareholders' equity 74,336 79,069
------------- ------------
Total liabilities and
shareholders' equity $91,330 $98,422
============= ============
(1) total cash and marketable debt
securities $39,485 $50,422
AUGUST TECHNOLOGY CORPORATION
Reconciliation of Non-GAAP Financials to GAAP Income Statement
Three Months Ended September 30,
------------------------------------
2005 Restatement 2005
As Reported Impact Adjusted
------------------------------------
Net revenues $33,622 $12,393 (2) $21,229
Cost of revenues 15,174 5,455 9,719
----------- ---------- -------------
Gross profit 18,448 6,938 11,510
Selling, general and
administrative expenses 6,268 - 6,268
Research and development expenses 3,604 - 3,604
----------- ---------- -------------
Operating income 8,576 6,938 1,638
Merger expenses (734) - (734)
Interest income 317 - 317
----------- ---------- -------------
Income before provision for income
taxes 8,159 6,938 1,221
Provision for income taxes 162 48 114
----------- ---------- -------------
Net income $7,997 $6,890 $1,107
=========== ========== =============
(2) Adjustments include $12.155 million AXi 930 systems to one
customer, $.245 million Yield Pilot(TM) Transaction, and less
$.007 million NSX Transaction.
Nine Months Ended September 30,
------------------------------------
2005 Restatement 2005
As Reported Impact Adjusted
------------------------------------
Net revenues $65,407 $6,073 (3) $59,334
Cost of revenues 28,951 2,471 26,480
----------- ---------- -------------
Gross profit 36,456 3,602 32,854
Selling, general and
administrative expenses 19,842 47 19,795
Research and development expenses 10,594 - 10,594
----------- ---------- -------------
Operating income 6,020 3,555 2,465
Merger expenses (13,959) - (13,959)
Interest income 940 - 940
----------- ---------- -------------
Income (loss) before provision for
income taxes (6,999) 3,555 (10,554)
Provision for income taxes 262 (16) 278
----------- ---------- -------------
Net income (loss) $(7,261) $3,571 $(10,832)
=========== ========== =============
(3) Adjustments include $6.704 million AXi 930 systems to one
customer, less $.584 million NSX Transaction, and less $.047
million Yield Pilot(TM) Transaction.
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