SOURCE: Semitool

August 04, 2008 16:05 ET

Semitool Announces Third Quarter Results for Fiscal 2008

Q3 Net Income Improves to $3.4M, or $0.11 per Share, on Revenue of $67.0M; Year-to-Date Net Tool Bookings Up 66% Versus Comparable 2007 Period

KALISPELL, MT--(Marketwire - August 4, 2008) - Semitool, Inc. (NASDAQ: SMTL), a leading manufacturer of wafer processing equipment for the semiconductor industry, today reported financial results for its third fiscal quarter ended June 30, 2008.

Revenue increased 44 percent to $67.0 million versus revenue of $46.6 million in the third quarter a year ago. Gross margin was 48 percent versus 47 percent in the comparable year-ago quarter. Net income increased to $3.4 million, or $0.11 per share, versus breakeven bottom-line results in last year's third quarter.

Semitool reported its fifth consecutive quarter of increased bookings, which improved 33 percent to $67.1 million from $50.6 million in the third quarter last year. Deferred revenue at the end of the third quarter was $17.8 million and shipping backlog was $74.9 million, combining for a total revenue backlog of $92.7 million. Product shipments during the third quarter were $63.8 million.

Larry Murphy, president and chief operating officer, said, "Our strong third quarter bookings were fueled by additional market share gains in Korea and China. We booked more Raiders in these regions during Q3 than we have sold in the last four years combined. The momentum behind our Asian growth strategy continues to build, as roughly 67 percent of our third quarter tool bookings came out of the region. Year-to-date bookings to Asian customers are up 266 percent versus last year."

"Even with the pullback in capital spending among several major device manufacturers, our year-to-date net tool bookings are up 66 percent versus the same period in fiscal 2007," Murphy added. "Demand remains especially strong for wafer-level packaging and copper plating for memory applications."

Through nine months, revenue increased to $178.5 million from $168.0 million at the nine-month mark last year. Net income was $4.8 million, or $0.15 per share, versus $6.7 million, or $0.21 per share, in the comparable year-ago period.

Cash and cash equivalents at June 30, 2008, were $13.9 million. Total current assets were $196.0 million and working capital was $134.1 million. Total shareholders' equity was $175.8 million.

Guidance

Management expects fourth quarter revenue to be in a range of $62 million to $64 million, which would result in full-year revenue of between $240.5 million and $242.5 million. Fourth quarter earnings per share are expected to range from $0.05 to $0.07, which would result in full-year EPS of between $0.20 and $0.22. Fourth quarter shipments are expected to be in a range of $61 million to $62 million.

Conference Call Information

Semitool will host an investor conference call and simultaneous webcast today at 5:00 p.m. Eastern. The call can be accessed by dialing 877-356-3834 (706-679-0445 for international callers) and providing the passcode 56627575. The webcast will be available via the Internet at 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 accessible approximately two hours after the call has ended and will be available until 11:59 p.m. Eastern on August 6, 2008. The replay can be accessed by dialing 800-642-1687 (706-645-9291 for international callers) and entering the passcode 56627575.

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 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 (i) demand for wafer-level packaging and copper plating for memory applications and (ii) financial guidance for the fourth quarter and fiscal year ending September 30, 2008. Also, bookings, deferred revenue, shipping backlog, revenue backlog and product 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 that are discussed in our filings with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and subsequent filings with the SEC. Many factors can adversely affect forecasted financial performance, including cancellations and push-outs, customers' on-site acceptance of our products, unanticipated costs, as well as a number of other risk factors described in our Form 10-K. 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, delays in acceptance and payment for shipped tools, 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 and possible volatility in key markets, including Asia. We assume no obligation to update forward-looking statements that become untrue because of subsequent events.

                              SEMITOOL, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (Amounts in Thousands, Except Per Share Amounts)

                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------- ---------

Net sales                       $  66,973  $  46,606  $  178,523 $ 168,045
Cost of sales                      34,871     24,497      92,177    86,790
                                ---------  ---------  ---------- ---------
Gross profit                       32,102     22,109      86,346    81,255
                                ---------  ---------  ---------- ---------

Operating expenses:
   Selling, general and
    administrative                 19,206     16,050      57,972    54,380
   Research and development         7,917      6,518      21,843    20,265
   Downsizing costs                    --        677          --       677
   Gain on sale of building            --         --          --      (648)
                                ---------  ---------  ---------- ---------
      Total operating expenses     27,123     23,245      79,815    74,674
                                ---------  ---------  ---------- ---------

Income (loss) from operations       4,979     (1,136)      6,531     6,581
Other income (expense), net          (274)      (372)        632      (111)
                                ---------  ---------  ---------- ---------
Income (loss) before income tax     4,705     (1,508)      7,163     6,470
Income tax provision (benefit)      1,271     (1,463)      2,360      (248)
                                ---------  ---------  ---------- ---------

Net income (loss)               $   3,434  $     (45) $    4,803 $   6,718
                                =========  =========  ========== =========


Earnings per share:
   Basic                        $    0.11  $    0.00  $     0.15 $    0.21
                                =========  =========  ========== =========
   Diluted                      $    0.11  $    0.00  $     0.15 $    0.21
                                =========  =========  ========== =========


Weighted average common shares:
   Basic                           32,437     32,074      32,297    32,015
   Diluted                         32,602     32,074      32,494    32,478




                              SEMITOOL, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Amounts in Thousands)

                                                  June 30,    September 30,
                                                    2008          2007
                                                ------------  ------------
                      ASSETS                     (Unaudited)

Current assets:
  Cash and cash equivalents                     $     13,899  $     16,090
  Restricted cash                                        725            --
  Marketable securities                                  380            --
  Trade receivables, net                              74,558        56,999
  Inventories                                         89,028        78,017
  Prepaid expenses and other current assets           17,457        16,875
                                                ------------  ------------
    Total current assets                             196,047       167,981
Property, plant and equipment, net                    47,510        49,148
Other assets, net                                      8,805         9,200
                                                ------------  ------------
      Total assets                              $    252,362  $    226,329
                                                ============  ============

      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Trade accounts payable                        $     16,348  $     12,958
  Other current liabilities                           45,648        31,654
                                                ------------  ------------
    Total current liabilities                         61,996        44,612
Long-term liabilities                                 14,603        12,864
                                                ------------  ------------
    Total liabilities                                 76,599        57,476
                                                ------------  ------------

Shareholders' equity:
  Common stock                                        86,591        83,215
  Retained earnings                                   90,262        86,130
  Accumulated other comprehensive loss                (1,090)         (492)
                                                ------------  ------------
    Total shareholders' equity                       175,763       168,853
                                                ------------  ------------
      Total liabilities and shareholders'
       equity                                   $    252,362  $    226,329
                                                ============  ============

Contact Information

  • Contacts:
    Semitool, Inc.
    Larry Viano
    Chief Financial Officer
    406.752.2107
    Email Contact

    Pfeiffer High Investor Relations, Inc.
    Geoff High
    303.393.7044
    www.pfeifferhigh.com