Therma-Wave Announces Fiscal First Quarter 2005 Financial Results; Revenues in Line with Management Guidance, Gross Margins and Net Loss Top Expectations, Systems Orders Up 35%.FREMONT 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. -- 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 fiscal first quarter 2005 ended June June: see month. 27, 2004. Net revenues for the fiscal first quarter 2005 were $21.2 million, compared to net revenues of $11.9 million for the fiscal first quarter 2004, an increase of $9.2 million or nearly 78 percent year over year. Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , net revenues increased $1.7 million or 8.6 percent from net revenues reported for the fiscal fourth quarter 2004 ended March 28, 2004, in line with the guidance range previously provided by management. The Company recorded a net loss for the fiscal first quarter 2005 of $1.2 million or $(0.03) 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 to a net loss of $9.5 million or $(0.33) per diluted share in the fiscal first quarter 2004. The fiscal first quarter 2005 net loss also improved when compared to the sequential One after the other in some consecutive order such as by name or number. net loss of $1.8 million or $(0.05) per diluted share in the fiscal fourth quarter of 2004. Management's guidance for the fiscal first quarter 2005 forecasted a net loss in the range of ($0.03) to ($0.06) per diluted share, specifically excluding any expense related to variable accounting treatment of stock options. Fiscal first quarter 2005 results include $1.5 million, the equivalent of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. ($0.04) per diluted share, in expenses related to variable accounting treatment for certain stock options. First fiscal quarter 2005 results also included $0.3 million for deferred stock compensation expense related to the Sensys SenSys is the acronym for the ACM Conference on Embedded Networked Sensor Systems About SenSys ACM SenSys is a highly selective, single-track forum for the presentation of research results on systems issues in the area of embedded networked sensors. acquisition and $0.4 million for additional non-cash restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to closed excess facilities. The fiscal first quarter 2004 results included $1.5 million for employee 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 and other costs related to a reduction in workforce and $0.2 million for deferred stock compensation expense. Cash and cash equivalents totaled $21.1 million as of June 27, 2004, compared to $23.9 million as of March 28, 2004. The decline in cash and cash equivalents in the fiscal first quarter 2005 was $2.8 million, in line with management's guidance range. As anticipated, the net reduction in cash this quarter was primarily due to working capital needs to service rising shipment levels and the continued shift toward higher volumes of Therma-Wave's newer advanced products. "Therma-Wave's financial results for the fiscal first quarter of 2005 continued to reflect the positive impacts of growing volume levels, tight spending controls and the sale inventories previously considered to be excess. The combination of these efforts resulted in gross margins exceeding 50 percent this quarter," commented Boris Lipkin Lipkin is a surname and may refer to:
This page or section lists people with the surname Lipkin. , Therma-Wave president and chief executive officer. "Our bottom line improvement was better than our forecast and demonstrates that we are making significant progress towards reaching a sustainable level of profitability, but we still have work to do." Mr. Lipkin continued, "I am also very pleased with our continued order growth. Therma-Wave's book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can for fiscal first quarter 2005 was 1.16, in line with our guidance of 1.0 or better. This represented a 26.8 percent increase in orders and, more importantly, a 35 percent increase in systems orders. At quarter end our 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. was the strongest it has been at any time since the end of our fiscal first quarter 2002 and continues to reflect the confidence of Therma-Wave's customers in our operations and products." Guidance "Even though we expect orders to continue to grow, we anticipate fiscal second quarter 2005 net revenues to increase in a range of 2 percent to 10 percent from the $21.2 million recorded in the fiscal first quarter of 2005. Our booking outlook is strong, and we expect continued order growth and a book to bill of 1 or better. This rise in forecasted order growth builds on the impressive 26.8% increase in our fiscal first quarter as Therma-Wave once again posted a book to bill of better than 1. We anticipate the fiscal second quarter net income/(loss) to be within the range of negative $(0.03) to a profit of $0.01 per diluted share. This guidance excludes any non-cash charges 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 variable accounting treatment of stock options, which we cannot predict. Fiscal second quarter cash usage is expected to be in the range of $3 million to $5 million; however, we believe this will be the last quarter of significant cash usage for the balance of this fiscal year. We expect our fiscal third quarter cash utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be to begin flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. out as our purchases for inventory catch up to the shift in product mix and the growing sector demand curve," concluded Mr. Lipkin. Conference Call Information Therma-Wave, Inc. will hold a conference call to review financial results and ongoing operations at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, Tuesday Tuesday: see week. , July July: see month. 27, 2004. Participating in the call will be Boris Lipkin, president and chief executive officer and Ray Christie Christie can refer to:
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. About Therma-Wave, Inc. Since 1982, Therma-Wave, Inc. has been revolutionizing process control metrology systems through innovative, proprietary products and technologies. The company is a worldwide leader in the development, manufacture, marketing and service of process control metrology systems used in the manufacture of semiconductors. Therma-Wave currently offers leading edge products to the semiconductor manufacturing industry for the measurement of transparent (1) Refers to a change in hardware or software that, after installation, causes no noticeable change in operation. Also known as "feature transparency." Contrast with "seamless integration," which means that an additional component to the system can be added without incurring any , semi-transparent, and opaque thin films for the monitoring of ion implantation Ion implantation A process that utilizes accelerated ions to penetrate a solid surface. The implanted ions can be used to modify the surface composition, structure, or property of the solid material. and for the integration of metrology into semiconductor processing systems. For further information about Therma-Wave, Inc. access the Therma-Wave Web page 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. The words "anticipate," "expect," "expected," and other similar expressions generally identify forward-looking statements. Potential investors are cautioned not to place undue reliance on these forward-looking statements. Such statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our improved outlook for our second quarter of fiscal 2005, our guidance related to expected product orders, revenue, and anticipated loss per diluted share and cash usage are based on current expectations. Such statements are subject to risks, uncertainties, and changes in condition 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 fiscal year ended March 28, 2004. The Company undertakes no obligation to update the information in this press release.
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 27, March 28,
2004 2004
------- -------
ASSETS
Current assets:
Cash and cash equivalents $21,148 $23,899
Accounts receivable, net 16,219 14,772
Inventories 21,109 17,169
Other current assets 1,959 2,075
------- -------
Total current assets 60,435 57,915
Property and equipment, net 4,147 4,564
Other assets 2,704 2,710
------- -------
Total assets $67,286 $65,189
======= =======
LIABILITIES AND STOCKHOLDERS'S EQUITY
Current liabilities:
Accounts payable $ 9,024 $ 7,420
Accrued liabilities 15,630 15,730
Deferred revenues 6,631 6,887
------- -------
Total current liabilities 31,285 30,037
------- -------
Long-term liabilities:
Non-current deferred revenues 1,887 1,815
Other long-term liabilities 1,210 1,073
------- -------
Total long-term liabilities 3,097 2,888
------- -------
Total liabilities 34,382 32,925
------- -------
Stockholders' equity 32,904 32,264
------- -------
Total liabilities and
stockholders' equity $67,286 $65,189
======= =======
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended
------------------------------
June 27, March 28 June 29,
-------- --------- ---------
2004 2004 2003
------- ------- -------
Net revenues $21,151 $19,474 $11,903
Cost of revenues 10,431 11,026 9,071
------- ------- -------
Gross profit 10,720 8,448 2,832
------- ------- -------
Operating expenses:
Research and development 4,379 4,082 4,948
Selling, general and administrative 5,756 6,259 5,529
Restructuring, severance and other 373 (35) 1,484
Stock-based compensation 1,433 (59) 210
------- ------- -------
Total operating expenses 11,941 10,247 12,171
------- ------- -------
Operating loss (1,221) (1,799) (9,339)
Other income (expense) 52 (1) (195)
------- ------- -------
Net loss $(1,169) $(1,800) $(9,534)
======= ======= =======
Net loss per share:
Basic and diluted $ (0.03) $ (0.05) $ (0.33)
Weighted average number of shares
outstanding:
Basic and diluted 35,637 35,480 28,704
Stock-based compensation included in:
Cost of revenues $ 318 $ (63) $ 1
Stock-based compensation excluded from:
Research and development 886 (33) 124
Selling, general and
administrative 547 (26) 86
------- ------- -------
Total operating expenses 1,433 (59) 210
------- ------- -------
Total stock-based compensation $ 1,751 $ (122) $ 211
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