Electroglas Reports Results for Second Quarter 2002.Business Editors Electroglas, Inc. (Nasdaq:EGLS EGLS Eastside German Language School (Issaquah, WA) ), a leading supplier of process management tools for the semiconductor industry, today reported operating results for its second quarter ended June June: see month. 30, 2002. Revenue was $20.5 million for the second quarter, up 76% from the first quarter, and down 6% from the second quarter of 2001. Net loss was $17.8 million, or $0.85 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 loss of $14.8 million for the first quarter of 2002 and a net loss of $26.9 million, or $1.29 per share, for the second quarter of 2001. Results for the second quarter of 2002 included a $0.4 million charge related to the Company's announced move of its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. to Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). . At June 30, 2002, 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 $132.3 million, or $6.28 per share. Commented Curt Wozniak, 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, "While revenue levels continue to be low during this cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. 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. , we saw slow but continued improvement in business conditions for the semiconductor and semiconductor equipment markets in the second quarter. Bookings for Electroglas were $13.8 million, up 16.5% from the first quarter. While customers in general are now operating at improved rates of 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. , they are also somewhat hesitant hes·i·tant adj. Inclined or tending to hesitate. hes  i·tant·ly adv. to commit new capacity
additions until they see more pronounced improvement in the overall
economy and market demand. We expect to see these conditions continue
throughout the remainder of 2002."
Continued Wozniak, "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the difficult environment, we continue to make significant improvements in our technology and operational position. We are pleased to confirm that our new manufacturing facility in Singapore shipped the first production units in July, only seven months since the move announcement last January. In addition, at the industry show, SEMICON/West, taking place in both 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. this week and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden next week, we are making numerous new product and partnership announcements. Our Inspection division announced new Automatic Defect defect - bug Classification software for our 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. inspection platform, and a new partnership agreement with Applied Precision of Issaquah, Washington Issaquah (King County]], Washington, United States. The population was 11,212 at the 2000 census. Based on per capita income, one of the more reliable measures of affluence, Issaquah ranks 25th of 522 areas in the state of Washington to be ranked. . Under this agreement, we will distribute its waferWoRx probe mark analysis tool and integrate the results with our Web-based process control software, Sortmanager, to provide customers the ability to truly manage the probe process. Our software division, EGsoft, introduced 40 new application modules for our Sortmanager product and the release of the next generation YieldManager product, 4.0. All of these new products add to our growing arsenal of new technology to position Electroglas for the market upturn." Electroglas' second-quarter results conference call will be held at 11:00 a.m. PT/2:00 p.m. ET today; the number is 706-643-7646. 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 July 25. The call-in number for the replay is 800-642-1687, access code 4751877. International callers should dial 706-645-9291, access code 4751877. 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. This press release contains forward-looking statements including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the current business condition in the semiconductor industry, our ability to take advantage of a semiconductor industry upturn as a result of new products, customer utilization rates and level of customers' commitment to capacity additions, the expected benefits of continued investments in new technologies and the expected benefits from our agreement with Applied Precision. 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, 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, 2001 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)
Three months ended Six months ended
June 30, June 30,
2002 2001 2002 2001
Net sales $ 20,530 $ 21,919 $ 32,200 $ 61,998
Cost of sales 19,267 16,706 30,486 41,630
-------- -------- -------- --------
Gross profit 1,263 5,213 1,714 20,368
-------- -------- -------- --------
Operating expenses:
Engineering, research
and development 8,795 8,026 16,765 16,713
Selling, general
and administrative 10,555 10,115 19,855 20,633
In-process research
and development -- -- -- 281
Restructuring charge 308 -- 668 --
-------- -------- -------- --------
Total operating expenses 19,658 18,141 37,288 37,627
-------- -------- -------- --------
Operating loss (18,395) (12,928) (35,574) (17,259)
Interest income 650 2,016 1,420 4,378
Other income, net (30) (20) 256 22
-------- -------- -------- --------
Loss before income taxes (17,775) (10,932) (33,898) (12,859)
Provision (benefit)
for income taxes 30 15,963 (1,245) 16,194
-------- -------- -------- --------
Net loss $(17,805) $(26,895) $(32,653) $(29,053)
======== ======== ======== ========
Basic and diluted
net loss per share $ (0.85) $ (1.29) $ (1.55) $ (1.39)
======== ======== ======== ========
Shares used in basic
and diluted calculation 21,045 20,889 21,026 20,881
======== ======== ======== ========
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
2002 2001
(Unaudited) (1)
Assets
Current assets:
Cash and short-term investments $ 83,972 $ 86,784
Accounts receivable, net 14,730 12,053
Inventories 35,860 40,249
Prepaid expenses and other
current assets 1,318 1,572
-------- --------
Total current assets 135,880 140,658
Restricted cash 48,300 48,300
Equipment and leasehold improvements,
net 20,387 16,100
Other assets 15,981 8,813
-------- --------
Total assets $220,548 $213,871
======== ========
Liabilities and stockholders' equity
Current liabilities:
Short-term borrowings $ 1,333 $ 1,171
Accounts payable 4,595 3,461
Accrued liabilities 16,216 16,829
-------- --------
Total current liabilities 22,144 21,461
Convertible subordinated notes 35,500 --
Non-current liabilities 14,797 12,594
Stockholders' equity 148,107 179,816
-------- --------
Total liabilities and
stockholders' equity $220,548 $213,871
======== ========
(1) The information in this column was derived from the Company's
audited consolidated financial statements for the year ended December
31, 2001.
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