Equipment Bookings Reach Record $77.3 Million, Up 90 Percent Versus Year-Ago Period; Net Income Advances 60 Percent on 25 Percent Increase in Revenue; Revenue Backlog Reaches $99 Million
KALISPELL, Mont., July 26 /PRNewswire-FirstCall/ -- Semitool, Inc. (NASDAQ:SMTL), a leading manufacturer of wafer processing equipment for the semiconductor industry, today reported financial results for its third fiscal quarter and nine-month period ended June 30, 2006.
Revenue increased 25 percent to $59.1 million versus revenue of $47.4 million in the third quarter last year. Net income advanced 60 percent to $2.4 million, or $0.07 per share, versus net income of $1.5 million, or $0.05 per share, in the third quarter last year.
Total third quarter equipment bookings were a record $77.3 million, up 90 percent versus the same period a year ago, and an improvement of 52 percent compared with bookings in the most recent quarter. Deferred revenue at the end of the period was $14.7 million and shipping backlog was $84.3 million, resulting in a total revenue backlog of $99.0 million. Total shipments during the quarter were $55.5 million.
Larry Murphy, president and chief operating officer, said, "Our bookings performance is a clear indication that our recent efforts to seed the market are having the desired impact. As expected, a substantial portion of our third-quarter orders came as follow-on purchases from customers that have recently adopted our Raider platform. This tool is now a critical production component within many of the world's leading semiconductor fabs. Given the Raider's versatility, ease-of-use and low cost of ownership, we expect demand will continue to build." Murphy said several third-quarter orders were for multiple Raiders. "Two multi-tool orders were placed by memory device manufacturers that will utilize our tools to perform advanced copper-interconnect plating applications. Our technologies and cost advantages have positioned Semitool as the dominant provider of copper-ECD tools to the memory market. We also added three front- end-of-line, single-wafer cleaning customers during the quarter, solidifying our dominant position in the FEOL space.
"Concurrent with our efforts to secure follow-on orders has been a continued focus on capturing new business. These efforts resulted in five first-time Raider orders placed by customers in Germany, Japan, Korea and the United States. We are especially encouraged by the success we have had in the domestic market, as third-quarter U.S. bookings approached an all-time high." Ray Thompson, chairman and CEO, said, "The investments we have made in building our product portfolio are leading to new customer relationships and energizing our global sales force. The strength of our entire company was on display at SEMICON West -- a great show for Semitool. Meetings with leading companies in the semiconductor industry confirmed that we are well positioned on their technology and capacity road maps. This fact was underscored by our record third quarter bookings performance." Through nine months, revenue increased 25 percent to $178.2 million versus $142.6 million during the comparable period a year ago. Net income was $6.0 million, or $0.19 per share, versus $8.9 million, or $0.31 per share, at the nine-month mark in fiscal 2005. Last year's net income results benefited from the receipt of a $2.9 million, or $0.07 per share, payment related to a patent infringement settlement.
At the end of the third quarter, cash, cash equivalents and marketable securities totaled $15.9 million versus $22.5 million at the end of this year's second fiscal quarter. Total shareholders' equity was $156.4 million versus $153.5 million at March 31, 2006.
Guidance Management anticipates fourth quarter 2006 revenue will be in the range of $60 million to $64 million, which would result in full-year revenue of between $238 million and $242 million. Fourth quarter diluted earnings per share are expected to range from $0.07 to $0.10, resulting in full-year diluted earnings per share of between $0.26 and $0.29.
Conference Call Information Semitool will host an investor conference call today at 5:00 p.m. Eastern. The call can be accessed by dialing 800-599-9829 (617-847-8703 for international callers) and entering the passcode 59309435. A simultaneous webcast will be available via the Internet at http://www.semitool.com/. Webcast participants should access the website at least 10 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days. An audio replay will be available from 7 p.m. Eastern on July 26, 2006, until 11:59 p.m. Eastern on July 28, 2006, and can be accessed by calling 888-286-8010 (617-801-6888 for international callers) and entering the passcode 54076088.
About Semitool, Inc.
Semitool designs, manufactures and supports highly engineered, multi- chamber single-wafer and batch wet chemical processing equipment used in the fabrication of semiconductor devices. The company's primary suites of equipment include electrochemical deposition systems for electroplating copper, gold, solder and other metals; surface preparation systems for cleaning, stripping and etching silicon wafers; and wafer transport container cleaning systems. The company's equipment is used in semiconductor fabrication front-end and back-end processes, including wafer level packaging.
Headquartered in Kalispell, Montana, Semitool maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on Nasdaq under the symbol SMTL. For more information, please visit the company's website at http://www.semitool.com/.
Semitool is a registered trademark of Semitool, Inc.
Safe Harbor Statement
The matters discussed in this news release include forward-looking statements, including statements related to future demand for our products; results of efforts to seed our market; our leading position on front end of line single wafer tools; results of our efforts to capture new business; fourth quarter revenue guidance in the range of $60 million to $64 million, resulting in full-year revenue in the range of $238 million and $242 million; and fourth quarter diluted earnings per share guidance in the range from $0.07 to $0.10, resulting in full-year diluted earnings per share between $0.26 and $0.29. Also, bookings, deferred revenue, backlog and shipments are not necessarily an indication of revenue in any future period. These forward- looking statements are based on management's assumptions, estimates and projections as of the date hereof and are subject to risks and uncertainties. Many factors can adversely affect increased demand for our tools and market expansion, including the tools' performance and general market conditions. Also, many factors can adversely affect gross margins and forecasted financial performance, including cancellations and push-backs, delays in customers' on- site acceptance of our products and unanticipated costs. Our business in general is subject to risks that can cause actual results to differ materially from those anticipated in our forward-looking statements, including, without limitation, demand being adversely affected by the cyclicality in the semiconductor industry, the financial condition of our customers, the company's ability to timely deliver and support its products, technological changes that affect our ability to compete, the risks associated with competing on a global basis as well as a number of other risk factors described in our Form 10-K for the fiscal year ended September 30, 2005 and other filings with the Securities and Exchange Commission. We assume no obligation to update forward-looking statements that become untrue because of subsequent events.
(Financial tables follow)
SEMITOOL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Amounts) Three Months Ended Nine Months Ended
June 30, June 30,
2006 2005 2006 2005 Net sales $59,095 $47,405 $178,208 $142,563
Cost of sales 31,455 22,754 96,251 70,413
Gross profit 27,640 24,651 81,957 72,150 Operating expenses:
Selling, general and
administrative 17,992 17,422 54,068 47,832
Research and development 6,186 5,364 18,248 14,632
Total operating
expenses 24,178 22,786 72,316 62,464 Income from operations 3,462 1,865 9,641 9,686
Other income (expense), net 212 135 (310) 3,200
Income before income tax 3,674 2,000 9,331 12,886
Income tax provision 1,323 532 3,359 3,938 Net income $2,351 $1,468 $5,972 $8,948 Earnings per share:
Basic $0.07 $0.05 $0.19 $0.31
Diluted $0.07 $0.05 $0.19 $0.31 Weighted average common
shares:
Basic 31,906 28,719 30,924 28,702
Diluted 32,230 29,133 31,281 29,099 SEMITOOL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands) June 30, September 30,
2006 2005
ASSETS Current assets:
Cash and cash equivalents $15,864 $6,557
Marketable securities -- 475
Trade receivables, net 53,524 42,165
Inventories 88,968 72,294
Prepaid expenses and other current assets 14,083 13,769
Total current assets 172,439 135,260
Property, plant and equipment, net 41,292 35,558
Other assets, net 9,929 7,862
Total assets $223,660 $178,680 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Trade accounts payable $18,902 $19,153
Other current liabilities 41,184 32,487
Total current liabilities 60,086 51,640
Long-term liabilities 7,222 6,619
Total liabilities 67,308 58,259 Shareholders' equity:
Common stock 79,984 49,853
Retained earnings 77,035 71,063
Accumulated other comprehensive loss (667) (495)
Total shareholders' equity 156,352 120,421
Total liabilities and
shareholders' equity $223,660 $178,680
DATASOURCE: Semitool, Inc.
CONTACT: Larry Viano, Chief Financial Officer of Semitool, Inc., +1-406-752-2107, ; or Geoff High of Pfeiffer High Investor Relations, Inc., +1-303-393-7044, for Semitool, Inc.
Web site: http://www.pfeifferhigh.com/ Web site: http://www.semitool.com/
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