Therma-Wave Announces Fiscal Fourth Quarter and Fiscal Year 2002 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 30, 2002 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 ended March 31, 2002, in line with management's previous guidance. Revenue for the fiscal fourth quarter 2002 was $13.2 million, compared with revenue of $53.8 million for the fiscal fourth quarter 2001. Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , net revenue increased 19.1% from the $11.1 million reported for the fiscal third quarter ended December December: see month. 31, 2001. During the fiscal fourth quarter 2002, Therma-Wave completed the acquisition of 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. Instruments Corporation. Excluding Sensys, revenue increased by 11.9% from the fiscal third quarter. Net revenue for fiscal year 2002, ended March 31, 2002 totaled $83.7 million compared with full year revenue of $198.2 million for fiscal year 2001. The Company recorded a net loss for the fiscal fourth quarter 2002 of $40.5 million or $(1.47) 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 net income of $4.7 million or $0.19 per diluted share for the fiscal fourth quarter of 2001. Net loss for fiscal 2002 was $48.2 million or $(1.94) per diluted share compared to net income of $25.8 million or $1.27 per diluted share for full year fiscal 2001. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. and 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. , pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the fiscal fourth quarter 2002 was $11.2 million or $(0.41) per diluted share compared to pro-forma net income of $9.4 million or $0.38 per diluted share in the year ago period. Pro forma net loss for the full fiscal year 2002 was $18.6 million or $(0.75) per diluted share. Current quarter results include one-time and non-cash charges related to the acquisition of Sensys Instruments of $16.4 million for the write off of in-process research and development and $0.8 million amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . Also included is $12.2 million recorded as reserves for obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. and excess inventory and $1.1 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 force. Inventory reserves were increased in conjunction with the Company's plans and expectations for the phase out of older products, primarily 200mm. Full year net loss includes an additional $0.4 million for employee severance costs. Cash and 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. investments totaled $59.1 million as of March 31, 2002, down from $70.0 million reported for December 31, 2001. The reduction was due mostly to low shipments, plus over $4.0 million paid out for one-time or annual items, including $1.9 million in costs related to the Sensys acquisition and $0.8 million in severance and related costs. These factors were partly off set by over $3.0 million in favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. working capital changes, excluding non-cash reserve adjustments. Management Review "Fiscal 2002 presented a series of unprecedented challenges for our industry and the global economy," said Martin Schwartz Schwartz is a Canadian spices brand. It is also a common surname and may refer to:
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. could not insulate in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. us from the dramatic decline and it is reflected in our fiscal year financial results. However, we are encouraged by the increase in revenues last quarter compared with the prior quarter that we have seen the bottom of the downturn and are slowly returning to better conditions. "We completed our acquisition of Sensys Instruments in January January: see month. 2002 and the integration with Therma-Wave is proceeding as planned," continued Mr. Schwartz. "The synergies from this acquisition are becoming increasingly apparent, both financially and operationally. We also introduced our new Opti-Probe RT/CD(TM), advanced real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. optical CD metrology product early in the quarter, and continued to ship our new Opti-Probe 7000 series thin film tools during the quarter. We are extremely pleased with the initial market reaction to both of these new products. "We continued to strengthen our presence in 300mm at leading IC manufacturers and over 40% of all systems bookings in our fiscal fourth quarter 2002 were for 300mm tools," stated Mr. Schwartz. Guidance "We are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the recovery has begun. At this time we believe bookings will be solidly in excess of a one to one book to bill ratio in our first fiscal quarter of 2003, building on momentum already seen in the quarter just ended. Revenue is expected to grow more slowly in the short term, in part due to accounting rules that require that we delay revenue recognition on shipment of new products such as our Opti-Probe 7000 series thin film tools, but we still expect revenues to be at least flat to up 10% in our first fiscal quarter of 2003." Conference Call Information Therma-Wave, Inc. will hold a conference call to review financial results and ongoing operations at 8:30 a.m. Pacific Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time, Tuesday Tuesday: see week. , April 30, 2002. Participating in the call will be Martin Schwartz, 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, 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., you can access the Therma-Wave Web page at www.thermawave.com. Note to Editors: Opti-Probe, Therma-Probe and RT/CD are registered trademarks of Therma-Wave, Inc. or its subsidiaries in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries. 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. All financial information provided is preliminary and subject to change following completion of final accounting for the quarter and fiscal year and the independent audit of our records. Such statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our orders and revenues, trends in our financial performance, outlook, new products and the favorable market reaction to those products 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 31, 2001 and subsequent Form10-Q's. The Company undertakes no obligation to update the information in this press release.
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(1)
(in thousands)
March 31, March 31,
2002 2001
Assets
Current assets:
Cash and short-term investments $ 59,059 $ 75,575
Accounts receivable, net 16,585 43,348
Inventories 33,838 47,181
Other current assets 3,427 3,925
---------- ----------
Total current assets 112,909 170,029
Property and equipment, net 14,041 14,478
Goodwill and intangible assets, net 70,096 --
Other assets 6,549 6,684
---------- ----------
Total assets $ 203,595 $ 191,191
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 6,297 12,547
Deferred revenue 8,683 17,096
Other current liabilities 16,008 30,537
---------- ----------
Total current liabilities 30,988 60,180
Long term debt and other 4,200 1,929
Stockholders' equity 168,407 129,082
---------- ----------
Total liabilities and
stockholders' equity $ 203,595 $ 191,191
========== ==========
(1) Amounts as of March 31, 2002 are unaudited. Amounts as of March
31, 2001 are from the March 31, 2001 audited financial statements.
THERMA-WAVE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Twelve Months
Ended Ended
March 31, March 31,
2002 2001 2002 2001
Net revenues $ 13,163 $ 53,759 $ 83,697 $198,199
Cost of revenues 23,489 29,280 66,266 101,421
--------- --------- --------- ---------
Gross profit (10,326) 24,479 17,431 96,778
Operating Expenses:
Research and
development 7,965 8,405 29,122 33,881
Selling, general and
administrative 5,871 7,570 21,713 28,239
In process research and
development writeoff 16,340 -- 16,340 --
Severance charges 1,063 1,700 1,470 1,700
Stock compensation and
warrant expense 536 -- 536 --
--------- --------- --------- ---------
Total operating
expenses 31,775 17,675 69,181 63,820
--------- --------- --------- ---------
Operating income (loss) (42,101) 6,804 (51,750) 32,958
Other income (expense) 450 (1,733) 2,342 1,196
--------- --------- --------- ---------
Income (loss) before
provision for income
taxes (41,651) 5,071 (49,408) 34,154
Provision (Benefit) for
income taxes (1,120) 327 (1,120) 2,025
--------- --------- --------- ---------
Income (loss) before
cumulative effect of
change in accounting
principle (40,531) 4,744 (48,288) 32,129
Cumulative effect of
change in accounting
principle -- -- -- (6,287)
--------- --------- --------- ---------
Net income (loss) $(40,531) $ 4,744 $(48,288) $ 25,842
========= ========= ========= =========
Basic income (loss)
per share:
Income (loss) before
cumulative effect of
change in accounting
principle $ (1.47) $ 0.20 $ (1.94) $ 1.37
Cumulative effect of
change in accounting
principle -- -- -- (0.27)
--------- --------- --------- ---------
Net income (loss)
per basic share $ (1.47) $ 0.20 $ (1.94) $ 1.10
========= ========= ========= =========
Diluted income (loss)
per share:
Income (loss) before
cumulative effect of
change in accounting
principle $ (1.47) $ 0.19 $ (1.94) $ 1.27
Cumulative effect of
change in accounting
principle -- -- -- (0.25)
--------- --------- --------- ---------
Net income (loss)
per diluted share $ (1.47) $ 0.19 $ (1.94) $ 1.02
========= ========= ========= =========
Weighted average number
of shares outstanding:
Basic 27,497 23,446 24,894 23,370
Diluted 27,497 25,116 24,894 25,387
THERMA-WAVE, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Three Months Ended
March 31, 2002 March 31, 2001
-------------------------- --------------------------
Pro Forma Pro Forma
-------------------- --------------------
GAAP Adjustments Results GAAP Adjustments Results
Net
revenues $ 13,163 $ 13,163 $ 53,759 $ 53,759
Cost of
revenues 23,489 (12,217)(A) 29,280
(18)(B)
(239)(C) 11,015 29,280
-------- -------- -------- --------
Gross
profit (10,326) 2,148 24,479 24,479
Operating
expenses:
Research
and
develop-
ment 7,965 7,965 8,405 8,405
Selling,
general
and admin-
istrative 5,871 5,871 7,570 7,570
In process
research
and
develop-
ment 16,340 (16,340)(D) -- -- --
Severance
charges 1,063 (1,063)(E) -- 1,700 (1,700)(G) --
Stock
compen-
sation
and
warrant
expense 536 (536)(B) -- -- --
-------- -------- -------- --------
Total
operating
expenses 31,775 13,836 17,675 15,975
-------- -------- -------- --------
Operating
income
(loss) (42,101) (11,688) 6,804 8,504
Other income 450 450 (1,733) 3,000(H) 1,267
-------- -------- -------- --------
Income
(loss)
before
provision
for
income
taxes (41,651) (11,238) 5,071 9,771
Provision
(Benefit)
for income
taxes (1,120) 1,120(F) -- 327 327
-------- -------- -------- --------
Net income
(loss) $(40,531) $(11,238) $ 4,744 9,444
======== ======== ======== ========
Net income
(loss)
per share:
Basic $ (1.47) $ (0.41) $ 0.20 $ 0.40
Diluted $ (1.47) $ (0.41) $ 0.19 $ 0.38
Weighted
average
number
of shares
out-
standing:
Basic 27,497 27,497 23,568 23,568
Diluted 27,497 27,497 24,810 24,810
(A) Charge associated with additional inventory reserves for obsolete
and excess inventory.
(B) Non-cash expenses associated with certain stock options and
warrants assumed as part of our acquisition of Sensys Instruments
Corporation ("Sensys").
(C) Non-cash expenses for the amortization of intangible assets
recorded in connection with our acquisition of Sensys.
(D) Non-cash expenses to reduce the carrying values of intangible
assets, classified as in-process research and development,
recorded in connection with our acquisition of Sensys, to their
estimated fair values.
(E) Severance and related costs resulting from our reductions in
workforce. These expenses have been excluded since they occur
infrequently and are not directly attributable to our current
period operations.
(F) Tax benefit from carry-back of net operating loss. This benefit
has been excluded because it is due to the temporary change in tax
law allowing net operating loss carry-back up to 5 years.
(G) Severance charges associated with the retirement of Chairman of
the Company. These expenses have been excluded since they occur
infrequently and are not directly attributable to the period
presented.
(H) Charges associated with the settlement of lawsuits. These expenses
have been excluded since they occur infrequently and are not
directly attributable to the period presented.
The above pro forma financial statements Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. are presented for informational purposes only. Our presentation of pro forma financial information excludes non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) resulting from acquisitions or the issuance of stock options, as well as unusual or infrequent in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. expenses that are not directly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to our ongoing operations. Because of these exclusions exclusions, n.pl the dental services not covered under a dental benefits program. , our presentation is not 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 Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Additionally, our presentation of pro forma financial information may not be consistent with that of other companies. Since we do not evaluate items such as amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , stock-based compensation and other non-cash or infrequent or unusual items when assessing the performance of our ongoing operations or when allocating resources, we believe our presentation of pro forma information provides useful and meaningful information to investors. In addition, we believe that the exclusion of intangible charges helps the investor better understand the use of tangible resources in our operations, as well as our liquidity position, and the exclusion of unusual or infrequent items helps the investor evaluate our underlying performance. Pro forma information is not, and should not be considered, a substitute for financial information prepared in accordance with GAAP. |
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