PMT ANNOUNCES FOURTH-QUARTER AND YEAR-END RESULTS.
PMT's consolidated 1996 financial results include the operating results of Electrotech Ltd. and Electrotech Equipments Ltd. (Electrotech), which were acquired on Nov. 15, 1996. Electrotech was acquired for an aggregate of $75 million cash and 5.6 million shares of newly issued PMT common stock, and has been accounted for as a purchase.
Consolidated revenues for the fourth quarter ended Dec. 31, 1996, were $14,608,953, as compared with $7,292,388 reported for the fourth quarter of 1995, including $8,781,000 related to Electrotech for the six-week period from the date of acquisition to Dec. 31, 1996. Revenues for the year ended Dec. 31, 1996, were $42,227,245, compared with revenues of $21,289,713 for the same period last year.
Orders booked in the fourth quarter were approximately $23 million, including Electrotech orders.
PMT reported a consolidated net loss of $97,597,264, or $8.40 per share, for the fourth quarter in 1996, which includes a one-time acquisition-related in-process R&D charge of $86,028,748, compared with net income of $923,497, or 10 cents per share, for the fourth quarter of 1995.
PMT recorded a consolidated net loss of $94,474,754, or $10.03 per share, for the year ended Dec. 31, 1996, as compared with net income of $117,885, or 2 cents per share, for the year ended Dec. 31, 1995.
The consolidated operating loss for the fourth quarter and year ended Dec. 31, 1996, reflects reduced margins due to the allocation of a portion of the purchase price (as required under Accounting Principles Board Opinion No. 16) to step up Electrotech's inventory on hand at Nov. 15, 1996.
This stepped-up inventory was partially charged to cost of sales during the six-week period ended Dec. 31, 1996, as such inventory was sold. Other acquisition-related charges such as the stepped-up inventory charge are also expected to unfavorably impact operating results during the first quarter of 1997.
Consolidated operating results were also unfavorably impacted by: the amortization of intangible assets acquired in connection with the acquisition of Electrotech ($451,975); higher interest costs associated with the borrowings under a 7-1/8 percent convertible debt offering of $86,250,000 principal amount of convertible subordinated notes which were offered to fund part of the purchase price for the acquisition of Electrotech; a $3,392,640 charge during the fourth quarter of 1996 to bad-debt expense as a result of increasing the reserve for doubtful accounts receivable; and inventory write-downs during the fourth quarter.
``We are very pleased to have completed the acquisition of Electrotech, and we are now positioned for .25 micron production expansion in the major segments of Etch, PVD and CVD,'' said Greg Campbell, PMT's chief executive officer. ``We are encouraged to see the order rate increasing and believe our prospects for growth in the second half of 1997 are good.''
Delivery of three production systems to Hyundai highlighted 1996's results for PMT's MORI high-density plasma (HDP) etch system. In addition, PMT received repeat orders in 1996 from Texas Instruments and LG Semicon, as well as a first system order from IBM, LSI Logic, Sharp and Daewoo.
To date, the total number of companies that have purchased PMT's MORI HDP etch systems for R&D and production now exceeds 12.
Flowfill chemical vapor deposition (CVD) saw increased market acceptance, with first equipment shipped to several customers by Electrotech prior to the acquisition. Highlights of 1996 include the discovery of a low dielectric constant silicon dioxide material that the company believes has shown promise of increasing the speed of advanced logic devices.
This discovery has resulted in an increase in demand from semiconductor logic manufacturers -- many of which have already begun working with the company.
Eighteen Sigma PVD systems were sold during 1996, with approximately half that number of Forcefill modules shipping to customers such as Siemens and Texas Instruments -- the majority of which were sold by Electrotech prior to the acquisition. The total number of companies that have purchased Forcefill systems for R&D and production qualification is steadily increasing.
PMT provides a broad line of advanced manufacturing systems that are used for three of the four major processing steps in the manufacture of a semiconductor device: etch, physical vapor deposition (PVD) and chemical vapor deposition (CVD).
The company's corporate headquarters are located in Chatsworth, north of Los Angeles. Manufacturing is conducted in Newport, Wales, and Chatsworth, Calif. PMT operates worldwide through wholly owned subsidiaries in the United Kingdom, Japan, Germany, France and South Korea.
Safe-harbor statement: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, the factors that could cause actual results to differ materially include the following: product demand and market acceptance, the timing and success of new-product introductions, business issues and growth within the semiconductor-manufacturing industry, competitive factors such as rival etch and deposition technologies, and availability of key supplier components at reasonable prices. For a description of risks attendant to PMT and the semiconductor-manufacturing industry, see the company's Securities and Exchange Commission filings. -0-
PLASMA & MATERIALS TECHNOLOGIES INC. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1996 1995 1996 1995 Revenues: Product sales $13,534,653 $7,292,388 $39,385,818 $20,889,713 License revenues -- -- -- 400,000 Contract revenues 1,074,300 -- 2,841,427 -- 14,608,953 7,292,388 42,227,245 21,289,713 Costs and expenses: Cost of goods sold 11,605,752 3,842,514 24,596,756 11,143,716 Research and development 4,695,839 1,371,381 10,145,185 4,566,853 Selling, general and administrative 9,496,563 1,671,013 16,621,716 5,943,702 Amortization of intangibles 451,975 -- 451,975 -- In process technology 86,028,748 -- 86,028,748 -- 112,278,877 6,884,908 137,844,380 21,654,271 Income (loss) from operations (97,669,924) 407,480 (95,617,135) (364,558) Other: Interest income (expense), net (1,279,483) 516,017 (192,785) 483,243 Income (loss) before income tax provision (98,949,407) 923,497 (95,809,920) 118,685 Income tax provision (1,352,143) -- (1,335,166) 800 Net income (loss) $(97,597,264) $ 923,497 $(94,474,754) $ 117,885 Net income (loss) per share: Primary ($8.40) $0.10 ($10.03) $0.02 Fully diluted ($8.40) $0.10 ($10.03) $0.02 Total shares used in per share calculations: Primary 11,620,373 9,043,861 9,420,020 6,593,311 Fully diluted 11,620,373 9,042,814 9,420,020 6,593,311
CONTACT: Plasma & Materials Technologies Inc., Chatsworth
Frederick Reynolds, 818/886-8000, ext. 155