Electroglas Reports Results for Fourth Quarter and Fiscal 2001.Business Editors/High-Tech Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Jan. 24, 2002 Electroglas, Inc. (Nasdaq:EGLS EGLS Eastside German Language School (Issaquah, WA) ) today reported operating results for its fourth quarter and fiscal year 2001 ended December December: see month. 31, 2001. Revenue was $13.2 million for the fourth quarter 2001, up 40% sequentially from the third quarter 2001 and down 78% from the fourth quarter of 2000. Net loss was $14.6 million, or $0.70 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 with a net loss of $14.4 million, or $0.69 for the third quarter of 2001, and net income of $10.1 million, or $0.49 per share for the fourth quarter of 2000. For the year 2001, revenue was $84.7 million, down 62% from year 2000. Net loss for year 2001 was $42.5 million, or $2.03 per diluted share before a non-recurring tax adjustment of $15.6 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of the Company's deferred tax asset, and a net loss of $58.1 million, or $2.78 per share after this tax adjustment, compared to net income of $40.4 million, or $1.96 per share for year 2000. At December 31, 2001, the Company had cash, restricted cash 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 of $135.1 million, or $6.41 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, "Business conditions in the semiconductor equipment industry continued to be very poor in the fourth quarter. The record 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. in the semiconductor industry during 2001 caused the equipment industry revenue to decline about 38-40%, with the test and assembly sector impacted more severely with a revenue decline of 65-70% for 2001. Bookings for the US Test and Assembly sector declined approximately 81% for the year. Reflecting this environment, Electroglas bookings came in at $6.2 million for the quarter, up 26% from last quarter, but down 87% from the same quarter last year. For the entire year, bookings declined by 78% from 2000." Continued Wozniak, "During the quarter, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the business conditions, we continued to make excellent progress in positioning Electroglas for the next industry upturn. We announced the formation of EGsoft, a consolidation of our Knights YieldManager, CAD-Navigation, Statware, and SORTmanager software products into a division focused on building software tools for collaborative process management in the semiconductor industry. This is the latest step in a process that began in 1997 to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. Electroglas and improve the value of our hardware products through software. We now have over 120 people working in this division. Recently, we were pleased to also be accepted as the yield management solution at a major semiconductor manufacturer in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). for deployment in six fabs initially.
"In our inspection business, we continued to ship 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. with a record number of machines shipped. Progress included the qualification of the QuickSilver quicksilver: see mercury. (1) (QuickSilver Technology, Inc., San Jose, CA, www.qstech.com) A mobile communications company that specializes in a reconfigurable logic chip for cellphones and PDAs. See adaptive computing. Advanced Image Platform Inspection System in a gold bump application in Japan, integrated with EG probers and also a MEMS (MicroElectroMechanical Systems) Tiny mechanical devices that are built onto semiconductor chips and are measured in micrometers. In the research labs since the 1980s, MEMS devices began to materialize as commercial products in the mid-1990s. application. "In our prober business, we continue to penetrate new accounts with the EG5|300e 300mm prober platform and with leading low-noise parametric See parametric modeling, parametric symbol and PTC. testing capability. "During the current quarter, we are also announcing a plan to move our prober manufacturing from San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. , to Singapore during 2002. Our growing customer base in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. and China, and the opportunity to realize cost savings to better compete in the prober business, make this a very strategic move for Electroglas. The San Jose operation will operate in parallel during much of 2002 as we begin to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale the operation in Singapore. San Jose will continue to focus on new product introduction activities after the transition is complete. "To support our infrastructure, we are also completing conversion to a new Enterprise Resource Planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) system at the end of January. This project was started about nine months ago and has been focused on a rapid implementation." Concluded Wozniak, "The outlook for 2002 continues to be uncertain. While capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. continues to improve slowly and it appears that equipment purchases are below maintenance levels for the semiconductor industry, customers continue to be very cautious. Industry forecasts for the semiconductor industry range from a small growth to as much as 20% growth. Industry forecasts for equipment continue to be negative on a year-to-year basis, but growing throughout 2002. So, we continue to control expenses, manage cash and position Electroglas with the products and infrastructure for the next industry upturn." Electroglas' fourth quarter results conference call will be at 11:00 a.m. PT/2:00 p.m. ET today; the number is 952-556-2826, access code 5750980. A replay will be available from 2:00 p.m. PT/5:00 p.m. ET today through 5:00 p.m. PT/8:00 p.m. ET on January 31. The call in number for the replay is 703-326-3020, access code 5750980. There will be a simultaneous webcast of the conference call, which can be accessed through the Electroglas web site, http://www.electroglas.com. 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 contained in this press release which are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as 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. . Such forward-looking statements include statements relating to the current downturn in the semiconductor industry, industry forecasts, Electroglas' positioning for an industry upturn, current plans to move Electroglas' prober manufacturing to Singapore and the related anticipated cost savings, penetration of new accounts in our prober business and the ERP conversion. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk of adverse changes in global and domestic economic conditions, prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. downturn in the semiconductor and electronics industries, continued downturn or further decrease in customer utilization rates, unforeseen technical difficulties related to the development and manufacture of our products, failure to realize anticipated cost savings from moving manufacturing to Singapore, incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. of unexpected expenses and a failure of our new products to achieve broad market acceptance as a result of competing technologies. Electroglas assumes no obligation to update this information. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Electroglas' business in general, see the risk disclosures in Electroglas' SEC filings, including its most recent 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 December 31, 2000 and its quarterly reports on Form 10-Q Form 10-Q See 10-Q. filed from time to time with the SEC. About Electroglas: Electroglas delivers essential tools for process management to enhance semiconductor manufacturers. The Company's wafer probers The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , inspection systems and software solutions serve as data collection, management and analysis tools that semiconductor manufacturers depend on to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 40 years and has an installed base of more than 15,000 systems. 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.
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarters ended Years ended
December 31, December 31,
--------------------- ----------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Net sales $ 13,210 $ 59,475 $ 84,662 $ 225,529
Cost of sales 12,226 32,588 63,430 118,009
--------- --------- --------- ---------
Gross profit 984 26,887 21,232 107,520
--------- --------- --------- ---------
Operating expenses:
Engineering,
research and
development 7,361 7,406 31,552 28,336
Selling, general
and administrative 9,257 11,005 38,890 42,430
In-process research
and development -- -- 281 --
--------- --------- --------- ---------
Total operating
expenses 16,618 18,411 70,723 70,766
--------- --------- --------- ---------
Operating income
(loss) (15,634) 8,476 (49,491) 36,754
Interest income 1,659 2,728 7,639 9,976
Other income
(expense), net 114 (111) 214 (403)
--------- --------- --------- ---------
Income (loss) before
income taxes (13,861) 11,093 (41,638) 46,327
Provision for income
taxes 739 965 16,431 3,854
--------- --------- --------- ---------
Income (loss) before
cumulative effect
of change in
accounting principle (14,600) 10,128 (58,069) 42,473
Cumulative effect of
change in accounting
principle, net of
$0 tax -- -- -- (2,029)
--------- --------- --------- ---------
Net income (loss) $ (14,600) $ 10,128 $ (58,069) $ 40,444
========= ========= ========= =========
Basic net income
(loss) per share:
Income (loss) before
cumulative effect
of change in
accounting principle $ (0.70) $ 0.49 $ (2.78) $ 2.06
Cumulative effect of
change in accounting
principle -- -- -- (0.10)
Net income (loss) $ (0.70) $ 0.49 $ (2.78) $ 1.96
========= ========= ========= =========
Diluted net income
(loss) per share:
Income (loss) before
cumulative effect
of change in
accounting principle $ (0.70) $ 0.49 $ (2.78) $ 2.01
Cumulative effect of
change in accounting
principle -- -- -- (0.09)
Net income (loss) $ (0.70) $ 0.49 $ (2.78) $ 1.92
========= ========= ========= =========
Shares used in basic
calculations 20,950 20,738 20,910 20,616
========= ========= ========= =========
Shares used in diluted
calculations 20,950 20,842 20,910 21,104
========= ========= ========= =========
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
December 31, December 31,
----------- -----------
2001 2000
-------- --------
(Unaudited) (1)
Assets
Current assets:
Cash and short-term investments $ 86,784 $164,473
Accounts receivable, net 11,883 53,324
Inventories 40,249 32,751
Prepaid expenses and other current
assets 1,572 8,513
-------- --------
Total current assets 140,488 259,061
Restricted cash 48,300 --
Equipment and leasehold improvements,
net 16,100 13,418
Other assets 8,813 18,951
-------- --------
Total assets $213,701 $291,430
======== ========
Liabilities and stockholders' equity
Current liabilities:
Short-term borrowings $ 1,001 $ 1,232
Accounts payable 3,461 17,929
Accrued liabilities 16,829 24,271
-------- --------
Total current liabilities 21,291 43,432
Non-current liabilities 12,594 13,969
Stockholders' equity 179,816 234,029
-------- --------
Total liabilities and stockholders'
equity $213,701 $291,430
======== ========
(1) The information in this column was derived from the Company's
audited consolidated financial statements for the year ended
December 31, 2000. Certain amounts have been reclassified to
conform with the current year presentation.
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