Integrated Process Equipment Corp. Announces Fiscal 1998 Results.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. , California--(BUSINESS WIRE)--Aug. 4, 1998--Integrated Process Equipment Corp. (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 : IPEC IPEC International Programme on the Elimination of Child Labour IPEC International Pharmaceutical Excipients Council IPEC International Power Electronics Conference IPEC International Power Engineering Conference IPEC Integrated Petroleum Environmental Consortium ), a leading supplier of chemical mechanical planarization (CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information ) equipment to the worldwide semiconductor industry, today announced financial results for its fourth quarter and fiscal year ended June June: see month. 30, 1998. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our pre-announcement, revenue for the fourth quarter of fiscal 1998 was $38.5 million, compared to $41.3 million in the quarter ending March 31, 1998 and to $42.6 million in the prior-year period. The fourth quarter results were consistent with the analysts' consensus except for the previously announced non-recurring charge of $11.5 million and a change in the Company's tax provision. In view of current and expected business conditions, IPEC fully reserved its net deferred tax asset. As a result, in the fourth quarter the Company recognized a $25.9 million, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for deferred tax expense. As previously announced, during the quarter IPEC recorded non-recurring charges of $11.5 million for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when compensation, inventory adjustments and additional retrofit ret·ro·fit v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in costs for newly available performance enhancing modifications to installed CMP tools. Inclusive of inclusive of prep. Taking into consideration or account; including. these charges, the loss for the quarter was $42.8 million or $2.42 per share. This compares to net income of $4.3 million, or $0.24 per share, for the prior-year period. Revenue for the year ended June 30, 1998 was $189.0 million, a 31% increase over revenue in the prior-year period, which was $144.7 million. For the year ended June 30, 1998, IPEC posted pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $5.9 million, exclusive of the $11.5 million charge. This compares to pre-tax income from continuing operations in the prior year of $9.5 million exclusive the $17.6 million program discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. charge. After a net loss of $10.6 million from the disposal of IPEC Clean in the Company's second fiscal quarter and the fourth quarter charges described above, the Company recorded a net loss of $42.5 million (approximately 85% non-cash), or $2.41 per share for the year ended June 30, 1998. In the year ended June 30, 1997, IPEC reported net income from continuing operations exclusive of charges, of $6.2 million, or $0.40 per share. After charges of $28.6 million from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , a $17.6 million program discontinuance charge and a $400,000 withdrawn offering charge, the Company reported a total net loss of $2.18 per share for the year ended June 30, 1997. John S. Hodgson Hodgson is the surname of:
Roger D. McDaniel, president and chief executive officer, commented: "Despite the business conditions in our industry, we made some significant accomplishments in Fiscal 1998. During the year we had a more than 100% increase in shipments of our next-generation high throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. tools over fiscal 1997. This increase in high throughput tool shipments resulted in a 31% increase in revenue for fiscal 1998. In view of the competitive landscape in the CMP (chemical mechanical planarization) market, we will continue our substantial investments in research and development. With this investment, we have made further gains in our technology leadership in copper CMP, (including our participation in the Novellus Copper Alliance), and in tools for 300 mm applications. We have also developed additional metal and oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. processes for our existing high-throughput tools. We are pleased with these technological achievements during the year, and believe they have enhanced our competitive position. Mr. McDaniel continued: "At this time we will focus primarily on critical path development of our new products. When industry growth resumes, we will then be in a position to accelerate the completion of these products and offer state-of-the-art solutions. Only by continuing these investments in our future will we be in a position to enhance our position as the market and technology leader in CMP when market growth resumes." Integrated Process Equipment Corp. is a leading supplier of chemical mechanical planarization systems used in the manufacture of advanced semiconductors. IPEC Planar manufactures CMP equipment and CMP-related products. IPEC Precision manufactures advanced plasma-assisted etching etching, the art of engraving with acid on metal; also the print taken from the metal plate so engraved. In hard-ground etching the plate, usually of copper or zinc, is given a thin coating or ground of acid-resistant resin. and metrology metrology Science of measurement. Measuring a quantity means establishing its ratio to another fixed quantity of the same kind, known as the unit of that kind of quantity. equipment. Note to Editors: This press 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the effect of past cost reductions, acceptance of next-generation CMP equipment, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and near term industry growth, h competitive positions and research and development efforts. Actual results may vary from projected results. Cost reductions may not be sufficient if industry conditions do not improve. Next-generation equipment may not be widely accepted and the timing of such acceptance is uncertain. Alternative technologies may become available and adversely affect acceptance of IPEC's next-generation products. Research and development efforts may be delayed, result in higher than forecasted costs and may not result in products or processes desired by customers. See the Company's quarterly and annual reports filed with the SEC for additional risks affecting the Company. -0-
INTEGRATED PROCESS EQUIPMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data)
(unaudited)
Three Months Ended Fiscal Year Ended
June 30, June 30,
1998 1997 1998 1997
Revenue $ 38,545 $ 42,600 $ 189,012 $ 144,688
--------- --------- --------- ---------
Costs and expenses:
Cost of
goods sold 33,620 23,117 121,581 82,842
Research and
development 9,745 6,415 33,501 23,951
Selling, general
and administrative 10,737 6,685 37,036 27,563
Program
discontinuance
charge -- -- -- 17,601
--------- --------- --------- ---------
Operating
income (loss) (15,557) 6,383 (3,106) (7,269)
Other
expense
(income), net 1,336 116 2,447 864
--------- --------- --------- ---------
Income (loss)
from continuing
operations
before income taxes (16,893) 6,267 (5,553) (8,133)
Income tax
expense (benefit) 21,965 1,893 26,128 (2,951)
--------- --------- --------- ---------
Income (loss)
from continuing
operations (38,858) 4,374 (31,681) (5,182)
Discontinued
operations:
Loss from
operations
IPEC Clean,
net of taxes -- -- -- (3,614)
Loss on
disposal of
IPEC Clean,
net of taxes (3,914) -- (10,578) (24,950)
--------- --------- --------- ---------
Net loss
from discontinued
operations (3,914) -- (10,578) (28,564)
--------- --------- --------- ---------
Net income
(loss) (42,772) 4,374 (42,259) (33,746)
Dividends on
preferred stock 61 61 244 284
Net income
(loss)
attributable to common --------------------------------------------
stockholders $ (42,833) $ 4,313 $ (42,503)$ (34,030)
========= ========= ========= =========
Earnings (loss)
from continuing
operations per
common share:
Basic $ (2.20) $ 0.25 $ (1.81)$ (0.35)
========= ========= ========= =========
Diluted $ (2.20) $ 0.24 $ (1.81)$ (0.35)
========= ========= ========= =========
Net earnings
(loss) per
common share:
Basic $ (2.42) $ 0.25 $ (2.41)$ (2.18)
========= ========= ========= =========
Diluted $ (2.42) $ 0.24 $ (2.41)$ (2.18)
========= ========= ========= =========
Shares used
in basic per
share calculation 17,719 17,039 17,603 15,623
========= ========= ========= =========
Shares used
in diluted per
share calculation 17,719 18,305 17,603 15,623
========= ========= ========= =========
INTEGRATED PROCESS EQUIPMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, June 30,
1998 1997
Assets:
Cash and cash equivalents $ 14,098 $ 40,656
Short term investments 70,032 --
Accounts receivable 43,837 45,590
Inventories 67,049 44,729
Net assets of discontinued operations -- 2,463
Other current assets 2,686 12,393
-------- --------
Total current assets 197,702 145,831
Property, plant and equipment, net 34,883 25,462
Other assets 13,303 26,772
-------- --------
Total assets $245,888 $198,065
======== ========
Liabilities and stockholders' equity:
Total current liabilities $ 33,526 $ 46,735
Long-term debt, less current portion 117,078 19,546
Stockholders' equity 95,284 131,784
-------- --------
Total liabilities and stockholders' equity $245,888 $198,065
======== ========
CONTACT: Integrated Process Equipment Corp., Phoenix
John S. Hodgson or Lisa Lyscio, 602-517-7200
602-517-6016 (fax)
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