Electroglas Reports Results for Transition Periods Ended May 31, 2005; Results Follow Previously Announced Change in Fiscal Year.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. -- Electroglas, Inc. (Nasdaq:EGLS EGLS Eastside German Language School (Issaquah, WA) ), a leading supplier of 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 and test handling solutions for the semiconductor industry, today reported its operating results for the two and five month transition periods ended May 31, 2005. On July July: see month. 6, 2005, the Company reported that the Board of Directors of Electroglas, Inc. had approved a change in the Company's fiscal year end from December December: see month. 31st to May 31st. The new fiscal year will begin on June June: see month. 1st and end on May 31st of each year, effective with the year ended May 31, 2006. The transition periods from January January: see month. 1, 2005 to May 31, 2005 and April 3, 2005 to May 31, 2005 are considered stub A small software routine placed into a program that provides a common function. Stubs are used for a variety of purposes. For example, a stub might be installed in a client machine, and a counterpart installed in a server, where both are required to resolve some protocol, remote procedure periods for financial reporting purposes. Revenue for the two and five month transition periods of fiscal 2005 ended May 31, 2005 was $3.5 million and $11.2 million, respectively. This represented a 64% and 56% decrease from $9.7 million and $25.7 million, respectively, for the same periods in 2004. Net loss for the two and five month periods was $4.9 million and $12.4 million, or a loss of $0.23 per share and a loss of $0.57 per share, respectively, compared with net losses of $3.4 million and $5.9 million for the same periods in 2004. "If Electroglas included the results for the month of June 2005 with these April and May numbers, we would have been within the range of guidance previously given in our last earnings call," noted Keith Keith may refer to: People with the given name Keith:
"During the first five months of 2004, the industry and Electroglas were both seeing substantial positive momentum. During the same period in 2005 (our transition period), the industry was going in a negative direction and we were just rolling out our new products," said Barnes. "We experienced continued and substantial order and revenue declines in the first five months of 2005, similar to many other back-end semiconductor equipment companies. During this period we experienced push-outs and delays for orders we hope will be shipped in fiscal 2006. We believe this is the trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. period for calendar 2005. The back-end book-to-bill data appears to be stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. and customer activity is increasing again." Barnes added, "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our new 4090u+ 200mm product and our new flagship EG6000 300mm prober have received good customer responses in recent evaluations. Further, we start our new fiscal 2006 with a strong cash balance due in part to the sale of our San Jose campus, and we have substantially reduced our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a result of our continued emphasis on expense control." First Fiscal Quarter 2006 Business Outlook Electroglas expects revenue for the first fiscal quarter of 2006, from June 1, 2005 to September 3, 2005, to be in the range of $8 million to $10 million. The Company also anticipates that quarterly revenues will improve through the fiscal year as the Company's new products are adopted by new and existing customers. Investor Conference Call Details Electroglas' management plans to hold a teleconference on its transitional period results, along with its outlook for the first fiscal quarter of 2006, today beginning at 2:00 p.m. PT, 5:00 p.m. ET. Interested parties who wish to audit the teleconference may call (719) 457-2734, access code 5536504, and are asked to do so approximately 10 minutes before the teleconference is scheduled to begin. No reservations are required. The teleconference will be available via webcast from the company's website at www.electroglas.com. In addition, a telephonic replay will be available through July 14, 2005 at (719) 457-0820, access code 5536504. About Electroglas Electroglas is a supplier of innovative probers, prober-based test handlers handlers persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. , test floor management software and services that improve the overall effectiveness of semiconductor manufacturers' wafer and device testing. Headquartered in 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. , the company has been a leading equipment supplier to the semiconductor industry for over four decades, and has shipped more than 15,000 systems worldwide. Electroglas' stock trades on the NASDAQ National Market under the symbol "EGLS." More information about the company and its products is available at www.electroglas.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This news release contains 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. including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the current and expected business condition in the semiconductor industry including decreases in orders and revenue and the company's belief that this may be a trough for calendar 2005; Electroglas' business outlook; expected realization in fiscal 2006 of previously delayed orders; new product introduction and market acceptance; expectations regarding revenue in the first fiscal quarter of 2006; anticipated improvements in quarterly revenues; the expected stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of back-end book-to-bill; and increased customer activities. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk of adverse changes in global and domestic economic conditions that could impact the semiconductor industry and result in our customers decreasing capital expenditures; a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. 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 and electronics industries; a downturn or decrease in customer utilization rates; unforeseen technical difficulties related to the development and manufacture of Electroglas' 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, 2004 and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. filed from time to time with the SEC.
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(unaudited)
Two months ended Five months ended
----------------- ------------------
May 31, May 29, May 31, May 29,
2005 2004 2005 2004
-------- -------- --------- --------
Net sales $3,485 $9,681 $11,223 $25,729
Cost of sales 3,108 7,052 10,114 16,465
-------- -------- --------- --------
Gross profit 377 2,629 1,109 9,264
Gross profit percentage 11% 27% 10% 36%
Operating expenses:
Engineering, research and
development 2,133 2,717 5,524 6,728
Sales, general and
administrative 2,771 2,887 7,038 7,346
Impairment charges 86 - 86 -
-------- -------- --------- --------
Total operating expenses 4,990 5,604 12,648 14,074
-------- -------- --------- --------
Operating loss (4,613) (2,975) (11,539) (4,810)
Interest income (expense), net (179) (382) (499) (890)
Other income (expense), net (132) (65) (350) (180)
-------- -------- --------- --------
Loss before income taxes (4,924) (3,422) (12,388) (5,880)
Provision (benefit) for income
taxes 1 15 5 60
-------- -------- --------- --------
Net loss $(4,925) $(3,437) $(12,393) $(5,940)
======== ======== ========= ========
Basic and diluted net loss per
share $(0.23) $(0.16) $(0.57) $(0.28)
======== ======== ========= ========
Shares used in basic and diluted
calculations 21,775 21,492 21,762 21,475
======== ======== ========= ========
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
May 31, Dec. 31,
2005 2004
(Unaudited) (1)
----------- --------
ASSETS
Current assets:
Cash and short-term investments $46,929 $31,696
Accounts receivable, net 5,670 9,402
Inventories 16,983 15,161
Assets held for sale - 28,305
Prepaid expenses and other current assets 3,034 2,099
----------- --------
Total current assets 72,616 86,663
Property, plant and equipment, net 6,136 4,240
Other assets 5,785 5,276
----------- --------
Total assets $84,537 $96,179
=========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,163 $6,172
Accrued liabilities 11,067 10,686
----------- --------
Total current liabilities 18,230 16,858
Convertible subordinated notes 32,413 34,123
Non-current liabilities 1,462 536
Stockholders' equity 32,432 44,662
----------- --------
Total liabilities and stockholders' equity $84,537 $96,179
=========== ========
(1) The December 31, 2004 condensed consolidated balance sheet was
derived from our audited consolidated financial statements.
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