Therma-Wave, Inc. Announces Fourth Fiscal Quarter and Record Fiscal Year 2001 Financial Results.Business Editors/High-Tech WritersFREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--April 26, 2001 Therma-Wave, Inc., (Nasdaq:TWAV) a worldwide leader in the development, manufacture and sale of process control 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. systems used in the manufacture of semiconductors, reported financial results for the fourth fiscal quarter and fiscal year 2001. The results reflect the Company's adoption of the SEC's Staff Accounting Bulletin on Revenue Recognition known as SAB SAB Spontaneous abortion. See Abortion. 101. Therefore, the Company's financial results are being reported based on both historical accounting methods as pro-forma and under the SAB 101 method. On a pro-forma basis, fourth fiscal quarter revenues were $54.8 million. Net income was $11.2 million, representing 20.4% of revenue or $0.45 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, before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges. Fiscal year revenues totaled a record $204 million and net income before one-time charges was $41.6 million or $1.65 per diluted share. Fourth quarter revenues decreased by 4.3% compared to the third fiscal quarter and increased 49.6% compared to the fourth quarter of fiscal 2000. For the full fiscal year, revenues increased by over 76% compared to $115.7 million in fiscal 2000. Under SAB 101, revenues for the fourth fiscal quarter were $53.8 million with net earnings of $0.19 per share on a fully diluted basis. For the fiscal year ended March 31, 2001, revenues were $198.2 million with net earnings of $1.02 per fully diluted share. Pro-forma gross margin decreased to 47.9% in the fourth quarter, from 51% in the third quarter and 50.8% in the same quarter a year ago. The decrease in gross margins is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to product mix and to the decrease in revenues without a corresponding decrease in overhead costs overhead costs see fixed costs. . Pro-forma operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $10.3 million before one-time charges and $8.6 million net of those charges, compared to $12.0 million in the third quarter and compared to $5.4 million in the fourth quarter of fiscal 2000. Both the pro-forma and SAB 101 net earnings were reduced by one-time charges for accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. 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 costs and cost of a settlement of legal disputes with KLA-Tencor Corporation during the fourth quarter of 2001. The total of these charges was $4.7 million dollars. In both cases, these charges will reduce Company costs going forward. The Company also had a one-time charge of $3.5 million in the fourth fiscal quarter of 2000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a consulting termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. . 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. at the end of the quarter declined $39.6 million from $96.9 million at the end of the third fiscal quarter. The decline was a result of order cancellations and low new bookings during the quarter, due to the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. of business in the industry. Nonetheless, the Company reported bookings for 300mm tools represented approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30% of new orders. These tools are expected to ship in the second and third fiscal quarters of fiscal year 2002. Martin Schwartz Schwartz is a Canadian spices brand. It is also a common surname and may refer to:
Although landmark preservation laws vary by city and state, they have the same basic purpose: to keep landmarks as close year for Therma-Wave and the Company has made excellent progress on many strategic fronts. We had record revenues for the year and according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. recent Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. reports, we have captured approximately 37% of the market. This means that we hold the leading market share position for thin film metrology in the industry." "We ramped up our 300mm business in 2000, and believe we are in a position to become the dominant supplier in some of the most advanced 300mm fabs in the US and Asia. Beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the of our new Meta-Probe X metals measurement product continues to make excellent progress. We are also very excited about our new critical dimension measurement system using Opti-Probe that made a successful market entry and which we believe has tremendous potential for the Company." "However," continued Mr. Schwartz, "the industry is clearly experiencing less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. conditions now, compared to a year ago. As mentioned in our last conference call, we have initiated steps to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the effects of the current industry and economic outlook.
During March, we began eliminating all but critical overtime Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:
v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. our pay increases for six months." "Visibility for the next few quarters continues to be unclear, but we are planning for a significantly reduced order rate and a sharp drop off in shipments. Current quarter revenues will range from 30% to 40% below last quarter with net income in the range of 4% to 10% of revenues. For this calendar year, we anticipate a decrease in revenues compared with calendar year 2000 in the range of 20% to 25%. We estimate, at this time, that we can remain profitable throughout the year. "Despite the 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. industry weakness, we are still very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about Therma-Wave's future. We are entering this 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. with a very strong balance sheet, including over $75 million in cash. This leaves us fully capable of weathering the downturn and continuing all of our vital new product programs, readying us for the inevitable upturn." Mr. Schwartz also announced that the Therma-Wave Board of Directors has approved the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 1 million shares of the Company's outstanding shares of common stock on the open market, in privately negotiated transactions, block trades and otherwise, from time to time depending on market and business conditions, over the next eighteen months. The Company had approximately 24 million shares of common stock outstanding as of March 31, 2001. The Company will fund these purchases from its existing cash and repurchased shares will be entered into Treasury Stock to be used for various purposes, including filling stock option exercises and Employee Stock Purchase Plan requirements. Therma-Wave, Inc. will be hosting a conference call to discuss financial results April 26, 2001 at 4:30 pm Eastern. The call will be available via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.thermawave.com. Replays of the call will be available until May 10, 2001. Replays may be accessed via the Internet at www.thermawave.com. 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. as that term is defined in the Private Securities Reform Act of 1995 which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements. Such statements relating to our business strengths 300mm business 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 and expectations, critical dimension measurement system's tremendous potential, the financial impact of steps that we are implementing to mitigate effects of current industry and economic outlook, the estimated decreases in revenues and earnings compared to prior periods, our ability to weather the downturn and the continuation continuation - continuation passing style of new product programs, estimate that we will remain profitable throughout the year, impact of current industry conditions on the value for shareholders and customers, and trends in our financial performance are based on current expectations. Such statements are subject to risks, uncertainties, and changes in condition, particularly those related to industry performance, and other risks, some of which are detailed in documents filed with the Securities and Exchange Commission, including specifically Exhibit 99.1 to the Company's 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 March 31, 2000 and subsequent Form 10-Qs Form 10-Q See 10-Q. . The Company undertakes no obligation to update the information in this press release.
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(Unaudited)
SAB 101 Pro-Forma
Three Months Ended Three Months Ended
March 31, March 31, March 31,
2001 2001 2000
----------------------------------------
Net revenues $ 53,759 $ 54,834 $ 36,648
Cost of revenues 29,280 28,542 18,019
-------- -------- --------
Gross margin 24,479 26,292 18,629
Operating Expenses:
Research and development 8,405 8,405 6,965
Selling, general and administrative 9,270 9,270 6,282
-------- -------- --------
Total operating expenses 17,675 17,675 13,247
-------- -------- --------
Operating income 6,804 8,617 5,382
Other income (expense) (1,733) (1,733) (4,831)
Income before provision
for income taxes 5,071 6,884 551
Provision for income taxes 327 413 -
-------- -------- --------
Income before extraordinary charge 4,744 6,471 551
Extraordinary charge - - (18,404)
-------- -------- --------
Net income (loss) 4,744 6,471 (17,853)
Accretion of preferred stock dividend - - 216
-------- -------- --------
Net income (loss) available to
common stockholders $ 4,744 $ 6,471 $(18,069)
======== ======== ========
Basic income (loss) per share:
Income before extraordinary
charge $ 0.20 $ 0.27 $ 0.02
Extraordinary charge - - (1.02)
-------- -------- --------
Net income (loss) per share $ 0.20 $ 0.27 $ (1.00)
======== ======== ========
Diluted income (loss) per share:
Income before extraordinary
charge $ 0.19 $ 0.26 $ 0.02
Extraordinary charge - - (0.89)
-------- -------- --------
Net income (loss) per share $ 0.19 $ 0.26 $ (0.87)
======== ======== ========
Weighted average number of
shares outstanding:
Basic 23,568 23,568 18,086
Diluted 24,810 24,810 20,782
Pro-forma net income (loss)(a)
Pro-forma net income (loss)
per share - diluted 0.38 0.45 (0.70)
Weighted average number of
shares outstanding - diluted 24,810 24,810 20,782
(a) Excludes severance charge, lawsuit settlement and other one-time
charge
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(Unaudited)
SAB 101 Pro-Forma
Year Ended Year Ended
March 31, March 31, March 31,
2001 2001 2000
------------------------------------
Net revenues $198,199 $203,993 $115,679
Cost of revenues 101,421 102,076 60,320
-------- -------- --------
Gross margin 96,778 101,917 55,359
Operating Expenses:
Research and development 33,881 33,881 21,748
Selling, general and
administrative 29,939 29,939 20,829
-------- -------- --------
Total operating expenses 63,820 63,820 42,577
-------- -------- --------
Operating income 32,958 38,097 12,782
Other income (expense): 1,196 1,196 (14,933)
Income (loss) before provision
for income taxes 34,154 39,293 (2,151)
Provision for income taxes 2,025 2,357 -
-------- -------- --------
Income (loss) before cumulative
effect of change in accounting
principle and extraordinary charge 32,129 36,936 (2,151)
Cumulative Effect of change in
revenue recognition principle
(SAB 101) (6,287) - -
Extraordinary charge - - (18,404)
-------- -------- --------
Net income (loss) 25,842 36,936 (20,555)
Accretion of preferred
stock dividend - - 942
-------- -------- --------
Net income (loss) available
to common stockholders $ 25,842 $ 36,936 $(21,497)
======== ======== ========
Basic income (loss) per share:
Income (loss) before
cumulative effect of change
in accounting principle and
extraordinary charge $ 1.37 $ 1.58 $ (0.25)
Cumulative Effect of change in
revenue recognition principle
(SAB 101) (0.27) - -
Extraordinary charge - - (1.47)
-------- -------- --------
Net income (loss) per share $ 1.10 $ 1.58 $ (1.72)
======== ======== ========
Diluted income (loss) per share:
Income (loss) before
cumulative effect of change
in accounting principle and
extraordinary charge $ 1.27 $ 1.46 $ (0.25)
Cumulative Effect of change in
revenue recognition principle
(SAB 101) (0.25) - -
Extraordinary charge - - (1.47)
-------- -------- --------
Net income (loss) per share $ 1.02 $ 1.46 $ (1.72)
======== ======== ========
Weighted average number of
shares outstanding:
Basic 23,444 23,444 12,511
Diluted 25,278 25,278 12,511
Pro-forma net income (loss)(a)
Pro-forma net income (loss)
per share - diluted 1.21 1.65 (1.44)
Weighted average number of
shares outstanding - diluted 25,278 25,278 12,511
(a) Excludes severance charge, lawsuit settlement and other one-time
charge
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
SAB 101 Pro-Forma
March 31, March 31,
2001 2001 2000
---------------------------------
Assets
Current assets:
Cash and short-term investment $ 75,575 $ 75,575 $ 75,200
Accounts receivable, net 43,348 43,348 24,400
Inventories 47,181 47,181 23,689
Other current assets 3,925 3,117 1,720
-------- -------- --------
Total current assets 170,029 169,221 125,009
Property and equipment, net 14,478 14,478 4,999
Other assets 6,684 6,684 3,686
-------- -------- --------
Total assets $191,191 $190,383 $133,694
======== ======== ========
Liabilities and stockholders' equity
Current Liabilities:
Accounts payable 12,547 12,547 10,111
Deferred revenue 17,096 1,887 732
Other current liabilities 30,537 33,844 20,057
-------- -------- --------
Total current liabilities 60,180 48,278 30,900
Long term debt and other 1,929 1,929 3,309
Stockholders' equity 129,082 140,176 99,485
-------- -------- --------
Total liabilities and
stockholders' equity $191,191 $190,383 $133,694
======== ======== ========
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