Trikon Technologies Reports Fourth Quarter and Year Ended December 31, 2003 Results; Four Quarters of Sequential Revenue Growth in 2003.Business Editors/High-Tech Writers NEWPORT Newport, town, England Newport, town (1991 pop. 19,758), Isle of Wight, S England. It is also a port and the commercial center of the island, with agricultural markets and light industries (plastics, soft drinks, and woodworking). In the 17th cent. , United Kingdom--(BUSINESS WIRE)--Jan. 29, 2004 Trikon Technologies, Inc. (Nasdaq: TRKN) today reported results for its fourth quarter and year ended December December: see month. 31, 2003. Revenues for the quarter were $9.3 million, a decrease of 21 percent on $11.8 million for the fourth quarter of 2002 and an increase of 11 percent on $8.4 million for the third quarter of 2003. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was $4.9 million, an increase of 9 percent compared to an operating loss of $4.5 million for the fourth quarter of 2002 and level with $4.9 million for the third quarter of 2003. Net loss applicable to common shares for the quarter was $4.0 million, or $0.26 per share, compared to a net loss of $4.1 million, or $0.32 per share in the fourth quarter of the prior year and $5.2 million, or $0.37 per share for the third quarter of 2003. "I am pleased to report an 11 percent sequential increase in quarterly revenues," said Dr. Jihad jihad: see Islam. jihad In Islam, the central doctrine that calls on believers to combat the enemies of their religion. According to the Qur'an and the Hadith, jihad is a duty that may be fulfilled in four ways: by the heart, the tongue, the hand, Kiwan, president and chief executive officer. "This is the fourth quarter in a row we have posted sequential revenue increases and gross margin improvements. Fourth quarter loss per share also improved over the third quarter." Revenues for the year ended December 31, 2003 were $28.8 million, a decrease of 12 percent on $32.8 million for the prior year. Operating loss for the year ended December 31, 2003 was $25.5 million compared to $21.9 million in the prior year. Net loss applicable to common shares for the year ended December 31, 2003 was $24.6 million, or $1.77 per share, compared to a net loss of $19.6 million, or $1.57 per share for the prior year. At December 31, 2003, continuing obligations under the defined benefit pension plan were fully extinguished ex·tin·guish tr.v. ex·tin·guished, ex·tin·guish·ing, ex·tin·guish·es 1. To put out (a fire, for example); quench. 2. To put an end to (hopes, for example); destroy. See Synonyms at abolish. 3. . The charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the closure of the defined benefits pension plan was $3.5 million or $0.25 per share for the year ended December 31, 2003 compared to $0.8 million or $0.07 per share in the prior year. Revenue deferred under the revenue recognition policy increased to $5.1 million as of December 31, 2003 compared to $1.2 million as of December 31, 2002. "Cash balances during the quarter benefited from a private placement of shares, raising approximately $6.5 million net of costs, and the sale of a long empty property for approximately $1.8 million," said Bill Chappell The word Chappell may refer to: Places:
Mr. Chappell continued, "The book to bill ratio for the quarter was 0.73:1 and for the year was 0.94:1, compared to 0.88:1 in the prior year. I expect quarterly book to bill to continue to fluctuate in the first half of 2004 due to the high value/low volume of orders and shipments." "Improvements in semiconductor sales means that many of our existing customers are approaching full capacity," said Dr. Kiwan, president and chief executive officer. "The result is that an increasing part of our order forecast now represents repeat buys of installed systems." "We have now strengthened the sales teams in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia," continued Dr. Kiwan. "In China we appointed a local Chinese sales manager sales manager n → gerente m/f de ventas sales manager n → directeur commercial sales manager sale n → during the quarter to work with our locally based factory support and a strong agent." Dr. Kiwan continued, "We enter 2004 with strong CVD CVD Cardiovascular disease, see there technology positions with both Orion and Flowfill for logic and DRAM production at 90nm and below on 300mm wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. . Orion is an advanced low-k dielectric dielectric (dī'ĭlĕk`trĭk), material that does not conduct electricity readily, i.e., an insulator (see insulation). A good dielectric should also have other properties: It must resist breakdown under high voltages; it should not extendable from k=2.5 down to sub k=2.0 and is in evaluation for production at 90nm and below. Tools are in place in Taiwan and Europe and we are running samples for major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and Asian device makers. We expect to place further tools in North America in 2004." "Flowfill is also finding new applications for advanced gap fill as devices shrink shrink Vox populi noun A psychiatrist and aspect ratios increase," continued Dr. Kiwan. "One such application is for shallow trench isolation Shallow trench isolation (STI) is an integrated circuit feature which prevents electrical current leakage between adjacent semiconductor device components. STI is generally used on CMOS process technology nodes of 250 nanometers and smaller. at 90nm and below for DRAM where existing HDP HDP High Density Polyethylene HDP High Density Plasma HDP Human Dimensions of Global Environmental Change Programme HDP Hazardous Duty Pay HDP Hurricane Destruction Potential HDP Hydrocarbon Dew Point HDP Hard Drive Password solutions run into problems. We are running samples for leading DRAM makers for this application and expect to place evaluation tooling in the second half of 2004. Flowfill is also of interest for pre metal dielectric layers and we have a tool in place for this application in Korea with repeat business expected in 2004." Trikon also reported that Mr. Wertheimer had resigned from Trikon's board as a result of new commitments at W Capital Partners where he is a managing director. Dr. Kiwan said, "On behalf of the Trikon board, I'd like to thank Steve Wertheimer for his five and a half years service as a director. We have benefited enormously from Steve's financial experience during this time. The nominating committee A nominating committee is a group formed usually from inside the membership of an organization for the purpose of nominating candidates for office within the organization. It works similarly to an electoral college, the main difference being that the available candidates, either of the board has now started a process to identify an independent director to fill this vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. ." Dr. Kiwan concluded, "Our strategic sales efforts will help us achieve further placements of evaluation tools during 2004 for advanced silicon applications and I am increasingly confident of an improving business outlook which should lead to increased orders and revenues in 2004." Investor Conference Call and Webcast There will be a conference call at 9:30 am New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of time today, hosted by Dr. Jihad Kiwan, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. to discuss the results for the fourth quarter and year ended December 31, 2003 and the outlook for the first quarter and full year of 2004. A live and subsequently recorded audio webcast of the call will be available at www.trikon.com. About Trikon Technologies Trikon Technologies, Inc. designs, manufactures and services advanced production equipment used to manufacture silicon integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. , compound semiconductor devices and circuits and optical waveguides. These circuits and devices are key components in most advanced electronic products, such as telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. devices, consumer and industrial electronics and computers. More details may be found at Trikon's website www.trikon.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995: This news release contains certain 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. that include, without limitation, statements by Dr. Kiwan and Bill Chappell about Trikon's future book to bill ratio, the manufacturing capacity of Trikon's customers, the improvement in the semiconductor and equipment markets, Trikon's ability to take orders and recognise revenue on repeat orders, the markets acceptance of Orion and Flowfill and Trikon's ability to place evaluation tooling and orders at 90nm design rules and below. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially, including, but not limited to the present economic conditions within the semiconductor capital equipment industry, demand for Trikon's products and services, Trikon's ability to continue to comply with its bank covenants, and possible changes in the company's strategy. Additional factors that may cause actual results to differ are included in the more detailed cautionary statements included in the company's SEC reports, including, without limitation, its 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. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. .
Trikon Technologies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December December
31, 31,
2003 2002
----------------------
Assets
Current assets:
Cash and cash equivalents $ 31,646 $ 42,557
Accounts receivable, net 11,287 8,948
Inventories, net 15,257 20,486
Prepaid and other current assets 4,855 2,671
---------- ----------
Total current assets 63,045 74,662
Property, equipment and leasehold
improvements, net 16,896 19,636
Demonstration systems, net 2,814 2,669
Other assets 374 221
---------- ----------
Total assets $ 83,129 $ 97,188
---------- ----------
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 7,184 $ 4,510
Current portion of long-term debt 11,736 8,651
Deferred revenue 5,075 1,169
Other current liabilities 4,648 5,288
---------- ----------
Total current liabilities 28,643 19,618
Long-term debt less current portion 188 10,717
Pension obligations -- 5,313
Other non-current liabilities 928 1,020
---------- ----------
29,759 36,668
Total shareholders' equity 53,370 60,520
---------- ----------
Total liabilities and shareholders' equity $ 83,129 $ 97,188
========== ==========
Trikon Technologies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
Three Months ended Twelve Months ended
-------------------- ---------------------
December December December December
31, 31, 31, 31,
2003 2002 2003 2002
--------- ---------- ---------- ----------
Revenues:
Product revenues $9,275 $11,797 $28,710 $32,765
License revenues 10 -- 108 50
--------- ---------- ---------- ----------
9,285 11,797 28,818 32,815
Costs and expenses:
Cost of goods sold 6,072 8,845 21,086 24,490
Research and development 2,831 2,640 9,629 10,700
Selling, general and
administrative 5,384 4,522 20,032 18,717
Settlement of pension
liabilities and
related expenses (80) 321 3,542 818
--------- ---------- ---------- ----------
14,207 16,328 54,289 54,725
Loss from operations (4,922) (4,531) (25,471) (21,910)
Foreign currency (losses)
gains 473 411 573 (2)
Interest (expense) income,
net (18) 52 27 112
Other income 474 - 474 -
--------- ---------- ---------- ----------
Loss before income tax
charge (credit) (3,993) (4,068) (24,397) (21,800)
Income tax charge (credit) 49 35 236 (2,165)
--------- ---------- ---------- ----------
Net loss $(4,042) $(4,103) $(24,633) $(19,635)
--------- ---------- ---------- ----------
Loss per share data:
Basic: $(0.26) $(0.32) $(1.77) $(1.57)
Diluted: $(0.26) $(0.32) $(1.77) $(1.57)
Weighted average common
shares used in the
calculation:
Basic: 15,258 12,875 13,928 12,533
Diluted: 15,258 12,875 13,928 12,533
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