Electroglas Reports 1997 and Fourth Quarter Results.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Jan. 29, 1998-- Electroglas, Inc. (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 :EGLS EGLS Eastside German Language School (Issaquah, WA) ) reported today financial results for its year and fourth quarter ended December December: see month. 31, 1997. For the fourth quarter 1997, 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 were $44.1 million, an increase of 123% over net sales of $19.8 million reported in the like quarter in 1996. During the current quarter, the Company acquired Techne Techne, or techné, as distinguished from episteme, the Greek word τέχνη (literally: craftsmanship) is often translated as craft or art. It is the rational method involved in producing an object or accomplishing a goal or objective. Systems, Inc. and recorded the transaction under the purchase accounting method. As part of the acquisition, the Company incurred a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $3.5 million for in-process research and development. In advance of a pending move to new facilities in 1999, the Company incurred a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $1.6 million during the quarter for environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a of its main facilities which have been occupied by the Company for the past 24 years. Excluding these two charges, net income for the fourth quarter 1997 was $3.9 million, or $.20 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. income per share. Including the two charges, net loss for the fourth quarter 1997 was $.9 million, or $.05 diluted loss per share. Net income for the same quarter last year was essentially breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations . For the full year 1997, net sales were $150.0 million, down slightly from $152.0 recorded last year. During the year, the Company incurred one-time pretax charges of $27.0 million for in-process research and development related to acquisitions and $1.6 million for environmental remediation. When excluding these charges, net income was $12.4 million, or $.66 diluted income per share. When including the charges, net loss was $15.9 million, or $.86 diluted loss per share. Net income for the full year 1996 was $24.5 million, or $1.36 diluted income per share. Commented Curt Wozniak Woz·ni·ak , Stephen Born 1950. American computer engineer who cofounded Apple Computers (1975). , 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. of Electroglas, "Overall, we are pleased with the fourth quarter performance and the progress we made during the year on expanding our business potential. Business conditions, however, deteriorated since October October: see month. when the Asian financial crisis and oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies in the DRAM market began to affect customer confidence. Overall conditions for equipment purchases have slowed on a worldwide basis as customers are assessing their capacity needs for the coming year. Orders for the quarter were $37.3 million, down from $41.8 million in the third quarter. The book to bill ratio was .84. The decrease in orders has reduced our visibility for the coming quarter as customers are delaying capacity additions. As a result, we are cautious about the first part of 1998, and are managing expenses closely." Wozniak added, "Even with the 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. , we are pleased with the progress during the year. In May, we purchased Knights Technology to add yield management software to our portfolio. Knights continues to penetrate new accounts around the world. In December, we announced the acquisition of Techne Systems, Inc., adding post-fab inspection capability to our product offering. We expect that both acquisitions will allow us to penetrate new market segments for Electroglas, Inc. in 1998. In addition, we will continue to invest in significant new product development to be ready for the 300mm era." Legal Notice Regarding 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. Statements in this press release which are not purely historical are forward-looking statements, including statements regarding Electroglas' plans, expectations or intentions regarding the future. Forward-looking statements in this release include, but are not limited to, statements regarding charges for environmental remediation, expectations regarding current growth of the business, the Asian financial crisis, new product development, the impact of the Knights and Techne acquisitions and the penetration of new market segments. All forward-looking statements included in this release are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , based on information available to Electroglas as of the date hereof, and Electroglas assumes no obligation to update any forward-looking statement. It is important to note that actual outcomes and Electroglas' actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as unexpected additional environmental remediation expenses in the event the current remediation efforts need to be expanded or ongoing investigation reveals additional contamination contamination /con·tam·i·na·tion/ (kon-tam?i-na-shun) 1. the soiling or making inferior by contact or mixture. 2. the deposition of radioactive material in any place where it is not desired. , the level of capital expenditures of semiconductor manufacturers, changes in the demand for semiconductors, the costs associated with new product development and introductions and enhancement of existing products, the introduction of competitors' products having technological 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. pricing advantages, unforeseen technological developments, difficulties and delays related to the Company's current and future products, changes in market conditions related to need for yield management products and semiconductor manufacturing equipment, and customer acceptance of new product offerings resulting from the Knights and Techne acquisitions. Although the Company has undertaken an extensive investigation related to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. environmental remediation efforts, there can be no assurance that adverse developments related to its investigation and such remediation efforts will not result in the need for the Company to expend ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. additional resources to remedy environmental problems in order to comply with current or future environmental regulations. Readers should also refer to the risk disclosures outlined in Electroglas' Form 10-Qs Form 10-Q See 10-Q. filed from time-to-time and the 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 for Electroglas' fiscal year. About Electroglas Electroglas, Inc. is a leader in the development, manufacture, marketing and servicing of automatic 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. probing equipment and yield management software for use in the semiconductor industry. The Company's stock trades on the Nasdaq National Market under the symbol "EGLS." The Company's World Wide Web site is located at http://www.electroglas.com -0-
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
1997 1996 1997 1996
Net sales $44,146 $19,779 $150,035 $151,950
Cost of sales 25,975 14,904 86,409 79,666
Gross profit 18,171 4,875 63,626 72,284
Operating expenses:
Engineering, research
and development 6,424 4,360 21,897 18,672
Selling, general and
administrative 8,249 3,423 30,932 24,758
In-process research and
development 3,529 -- 27,029 --
Provision for
environmental remediation 1,600 -- 1,600 --
Total operating expenses 19,802 7,783 81,458 43,430
Operating income (loss) (1,631) (2,908) (17,832) 28,854
Interest income 1,276 1,261 5,207 4,771
Other income (expense), net (31) (14) (363) 76
Income (loss) before
income taxes (386) (1,661) (12,988) 33,701
Provision (benefit) for
income taxes 549 (1,720) 2,949 9,242
Net income (loss) $ (935) $ 59 $(15,937) $ 24,459
Basic net income (loss)
per share $ (0.05) $ 0.00 $ (0.86) $ 1.38
Diluted net income (loss)
per share $ (0.05) $ 0.00 $ (0.86) $ 1.36
Shares used in basic
calculations 19,229 17,476 18,460 17,779
Shares used in diluted
calculations 19,229 17,710 18,460 17,967
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
December 31, December 31,
1997 1996
(Unaudited) (1)
Assets
Current assets:
Cash and short-term investments $ 124,978 $ 129,102
Accounts receivable, net 35,852 16,663
Inventories 26,032 22,578
Prepaid expenses and other
current assets 12,190 15,248
Total current assets 199,052 183,591
Equipment and leasehold
improvements, net 16,392 10,184
Other assets 13,475 4,091
Total assets $ 228,919 $ 197,866
Liabilities and
stockholders' equity
Current liabilities:
Short-term borrowings $ 1,160 $ 1,790
Accounts payable 7,424 4,754
Accrued liabilities 18,045 17,061
Income taxes payable --- 610
Total current liabilities 26,629 24,215
Non-current liabilities 2,556 ---
Stockholders' equity 199,734 173,651
Total liabilities and
stockholders' equity $ 228,919 $ 197,866
(1) The information in this column was derived from the Company's
audited consolidated financial statements for the year ended
December 31, 1996.
SUPPLEMENTAL FINANCIAL INFORMATION (1)
(In thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
1997 1996 1997 1996
Pro forma operating
income (loss) $ 3,498 $(2,908) $10,797 $28,854
Pro forma income (loss)
before income taxes $ 4,743 $(1,661) $15,641 $33,701
Pro forma provision
(benefit) for
income taxes 829 (1,720) 3,285 9,242
Pro forma net income $ 3,914 $ 59 $12,356 $24,459
Pro forma basic net
income per share $ 0.20 $ 0.00 $ 0.67 $ 1.38
Pro forma diluted net
income per share $ 0.20 $ 0.00 $ 0.66 $ 1.36
Shares used in basic
calculations 19,229 17,476 18,460 17,779
Shares used in diluted
calculations 19,762 17,710 18,647 17,967
(1) The company's reported net loss of $935 or $0.05 per share
for the three months ended December 31, 1997 includes pretax one-time
charges totaling $5,129 as previously discussed.
The company's reported net loss of $15,937 or $0.86 per share for
the twelve months ended December 31, 1997 includes pretax one-time
charges totaling $28,629 as previously discussed.
This supplemental financial information does not purport to be
financial statements prepared in accordance with generally accepted
accounting principles. The information in the tables shows operating
income, net income, and net income per share excluding the one-time
charges.
CONTACT: Electroglas, Inc., Santa Clara Armand This is for the vampire. For the villain of the 2005 film, The Legend of Zorro, see Armand (Zorro character) Armand is a fictional character in The Vampire Chronicles novels written by Anne Rice. Stegall, 408/727-6500 |
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