CFM Announces Fiscal Third Quarter Results; Net Sales Increase 154%; Orders Increase 55%; Introduces 'PRISM' Product Line.EXTON, Pa.--(BUSINESS WIRE)--Aug. 24, 1999-- CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. Technologies, Inc. (Nasdaq:CFMT CFMT Community Foundation of Middle Tennessee CFMT Canada’s First Multicultural Television CFMT Ceinwen Faulkner Memorial Trust CFMT Cooperative Fusion Machine Translation ) today reported financial results for the third fiscal quarter and nine months ended July 31, 1999. 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 third quarter of fiscal 1999 increased 154% to $9.6 million, versus $3.8 million in the year-ago period and 43% over fiscal second quarter 1999 net sales of $6.7 million. The Company reported a net loss for the third fiscal quarter of $2.3 million, or ($0.29) per 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. share compared to a net loss of $4.4 million, or $(0.55) per diluted share in the third quarter of fiscal 1998. The net loss in the second fiscal quarter of fiscal 1999 was $2.8 million, or ($0.35) per diluted share. "As anticipated, our sales have increased as the recovery in the semiconductor industry continues," said Roger Carolin, CFM's President and Chief Executive Officer. "Fab utilization rates have steadily increased, particularly in Taiwan where we have been able to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the rapid recovery there fueled by the industry's structural shift to increased foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. . Selling and quotation QUOTATION, practice. The allegation of some authority or case, or passage of some law, in support of a position which it is desired to establish. 2. Quotations when properly made, assist the reader, but when misplaced, they are inconvenient. activity continue to increase, adding to our confidence that order rates will also continue to improve." "As we have stated in the past, a key initiative for CFM during the recent 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. has been to improve customer satisfaction levels throughout our installed base. As the recovery begins to take effect, we are seeing the rewards of our efforts. Most gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. are the repeat orders from our established customers, but we also were very pleased to see our customer satisfaction performance recognized in June by VLSI VLSI: see integrated circuit. (1) (Very Large Scale Integration) Between 100,000 and one million transistors on a chip. See SSI, MSI, LSI and ULSI. (2) (VLSI Technology, Inc., Tempe, AZ, www.semiconductors. Research as one of the 10 best companies in our category," Mr. Carolin added. During the quarter, the Company introduced the first of its new PRISM prism, in optics, a piece of translucent glass or crystal used to form a spectrum of light separated according to colors. Its cross section is usually triangular. (TM) line of tools, each optimized for a specific application. The "PRISM-RS" is designed to serve the large resist stripping and post-ash cleaning segment. "By offering the `PRISM(TM)' series, we can deliver higher capital productivity, lower cost of operation and all of the benefits of Full Flow(TM) technology for those customers who dedicate ded·i·cate tr.v. ded·i·cat·ed, ded·i·cat·ing, ded·i·cates 1. To set apart for a deity or for religious purposes; consecrate. 2. tools to a specific application within their fab," commented Carolin. "Based on actual field results, we believe that the PRISM-RS offers the industry's lowest cost of ownership per 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. for post-ash cleaning. Our customers are as excited about this new product as we are," concluded Carolin. Orders for the third quarter of fiscal 1999 totaled $12.7 million, increasing 55% over the previous quarter and 50% over the year-ago period. The book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can for the period was 1.32. 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. increased by 35%, ending at $10.7 million. Orders for service, spares and support totaled $1.2 million. Orders from Asia accounted for 62% of total orders, the US accounted for 35% of orders with the remainder coming from Europe. Gross margin for the third quarter of fiscal 1999 was 37.0%, compared to 36.5% in the previous quarter. The Company anticipates that gross margins will improve as the semiconductor industry recovers. Selling, general and administrative expenses for the third quarter of fiscal 1999 were $4.8 million, compared to $4.4 million in the second quarter of fiscal 1999 and $3.5 million in the third quarter of fiscal 1998. The Company anticipates SG&A to increase in the fourth quarter due to increases in patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs. As of July 31, 1999, the Company's cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaled $25.0 million. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $69.4 million, representing a book value of $8.86 per share. The discussion above regarding the Company's expectation of future sales, gross margins, research, development and engineering expenses, product introductions, product mix, backlog and order activity includes certain 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. on these subjects. As such, actual results may vary materially from such expectations. Factors which could cause actual results to differ from expectations include variations in the level of orders, which can be affected by general economic conditions including the current economic and financial conditions in Asia, particularly in Korea; the timing of the recovery in the semiconductor industry, difficulties or delays in product functionality or performance, the timing of future product releases, failure to respond adequately to either changes in technology or customer preferences, risks of nonpayment of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , changes in budgeted costs or failure to realize a successful outcome to pending patent litigation. CFM Technologies, Inc. is leading manufacturer of advanced cleaning equipment for the semiconductor industry. Its systems provide superior contamination control Procedures to avoid, reduce, remove, or render harmless (temporarily or permanently) nuclear, biological, and chemical contamination for the purpose of maintaining or enhancing the efficient conduct of military operations. and processing capabilities using a totally enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. processing chamber. Watermarks and other drying defects are eliminated through CFM's Direct-Displace(TM) IPA IPA - International Phonetic Alphabet vapor vapor /va·por/ (va´por) pl. vapo´res, vapors [L.] 1. steam, gas, or exhalation. 2. an atmospheric dispersion of a substance that in its normal state is liquid or solid. drying technology. CFM historically has invested in technical innovations to lower cost of ownership.
CFM TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
------------------- -------------------
1999 1998 1999 1998
-------- -------- -------- --------
NET SALES $ 9,620 $ 3,780 $ 22,396 $ 27,604
COST OF SALES 6,064 4,652 15,169 18,989
-------- -------- -------- --------
Gross profit 3,556 (872) 7,227 8,615
-------- -------- -------- --------
OPERATING EXPENSES
Research, development
and engineering 2,492 2,307 7,674 8,570
Selling, general and
administrative 4,821 3,491 12,738 13,416
-------- -------- -------- --------
Total operating expenses 7,313 5,798 20,412 21,986
-------- -------- -------- --------
Operating Loss (3,757) (6,670) (13,185) (13,371)
INTEREST (INCOME) EXPENSE, NET (283) (415) (1,106) (1,357)
-------- -------- -------- --------
Loss before income taxes (3,474) (6,255) (12,079) (12,014)
INCOME TAX BENEFIT (1,181) (1,876) (4,107) (3,604)
-------- -------- -------- --------
NET LOSS $ (2,293) $ (4,379) $ (7,972) $ (8,410)
======== ======== ======== ========
NET LOSS PER COMMON SHARE :
Basic $ (0.29) $ (0.55) $ (1.01) $ (1.06)
======== ======== ======== ========
Diluted $ (0.29) $ (0.55) $ (1.01) $ (1.06)
======== ======== ======== ========
SHARES USED IN COMPUTING NET
LOSS PER COMMON SHARE:
Basic 7,852 7,921 7,859 7,918
======== ======== ======== ========
Diluted 7,852 7,921 7,859 7,918
======== ======== ======== ========
CFM TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
July 31, October 31,
ASSETS 1999 1998
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents $ 16,500 $ 31,649
Short-term investments 8,490 9,745
Accounts receivable 19,236 14,040
Inventories 14,989 13,657
Prepaid expenses and other 2,843 5,020
---------- ----------
Total current assets 62,058 74,111
---------- ----------
PROPERTY, PLANT AND EQUIPMENT
Land 540 540
Building and improvements 5,791 5,981
Machinery and equipment 13,558 9,599
Furniture and fixtures 1,521 1,423
---------- ----------
21,410 17,543
Less - Accumulated depreciation
and amortization (7,975) (6,377)
---------- ----------
Net property, plant and equipment 13,435 11,166
---------- ----------
OTHER ASSETS 8,147 4,536
---------- ----------
Total Assets $ 83,640 $ 89,813
========== ==========
CURRENT LIABILITIES:
Current portion of long-term debt $ 595 $ 672
Accounts payable 4,096 1,800
Accrued expenses 7,754 7,373
---------- ----------
Total current liabilities 12,445 9,845
LONG-TERM DEBT 1,768 2,186
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, no par value;
1,000,000 authorized shares;
no shares issued or outstanding - -
Common stock, no par value;
30,000,000 authorized shares
8,001,180 and 7,964,366
shares issued 81,260 81,033
Treasury stock, 167,100 and
96,200 shares at cost (1,390) (762)
Deferred compensation (29) (47)
Retained earnings (deficit) (10,414) (2,442)
---------- ----------
Total shareholders' equity 69,427 77,782
---------- ----------
Total liabilities and
shareholders' equity $ 83,640 $ 89,813
========== ==========
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