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 Press Release Asyst Technologies Reports Results for Fiscal Fourth Quarter
FREMONT, Calif., May 10, 2005 – Asyst Technologies, Inc., (Nasdaq NM: ASYT), a leading provider of integrated automation solutions that enhance semiconductor and flat panel display manufacturing productivity, today announced consolidated financial results for its fiscal fourth quarter ended Mar. 31, 2005. Consolidated net loss for the fiscal fourth quarter on a GAAP basis was $2.9 million, or $(0.06) per share. This compares with a GAAP net loss of $11.6 million, or $(0.24) per share, in the fiscal third quarter. The non-GAAP net loss for the fiscal fourth quarter was $2.5 million, or $(0.05) per share, compared with a non-GAAP net loss of $1.7 million, or ($0.04) per share, in the fiscal third quarter. A table reconciling GAAP operating results to non-GAAP operating results is provided as part of this release. Consolidated net sales for the fiscal fourth quarter were $142.1 million, down 12% from $161.4 million in the prior sequential quarter. Net sales for the fiscal fourth quarter at Asyst Shinko, Inc. (ASI), the company’s 51%-owned joint venture with Shinko Electric Co., Ltd., were $102.9 million, compared with $109.3 million in the fiscal third quarter. Net sales for the fiscal fourth quarter at ATI were In the fiscal fourth quarter, consolidated gross margin was 24%, up from 18% in the fiscal third quarter. Gross margin at ASI was 19%, up from 10% in the fiscal third quarter, as a result of significantly higher margin sales mix and better management of project costs. Gross margin at ATI was 38%, up from 34% in the fiscal third quarter, despite a 25% decrease in sales. The gross margin improvement at ATI in the fiscal fourth quarter is attributable to the company's continuing manufacturing cost reduction programs. Total net bookings for the fiscal fourth quarter were $130 million, which compares with $154 million in the prior sequential quarter. Bookings at ASI were $86 million, essentially all related to semiconductor AMHS. ATI bookings in the quarter were $44 million. “We achieved significant improvements in gross margin at both ASI and ATI despite declining sales in both businesses,” said Steve Schwartz, chairman and CEO. “As a result of focused efforts by ATI and ASI to improve account and project management, we have steadily improved the profitability of our AMHS business. At ATI, we continued to reduce both variable and fixed costs in our outsourced manufacturing model. ATI's 38% gross margin in the fourth quarter exceeded our performance in the June quarter of 2004, our peak ATI quarter in the most recent upturn, and we accomplished the higher margin on essentially half the sales volume. This margin performance, combined with our strong and improving customer satisfaction metrics, confirms our belief that we have a solid leveraged manufacturing model that can efficiently handle more volume and additional products." Schwartz continued, “We more than doubled our sales in fiscal 2005, led by growth in flat panel and by a 75% increase in our semiconductor business. According to third-party sources, this led to a 31% share in our semiconductor served market in calendar 2004, which is a full 8% increase over our 23% share in calendar 2003. With what we believe are the industry's best products, a strong service and support footprint, solid operational capability and growing market share, we are well positioned in the marketplace. We also are confident that our improved margin performance is sustainable." Outlook For the fiscal first quarter ending June 2005, the company provided the following guidance. This guidance is forward-looking, and actual results may differ materially:
As announced in the company’s press releases of Dec. 20, 2004, and Feb. 3, 2005, management has concluded that its filing delay for the second quarter of fiscal 2005 and its restatement of fiscal 2005 first quarter results constitute material weaknesses in the company's internal control over financial reporting. The company is continuing to devote substantial resources to timely improving its internal control; however management has not completed its assessment of internal control as of the fiscal year ending Mar. 31, 2005, and may not be able to complete this assessment by the time the company's Form 10-K is filed in June 2005. Management currently expects to conclude that internal control was not effective as of the fiscal year ended Mar. 31, 2005, due to material weaknesses that existed at that date.
About Our Non-GAAP Operating Results and Adjustments To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Our non-GAAP net income (loss) gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of amortization of acquisition-related intangibles, restructuring and impairment charges, costs related to events outside the normal course of business, and other non-cash charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP. About AsystAsyst Technologies, Inc. is a leading provider of integrated automation solutions that enable semiconductor and flat panel display (FPD) manufacturers to increase their manufacturing productivity and protect their investment in materials during the manufacturing process. Encompassing isolation systems, work-in-process materials management, substrate-handling robotics, automated transport and loading systems, and connectivity automation software, Asyst’s modular, interoperable solutions allow chip and FPD manufacturers, as well as original equipment manufacturers, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst’s homepage is http://www.asyst.com Conference Call DetailsA live webcast of the conference call to discuss the quarter’s financial results will take place today, May 10, 2005, at 5:00 p.m. Eastern Time. The webcast will be publicly available on Asyst’s website at http://www.asyst.com and accessible by going to the investor relations page and clicking on the “webcast” link. For more information, including this press release, any non-GAAP financial measures that may be discussed on the webcast as well as the most directly comparable GAAP financial measures and a reconciliation of the difference between those GAAP and non-GAAP financial measures, as well as any other material financial and other statistical information contained in the webcast, please visit Asyst’s website at www.asyst.com. A replay of the Webcast may be accessed via the same procedure. In addition, a standard telephone instant replay of the conference call is available by dialing (303) 590-3000, followed by the passcode 11028179#. The audio instant replay is available from May 10 at 7:00 p.m. Eastern Time through May 24 at 11:59 p.m. Eastern Time. “ Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to: uncertainties related to the timing and magnitude of charges relating to restructuring activities; the failure to complete, at all or in a timely, efficient or cost-savings manner, planned restructuring activities and outsourcing programs; uncertainties in operations and the possibility of management and employee changes at ASI that may adversely impact ASI operations, customer relations and completion of customer projects; the possibility that previously disclosed matters within ASI comprising a material weakness in the company’s internal control over its consolidated financial reporting could prevent the company from timely meeting its future reporting requirements, including timely certification under Section 404 of the Sarbanes-Oxley Act of 2002; the possibility that the company’s failure to timely meet its future reporting requirements, including timely certification under Section 404 of the Sarbanes-Oxley Act of 2002, could result in proceedings being initiated against the company, including possible de-listing of the company’s common stock from trading on the Nasdaq National Market; the volatility of semiconductor industry cycles; our ability to achieve forecasted revenues and maintain and improve gross margins through outsourced manufacturing, reduced operating expenses, and improved management of cash flows (and the timing and degree of any such improvements in gross margins, reductions in operating expenses and management of cash flows); failure to respond to rapid demand shifts; dependence on a few significant customers; the transition of the industry from 200mm wafers to 300mm wafers and the timing and scope of decisions by manufacturers to transition and expand fabrication facilities; continued risks associated with the acceptance of new products and product capabilities; the risk that customers will delay, reduce or cancel planned projects or bookings and thus delay recognition or the amount of our anticipated revenue; competition in the semiconductor equipment industry and specifically in AMHS; failure to integrate in an efficient and timely manner acquired companies and to complete planned restructuring and outsourcing programs; failure to retain and attract key employees; and other factors more fully detailed in the company’s annual report on Form 10-K for the year ended Mar. 29, 2004, and quarterly reports on Form 10-Q and 10-Q/A filed with the Securities and Exchange Commission. Asyst is a registered trademark of Asyst Technologies, Inc. Asyst Shinko is a registered trademark of Asyst Shinko, Inc. All Rights Reserved.
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)
March 31, March 31,
2005 2004
------------- ------------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $ 101,180 $ 117,860
Restricted cash and cash equivalents - 1,904
Accounts receivable, net 189,790 147,939
Inventories 29,785 27,694
Prepaid expenses and other 30,448 14,276
------------- ------------
Total current assets 351,203 309,673
------------- ------------
LONG-TERM ASSETS:
Property and equipment, net 15,458 22,868
Goodwill 69,614 71,973
Intangible assets, net 40,898 65,778
Other assets 4,795 3,317
------------- ------------
Total long-term assets 130,765 163,936
------------- ------------
Total assets $ 481,968 $ 473,609
============= ============
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and notes payable $ 20,563 $ 18,161
Current portion of long-term debt and
capital leases 2,757 2,775
Accounts payable 123,155 109,910
Accrued liabilities 66,323 48,571
Deferred revenue 6,013 2,683
------------- ------------
Total current liabilities 218,811 182,100
------------- ------------
LONG-TERM LIABILITIES:
Convertible notes 86,250 86,250
Other long-term debt and capital leases,
net of current portion 2,662 4,824
Other long-term liabilities 22,519 33,530
------------- ------------
Total long-term liabilities 111,431 124,604
------------- ------------
MINORITY INTEREST 62,850 63,796
------------- ------------
SHAREHOLDERS' EQUITY: 88,876 103,109
------------- ------------
Total liabilities, minority interest and
shareholders' equity $ 481,968 $ 473,609
============= ============
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share data)
Three Months Ended Fiscal Years Ended
-----------------------------------------
Mar 31, Mar 31, Mar 31, Mar 31,
2005 2004 2005 2004
-----------------------------------------
NET SALES $ 142,050 $ 130,137 $ 611,464 $ 301,642
COST OF SALES 107,504 103,978 486,241 248,453
--------- --------- --------- ---------
Gross profit 34,546 26,159 125,223 53,189
--------- --------- --------- ---------
OPERATING EXPENSES:
Research and development 7,464 9,157 34,701 36,376
Selling, general and
administrative 21,985 19,267 83,970 70,541
Amortization of acquired
intangible assets 5,258 5,326 20,436 20,160
Restructuring and other
charges 55 (12) 1,758 6,581
Asset impairment charges - - 4,645 6,853
--------- --------- --------- ---------
Total operating expenses 34,762 33,738 145,510 140,511
--------- --------- --------- ---------
Operating loss (216) (7,579) (20,287) (87,322)
Other expense, net (513) (2,042) (1,577) (6,635)
--------- --------- --------- ---------
Loss before benefit from
income taxes and minority
interest (729) (9,621) (21,864) (93,957)
BENEFIT FROM INCOME TAXES 762 1,648 3,311 6,150
MINORITY INTEREST (2,892) 272 (67) 4,358
--------- --------- --------- ---------
NET LOSS $ (2,859)$ (7,701)$ (18,620)$ (83,449)
========= ========= ========= =========
---------------------------------------
BASIC AND DILUTED NET LOSS
PER SHARE $ (0.06)$ (0.16)$ (0.39)$ (2.00)
========= ========= ========= =========
SHARES USED IN THE PER SHARE
CALCULATION 47,678 47,020 47,441 41,805
============================== ========= ========= ========= =========
ASYST TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(Unaudited; in thousands, except per share data)
Three Months Ended
------------------
Mar 31, 2005 Dec 25, 2004
--------------------------------
GAAP net loss $(2,859) $(11,644)
Adjustments:
Stock based compensation expense 566 205
Professional fees related to ASI - 1,720
Amortization of intangible assets 5,258 5,086
Restructuring charges 55 1,116
Asset impairment charges - 4,645
Release of deferred tax valuation
allowance (2,161) -
Income tax benefit relating to
amortization of intangible assets (2,508) (1,699)
Minority interest relating to the
ASI adjustments above (839) (1,151)
------- --------
Non-GAAP net loss $(2,488) $ (1,722)
======= ========
Basic and diluted non-GAAP net loss
per share $ (0.05) $ (0.04)
Shares used in the per share
calculation - basic and diluted 47,678 47,553
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited; in thousands, except per share data)
Three Months Ended March 31, 2005
---------------------------------
Consolidated
ATI ASI Under GAAP
-------- --------- ------------
SUPPLEMENTAL STATEMENT OF OPERATIONS
NET SALES $ 39,153 $ 102,897 $ 142,050
COST OF SALES 24,183 83,321 107,504
------- -------- --------
Gross profit 14,970 19,576 34,546
------- -------- --------
OPERATING EXPENSES:
Research and development 5,327 2,137 7,464
Selling, general and administrative 16,200 5,785 21,985
Amortization of acquired intangible
assets 1,037 4,221 5,258
Restructuring charges 55 - 55
------- -------- --------
Total operating expenses 22,619 12,143 34,762
------- -------- --------
Operating income (loss) (7,649) 7,433 (216)
Other income (expense), net (742) 229 (513)
------- -------- --------
Income (loss) before (provision for)
benefit from income taxes and
minority interest (8,391) 7,662 (729)
(PROVISION FOR) BENEFIT FROM INCOME
TAXES 2,628 (1,866) 762
MINORITY INTEREST - (2,892) (2,892)
------- -------- --------
NET INCOME (LOSS) $ (5,763) $ 2,904 $ (2,859)
======= ======== ========
Basic net income (loss) per share $ (0.12) $ 0.06 $ (0.06)
Diluted net income (loss) per share $ (0.12) $ 0.06 $ (0.06)
Shares used in the per share
calculation - basic 47,678 47,678 47,678
Shares used in the per share
calculation - diluted 47,678 47,924 47,678
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